Here at Geldpress, I rarely talk about what I am personally buying or selling in my own accounts.  Instead, I focus on interesting market news, trading strategies and stock options mechanics, fundamentals, and other macro views.  I never seem to have time to research and write about everything on my list, but I do manage a consistent stream each week.


If you really want stock picks, there is certainly no shortage of insanely stupid advice on websites everywhere, such as:

  • Smartmoney just released today’s 3 stock picks, including LEN, HBC, and ADM.  To be fair, they are advising BUYING ADM and LEN, and SELLING HBC.   My thoughts are that I would not touch Lennar or any other ridiculously stupid homebuilder right now, or for the foreseeable future!  But I won’t short them either because there are to many insanely stupid fund managers and government plunge protectors buying the shares.  As for ADM, I do like the industry and I almost like the valuations but I won’t touch ADM.  I prefer Mosaic (symbol MOS), because they have a much more manageable debt load than ADM.   As for HBC, it’s the only thing I agree with – SELL, SELL, SELL.
  • Jim Jubak just published an article called 5 stocks for even gloomier times.   Jubak may be the number one financial commentator on MSN money, but that certainly doesn’t mean I agree with anything he says.  On the contrary, I RARELY AGREE with any of his ridiculous jargon.   As for his recent article, he just added McDonald’s (MCD) to his Jubak’s Picks portfolio.  I agree that McDonald’s is a well run company with good earnings potential, but the current valuation is ridiculously high, as I stated here.  My personal strategy with McDonald’s is to patiently wait for the $50 or lower range to BUY.  And in the $62 and higher range, I want to short it – either directly or through PUT options.  As for Jubak’s previous picks, HBC was high on his list in November, and I disagreed with him here.  Shares in HBC have come down significantly since Jubak recommended it.
  • Warren Buffett – I do respect and admire the guy, but anyone thinking they can watch his new and top holdings reports for an opportunity to buy is destined to lose money.  Warren Buffett has always stated he only buys what he understands.  If that is indeed the case, then why on earth is he buying Moody’s (MCO), Goldman Sachs (GS), and Bank of America (BAC)?!?!?!  Note to Buffett:  Nobody on earth understands financial companies! STOP BUYING THEM! On the other hand, I do like his purchases of Coca Cola (KO) and Kraft Foods (KFT) but I do not necessarily agree with his timing and valuations.

Disclosure: I am long Mosaic (MOS), but with covered calls in place to limit some risk.  I am long Kraft (KFT), but always looking for the right opportunity to hedge with a covered call.  I am short HBC with a March PUT option.

Disclaimer: TRADE AT YOUR OWN RISK!!!