Doug Kass fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- How Twitter is moving into sports-content streaming
- How the market is overvalued
Click here for information on RealMoney, where you can see all the blogs, including Doug Kass'--and reader comments--in real time.
Originally published July 8 at 12:44 p.m. EDT
How Tweet It Is!
While it's unclear how much Twitter can pay for the rights to stream NBA games and other sports broadcasts, this move represents the first important, needle-moving action by the company's new management team.
If this effort yields just a modicum of success, it could be a precursor to the company's sale. And a buyer with substantially more money than Twitter could accelerate Twitter's acquisition of streaming content, reversing a recent slump in the service's average monthly users.
Twitter has always offered a unique, difficult-to-duplicate social-media platform. But now, the company finally appears to be providing more exciting niche and value-added product applications.
My guess is that there'll be even more new-product announcements in the months ahead that could "turn on" investors and improve Twitter's takeover appeal.
Personally, I placed Twitter on my "Best Long Ideas" list on June 13 at $14.60 a share, and I've been adding to my stake recently even though the stock has been trading higher.
Position: Long TWTR.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long TWTR.
My Takeaways and Observations
Originally published July 7 at 2:51 p.m. EDT
Slow day thus far, so I plan to leave early.
I started Thursday by shorting the market and substantially raised my short exposure in the morning ramp.
I felt so strongly about an overvalued market that I added SPDR S&P 500 ETF (SPY) - Get Report , iShares Russell 2000 ETF (IWM) - Get Report and PowerShares QQQ Trust (QQQ) - Get Report to my Best Ideas List. Consider this an exclamation point to my market view and a signpost of my conviction, which may or may not be correct!
I took a small loss in ProShares UltraShort 20+ Year Treasury Bond ETF (TBT) - Get Report and added to my iShares 20+ Year Treasury Bond ETF (TLT) - Get Report short based on the premium decay of a leveraged ETF. Trade 'em, don't invest in them.
With the S&P plus 8 handles I made a Ludacris Forecast (which, for a change, was realized as the S&P is down 10 now near 2:45 p.m. ET
My take on the FBI/Clinton hearings.
Danielle rocks, again!
- The U.S. dollar is stronger.
- Crude oil is breaking down, off $2, to $45.35. Smaller draw of supplies is the reason.
- Gold is down by $6, to $1,361.
- Bonds are flat.
- The yield on the 10-year U.S. note is unchanged while the long bond is down one basis point.
- The 2s/10s spread is unchanged at 80 basis points.
- Municipals and high yield are flat. Closed-end municipal bond funds continue to climb in price.
- Banks are solid, but are off the highs modestly.
- Brokerages are up a bit.
- Life insurance is terrible; no bounce after a sustained drop.
- Retail is lower, with my short Foot Locker (FL) - Get Report down, though my other short Nordstrom (JWN) - Get Report is higher.
- Old tech is quiet.
- Energy stocks are getting hit. I covered too early a week ago!
- Biotech is down a tad.
- Auto stocks are up modestly after their schmeisssing.
- Staples are down small save for PepsiCo (PEP) - Get Report on an earnings beat.
- Media and ag equipment are doing nada.
- (T)FANG is mixed. Nothing special there.
- In individual stocks, TWTR, DD, RDN and Oaktree Capital Group (OAK) - Get Report are up modestly. Apple (AAPL) - Get Report is up two bits but still looks weak. Same for Starbucks (SBUX) - Get Report .
Here are some value-added columns from our hard-working contributors:
Jim "El Capitan" Cramer, who is probably deeply ensconced in his garden on Long Island, writes about Amazon's all-time high. Jim observes that this is occurring while retail is not folding. But retail has already been a land mine, so I am not sure whether the non-Amazon retail space is safe to invest in yet.
"Meet" Bret Jensen on five stocks for the second half.
Roger Arnold on conflicting economic narratives.
"Stormin'" Mike Norman sees a pullback in gold.
Chris Laudani on overvalued staples. This was also a theme of mine back in late May.
Position: Long OAK, DD, RDN, TWTR, SDS; short TLT, SPY, QQQ, IWM, SBUX small, LNC, MET, JWN, FL, NFLX small, AAPL small.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long PEP, SBUX and AAPL.
At the time of publication, Kass and/or his funds were long/short XXX, although holdings can change at any time.
Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long TWTR, PEP, SBUX and AAPL.