Oh shit is it on.  Japan decided to cut their rates to 0%, the ISM released a number slightly more than a nut hair above guesses, and the lovely yet vibrator-challenged Christine O’Donnell assured voters that she is not a witch (and Money McBags is 95.6% sure that is a real video).  All of those caused the market to run today faster than a Madz Negro (though if you think that name is bad, imagine how her brother Uppity must feel).  So with the currency wars officially on and fiat currency literally no longer being worth the paper on which it is printed, investors are throwing money hand over algorithm into the market because somehow the continual quantitative easing will give the recession a happy ending like a gentle soapy from the lovely Carrie Keagan.  So glad that is out of the way and we can all go back to forgetting about the 10% unemployed (or ~20% if you want to include the discouraged and Mickey Rourke) and roll our gains in to Chinese made 3D flat screen TVs, abandoned houses we can “flip” for profits, and autographed copies of The Age of Turbulence which are now selling for an incredibly overpriced $.01 in some places.

The big news on the day was that Japan surprised the markets by dramatically lowering their benchmark interest rate to a range of 0% to 0.1% from merely 0.1% and apparently that extra .1% is hu-fucking-uge, well, at least symbolically.  Japan is also setting up a $60B fund to buy government bonds, commercial paper, and first edition Pokemon cards in order to push down the value of the yen in their attempt to bring the barter system back to the country (or stave off deflation and stimulate exports, potato-puhtaato).  Given Japan’s past success in spurring their economy out of the doldrums of a deflationary environment, Money McBags is sure these measures will work in the same way that he is sure Oprah Winfrey’s next diet will work (and Jay Leno, fell free to steal that one) and Taryn Thomas’ new anus will work.

And it wasn’t just Japan manipulating their currency as Benny B got his Fed on yesterday as he spoke to the esteemed economists at the University of Rhode Island and gave a not so subtle nod to QE2 by saying the Fed will resume their asset purchasing program.   Though he doesn’t have “precise numbers” yet on the $s QE2 would use, he thinks it will be somewhere between 0 and whatever comes after trillion in the short scale number naming system (and for the record, “fuckload” is immediately after “trillion”).  Benny B maintains that the last round of quantitative easing saved the US economy from further harm, a speech he will likely repeat when it is time for QE3, QE4, and the exciting QE69.

In macro news, the ISM services index came in at 53.2 which was above the 51.5 of last month and edged out analyst guesses of 52 which has further caused the market to rally.  Surprisingly, the index showed an increase in employment and new orders while unsurprisingly it showed a decrease in hope and common sense.  Some investors are looking at the ISM numbers as a sign that a double dip recession has been averted and a period of slow growth (and slower growth than years 5 through 21 for He Ping Ping) is now at hand, while others continue to buy gold, whiskey, and bone up on their fiddle playing to properly prepare for when Rome figuratively, or perhaps literally, burns (and if Rome is going to burn, Money McBags only hopes a special NSFW room there goes unharmed).


In stock news, everything was fucking up today (well except for Lisa Rinna’s lips and somehow NFLX).  Financials rallied as JPM’s analyst upgraded the sector based on the fact that trading volumes from large institutions through JPM have been down so the analyst needed to make up a story to bring action in to the stocks to cause those institutions to once again trade through JPM.

Elsewhere AAPL was started with a $365 price target and a “buy” from Jefferies in what Money McBags can only assume was an initiation report fraught with new blinding insights not already printed by the 42 other analysts who already cover Apple (seriously people, if anyone is buying AAPL based on what a Jefferies analyst has to say years after the company already took over the world, then Money McBags will eat a sack of dong).  Apparently 3MM iPads were sold in the first 80 days which is the fastest anything has ever been adopted including DVD players, disposable tampons, and Malawan kids.  Not to be outdone by AAPL (well except for the last 10 years), MSFT has announced that they will have an iPad competitor by December just in time for the holiday season, in addition to that, they say they will be launching a new football league to compete with the NFL, an oil cartel to take down OPEC, and a new vibrator to take on the rabbit.  And finally WAG was up a bit after posting decent September sales growth which comes on the heels (like any good podophiliac) of last week’s solid Q driven by rising pharmacy sales.  It is interesting to keep an eye on this (though more interesting to keep an eye on this) to see what happens to pharmacy sales as the new health care bill is instituted.

In small cap news, HSTM was up 20%+ and remember yesterday Money McBags mentioned this stock again and pointed out it’s spiking volume and said if he were still running a portfolio for the man, he would have dipped his toe in to this.  Money McBags still has no fucking idea why this company is rising other than that it appears to be cheap (or appeared to be), based on his analysis of their Qs, Ks, and courses offered (where one can learn to reduce urinary tract infections which is always a good skill to have).  Money McBags doesn’t have access to management but he laid out his brief thoughts on this company just two weeks ago and cited their growth, strong balance sheet, reasonable valuation, and blue chip institutional investor profile.  So while he didn’t dig in as much as he usually does, he did point this company out to you just as volume was spiking so hopefully you all were able to ride this up a bit.

The company traded ~570k shares today after averaging ~25k shares a day from 1/1/10 through 9/21/10 (the day before Money McBags pointed the company out) and has averaged ~122k shares traded per day since then, not including the huge spike today.  HSTM is now trading at ~19x a run rate EPS number but if they can continue to grow 10% on their topline (and Money McBags has no idea if they can, but their business sounds like it should be growing, afterall, hospital training isn’t getting any easier with the increasing complexity of treatments and patients’ love of suing), and see that leverage hit the bottom line at a 20% growth rate, then the company is trading at ~15x next year’s out of our ass EPS guess and still at a reasonable multiple of EBITDA.  The stock tripped Money McBags’ screens the other week and that is why he mentioned it back then, hopefully you all dug in and were part of those 570k shares traded today and you took some of that ~30% 2 week profit for a night out at your local Rick’s Cabaret.

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