EGLE, a Slow Boat to China Kicking Off 11%

Early on I realized two of the great icons of America, apple pie and motherhood, were the worst experiences in the world. Apple pie has fat, cholesterol and too many calories. A good mother is to be revered, loved and admired. At least one out of five is a good mother. I think I make myself clear.

--Seth Glickenhaus

This guy is no jackass. But it is important to start from the begining, and long before:

• Warren Buffet finished his Master's Degree with Benjamin Graham
  
• Wall Street Wizards made Time Magazine covers in the 1960's, or
  
• Ivan Boseky was on top of the world in the 80's, or
• Dan Dorfman's noontime reports on CNBC in the 90's, or
• Jim Cramer's Home Gamer, Mad Money syndrome,

Seth Glickenhaus was hitting tripples and smaking home runs in the equity markets like Babe Ruth. Maybe better.

In fact, long before Jim Cramer got his first wedgy, Glickenhaus began the longest unbroken record of beating the benchmark of any professional investment manager on record. Now, we don't know if that is strictly true, but everyone says so, which makes him a living legand.

He was out there banging the drum for PGH a few years back, which kicks off a massive yield from its natural gas sales, and is worth a look; but more recently he got behind a shipping company called Eagle Bulk Shipping, which does a lot of trade in China, complete with modern boats that unload before they ever get to the docks. What's more, they stand by a policy of paying high yields to investors, which is our kind of special situation. The yield on EGLE is massive (11.70 today), and looks almost TGTBT. Almost, were it not Seth Glickenhaus who has been talking the smack.

By some apperances, it looks just plain good, but will it remain so, even if their slow boat to China gets even slower, as Americans slow down their hand over fist buying of products made there.

If you're into the cold comfort of Wall Street analysts, Cantor, Fitzgerald cut wind today, which was printed as the following:

09:44 am Eagle Bulk Shipping: Cantor Fitzgerald upgrades Hold to Buy. Target $18 to $21. Cantor Fitzgerald upgrades EGLE to Buy from Hold and raises their tgt to $21 from $18 noting the co announced that it secured three attractive long-term charters at rates above current charter rates. The firm also raised their rate renewal expectations for other contracts ending in 2007 given the ongoing strength in the dry bulk market.The firm says the co has secured roughly 93% of its 2007 fleet operating days, which should provide visibility to Eagle Bulk's revenue stream and support the co's high dividend payout policy.

How is it trading? It's Bollinger Bands are outside it's price right now, and its MACD moving averages suggest a buy. Stay tuned, we will.

UPDATE, PCU: Copper, Bright and Shiney

Today, Freeport-McMoRan, a company with a copper mine in Indonesia, bought Phelps Dodge (PD), a copper company with many mines worldwide (CBSmarketwatch.com). The deal was widely criticized because PD traded at 7 just five years ago. But that was then, wasn't it?

The deal comes after last week's discussion of the copper markets by Allen Sykora in Barron's, who interviewed several copper market watchers from various firms, including UBS, AG Edwards, and Archer Financial. The widely held belief is that copper prices will drop from their highs in 2007.

All this to say, that the PCU, which is in our circle of trust with its 10% yield right now, may need to be watched, like a water, boiling. In spite of its gain today, it may be worth looking to attempt a hedge with PCU puts in the event these Principals, Strategists and Anylists. Its puts extend out into the "sell in May and go away" shelf of 2007 in June. Today, they look like this, which you'll find here:

Strike

Symbol

Last

Chg

Bid

Ask

Vol

Open Int

45.00	PCURI.X	3.50	0.10	3.20	3.60	713	1,192
50.00	PCURJ.X	5.30	1.10	5.60	5.90	23	198
55.00	PCURK.X	9.40	0.00	8.60	9.00	1	186

On the other hand, you may just want to give up some of that massive yield and take some off the table, and keep it ready to buy back as it declines with the price of copper next year. Of course, you won't be getting paid the 10% to wait. Stop loss orders, placed well below the climbing price (trailing orders are possible) may be a way to lock in the profits in the event of a decline too. The idea there is to figure out how close you'd like to lock up PCU, and just "set it and forget it".

Canadian Trust, and The Real Big Picture

Last night, Jim "V.I." Cramer set aside some time on his show, Mad Money to pump the Canadian Trusts, which have taken that hair cut as Canadian tax policy changed with respect to double taxation on this business form. He mentioned the emails he has been getting about these babies, which was good, since we have been one of the millions emailing him about this little high yield nook of the capital markets. Morningstar CFA, Josh Peter does a great job at explaining the background on this policy change here.

In the wake of Morningstar gloating, V.I. Cramer stepped up to the squawk box and made the call-- it's okay to catch a falling knife if that knife yields more than 15% backed by clean energy. So, all things being equal, PGH looks better than ever at these levels. He also pumped a few other high yielding Canadian specials, including
PDS, and BTE.

In terms of the overall economy and the question of "deflation", John Crudele laid it out pretty well in the New York Post today. He stated the case against a government accounting trick called "Hedonics," or the art of bean counting growth and meaningful improvement in the economy when technology makes it cheaper to give the consumer more value.

Crudele concludes:

"Today, the government will announce its October Consumer Price Index. It too will be nonsense."

See, here

Canadian Energy Trust s to Get Hair Cuts -- PGH's Fall

PGH, a energy trust in the Natural Gas world and a Seth Glickenhaus pick that yields in the 15% range will be taking a haircut with the other energy trusts. The new tax will be phased in over 4 years, and all new trust will face the new tax as of yesterday.

Yahoo Reuter's Link: click here