The Insider Report

” in any kind of credit meltdown

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Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital, warned Friday that crumbling credit markets could expose more fund debacles such as Third Avenue Management’s junk bond portfolio and the Federal Reserve should take note of deteriorating financial conditions. Source: Gundlach says ‘never just one cockroach’ in any kind of credit meltdown

The best explanation on what to do with Kinder Morgan $KMI

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I was going to write something about where I thought Kinder screwed up and perhaps where I did.  Dan Dicker sums it well enough in the Street’s  Real Money.  He writes, “What is so interesting about today’s 8% gain in share price is that it comes on the heels of an announcement from the company of a 75% dividend cut — normally the harbinger of an even further slide in shares. The reason for the rally today in light of the dividend cut is obvious — much of the tremendous pressure on KMI shares in the last week was caused … Read more

DJ Kinder Morgan $KMI Slashes Dividend

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We admittedly are shocked that Kinder Morgan Inc. slashed its quarterly dividend by 75% on Tuesday, and according to the WSJ, “an unprecedented step for the massive energy company that just one year ago was promising unfettered growth. ” The company said it would cut the dividend to a level of 12.5 cents a share per quarter–or 50 cents annually–down from its prior level of 51 cents each quarter. Kinder Morgan said it had to take action to maintain its investment-grade debt rating. At that yield and its current aftermarket price, KMI is only yielding 3.5-4% less enticing than safer regulated … Read more

If this is a good time to be in the market, why do most investors feel so bad?

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I like this missive from JP MORGAN’s outstanding research department. “Meanwhile it would be easier to feel better about the SPX if its leadership wasn’t so thin – the “FANG” complex (FB/AMZN/NFLX/GOOG) continues to do a ton of heavy lifting (along w/stocks like MSFT, GE, and HD).  The SPX is up ~25 points in ’15 but AMZN and GOOG/GOOGL are contributing ~30 points to the index all by themselves (MSFT is adding 8 points, FB 6.8, GE 5.8, and HD 4.3).  Meanwhile, the violent daily market swings shouldn’t be considered a virtue and instead are a sign of the enormous influence non-fundamental factors continue to hold over trading.”

Kinder Morgan $KMI Disaster- did the market get it wrong?

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One of the widest held securities by the individual investor declined 30% this week alone. Kinder Morgan, the 3rd largest energy company in the U.S. issued a press release today that was read wrong by the market. Several twitter posts indicate that Kinder said the dividend was for grabs.  Their press release in my opinion was issued to reassure the market but may have had the opposite effect instead, spooking investors instead of reassuring them. Kinder Morgan Announces 2016 Financial Expectations “In its third quarter earnings call, Kinder Morgan, Inc. (NYSE: KMI) indicated an expected 2016 growth range of 6 … Read more

A Very Strange Day in the Market

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Yesterday was just weird.  U.S. stocks, government bonds and the dollar all tumbled Thursday, a rare occurrence that underlines markets’ vulnerability to reversals at a time of large bets on central-bank policy and concerns about uneven market liquidity.  The S&P 500 dropped an unremarkable 1.04% but the real action was elsewhere. Crowded Trades Collapse Dollar Collapse  The U.S. Dollar Index collapsed the most in one day since records were kept. From a blow out top to the day’s low was an astounding 3.48 points.  That’s an unheard of move. ECB’s Stimulus Moves Fall Short of Market Expectations, Hammering Stocks ‘I think … Read more

‘s 10% Ginnie Maes, right in front of our noses

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I wish I had a nickel, no maybe $10,000 for every time I heard someone say,” I wish I had bought those 10% Ginnie Mae bonds back in the day…”  (GNMA Bonds are guaranteed by the full faith and credit of the U.S. Government) Well, that Ginnie Mae may still be here, staring us right in the face in the oil and gas and particularly MLP market.  Many MLPs in the oil and gas infrastructure business are selling with yields from 8.5%-15%  No, it’s not guaranteed but then again interest rates aren’t at near 0% either.  We put together a … Read more

‘s iOS clinches 78.3% of U.S. mobile online shopping over Thanksgiving, 360% more than Android

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Apple’s iOS clinches 78.3% of U.S. mobile online shopping over Thanksgiving, 360% more than Android By Daniel Eran Dilger Friday, November 27, 2015, 06:08 pm PT (09:08 pm ET) Apple remained the dominant platform for holiday mobile shoppers as iPad and iPhone users accounted for 78.3 percent of mobile e-commerce orders over Thanksgiving Day. Buyers using any device using some form of Android contributed only 21.5 percent of online orders. Source: Apple’s iOS clinches 78.3% of U.S. mobile online shopping over Thanksgiving, 360% more than Android Another reason to believe that Apple is grossly undervalued based on the ecosystem it … Read more

Fed decision: What happens when interest rates rise?

