Doug Kass

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Doug Kass is the president of Seabreeze Partners Management Inc.Expand

Until 1996, he was senior portfolio manager at Omega Advisors, a $6 billion investment partnership. Before that he was executive senior vice president and director of institutional equities of First Albany Corporation and JW Charles/CSG. He also was a General Partner of Glickenhaus & Co., and held various positions with Putnam Management and Kidder, Peabody. Kass received his bachelor's from Alfred University, and received a master's of business administration in finance from the University of Pennsylvania's Wharton School in 1972. He co-authored "Citibank: The Ralph Nader Report" with Nader and the Center for the Study of Responsive Law and currently serves as a guest host on CNBC's "Squawk Box."Collapse

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Doug Kass

 | Dec 2, 2016 | 9:18 AM EST
A rising interest rate environment. Domestic policy uncertainty.  Tightening financial conditions.  Elevated price/earnings multiples, especially against GAAP earnings per share (over 25x). Lurking behind all this are the explosion in exchange traded funds and the dominant role of risk parity and volatility-trending strategies, which are agnostic to private market value and are not knowledgeable of company balance sheets and income statements. Combined, they could harm our markets in the same way portfolio insurance did in October 1987.  The market has been priced to perfection, but you don't have to be a weatherman to know which way the wind is blowing now. Batten up the hatches, as the reward vs. risk quotient is unattractive and the markets provide little margin of safety at current levels. And look out, kid.
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Doug Kass

 | Dec 2, 2016 | 8:42 AM EST
The Dow Jones Industrials and Transports made new highs. The Bad Broad market weakness on a seasonally strong day
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Doug Kass

 | Dec 2, 2016 | 8:33 AM EST
This morning Bank of America has upgraded its rating on JC Penney (JCP) from neutral to buy. JCP is my only retail long…
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Doug Kass

 | Dec 2, 2016 | 7:55 AM EST
The following is an excerpt from a piece by Nick Giambruno, senior editor of Casey Research's International Man. It is headlined, "How…
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Doug Kass

 | Dec 2, 2016 | 7:07 AM EST
I start the day substantially net short. This week I added back to my long in ProShares UltraShort S&P 500 ETF
RMPIA
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Doug Kass

 | Dec 1, 2016 | 5:48 PM EST
The U.S. dollar weakened. The price of crude oil rallied for a second day in a row, rising $1.50 to almost $51. Gold flat, no bounce. Agricultural commodities: Wheat up $0.07, corn down $0.05, soybean unchanged, oats up $0.05. Lumber up $1. Bonds got schmeissed but traded well off the day's lows (as the 10-year yield touched 2.5%). The 10-year and long-bond yields rose by 9 basis points. The 2s/10s spread rose by another 5 basis points to 130 basis points. Muncipals were lower. Junk bonds got hit badly, despite the rise in crude oil. Blackstone / GSO Strategic Credit Fund (BGB)  rose $0.08. Banks were powerful to the upside. I reshorted at reasonably good prices in the afternoon, after covering my small rental shorts in pre-market trading earlier. Insurance stocks flew. Long Hartford Financial (HIG)  , which rose. Brokerages so strong -- Morgan Stanley (MS) and Goldman Sachs (GS) (up $7). Retail was strong led by Target (TGT) , Foot Locker (FL) , Nike (NKE) and JC Penney (JCP) (long). Autos were the "world's fair." I still have tag end short positions. I expect the upside move to get over-done short term, and I will reload on the short side. Energy stocks up, but small relative to the commodity. Old tech was clobbered. International Business Machines (IBM) , Intel (INTC) , Cisco (CSCO) (short and working nicely) and Microsoft (MSFT) got bashed along with the entire sector. Biotech was down 2%. Allergan (AGN) and Gilead Sciences (GILD) were weak. New lows Vertex Pharmaceuticals (VRX) . Spec weak again (Portula Pharmaceuticals (PTLA) , Sage (SAGE) , Intrexon (XON) , FibroGen (FGEN) , ACADIA Pharmaceuticals (ACAD)  . Big pharma hurtin' badly, once more. Merck (MRK) , Bristol-Myers Squibb (BMY) and Eli Lilly (LLY) being liquidated, much like tech. Media mixed message. Disney (DIS) lower. Ag equipment: Deere (DE) up large on an upgrade, though Caterpillar (CAT) still experiencing weak fundies. Consumer staples broadly lower. Campbell Soup (CPB) excelled on a relative basis, though. (T)FANG a source of funds. Tesla (TSLA) , Facebook (FB) , Amazon (AMZN) and Alphabet (GOOGL) a collective mess. In individual stocks: DuPont (DD) , new high. Radian (RDN) up another up 2%. Oaktree Capital (OAK) not so mighty. Apple hit. Here are some value-added contributions on the site today: 1. Jim "El Capitan" Cramer on " Not What Bulls Wanted to See ."  2. "Meet" Brett Jensen on rotation.  3. Tim "Not Judy or Phil" Collins
RMPIA
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Doug Kass

 | Dec 1, 2016 | 4:07 PM EST
Howard Schultz has announced that he will step down as CEO of Starbucks (SBUX) .   I have covered a…
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Doug Kass

 | Dec 1, 2016 | 3:52 PM EST
Campbell Soup (CPB) is trading up $0.90 from today's add on buy.  Umm, umm, good. …
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Doug Kass

 | Dec 1, 2016 | 3:03 PM EST
I remain negative on the overall market. Bank stocks are substantially overbought. Like other market leadership groups, I expect some mean reversion lower in price. The banking sector faces the fundamental challenge of peak housing and peak autos over the very near term and into 2017. I don't expect much of a change in EPS expectations next year.
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Doug Kass

 | Dec 1, 2016 | 2:30 PM EST
This is not what you normally see with the Dow Jones Industrial Average at new highs!   At

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