Analyst meeting summary….sloppy markets…Buy Low Sell High!

Yesterday provided a more grim feeling as my day included multiple cement companies, several mortgage reit companies, and a lunch panel that was a bit overbearing.

Slipping into strategic location to begin the day yesterday, the conclusion after a total of three cement companies is they are in repair mode, still struggling a bit, and very happy to be in Texas. Those who reside in Texas, feel lucky as we have had a shallow housing bust, are coming back faster than the rest of the country, and are tossing up multi-family units as fast as possible, according to the respective executives. Overall a positive, with a better, but not great, future in front of us.

Lunch provided a four person panel of which two I had met before. Overall, but for one panelist I highly respect, they were too cavalier about the markets and the implications for my taste. The one highly respected panelist (possible self-imposed bias here) said we are in a neutral capital market mode with important implications if politicians go rouge. We agree…now is not the time to let your guards down or slip those rose-colored glasses on, in our opinion.

The afternoon provided a less than positive finish to our two-day fire hydrant visit, but was more of what we had expected when our meetings commenced several days ago.  After sitting through several mortgage REIT company presentations, the collateral effects of the FOMC’s juice is loose actions were seen. In full disclosure, we have never been able to COMPLETELY get our arms around these companies, as such, we do not invest in them.

Heading into the weekend we are happily fully aware of the sloppy markets. We find it so interesting that many of those professionals who were “All In” 7% higher ago in the capital markets, are now running for cover…..Come on guys….We would argue very little has changed from several weeks ago.  We would even argue with earnings season behind us, and those rolling up their sleeves and getting their hands dirty (Donald “The Brain”) having listened to company executives, earnings reports, and conferences, have greater confidence in next year’s growth.

“Buy low and sell high”

On a Friday personal note, my seven-year old turns eight tomorrow, and in a my how time flies way, I can remember when she came home from the hospital like it was yesterday…..Happy Birthday Sophia!

Have a Great Weekend and thanks for reading the extra notes this week!


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Dallas, TX 75225

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