The most recent crushing blow on DLX was S&P lowering their credit rating to "Junk" (S&P rating). Remember a few blogs back that I commented that debt wasn't necessarily "evil" so long as the enterprise has strong cash flow? Well DLX no longer has that luxury, and the debt load with the higher rates undoubtedly required with the Junk status is really going to hurt. Doesn't help that interest rates are sky-rocketing (ask people with ARMs). Hmm, the longer I type, the more I think I should bail. I am stubborn and I do have a plan... but does that imply I should be foolish?
The good news is that despite the beating that DLX has given me, I am doing pretty good. My MFI portfolio has moved a whisker ahead of the IWV benchmark ( a whopping $480 out at $10,000 per stock). I am also now just $2,000 behind having been in cash the entire time. So let the party begin!
- TGIS continues to be on fire! It is now up 55% for me and has been added to Russell Microcap Index (Thomas Group Added to Russell Microcap Index)
- Ezenia! made an explosive 6.7% move today.
- NSS (nice) and PCU have both cracked the +20% club at 22% and 20%. A few weeks ago when MVK was bought at a 64% premium, I said NSS was dirt cheap. I was right.
I did sell my non MFI 401K mutual funds and am sitting in cash there. Jubak continued his doom & gloom spiel, with stagnation being on the horizon (Jubak on Stagflation).
Watched a bit of Cramer tonight for the 1st time in a couple weeks. I at first thought my ears were out of tune, as I thought I actually heard him recommend some airline stocks! Sweet music to my ears... go PNCL! I have noticed that:
- Airline Fares are up... I am flying this summer and paying 25% more than last year.
- Airplanes are crowded... airlines have cut back on capacity.
- Airlines are reducing fixed costs... they have renegotiated pensions, healthcare etc.
"Gol: "I think that GOL is good. ... Did you notice that AMR and Continental were both up today? ... These stocks are in bull mode. ... I want to own them all (the three airlines he mentioned)."
Have a "gol" day everyone! (PS - I was sorry to see Portugal lose. I'll have to root for Italia.)