GOIH:Market Update

The market opened flat and is trading up, 26.17 points on the Dow. We entered positions on CFC and BAC in the aftermarket and take the investments for long term growth. We see BAC as the major player in mortgage originations and CFC has liquidity to originate some new loans and hold on its balance sheet.


We are looking at risk arbitrage positions in the gaming industry and if the risk/return profile is attractive we will enter positions in this private equity deals. We are reviewing HET, STN private equity deals.

Our Yen carry trade position is positive where the Yen is trading at 116.31/$, giving us a profit on our carry trade position.


Bank of America (BAC) we expect several upgrades in the short term now that BAC essentially owns CFC. We will probably add to our position in BAC after the mutual fund adjust their holdings for the quarter.

We expect to see M&A activity in CFC now the short term liquidity crisis has subsided.

We see short term volatility decreasing until the next shock to the market, at which we expect to see an increase in volatility.

Given the decrease in volatility, see are reviewing option trading strategies seeking to take advantage of the Delta in volatility.

We have entered a sell stop on BCSI at $78.00 at which time we will take our profits on the position.