The Best of Kass
Ocwen Has Huge Potential
Originally published on Thursday, May 3 at 12:05 p.m. EDT.
The key takeaway from the Ocwen(OCN) conference call is that the company faces a huge runway, with $450 billion of potential servicing deals in the pipeline.
This coupled with a likely spin-out of two new businesses in late 2012-early 2013 makes Ocwen eerily reminiscent to its sister (which was spun out in 2009), Altisource Portfolio Solutions(ASPS) .
Ocwen becomes my favorite stock for 2012 now.
More to come after I complete my analysis of the first-quarter 2012 report.
At the time of publication, Kass was long OCN, ASPS and HLSS.
Big Bond Short
Originally published on Monday, April 30 at 1:17 p.m. EDT.
"Chains of habit are too light to be felt until they are too heavy to be broken."
-- Warren Buffett
I currently have a near-20% weighting in my bond short. It is the largest individual asset class bet I have ever made and underscores my conviction -- or insanity.
I will be speaking at Whitney Tilson's seventh annual spring Value Investing Congress in Omaha, Nebraska, a week from today (Monday, May 7).
The subject of my talk is "The End of the Bond Bull Market (From an Equity Investor's Perspective)."
Wish me luck -- I will need it!
And if any subscribers are in Omaha next weekend to attend Berkshire Hathaway's(BRK.A) annual meeting, please look me up.
I'll be the guy wearing the sweater that says, "Warning: Bonds may be hazardous to your health!"
At the time of publication, Kass was long BRK.B, TBT and TBF. He was short TLT.
When Not to Short (Part Deux)
Originally published on Monday, April 30 at 9:29 a.m. EDT.
In early March, I wrote some basic rules I abide by in shorting.
Back then, I used Sears Holdings(SHLD) as an illustration.
Among my tenets was never short an equity whose short interest exceeds 7% of the outstanding float or three days of volume.