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 the posts this past week were items about bears as an endangered species and the Bank of Japan.
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No Market Cushion
Originally published on Friday, April 4, at 3:38 p.m. EDT
I recently wrote that short sellers are an endangered species.There are NO (except for permabears) emboldened bears out there now, because their ranks have been diminished. As a result, there is no apparent market cushion provided by the ursine cabal. (FB) still possesses a $140 billion market cap. Twitter's (TWTR) capitalization exceeds $25 billion. LinkedIn (LNKD) trades at a market cap of more than $20 billion and a cool 768x earnings. Salesforce.com (CRM), which has been an awful stock, still has a $33 billion market cap (with financial statements that belong in the cloud because they are so damn confusing). Tesla (TSLA), down $50 from its high, is still priced as if gasoline won't have a commercial use in five years. Zillow (Z), although its commercials are touching, is priced at 18x sales, and, last time I checked, it sells advertising and subscriptions. Then there is Yelp (YELP), a collection of restaurant reviews, clocking in at 20x revenues. I could go on.
Bad News Is Good News in Japan Originally published on Tuesday, April 1, at 7:27 a.m. EDT
I continue to bring up important macroeconomic developments (and their interpretation) because there will come a point -- I guarantee you all -- at which natural price discovery in both bonds and stocks will replace the liquidity-driven market that has ignored fundamentals. The Tankan large company manufacturing survey rose from 16 to 17, its highest level since 2008, but came in short of expectations of 19. The large firm non-manufacturing index rose to 24 from 20, in line with expectations. The outlook indexes came in much weaker than prior and consensus for both manufacturing and non-manufacturing for large firms, while the outlook from small firms was both weaker than expected and in negative territory for both manufacturing and non-manufacturing. The employment index showed more companies noting current level of employment as being "insufficient" since December, which should be viewed favorably by Japanese government in stimulating eventual wage gains.
At the time of original publication, Kass had no positions in the investments mentioned.
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