The Markets
- You cannot ignore it. Revenues are falling, forecasts are dim and/or vague, earnings only OK after being dumbed down already. The corporate world is not knocking the sock off the ball. But one cannot ignore a growing appetite for risk. After initially falling this morning, shares were bid up all afternoon until the last fifteen minutes. Then they got pounded pretty hard. After today’s close we get another onslaught of companies reporting so there is no telling how the after-market will sort out.
- Bonds had one of their worst days in months today as traders abandoned the safe haven and bought stocks.
- Morgan Stanley puked their earnings (or lack of them) report yet financial stocks sprouted wings and levitated over all. And, why MS wants to buy a bank is beyond me. This is probably a great time to start a bank but why would MS buy suspect assets?
- Freeport-McMoran Copper & Gold (FCX) reported a 95% (!) decline in earnings for the quarter. The shares advanced 3%! (I own the preferred, FCXprM)
- I finally bit the bullet and bought OHI, the nursing home REIT, and fear I made a mistake. The stock is up big over the last several days and refused to come into my target. When I chase shares the market makers seemingly know this: “Aha! Hey, you guys, TrickyRicky just bought OHI. I’m going to short the crap out of it! OMG, knowing when Ricky chases stocks is a license to steal!. Yeehaw!”
- On Monday I had a long conversation with a neighbor. He has been diagnosed with prostate cancer and has chosen a treatment modality I had never heard of. Proton therapy. I am just learning about it and it sounds fascinating. Evidently, the machine shoots protons directly at the targeted cancer; you have five treatments a week for six to eight weeks. I won’t bore you or make you quessy by describing the patient prep. The machine used is, in effect, a particle accelerator similar to those at CERN in Switzerland and in Illinois. Much smaller, of course. The treatment device gets the proton going almost to the speed of light and aims these suckers at the cancer, right down to the cell. There is little after-effect. Treatments cost from $125,000 to $200,000 and about 100 patients can be treated per day. I figure hospitals will want to install these potentially money-making devices; they are large, at least a football field. That’s about the extent of my knowledge but it was enough for me to buy Varian Medical (VAR) the manufacturer. I don’t even know how much Varian earns (if anything) on these devices but it is so interesting to me I want to be on their shareholder list. And, I want to show support for my friend. He is waiting to hear from Mass General; they select candidates on a myriad of criteria. So, I bought a few shares. I’ll go to the library tomorrow and read up. Not exactly “investigate, then invest”, eh? You can read more here: Overview
- Enjoy NASA’s shuttle? Check this out. View as slideshow
I was blown off the golf course. Ernie and I hacked for fourteen holes when we both, at the same time, wondered aloud what we were doing out. The wind made the mid-60’s temps colder and we both donned our golf shirts. At one point my hat went flying and we gave up.
Have a terrific evening!
