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

 | Jul 27, 2016 | 10:02 AM EDT
I've written for some time that my favorite large-cap long is DuPont (DD) and my favorite large-cap short is…
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Doug Kass

 | Jul 27, 2016 | 9:56 AM EDT
The S&P 500 is up slightly as I write this. The CNNMoney Fear & Greed Index is at a bullish/complacent extreme. My fundamental concerns remain. Add it all up and I think the market's risk vs. reward c
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Doug Kass

 | Jul 27, 2016 | 9:20 AM EDT
Revenues fell by almost 15% to $7.2 billion, while a lot of inventory liquidation took place. EBITD also declined by $4.5 billion, which is what happens when a company liquidates inventory. Apple's China sales also fell (Carl Icahn's pet peeve). Management strongly suggested that the China market would be OK over the longer term, but noted that the Chinese economy was slowing significantly. The U.S. dollar's 7% rise against the Chinese yuan doesn't help. Free cash flow remains strong, with $12.6 billion of EBITD compared to $4.2 billion of capital spending. Share count is also down 4.3% year over year. At premarket pricing of around $103, AAPL trades at only 5.4x trailing-twelve-month EBITD. However, EBITD is almost definitely moving lower -- at least for the next two quarters. As I suggested above, bulls will point out that Apple's services revenue will go up methodically as the company's "sticky" installed base grows. But services revenues remain dependent on Apple's hardware sales -- which have peaked. The bottom line: Apple's shares have moved back to a level ($100 to $105) where I see a more-favorable risk-vs.-reward quotient by staying on the short side.
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Doug Kass

 | Jul 26, 2016 | 4:48 PM EDT
I added to my Apple (AAPL) short on the company's after-hours earnings beat and a spike in the share price of more than…
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Doug Kass

 | Jul 26, 2016 | 4:44 PM EDT
I added small to Twitter (TWTR) after it fell more than 9% in after-hours trading following the release of its latest…
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Doug Kass

 | Jul 26, 2016 | 4:26 PM EDT
The U.S. dollar strengthened. Crude oil dropped again, but only by two bits to $42.87. Gold was essentially unchanged. Agricultural commodities: wheat -13, corn -1.50, soybeans +7.50 and oats-2. Lumber +1.30. Bonds were better bid despite a weak five-year note auction. The yield on the 10-year U.S. note fell by one basis point and the long bond yield was flat. The 2s/10s spread was 81 basis points, up slightly day over day. Municipals bid were up small. Junk bonds were weaker, but Blackstone/GSO Strategic Credit Fund (BGB) was up a dime to a new recent high of $14.85. This, despite a big divergence between lower oil prices and higher junk bond prices. Banks continued to rally despite weakness in European bank shares. Insurance stocks were well-bid, though my long Hartford Financial Services Group (HIG) , a recent star, was slightly lower. Brokerages flatlined after a large run-up. Retail was stronger, led by my short Nordstrom(JWN) , which was up nearly 3% on an upgrade. Energy stocks were weaker along with the lower commodities price. Biotech got hit, with Gilead Sciences (GILD) down more than 8%. Ag equipment , led by my short Caterpillar (CAT) , was up 5% after an earnings beat. CAT is now well into where I am considering additional shorts. Staples are conspicuously weak on the dollar's strength. My short Coca-Cola (KO) is getting hit. I am planning to add to this short. Autos are nothing -- again, which is disappointing after General Motors' GM earnings "blow out." (T)FANG was lower, but my short Netflix (NFLX) was higher based on a large insider purchase. In individual stock, DuPont (DD) is up on better earnings (more on this tomorrow). Starbucks (SBUX) was up, but well off its high, after a research upgrade at Goldman. Here are some value-added contributions on our site today: Jim "El Capitan" Cramer on tech tie-ups.  Mark Sebastian on Apple's technical setup. He is buying out-of-the-money calls. I remain short, and shorted more today. Gary Morrow is a running with Nike (NKE) . I remain short Foot Locker (FL) .  Tim "Not Judy or Phil" Collins goes tweet tweet.  Roger Arnold on the yield curve and insurance stocks.
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Doug Kass

 | Jul 26, 2016 | 3:09 PM EDT
"Men (it has been well said), think in herds. It will be seen that they go mad in herds, while they only recover their senses slowly, one by…
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Doug Kass

 | Jul 26, 2016 | 2:58 PM EDT
Twitter (TWTR) will report second-quarter earnings this afternoon after the close. Expectations, justifiably, remain…
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Doug Kass

 | Jul 26, 2016 | 1:56 PM EDT
The trade was definitely weird, but calling it "mammoth" (as Paul did) is probably overdoing it. Still, selling an 18-month strangle on such a heavy delta on an outright basis is definitely a fundamentally an odd move. That said, it's hard to draw an in-depth conclusion on this trade without having intimate knowledge of it. Doing the trade against a long stock position is less odd, but the idea of capping upside on stock so near the money is strange. That's especially true giving the fact that the trade involved a January 2018 expiration, and that FAST's 52-week high is near $50. Also, implied volatility is not exactly high in the name -- screaming a possible sale. There's always the potential that the calls weren't sold and the puts weren't bought. It might look that way in hindsight because of the bid/ask on both options and how the trade was reported. But these days, market makers often represent an order on the floor, and that gives them the ability to hedge with stock or other options. If that was the cas
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Doug Kass

 | Jul 26, 2016 | 1:35 PM EDT
Peter Boockvar checks out today's soft five-year U.S. Treasury auction: "After a bad two-year Treasury auction yesterday, the five-year auction…

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