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Monthly Archives: May 2010

How the Smart Money Bets

May 20, 2010
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How the Smart Money Bets

“The race is not always to the swift, nor the battle to the strong, but that’s how the smart money bets.”–Damon Runyon Like most really good quotations, Damon Runyon’s memorable reworking of Ecclesiastes 9:11 exists in a bunch of different versions.  It’s one of my favorites in the cynical, wised-up style, taking an original bubble of sentiment that basically says, “You can do anything!” and puncturing it with a jab of common sense. Runyon was a sportswriter and a lifelong gambler, so his use of “smart money” was no accident.  The slightly shady characters he wrote about–the ones that...

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Fuel Systems (FSYS): A Green Stock for the Watch List

May 19, 2010
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Fuel Systems (FSYS): A Green Stock for the Watch List

Last Wednesday, U.S. Senators John Kerry and Joe Lieberman introduced their American Power Act. Because I have two kids under three-years-old and therefore need no assistance whatsoever to fall asleep at night, I’ve barely waded into the 987-page bill. But thanks to a colleague at the excellent renewable energy news blog ThePhoenixSun, I was able to read a staff-only internal 21-page summary of the bill. Found in its pages: Despite the ongoing BP disaster, Kerry and Lieberman stick with the new plan for offshore drilling on areas of the coasts previously off limits; it calls for a speeding up...

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The Scope of the Gulf Disaster

May 18, 2010
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The Scope of the Gulf Disaster

As of this morning, BP’s uncapped wellhead one mile below the surface of the Gulf of Mexico has spewed somewhere between 135,000 barrels of oil (using the official estimate of 5,000 barrels per day) and 1.62 million barrels of oil (according to a 60,000 bpd estimate by Austin-based research firm Stratfor) into the Gulf of Mexico. Just how much oil is that? Somewhere between 5.7 million and 68 million gallons, the latter enough to fuel the entire war efforts in Iraq and Afghanistan for a month. The Exxon Valdez, by comparison, released 250,000 barrels of oil, which ended up...

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A Surprisingly Strong Stock: Owens Corning (OC)

May 17, 2010
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A Surprisingly Strong Stock: Owens Corning (OC)

At this point, of course, all the market has done is bounce.  So my main focus is on finding those stocks that (a) weren’t beheaded during last week’s decline and (b) have rebounded the strongest, and on the best volume, during the past few days.  Surprisingly, many stocks fit my criteria. There are the usual suspects, like Apple (AAPL), Baidu (BIDU) and Netflix (NFLX), all of which are performing very well.  There are some others, like F5 Networks (FFIV), Salesforce.com (CRM) and VMware (VMW), that have good growth stories and have jumped nicely this week. But the one I’m...

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A Bright Spot in the Recession

May 16, 2010
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An article in the New York Times this week reported on the surge in education after the Great Depression. The article said, “In 1930, only 30 percent of teenagers graduated from high school. By 1940, after a decade in which there often was nothing better to do than stay in school, the number had jumped to 50 percent.” The article went on to say, “In a historical echo, the share of young adults in recent years who graduated from college happened to be about 30 percent.” Longtime readers of our publications know that we’ve been discussing the growing pro-profit...

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