This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Best of Kass

Stocks in this article: AVP YHOO FDX OAK AIG

NEW YORK ( TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Among his posts this past week, Kass explained why Avon and Yahoo! are two stocks that could see gains despite weak fundamentals; why FedEx's recent announcement is worrisome on the economic front; and why Oaktree is an attractive financial stock.

Please click here for information about subscribing to RealMoney Pro.

> > Bull or Bear? Vote in Our Poll

Good Dogs
Originally published on Friday, Sept. 21 at 9:27 a.m. EDT.

  • Avon and Yahoo! have weak fundamentals but potential share price catalysts.
  • "If every instinct you have is wrong, then the opposite would have to be right."
    -- Jerry Seinfeld to George Costanza (Jason Alexander) in Seinfeld's "The Opposite" episode

    Avon Products (AVP) and Yahoo! (YHOO) are two investment dogs, with weak fundamentals but potential share price catalysts.

    In the case of Avon, Coty has already bid nearly $25 a share for the company, only a few months ago. Coty has delayed its IPO until 2013, and, in all likelihood, its interest would only resurface after an IPO.

    Nevertheless, the share price is low, and I like the risk/reward ratio.

    In the case of Yahoo!, hedge-hogger Dan Loeb is a significant shareholder (and board member) who seems to be guiding the company in making the right moves (asset sales, Mayer appointment as CEO, etc.) and, to me, is likely to be a responsible and value-creation-oriented steward for all Yahoo! shareholders.

    At the time of publication, Kass was long AVP and YHOO common; long AVP calls.

    Another Sign of Stagflation
    Originally published on Wednesday, Sept. 19 at 10:43 a.m. EDT.

  • Let's dive deeper into FedEx's recent announcement.
  • In an earlier column I suggested that stagflation is knocking at our door.

    To illustrate that case, let's take deeper dive into economic bellwether FedEx's (FDX) announcement yesterday in which the company reduced its EPS guidance for its May 2013 year from a range between $6.90 and $7.40 to a range between $6.20 and $6.60.

    In doing so, the company pared back its June forecast for 2013 U.S. real GDP to +1.9% from +2.4% and reduced its projections for global real GDP growth for this year and next year to +2.3% and +2.7%, respectively, from +2.4% and +3.0%, respectively.

    So slowing growth is seen by FedEx, but, at the same time, in support of my stagflation thesis (knocking at the door), the company announced an increase in shipping rates to +5.9% on Jan. 7, 2013, though lowering of the fuel surcharge will reduce this to a +3.9% increase.

    1 of 2

    Select the service that is right for you!

    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!


    DOW 18,030.21 +6.04 0.03%
    S&P 500 2,081.88 -0.29 -0.01%
    NASDAQ 4,773.4720 +8.0480 0.17%

    Brokerage Partners

    Rates from

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs