Bookkeeping: "We're Getting Destroyed" Buys

1. Potash (POT)
2. CF Industries (CF)
3. Mosaic (MOS)
4. A-Power Generation Systems (APWR)
5. Foster Wheeler (FWLT) <--- earnings after the bell
6. Jacobs Engineering (JEC)
7. Fluor (FLR)
8. Flowserve (FLS)
9. Alpha Natural Resources (ANR)
10. Massey Energy (MEE)
11. Walter Industries (WLT)

Again these are now broken charts in most cases - some are holding at or around the 200 day moving average. If/when they bounce they'll be sold as they approach the 50 day moving average. That might be wrong or correct to do. But we have to assume after an oversold bounce they will fail as the hedge funds have abandonded them. And their buying power is all that matters in this new and improved era of markets.

Whatever the "flavor of the day" reason is irrelevent - these stocks are being puked out and they will make up any number of reasons to explain it, most of which are just paper tigers. I can at least understand the commodity stocks but to destroy the global infrastructure plays because oil drops to $120 or is dropping to $100-$110 is plain ridiculous. If we have another day like this tomorrow I'll be buying another batch of them all. Valuation did not just drop 30-40% across the board in a week or less, just supercomputers algorithims.

We're either going to enjoy a bounce soon or be down 10% for the week. I guess even when the global recession hits and these stocks earnings fall by 10-15% from current targets (oh wait, Flowserve just increased their EPS by $1.25 - doesn't fit my hedge fund computer model - does not compute Will Robinson - does not compute) -- as I was saying even as these stocks earnings fall by 10-15% from current targets some will now trade at single digit forward PE ratios for 30,40,50,60,70,80%+ growth. But nevermind that - $3.25 gas is going to bring back the US consumer, while the Chinese economy goes down into flames. We have the perfect econony - stable housing, a strong consumer, a thriving trade surplus, and consumerism - which is 70% of the economy - is booming. So better to buy American than all those silly areas with funny names. Thanks Will Robinson. Over and out.

Yours in Rambling.

Long all names mentioned in fund; long Mosaic, A-Power Generation Systems in personal account