Tuesday, October 16, 2007


A recent post, Seoul Brother, following the pointy-bit in the upper-left of the adjacent graph, imagined both negative alpha, on top of negative beta for what was apparently (until today) the world's favorite steel stock. A meeting with the company's CFO doused overheated expectations that had previously catapaulted the Korean firm's share price into the stratosphere. The result in the prevailing mimetic world of "Do What the Other Guy Is Doing" is the financial equivalent of being food-poisoned or Pyongyanged by a bad bulgogi, an experience that that this Cassandra has unfortuntately experienced at an un-named Korean establishment in London. In a world of followers and leaders, POSCO has undoubtedly been a liquidity-sensitive leader. Once investors' stomachs have been purged of that which made them yak, I am interested to see its related impact upon its peers and brethren inhabiting this brave new world of unmitigated feedback trading.

(p.s. I am aware of the geographical inconsistency of the post's title with POSCO, but I simply liked its sense of onomatopoeia)


Anonymous said...

Oh, PKX.N is just a wannabe bubble. The real bubble is in Baltic Dry Index and the Chinese equities? Now that is a bubble. My only question is, would you take the under or over until the Olympics?


Anonymous said...

Now that Cassandra has shown us what a M-LEC looks like (previous post), will she allow us a tilt at finding the best combination of words behind the acronym? For starters:
Mother of all Losses Enshrouding Corp.

BTW Citibank is offering market rate + 2% on US$ term deposits to Japanese retail investors. Is this a local or global phenomenon?

Rad The Movie said...


I would buy a straddle. Chinese love building sand castles and given Shanghai’s location to the ocean it would suggest an Aug 08 7500 Call. However, reality would suggest a Aug 08 4000 Put, but who listens to pesky reality anyways in China? Undoubtedly Chinese reality is a pessimist. The real question people need to ask is “given the current price of gold, can the Chinese earn enough first places at next year’s Olympics to stave off an economic crash?”

Jeremiah said...

oh and propbably rated OUTPERFORM buy every analyst. to be cut to NEUTRAL or HOLD when it falls another 10% in price..