Friday, August 21, 2009
No Recession Here
They keep telling me that we are in a recession. I've been hearing that for months now. People have lost jobs, companies have filed chapter 11 and chapter 7. Financial giants have failed and gone away. We've had TARP, the bail-outs, and cash for clunkers. But I have yet to feel the effects of the recession. ROD'S HOME REPAIRS is doing better than ever. It has been ever since last summer. Revenue is running over 100% ahead of last year at this time.
I have had very little down time over the past 12 months and am now gearing up for a couple of larger jobs. The smaller jobs also keep coming. I am now in need of another sub-contractor who can do virtually everything. There is no recession here. But there is a lot of hard work.
Ya, I need another contractor. He must know carpentry, drywall, roof repair, and he must have tools and a truck. I need a guy who will do small repairs start to finish. I need a guy who will do it by the job versus the blood sucking hourly. Hourly guys move slower, take more breaks, smoke more cigarettes, talk on their phone more, and have a hard time finishing.
Anyway, remember yesterday during coffee I recommended CitiGroup. Well, their stock went up 9% yesterday. How long does it take you to earn 9% on a CD? Try 4 years. As the economy improves and CitiGroup returns to profitability the stock will easily more than double over the next 12 months. 100% annualized sounds good. Doesn't it? Right now I am positioned in CityGroup options so that every penny the option goes up it's worth $100. I bought the options for pennies. Morgan Stanley is also worth looking into. Man! My coffee tastes good this morning. Does yours?
Those who bought into the low end of the stock market will be rewarded in the months to come. Remember, yesterday I mentioned McDermott International? Since we bought in sometime in march that stock is up 118%. Too bad we didn't buy many shares. We were pretty cautious back then. We still are. We want to own winners.
Well, until next time.... enjoy you coffee.