May 24, 2017

Peak Automobile stocks

Ford announced that 10% of the company's global labor force would be laid off.

"I continue to view the car companies' earnings estimates and guidance for 2017-2018 as materially inflated and the major auto stocks remain value traps despite their seemingly low valuations." 

May 22, 2017

You may want to worry about Return Of Capital instead of Return on Capital

With the US stock markets near all time highs, Doug Kass thinks it may be a time to sell stocks and buy gold. He thinks capital preservation should be a priority instead of return on capital. 

President Donald Trump has proposed tax and regulatory reform but they may be delayed or diluted. The reasons being 
-Firing of FBI Director Comey, Preet Bahrara, Sally Yates.
-President Trump may have revealed classified information to the Russians
-Comey's bombshell memo indicating he may have been under pressure to drop the FBI probe into Michael Flynn

May 17, 2017

Doug Kass on Crude Oil buying opportunities

Recently crude oil prices have been volatile and has been declining. Last week's single day 4% decline, may have been an artificial decline, probably caused by hedge fund liquidations.

Also the impact of Crude Oil's price drop has had a negative impact on all Oil related shares. The XLE etf which was priced around $78 in 2016 is now around $67. 
Donald Trump and the new administration seem supportive of the energy industry.

At the moment, investor sentiment towards energy stocks appears cold and people appear to be shying away from the energy sector. Is now a time to be greedy when others are fearful ? Doug Kass thinks so, and he is buying energy related stocks. He is also planning to start a buying position in XLE.

May 16, 2017

Bought Allergan on weakness

Doug Kass is a fan of Allergan and continues to like Allergan. He has been adding to his long AGN positions on weakness over the last few weeks. 

He remains committed to Allergan and places this stock in his Long Term Investment bucket. 

The shares were originally put on his Best Ideas List in December 2016 at $194 per share and is currently trading at around $230 per share.