Insomniac Hedge Fund Guy

”m buying Dell

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Dell is cheap, insider buying, and the rumored possibility Michael Dell may take the company private although that makes no sense to me unless he is just fed up answering investor questions.    I think Dell is a cash cow and you can make more money with Dell over the next six months than Apple.  I personally run Windows on Apple computers and will not buy a Dell but if I had to buy a computer for an employee,much less 20,000 computers, I’d reconsider that.  What you like and what you can make money with are often two very different things.

We are playing a rather large amount of BAC options

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This is a trade we are watching closely.  We are also long BAC.  There is nothing we can add to the story, it’s too well documented.  There is a lot of insider buying at prices a little up for here and the news has been so bad, anything short of bad news could move this behemoth.  Slowly, though, this is like moving a battleship.

Muni bond debacle

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Muni bonds in the last three weeks have fallen out of bed. Normally I disdain these investments but we are nibbling at multiple Invesco Van Kampen funds yielding an amazing 8%. Symbols include VMO,VGM, VIM, VKI, and VCV. We expect to not only pick up the units dividend on 12-12, we expect to make some short term capital gains from these very depressed levels.  The long bond has fallen dramatically on prospects of economic improvement.  This may be the correct interpretation but we think the muni market has taken a disproportionate hit.  It’s of course not immune from rising rates but … Read more

The Euro Collapse or Evolution?

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It almost seems a certainty that a run on the bank is taking place.  This particular run is the wholesale repudiation of the sovereign debts of the PIGS, Portugal, Ireland, Greece, and Spain.  Where this ultimately ends seems to have a great significance.  Does it come back home to roost and result in interest rates rising dramatically in the U.S.?  That’s the big question, isn’t it?  There are only a few ways that this author can imagine.  Which scenario is most likely? Eurodollar continues to weaken as one after another country’s debt comes under attack.  If the EUCB continues to … Read more

Bank Stocks

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They looked oversold and we have been nibling at them making a little money, losing a little money. Yesterday as soon as the WSJ broke a story about the Fed allowing them to start offering dividends again, we jumped in with both feet. We especailly hit Bank of America hard on the option front loading up on the Jan 12.5 calls. They are up 40% today and we blasted away at JPM but have already closed the position out for a quick profit. We still hold AF and some BBT as there has been some insider buying at higher prices … Read more

About HSAX & CO., LLC

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HSAX & CO, LLC is an independent investment advisory firm based in Park City, UT.  Its managing member, Harvey Sax, has earned a national reputation for substantially outperforming the market in good times and bad.  He has served as Vice President and Senior Vice President at Bear Stearns, Inc, Paine Webber, D. Blech & Co., and Oppenheimer Co. In addition to his financial acumen, Sax is recognized as a pioneer in the technology field.  He is responsible for creating one of the first publicly traded Internet companies, HomeCom Communications, Inc., and is also credited for creating the first web presence for … Read more