Stock Observations; Reviewing Equities: Doug Kass' Views

Here are Doug Kass' top thoughts on some of the biggest stories of the week.


The Long and Short of It

First, some stock observations on three large positions:
 
* Twitter TWTR, which is my largest individual long position, continues to climb on no news -- now over $18 a share.
* A retail yo yo named Nordstrom ( JWN) continues to move up and down. Fortunately, today it is up and recapturing most of yesterday's loss. I added yesterday.
* Speaking of retail, Dillard's  ( DDS) makes another $2 advance today after a gain on Monday. I've been adding here as well.
 
Second, on some shorts:
* Disney ( DIS) and Starbucks ( SBUX) , core investment shorts, continue to underperform in the early going.
 
Third, as to trades:
* I added quite a lot of SPDR S&P 500 ( SPY) short at $249.89. (I will never give up!)
* I added further to ProShares UltraShort S&P 500 ( SDS) and ProShares UltraPro Short ( SQQQ) longs. (I will never give up!)
* And of course, my small Apple ( AAPL) puts buy.
 
Thanks for the nice email responses to my opener, " Don't Buy 'The Broken Window Fallacy.'"
 
Programming note: I will be in and out this afternoon on a personal obligation so my posts will be light.
Position: Long DDS, JWN, TWTR, SDS, SQQQ, AAPL puts; short SPY, AAPL, DIS, SBUX .


Reviewing Some Individual Names

Now its time to reflect on some individual equities that I am involved in,
 
As I mentioned earlier, price action in extreme days (up and down) often provide some messages:
 
* Allergan's ( AGN) poor response to the Teva news is disappointing. But maybe all the AGN buyers reside in the Florida Keys and Houston!
* Disney ( DIS) turns negative -- after weeks of profoundly weak performance -- despite word that its parks may be soon re-opening. This is not a positive signpost.
* Starbucks ( SBUX) "action" is no better than that of Disney, especially given it's recent underperformance as well.
* Despite the replenishment needs for autos in Texas and Houston -- I am unimpressed with the action in Ford ( F) and GM ( GM) today.
* Amazon  ( AMZN) is back into my $975-$980 short sell level zone -- but I am giving this high beta stock some leeway in here before I reestablish my short position (I am down to tagends).
* Speaking of (T)FAANG, while Tesla ( TSLA) is great -- the ever popular and FANG value play, [Alphabet] Google ( GOOGL) , continues to lag.
* Caterpillar ( CAT) , too, is disappointing considering the replenishment needs for its products.
* Homebuilders' stocks also not doing much in the face of the rebuild in Florida and Texas.
* Tesla, which I am not short, is killing the short community (based on some regulation news). Two hedge funds that were short acquiesced today and covered large shorts, according to my contacts on desks.
* Financials are predictably strong given the bond rate rise. Deutsche Bank  ( DB)   continues to be a standout and serial underperformer.
* Fertilizers strong despite a mixed ag commodities picture.
 
Position: Long AGN Short DIS SBUX AMZN small.
 
Originally published Sept. 11 at 3:22 p.m. EST
 
Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings. This week he blogged on:
  • How he's taking a quick look at bonds
  • How he's making a partial sale in Twitter

Click here for information on RealMoney, where you can see all the blogs, including Doug Kass'--and reader comments--in real time.

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Action Alerts PLUS, which Cramer manages as a charitable trust, is long SBUX, AAPL, AGN and GOOGL.

 

 

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