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Expectations are rising for the Fed to raise rates in its next meeting in December The US economy created a lot more jobs in October than economists had forecasted. This suggests that the US economy is getting stronger and, combined with upbeat comments made by the Fed after its October meeting, is causing more people to believe that there will be a rate rise in December. If that does happen, it will be the first US rate rise since 2006. Source: Fed decision: What happens when interest rates rise?

Goldman Sachs 2016 stock market outlook – Business Insider

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GOLDMAN: Stocks will go nowhere in 2016 Goldman Sachs is forecasting another lackluster year for the S&P 500.Year-to-date, the benchmark index has gained about 1.3%.”We forecast the S&P 500 index will tread water for a second consecutive year in 2016,” Goldman’s David Kostin wrote in the firm’s 2016 stock-market outlook on Tuesday. Source: Goldman Sachs 2016 stock market outlook – Business Insider

‘s

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6 MLPs That Can Thrive Even if Oil Remains CheapBrian Watson’s OppenheimerFunds portfolios have weathered the energy storm better than most. Here are his picks.Email Print 1 Comments Order Reprints Facebook Twitter Google+smaller LargerBy AMEY STONENov. 24, 2015 6:10 a.m. ETBloomberg NewsPortfolio manager Brian Watson is a fairly humble guy. Sure, he runs some of the top performing mutual funds in his category, but he’s not bragging about it. Humility is called for: The fund is down double digits this year.Watson, head of research at OppenheimerFunds’ SteelPath division, manages funds that invest in MLPs, or master limited partnerships, which are … Read more

Retail Trifecta Insiders buy Target, Nordstrom, and Gap

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Retail stocks have taken a hammering lately.  It’s fairly obvious to everyone that Amazon gets to play by its own set of rules, meager to non-existent profit margins while brick and mortar stores like the Gap, Nordstrom, and Target have to meet shareholder’s earnings expectations and pay hefty dividends to boot. Recent carnage has brought out some buyers: TGT Edwards Robert L Dir 11/20/15 Purchase 10,000 $71.10 $711.0K 4 n/a 10,000 $711.0K 11,560 641.0 GPS Peck Arthur L CEO 11/23/15 Purchase 37,150 $26.99 $1.0M 4 n/a 37,150 $1.0M 166,410 28.7% JWN Satre Philip G Dir 11/23/15 Purchase 17,600 $56.89 $1.0M … Read more

From Utah To China: Meet The $2.6 Billion Fund That Invests Like Missionaries – Forbes

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From Utah To China: Meet The $2.6 Billion Fund That Invests Like MissionariesLiyan Chen ,FORBES STAFF Charting the world’s largest companies and wealthiest people.FOLLOW ON FORBES (226)This story appears in the December Special 2015 issue of Forbes. SubscribeBlake Walker, Robert Gardiner and Eric Huefner, founders of Grandeur Peak.When your day job involves traversing the globe from city to city, it’s not surprising that geo-tagging selfies for Facebook FB +0.00% gets old fast. But for Robert Gardiner and the globe-trotting analysts of $2.6 billion small- and microcap asset manager Grandeur Peak Global Advisors, updating and sharing their 6,175-row spreadsheet of international companies … Read more

America’s Heartland Feels a Chill From Collapsing Commodity Prices – The New York Times

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Excellent reporting as usual by the NY Times.  Goes a long way to explaining the diverging economy of winners and losers. America’s HeartlandFeels a Chill FromCollapsing Commodity PricesIn China and other emerging markets, growth is waning and demand for the raw materialsthat drive the global economy has dried up. A thousand miles south of Granite City, Ill., a gritty steel town on the Mississippi River, West Texas oil rigs have shuddered to a halt. Seven hundred miles north, mines in the Iron Range of Minnesota have been stilled. The drilling rigs, with their deep underground pipes, once consumed much of the steel … Read more

Proofpoint Needs Profits

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There are quite a few names like this, over hyped stocks.  It’s been hard to make money shorting them as long as investors pay up for growth at any price. Stocks whose products help combat security breaches, like fast-growing Proofpoint, have skyrocketed. Source: Proofpoint Needs Profits

Pullback in pharma has created a compelling buying opportunity

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The fundamentals are good for the health care sector in general.  Recent news articles on drug pricing/gouging are not likely to effect meaningful change for the overall group dynamics in my opinion or that any changes may be long time in coming and tempered far below market expectations. It’s true that it may compress multiple prices for a while as Evercore #1 ranked biotech analyst Mark Schoenebaum said on CNBC today but I agree with him, its really about innovation.  His favorite picks are Gilead GILD and maintains a price target of $115 on the stock.  I am not as enthusiastic … Read more

’08 Slump

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Some very smart guys, had big losses in September. Making money in the market is all about people with convictions taking money from the people that lack it.  These guys do their homework and they have conviction. I’m sure they will bounce back as they have time and time again. There’s no big bank failure on the horizon. The housing market is booming, not melting. Yet for a handful of well-known hedge fund managers, 2015 is looking a lot like 2008, when their industry suffered record losses and investor withdrawals. Source: Ackman, Einhorn Lead Hedge Funds on Track to Rival ’08 Slump