Buy American

Client Talking Points

Disaster Averted

So much for the end of the world. After the Italian election fiasco which tanked the market, we saw it rally yesterday to close at levels that were nearly the same before Berlusconi and Co. took over. We're not fleeing to "risk off" assets because of a down day in the market and thus, we are not buying Treasuries. We are short the Japanese Yen and will continue to use our levels and tried and true methodology to pick stocks using signals to tell us when the time is right.

Asset Allocation

CASH 40% US EQUITIES 20%
INTL EQUITIES 20% COMMODITIES 0%
FIXED INCOME 0% INTL CURRENCIES 20%

Top Long Ideas

Company Ticker Sector Duration
ASCA

We believe ASCA will receive a higher bid from another gaming competitor. Our valuation puts ASCA’s worth closer to $40.

FDX

With FedEx Express margins at a 30+ year low and 4-7 percentage points behind competitors, the opportunity for effective cost reductions appears significant. FedEx Ground is using its structural advantages to take market share from UPS. FDX competes in a highly consolidated industry with rational pricing. Both the Ground and Express divisions could be separately worth more than FDX’s current market value, in our view.

HOLX
HOLX remains one of our favorite longer-term fundamental growth companies given growing penetration of its 3D Tomo platform and high leverage to the 2014 Insurance Expansion from the Affordable Care Act.

Three for the Road

TWEET OF THE DAY

"The difference between the $EATFY10 turnaround and the $DRIFY13 - $EAT rethought the buz model while $DRI is defending what has not worked" -@HedgeyeHWP

QUOTE OF THE DAY

"Who is rich? He that is content. Who is that? Nobody."  -Benjamin Franklin 

STAT OF THE DAY

The Commerce Department reported that total orders for goods meant to last more than three years slid 5.2%