Wednesday, October 1, 2008

Warren Steps in Again

GE Raises $15 Billion; Buffett Gets Preferred Stake

5 comments:

Anonymous said...

Is that a sleeper car in the downbound train, or an elevator car headed down? Nice post ~
Macwizard

DinoWrangler said...

Where are you all on SEPR now?

Anonymous said...

We still like SEPR. It has many positives going for it in this horrible market. We'll offer additional info in this space later tonight, so please come back then.

Anonymous said...

And what about Ameron? Still holding on?

Anonymous said...

We like SEPR's cash position and their multiple mid-stage trials. This has been an unfriendly year for biotechs, and SEPR has suffered the weak fate of the broad sector. Whether it was Merck's problems, or the FDA's long arm/over regulation, or the reality of generics eating away at revenue & profit life cycles, SEPR stands to snap back in 2009 in our opinion. Closure of the DNA buy-out this Q should open up some portfolio purse strings and SEPR should close this year in the $21-$25 range, as biotechs are looked upon as a safe haven. Biotechs are known to be first to lead the market out of bear territory.

As for AMN, it is a great earnings story caught in the general slow down in infrastructure spending. We believe AMN is one of the best yet unknown stories, yet the shares. Until the market stabilizes though, we are only trading volatility. Understanding volatility and trading small (managing the trade) is the key to making money. Market sentiment swings from hour to hour lately, so we cannot say to just hold on. We would either add to positions like AMN and SEPR, or sell into 10% or greater moves and wait for pull backs.

Thanks for the question, and we hope some of it makes sense.