Toasted Short

Congrats to HANS longs. I still don't get it, but the point is being driven home. Just when I think the high is in, there is another. $175.33. They announced the Anheuser-Busch distribution deal just prior to earnings. That telegraphs to me their fear that earnings might have disappointed. Otherwise, why not announce it some other time.

The conference call is in three hours. The contrary play is to lie in wait. Let the unwashed masses rub the sleep out of their eyes. Give them time to have their customary breakfast of Froot Loops and Monster. Perhaps their collective devotion will drive the price up over $180. That is my opportunity to average up, and short more.

I'm not going to cover now, not in the middle of a short squeeze. Not while there is a ten dollar gap to fill. I am going to have to look far and wide for comparisons. NTRI gapped up on an unbelievable quarter. Sales have quadrupled, and they turned in $0.63 per share. Say goodbye to the sixties, because they are not coming back. Longs there are in a good position.

HANS turns in a decent Q1, and beats by $0.14. Big deal. They only beat Q3 '05 by a penny. Their EPS is growing more slowly. An eighty-four cent quarter doesn't yield a stock price of $175. If it did, NFX would be over two hundred dollars a share. Welcome to insane-world.

Reality may be setting into the ethanol stocks. PEIX seems to have stabilized under forty-one dollars. E*Trade is still unable to borrow the share. No shorting PEIX. STKL popped to twelve dollars before some sellers jumped in. The action made me nervous enough to open a short position. Shorting STKL will hedge my gain, and give me an ethanol short to play against my energy investments.

Peace Patience and Prosperity