The market was relatively flat today as investors were focused on figuring out how to build rocket ships to reach the newly found Goldilocks planet (where the distance from a star, surface area, and moon position are all just right to make it potentially habitable) to start a new economy as the current one is more fucked than Greg Giraldo’s liver (too soon?).

There were a flurry of economic reports led by Money McBags’ favorite, the (No) Labor Department’s release of new claims for unemployment which dropped to 453k (until it is revised upwards next week) from 465k (or the newly revised upwards 468k, feel free to use whichever made up number you please and avoid the government’s “Hold the shock, and hope for no awe” strategy entirely).  Analysts had guessed that the number would drop by 5k to 460k or 463k, whichever fits your fancy (and this fits Money McBags’ fancy), so the new data can be viewed as a slight positive, well, except for the 9MM people still receiving unemployment, the ~20MM people who remain unemployed, and anyone deluded enough to to think a marginal relative beat by one number makes up for that number being not just fuck awful in absolute terms, but Jennifer Connelly‘s acting fuck awful.

In other slightly positive news, Q2 GDP was revised up from 1.6% to 1.7% after the Commerce Department misread the memo where they are supposed to announce good numbers and then revise them down as opposed to announcing bad numbers and then revise them up (that is if either 1.6% or 1.7% growth were actually good numbers, but you understand about what Money McBags is talking).  Americans saved 5.9% of their disposable income in the Q, which at the rate of potential hyperinflation and the potential death of fiat currency should be enough to at least provide a week’s worth of tinder to keep consumers warm as the recession moseys on in perpetuity (or at least until after the global ponzi scheme crumbles and is rebuilt, so shall we say, Friday?).

Also, according the Chicago ISM, business activity picked up as the business barometer climbed to 60.4 with only a slight chance of showers while not one of the 57 analysts thought the number would be above 58.3.  So we have four choices here as to what happened:  1.  The number was completely fabricated.  2.  Analyst models are no longer calibrated to what is happening because for the 42nd time in the past month, those models are based off past data when the economy appeared to mimic a normal gaussian bell curve and that quaint view of the economy died with increased global correlation and the exponential effects of compounding causing fatter tails than the one on Ines Sainz. 3. Manufacturing in Chicago was up because the fucking Bears are 3-0 and everyone wants to buy Jay Cutler jersey before he implodes like, well, like Jay Cutler.  4.  All of the above.

Internationally, Irish eyes aren’t smiling anymore as Ireland is taking over another bank, this time it is Allied Irish Bank which is the country’s 2nd largest bank (though Ireland’s second largest bank is a bit like being Lance Armstrong’s second largest testicle, but whatever) and the 4th bank that Ireland has nationalized.  The bank still needs to raise ~5.4B Euro and to do so will consider selling its shares of M&T bank, selling shares of its own stock, and selling Ireland’s own Claire Tully to the highest bidder.  But it’s not just Ireland that is continuing to teeter under an increasingly growing debt burden, as Spain’s likely inability to maintain their current economy is so fucking obvious that even Moody’s downgraded the country, and remember, Moody’s is so bad at their job that they missed the biggest financial meltdown of the past ~70 years, so if they are pre-blow up downgrading a country, that country must be more fucked than the girl at the bottom of a fat camp cheerleading pyramid.  Money McBags said it yesterday, be very fucking wary of what is going on in Europe right now because the market doesn’t match the economy like Lindsay Lohan‘s carpet unlikely matches her drapes.

In the market, AIG was up 4.5% as they came to an agreement to along with Goldman Sachs (Money McBags means the US government, sorry he always gets those two confused) to repay tax payers the money used to bail AIG out.  The deal is a bit convoluted with the government exchanging their preferred shares for common shares and then hoping to issue those common shares in to the market in blocks over an 18 to 24 month period which makes the US government the middleman, or the lucky pierre if you will, of this entire sordid transaction.  Until the shares are sold, the US taxpayers will own ~92% of AIG which means the company may need to order double the lady fingers and punch for the annual shareholder meeting.  Elsewhere, Hertz was down ~9% after Dollar Thrifty shareholders crashed the proposed offer by Hertz to buy the company.

In small cap stocks, CRUS dropped ~6% after yesterday’s rise as fears are that AAPL will be replacing them in the iPhone 5 and iPad 2 and this has been the issue with this company.  AAPL basically drives their revenues right now so if they lose their slotting, they will be more fucked than Heather Mills and her partner in a three legged race.  This is the reason the company is so cheap despite the fact that they have been putting up huge quarters and will put up another huge quarter shortly.  Where there is smoke, there is usually Paris Hilton, but there is also usually fire and Money McBags would be trimming like shit in to this news because if it is accurate, CRUS will tumble.  Just ask yourself, would I feel stupider?

In other news, DGIT rocketed up by 8.5% to $21.75 and remember Money McBags told you about this company a month ago when it was ~$16 after an unwarranted sell off.  The news today was an initiation by Northland Securities at Outperform (and yes, that was funny because the thought that something called Northland Securities can move a stock is as ridiculous as thinking that lovely lady you paid $20 for a dance with last night was going to use that $ on her college education) and an announced acquisition of something called Match Media Point for $26MM (~6.5x TTM EV/EBIDTA and ~1.5x revenue) which somehow gets them further digitizing the direct response advertising market.

They should now have ~$53MM cash and with EBITDA guidance of ~$105MM (not including the new acquisition) are back up to trading ~5.5x EV/EBITDA despite revenue growing 20%+, EPS doubling last Q, and EBIDTA expected to rise from ~$74MM.  Plus they are the market leader in a growing space as HD adoption continues to gain steam (especially internationally).  So despite a reader in the award winning When Genius Prevailed’s comment section not making cogent arguments, not understanding the profitable growth of this company, and using outdated stats to somehow try to make an argument that DGIT does not create value (and citing their 2009 FY FCF of $35MM to make a point is like using a 2005 pic of Heidi Montag to claim she has small boobs since the company has already brought in ~$35MM in FCF in the first 6 months of this year using ~$42MM CFO and ~$7MM investing cash flows as a proxy).  The company remains oversold and should probably trade up into the mid $20s before you want to seriously re-evaluate and take some risk off the table.  Extreme Reach and Ascent Media do likely pose some threat to their business but that is way out in the future so be happy with your ~30% monthly gain, and if you want, take some profits, but there is still at least ~10%-20% upside here.

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