July 2007 Archives

I met Judith Aldama briefly before our shoot at Heritage Park in Calgary, Alberta. That meeting allowed us to break the ice and to discuss what we wanted to accomplish. Through my discussions and work with Judith, I know that she is extremely focused on her modeling career. She is an extremely determined, passionate, and creative individual and model.

On Friday, 27 July 2007, a hot day with the temperature at 32C (90F), we arrived at Heritage Park for our shoot. We found our first location, and then discussed the general sequence of shots. We began with three quarter length shots and ended with close-ups. Judith moved effortlessly and gracefully through a variety of poses.

Throughout the shoot, I found it extremely easy to work with and photograph Judith because I did not have to provide direction. She instinctively knew what to do. She is able work quickly and efficiently. In every manner, she is a complete professional.

Heritage Park itself is a fantastic location for amateur photographers. There are lots of buildings and props to work with. Our only challenge was a lack of time. We were in the park for slightly less than two hours, when we could have spent much longer. As we were walking back to the vehicle, we were both pointing to each other saying, "That would be a great location for some shots." If you do decide to go to Heritage Park for photography, be sure to allow yourself plenty of time.

If you require a model, I highly recommend Judith—I give her the highest praise. As mentioned, she is determined, passionate, and creative. In addition to her passion for modeling, she has the same intense passion for fitness. When I was with her, I could tell that modeling courses through her veins. Moreover, she is friendly and outgoing. You can read more about her One Model Place or preferably Model Mayhem. I am positive that if you work with Judith, you will enjoy the experience and will create extraordinary images.

The photograph of Judith Aldama is hosted at Flickr. If you click on her picture above, you will be taken to where you can view a larger version. And if you click here, you can see more pictures of Judith. I will be adding pictures over the next few weeks.

The markets certainly have been interesting recently. I am enjoying the volatility and hope it continues for a while longer. I would like to see the markets correct further, especially because I have some shorts that are working nicely. Obviously, I would like to see the shorts fall even further and then repurchase them. And I have cash sitting on the sidelines that I want to invest in more oil stocks. I am hoping that oil stocks continue to correct. With oil demand increasing and oil companies having difficulty increasing their production, I remain bullish on longer term oil fundamentals. So from my vantage point, a further correction would be a good thing.

Bill Fleckenstein of FleckensteinCapital.com (subscription website) gave a particularly eloquent analysis on his website yesterday. One of the obvious items he pointed out was that the days of the LBO put are likely over. Thus, some of the companies that have been struggling but have had their stocks buoyed up by the purported LBO put might now face reality.

Another site I recommend reading is Adam Warner's Daily Options Report. As the market volatility increases, the derivative markets become even more interesting. In his usual style, Adam provides excellent and insightful commentary on what is happening in the derivatives world as well as how to use derivatives to your best advantage. I consider his blog essential reading, regardless of actual market conditions.

I am not sure what to expect in today's markets. In some respects, I do not think today matters a great deal. If markets go up, pundits will claim that the buy-on-the-dip crowd is following their usual practice. If they go down, just more anxiety. I am more curious about what happens on next Monday and Tuesday, after all everyone soaks on the new information over the weekend. And do we find some hedge funds or other major institutions in dire straits?

As I write this article, I note that the markets have just opened. Although I have more red than green on my screen, the broader S&P 500 is nearly at flat. Should be an interesting day, though I am not sure it matters a great deal.

I finished uploading my pictures of Calgary model Tobey Kai to my Flickr account. In an earlier article I wrote that about Tobey Kai and our photoshoot at the Calgary Zoo. I have been uploading pictures to my Flickr account since then and am now finished.

We got a lot of great shots. For those interested, you can view all my pictures of Tobey. You can also view Tobey's slideshow, which lasts for a couple minutes.

My photographs of Tobey Kai are hosted at Flickr. If you click on her picture above, you will be taken to where you can view a larger version.

Bill Fleckenstein of FleckensteinCapital.com spoke to CNBC's Fast Money panel on Tuesday, 17 July 2007. I encourage you to view the video where Bill discussed the subprime issue. As a subscriber to FleckensteinCapital.com, I was already aware of Bill's concerns, which I share. Bill was direct and eloquent in his discussion. Again, I recommend that you view the video.

Doug Kass, general partner of Seabreeze Partners Management, Inc. and commentator for The Edge Column on RealMoney Silver (subscription required—part of TheStreet.com family), recommended a worthwhile speech by Robert L. Rodriguez, CFA: Absence of Fear.

Good afternoon and thank you for this privilege to speak with you today. I’m CEO of First Pacific Advisors, an $11-billion investment management company located in Los Angeles. I’ve been in the investment business for 36 years and I’ve managed FPA Capital and FPA New Income funds for 23 years. I’ve deployed a classic absolute value equity investment style along with a contrarian investment philosophy. This methodology also applies to my fixed income management process as well. FPA Capital Fund has a very respectable performance track record for 23 years, with an average portfolio turnover ratio of less than 20%. FPA New Income is a high-quality intermediate investment-grade bond fund that can and does invest in high-yield securities. The fund has not had a down year in 30 years and has had positive total returns in every bond bear market.

My talk today, Absence of Fear, is a follow up and expansion of the Special Commentary section that appeared in my March 31, 2007 shareholder reports. It will focus on the concept of RISK since there appears to be little concern about risk in the financial markets currently. My goal is not to scare or sensationalize, but to get investors to consider various risks and ask the basic question, “Am I being sufficiently compensated for these apparent risks?”

I encourage you to read and consider Mr. Rodriguez's speech, which given to the Chicago CFA Society on 28 June 2007.