Summary:
Up 0.4% today. Broke a four-day losing streak. Miners mixed once again but the big loser was EGLE. This may have been the result of a (small) drop in the Baltic Dry Index, an index of dry-bulk shipping rates. More likely it resulted from competitor DSX pricing a secondary offering well below what that stock was trading at. The offering may have raised fears EGLE will look to do another offering with similar effect.
DSX is a favorite of the investment board I subscribe to and has a near 10% yield. I picked up a little on the dip. I also bought back half of my TDF position. It is near where I sold it in the Shanghai conflagration (though it paid a 3% dividend during that time), despite the fact that Shanghai is now hitting new highs. The discount to NAV is now almost 12%.
Positions:
Long: JEQ JSC LMC AUY SLW NTO NXG HBMFF ALSWF JAGNF FFHL EGLE AOB XSI KF UAHC NTLRF TNH LMGGF NM NLY MDN.TO DSX
Short: BKC
Options: AUY May 15 call
Cash: 8.9%
Trades: DSX@17.36, TDF@22.61
Read:
Japanese household spending grows.
Stocks Researched:
I looked at a couple of stocks which both happen to be in the customer phone support business. Since both have substantial Philippine operations they are referred to as outsourcing companies. One, eTelecare (ETEL), IPOed today. The other, Peoplesupport (PSPT), I found on the the biggest percentage gainers list from a few days ago.
Of the two, ETEL looks a better value and they have recently landed business with Vonage, which used to be a PSPT a customer. I may buy some ETEL in the next few days.
Hours spent on market: 4.0
Positions most worried about:
Positions most sanguine about: Japan. good economic data continues
Biggest market worries: downturn
Thinking about: ?
Outlook ( up-flat-down surety rating: 1-5 reasoning):
US: flat, 2.0; good GDP, bad subprime
Tech: ??
Japan: up, 1.0; strong GDP, but weak international markets
China: up, 1.0; price action
Silver: ??
Gold: ??
Copper: ??
Zinc: ??
Real life: Almost recovered from sickness.
Previous night sleep and exercise: 6 hrs.
Mood: Calm.
