NEW YORK (Real Money) -- 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.
This past week, Kass wrote about why he has a net-short exposure to stocks amid slowing global growth and a rising dollar. He sees Bon-Ton and the energy sector as bright spots.
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Ah-ha at Hand?
Originally published on Friday, Nov. 21 at 1:43 p.m. EST.
It's reasonable to ask. I have long written that the series of quantitative easings in the U.S. were having less and less of an impact on stimulating domestic economic growth, and I expected the markets to reflect that (at some point!).
While the bubble in confidence in the Federal Reserve's ability to catalyze growth remains in place, less so ... over there.
Indeed, Friday's interest-rate cut and easing policy moves in China had a half-life of about four to five hours on our markets.
It is reasonable to ask if the Ah-ha Moment is finally at hand, when investors recognize that (1) the foundation for global growth is weak and (2) the marginal impact of more easing is negligible to negative.
At the time of publication, Kass had no positions in stocks mentioned.
Bon-Ton's Last Challenging Comparison
Originally published on Friday, Nov. 21 at 11:25 a.m. EST.
Comparable-store sales dropped by 0.8%. The end of the quarter was weak, owing to the warm weather -- something that was an industry-wide phenomenon.
As previously mentioned, management is encouraged by the strength of November sales momentum. (Note: The cold weather just brings back shoppers -- as long as it doesn't get too cold!)
The company's projection on earnings before interest, taxes and depreciation has been reduced to a bit more than $150 million. But my guess is that Bon-Ton will beat that forecast, since last year's results were severely impacted by holiday blizzards (more on that later).
Inventories and expenses are nicely in control, and the company's online business is progressing well. Third-quarter EBITD declined by $10 million -- to $28 million -- but that figure was ahead of 2011 levels.
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