Monday, February 26, 2007

Quick Update

Picked up some more First Marblehead (FMD) at 44.77, increasing the stake by 25%. The cost basis of the position goes up to 29.36.

The former Fed Chairman, Alan Greenspan, made some slightly negative comments today stating that a recession later this year is possible. He believes we're at the later stages of the economic cycle.

Helping the markets today is the large TXU buyout. A lot of private money is still out there making some monstrous purchases.

Yahoo! (YHOO) got a bump today after reporting increased click-traffic due to their new Panama system. I am hoping that I didn't shoot myself when I sold calls on the position, since I really think that it's a company to own for the longer-term. I just need a pullback in the market... any pullback. We haven't had any sizeable pullback in a long, long time. Statistically, we're simply overdue.

*** Edit #1 ***

Dumped the Advanced Micro Devices (AMD) trading position for a substantial percentage loss at 15.70. Rumors are going around today about the company being a potential LBO candidate. I admit the trade was a mistake, and I took the upward move as an opportunity to exit. If it ultimately gets bought, I guess I miss out on a few points. But, I'm not a believer.

*** Edit #2 ***

Dumped eBay (EBAY) trading position at 33.40. Again, I reiterate that I am getting uneasy about the market.

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