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Kass: Recent Done Deals Are Dumb Deals

More signs that investors are ignoring all the signs.

These blog posts originally appeared on RealMoney Silver on Oct. 2.

M&A Environment Still a Bit Polluted -- 7:56 a.m. EDT

Yesterday, I


the reality of the First Data loan sale by

Credit Suisse

(CS) - Get Report



(C) - Get Report




(NOK) - Get Report

agreed to acquire


(NVT) - Get Report

. Today,


(TD) - Get Report

has agreed to acquire

Commerce Bank

(CBH) - Get Report


Importantly, the Navteq acquisition was actually a takeunder (a takeover where the target is offered a price less than its current share price), and the Commerce acquisition was agreed to at only a modest premium.

Meanwhile, both the





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deals have been called off. Nevertheless, the media is waxing enthusiastically that the deal game is back.

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By contrast, it seems to me that these data points indicate a market that is being priced for perfection and a leveraged loan market that is still problematic.

But that's me.

Citigroup Sees Weakness in PC Space -- 10:27 a.m. EDT


(C) - Get Report

has an interesting comment this morning on personal computer components.

The brokerage sees some potentially weak data for the fourth quarter with


(HPQ) - Get Report



(DELL) - Get Report



canceling some orders. As well, Taiwan notebook shipment forecasts are below normal seasonality, with order books looking soft for the holiday selling season.

I had previously


that August semiconductor equipment orders were weak in Japan.

Is Relative Value at Home or Abroad? -- 9:23 a.m. EDT

Here is an interesting table, courtesy of John Mauldin, underscoring the lagging performance of the non-export, domestic, housing-centric sectors vis-à-vis the weak-dollar, export beneficiaries.

Source: John Mauldin's "Outside the Box"

According to the savvy Mauldin, the export beneficiaries are roughly 60% weighted in the

S&P 500


One has to wonder where the relative value lies today given the almost universal view that large-cap, weak-dollar plays have so conspicuously outperformed.

At time of publication, Kass and/or his funds were short Hewlett-Packard, although holdings can change at any time.

Doug Kass is founder and president of Seabreeze Partners Management, Inc., and the general partner and investment manager of Seabreeze Partners Short LP and Seabreeze Partners Short Offshore Fund, Ltd.