Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.

 

My Latest Moves

Originally published at 8:43 a.m. EST on February 12, 2016
 
 

I'm making an important portfolio change this morning, buying a delta-equivalent of call positions against my life-insurance and auto shorts to neutralize the balance of those holdings.

I put General Motors  (GM) on my "Best Short Ideas" list on Dec. 2 at $36.15, and the shares closed yesterday at $26.90 for a +26% gain on my short.

Likewise, I added Lincoln National  (LNC) and MetLife  (MET) on my "Best Short Ideas" list on Oct. 28 at $52.90 and $50.80, respectively. Those shares are now down dramatically, so my short positions are showing gains of +42% and +31%.

I'm keeping all three stocks on my "Best Short Ideas" list, as I continue to believe in "Peak Autos" and a "lower-for-longer" rate backdrop that will challenge life insurers' reinvestment opportunities for some time to come.

But I expect the stocks to rally over the near term, so I plan to buy calls on them this morning. If I'm correct, I plan to sell these calls later for a profit while retaining and moving back into naked-short positions on these three stocks down the road.

Position: Short LNC, MET, GM (small)
 


9 Rising Stocks in a Falling Market

Originally published at 2:02 p.m. on February 11, 2016
 

Stocks are near the day's lows as I write this -- and an old traders' adage is to "buy what's green in a flow of red."

That's not a strategy I plan to employ today. But for contrarians who are looking for some trades in a potential market turnaround, here are some stocks that were up on the day at last check at a time when the S&P 500 was about 30 handles lower:

  • Cisco  (CSCO) , +9.73%
  • Tesla Motors  (TSLA) , +7.02%
  • O'Reilly Automotive  (ORLY) , +4.79%
  • Potash Corp.  (POT) , +1.77%
  • Walt Disney (DIS) , +0.75%

And in my biotech basket:

  • Otonomy (OTIC) , +4.62%
  • Sage Therapeutics  (SAGE) , +3.96%
  • Nektar Therapeutics  (NKTR) , +1.79%
  • Aerie Pharmaceuticals  (AERI) , +0.56%
Position: Long POT, RDN, AERI (small), NKTR (small), OTIC (small), SAGE (small); Short DIS (small), TSLA (small)

 

At the time of publication, Kass and/or his funds were short LNC, MET, GM, DIS and TSLA and long POT, RDN, AERI, NKTR, OTIC, SAGE 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.

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