MetLife, Lincoln National, Hartford Financial: Doug Kass' Views

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


 
Fastenal Dropping Like a Stone
 
 
Originally published Oct. 13 at 2:12 p.m. EDT

Fastenal (FAST) , an investment short, is continuing to drop like a stone. Down another $1.13 to under $38 a share ... before edging a bit higher to $38.25.

Wednesday I reached out to Paul Price, whom I debated about the shares over the last few months.
 
He was strenuously bullish and I would like to hear his current technical views/take.
 
Fastenal has missed consensus EPS projections for three consecutive quarters and remains on my Best Ideas List.
Position: Short FAST .

 
China Bearish
 
Originally published Oct. 13 at 1:52 p.m. EDT
 
My pal Steve Cortes doesn't like iShares FTSE/Xinhua China 25 Index ETF ( FXI) .
 
Nor do I -- as I have added to my small-sized FXI short and made it a medium-sized holding.
 
Position: Short FXI .

 
Reward vs. Risk Augurs Well for Oaktree Capital
 
Originally published Oct. 13 at 1:24 p.m. EDT
 
Oaktree Capital ( OAK) is now trading up (+$0.74) on a Barclays downgrade to Underweight.
 
I read the research report (thanks to Judge Smails in the Comments Section), in which the analyst simply stated there were, in his opinion, more attractive asset management stocks.
 
From my perch, the downgrade at $40 was neither intelligent nor timely.
 
I added yesterday because of my perception of the superior reward versus risk.

And in other news ...

I have added to my short exposure on the 14-plus handle rally in the S&P 500 Index from the lows.


The SPDR S&P 500 ETF Trust ( SPY) hit a $211.21 low and is now trading at about $212.70.
Position: Long OAK, short SPY.
 

 
The Latest Skinny on Life Insurers
 
Originally published Oct. 13 at 10:25 a.m. EDT

Recent shorts in life insurers MetLife (MET) and Lincoln National (LNC) have worked out great over the last week.

However, my long in Hartford Financial Services Group (HIG) is not so great, bidding $42.60 now.

Position: Long HIG; short MET, LNC
 
 

 
Still Digging Gold, but Not China
 
Originally published Oct. 13 at 6:58 a.m. EDT

As I mentioned Wednesday, the case for gold is growing more positive as the price of gold retreats.

I have been adding to my SPDR Gold Shares (GLD) long (3-Day Rule) over the course of this weakness.

This morning, the price of gold is up $7.30

I also have been adding to my iShares China Large-Cap (FXI) short as I believe the consensus view that this region is recovering at an accelerated pace is wrong-footed.

Position: Long GLD; short FXI.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

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.

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