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.
Originally published on Friday, Sept. 21 at 9:27 a.m. EDT.
"If every instinct you have is wrong, then the opposite would have to be right."Avon Products (AVP - Get Report) and Yahoo! (YHOO - Get Report) 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.
-- Jerry Seinfeld to George Costanza (Jason Alexander) in Seinfeld's "The Opposite" episode
Another Sign of Stagflation
Originally published on Wednesday, Sept. 19 at 10:43 a.m. EDT.