In today’s Trader section of Barron’s Sandra Ward discusses FTI Consulting (FCN) and makes a case for the company. Quoted is our son:”Tobey Sommer, an analyst at SunTrust Robinson Humphrey, also sees opportunities for FTI’s recently acquired real-estate practice “to assist builders in deciding whether to finish, mothball or liquefy works in progress,” he notes.’ Pretty slick seeing your son quoted. When I called to congratulate him he yawned and said he was about to take a nap, talk later.
While in Barron’s I ran through their annual Round Table. Here they have eight aging seers who have seen their best days. Money managers can have about three good years in a row, in my opinion. After that they miss something, usually something large, like the direction of the economy or markets. Why we listen to these Barron’s clowns is a mystery. Other than Marc Faber they all had miserable years. Last year these ten has-beens recommend six to ten ideas each. That they cannot change the names for twelve months does seem a little unfair but they agreed to do the Round Table. Mario Gabelli gets the boobie prize with Lin TV, down 90.5%. Ninety percent! His next worst was A&P, down 78.5%! Art Samburg, supposedly the guru of tech hedge funds killed ’em. Not one winner among eight picks. His ideas ranged from -3.2% to -85.1%. Even the worshiped Bill Gross was down -6.2% to -56% And he was recommending income funds and bonds! The guy is a billionaire, gets up early to appear on CNBC, works hard, has the world’s best advice any time he wants it and he cannot get it right. Faber was best because he recommended shorting everything. His best pick was to short Dry Ships, an 85% gain. Faber’s market letter costs $200 and I will probably subscribe. GloomBoomDoom.com
Jim McTague covers Washington DC for Barron’s. You should read this. Excerpt: “….the economy needs help, but not this much. About $500 billion of Obama’s plan strikes me as a bribe for our adulation. Obama is hobbled by this Achiles heel: He wants to be liked and to be president at the same time–and so he promised all things to all people…..launching billions of dollars’ worth of projects over two years is insane. Government can’t responsibly manage the work.” McTague then goes on the cite the Big Dig; “it was supposed to cost $2 billion, but ended up costing seven times as much.”
Now, with growing Democratic backlash to Obama’s bailout program I am worried he may be peaking too soon.
