- a dearth of sellers,
- retail's resilience, and
- Obama's intransigence over natural gas.
Desperately Seeking Sellers
Posted at 4:23 p.m. EST, Feb. 26, 2010 Doesn't it feel like there's no stock for sale? During the correction at the end of January and the beginning of February, you could find no bids. You would be "underneath" and get crushed for almost all the good stocks. Consider that Apple ( AAPL) went down to 191 eleven days ago and it did so in a heartbeat. Nothing but sellers. Now it feels like there isn't a share for sale. Chevron's ( CVX) the same: $79 to $69 in a week, losing scads and scads of points. Verizon ( VZ) and ATT ( T) were also typical. It was like there was no one around and no floor. With these two, the dividend seemed to mean nothing. The buyers were just gone. But the sellers? They were there in force? Over and over. Stupidly selling into nothingness. > > Bull or Bear? Vote in Our Poll Now it has the same melt-up feel as it had meltdown. Nothing around to buy. Remarkable. Seeing as there is nothing to go around, you could see the following happen: we get oil back to $80, gold up again, the dollar down again and a breakout on so many charts (see my
Retail Is Alive and Kicking
Posted at 5:30 p.m. EST, Feb. 17, 2010 The most maligned industry out there might be retail. No matter what happens to the companies, people think the news is bad. These people are stuck in the past. In the past few days, we have had fabulous reports from VF Corp ( VFC), Perry Ellis ( PERY) (mentioned in the
Obama's Determined to Derail Nat Gas
Posted at 9:30 a.m. EST, Feb. 19, 2010 Will the U.S. House Energy and Commerce Committee kill the natural gas boom in this country? It sure will if Henry Waxman has his way ... and he's the chairman! He's leading an investigation into this endless charge that "fracking," the way to untap our 100 years' worth of energy, pollutes drinking water. He's also suggesting that the EPA regulate drilling, which, given the activist EPA, pretty much would mean the end of the boom. Waxman's smart. The American people care passionately about their drinking water. The ill-fated attempt by Chesapeake ( CHK) to drill near the New York reservoir and a vandalism incident that involved dumping brine associated with fracking into a drinking water well in Pennsylvania have literally turned the politicians in this country against this source of energy independence that would be cheaper and cleaner than oil and would create hundreds of thousands of jobs. The natural gas industry itself has repeatedly said that this regulation is much ado about nothing. In fact, T. Boone Pickens, a leading proponent of nat gas as a way to fuel cars and trucks, in keeping with his backing of Clean Energy Fuels ( CLNE), bet me $50 that something good comes out of Congress by Memorial Day that will encourage natural gas use for vehicles and that President Obama will embrace it. I see it going the other way. While I am bullish on the companies because of underlying valuations -- consider Mitsui's ( MITSY) $1.4 billion bid for a third of Anadarko's ( APC) Marcellus holdings and the great report from Chesapeake the other day -- I am beginning to wonder if the president might side with Waxman and call for a drilling ban for natural gas. The president has studiously avoided mentioning the fuel as even on the menu for our nation's energy policy, and his adviser Austan Goolsbee on "Mad Money" refused to say the president endorses the cleaner fuel at all. It is at the end of the list after solar, wind, biofuels like ethanol, nuclear and then coal. I question whether it is favored over imported OPEC oil. It is a fact of life that the president listens to his EPA and is in league with Waxman on these issues. The single biggest detriment to natural gas as a bridge fuel remains the president of the United States, and the only question I have is whether he will put a moratorium on further drilling until the EPA can launch a multiyear study of the hazards of natural gas drilling to the nation's water supply. That will allow nuclear and clean coal to catch up to the fuel's use and keep the focus on anti-carbons or sequestration. I have never seen anything like this. This president is determined to frustrate natural gas. There is an action point here: XTO Energy ( XTO) must be dumped, as Exxon ( XOM) can walk away from XTO if the government bans fracking or halts it. Why bother to own this one? Random musings: Good call by Brian Gilmartin in the Columnist Coversation yesterday about buying Schwab ( SCHW) off this discount raise. Goldman upgrades from sell today. ... I love the Liberty Media ( LINTA) way to play Sirius ( SIRI) that came up on flagship yesterday. At the time of publication, Cramer had no positions in the stocks mentioned.