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


The Good, the Bad and the Ugly

Originally published May 10 at 2:41 p.m. EST

"There are two kinds of spurs, my friend. Those that come in by the door; those that come in by the window." --Tuco, " The Good, the Bad and the Ugly"
 
The Good
* The price of crude oil rose by +$1.81. Energy Select Sector SPDR (ETF) ( XLE - Get Report) , my newest Best Ideas Long, is up a beaner.
* Nvidia ( NVDA - Get Report) , Coty ( COTY - Get Report) , Electronic Arts ( EA - Get Report) and Cabot Oil and Gas ( COG - Get Report) .
* Kimberly Clark ( KMB - Get Report) , the object of vague takeover rumors, continues to advance.
* The market held up well in the face of the Comey firing.
* Junk bonds were well bid despite weakness in the Treasury markets (see below).

The Bad
*
Bonds continue to sell off with yields near the highs of the past few months.
* Biowreck.
* Ford (F - Get Report) , new low and breaking down on the chart--as it continues to move from the top left to the bottom right.

The Ugly
* Priceline
(PCLN) , Disney (DIS - Get Report) and Allergan (AGN - Get Report) .

Zzzzz.

Position: Long AGN large XLE Short DIS .
 

A Short Discourse on Why I'm Short Disney

Originally published May 10 at 9:32 a.m. EST

As I posted last night, I added to my small Disney ( DIS - Get Report) short in after-hours trading and after the release of quarterly results.
 
I will have more later on this investment short, which is predicated on my view that the secular growth rate in earnings per share is likely under 10% compared to its high teens historic growth rate and the consensus of about 13% to 14% EPS growth.
 
DIS was placed on my Best Ideas List in November 2015 at $116.25 a share; it was a very successful contrary short of a most popular equity.
 
As the share price dropped to $85 in the first half of 2016 I covered almost all of my stock. The stock then languished most of the year before beginning a spirited rise in October to current levels.
 
I now believe the shares have a much more interesting reward vs. risk on the short side.
 
Position: Short DIS.