This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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: AAPL

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 he's in the same Apple basket as David Einhorn, discussed Dennis Gartman's recent "all-out" investment call, and reiterated his explanation of the importance of good defense in investing.

Please click here for information about subscribing to RealMoney Pro.


Einhorn on Apple
Originally published on Friday, Feb. 22 at 12:49 p.m. EST.

  • His analysis and the potential unlocking of value are some reasons why I took a long rental in the shares.

Here are the slides and this week's presentation by Greenlight's David Einhorn on Apple (AAPL - Get Report).

Every shareholder and prospective shareholder should read David's rationale for the iPrefs.

This analysis and potential unlocking of value (vis-a-vis some more traditional techniques) are some reasons why I took a long rental in the shares.

At the time of publication, Kass was long AAPL.


Gartman Says That the Game Has Changed
Originally published on Friday, Feb. 22 at 12:02 p.m. EST.

  • Time will tell whether Dennis' move from "all in" to "all out" will prove prescient.
Yes, today I changed my opinion on stocks. I had been relentlessly bullish since last October. I continued to be bullish in November. I continued to be bullish in December. I bought the gap up in January.... And after yesterday's movement, it had very little to do with what the Fed had to say because markets were moving way before the market moved down. The copper market was speaking to me. Sequestration was speaking to me. And at the end of the day, we had reversals in all the indices.... Cash is not a bad thing to be hold. I think this could be a very serious correction, at least 7%, and I'm not one to sit for 7% corrections.
-- Dennis Gartman on CNBC's " Fast Money Halftime Report"

Sir Dennis Gartman has been taking some flack today for his "all out" call on CNBC yesterday. ( Here is the video of his appearance.)

Time will tell whether Dennis' move from "all in" to "all out" will prove to be prescient.

But there is a lesson to Dennis' call for all of us: There are many ways to skin the (market's) cat.

As most recognize by now, I view most technical analysis as voodoo. Fundamentals dominate my investment process, followed (to a far lesser degree) by valuation and sentiment input.

Although Dennis' technical approach to the markets (that the tape's action tells a tale and should be heeded, sometimes even posthaste) is markedly different than my fundamental approach, what we do know is that Dennis holds rigidly to his trading process -- and adhering consistently to a trading or investment process is a good lesson for all investors and traders.

Dennis' approach to trading reminds me of Jesse Livermore's wonderful quote in Reminiscences of a Stock Operator:

I did precisely the wrong thing. The cotton showed me a loss and I kept it. The wheat showed me a profit and I sold it out. Of all the speculative blunders there are few greater than trying to average a losing game. Always sell what shows you a loss and keep what shows you a profit.

Indeed, while Dennis is technically inspired and I am fundamentally inspired, letting profits run and stopping out losses is the essence of a recent column I wrote, "Practice Your Defense."

Stay tuned in the weeks ahead to see if Dennis' "all out" call is the correct one!

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

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