Wow

What a day! Up 1.5% today in the portfolio yet NVT -- a big winner this year is taken out this morning thanks to Nokia and yet we lose money on it today? Deal was for same price as Friday close so the stock had to drop because in 4-6 months its STILL going to only be worth $78 unless the deal doesn't go through (unlikely) or another bidder comes along (also unlikely).

I am hopeful that today's drop is enough to create a risk arbitrage return -- meaning it won't have to drop any more. I should have sold mine at $77 but I was too slow to do the math and realize that was a good price. its effectively cash now. What to do with it?

As you can imagine, my first thought was to buy more FLIR -- apparently I wasn't the only one with that thought since the stock was up 7% today!

I am hoping patience is a virtue but so far its been wrong.

Too many people have been fighting this market up - they just haven't believed in a rally given all that is going on in housing and so forth. So once we get to the point where everyone is accepting the rally -- that's when we will get the pull back.

Today's news was positive in that various financial firms are recognizing losses -- this does 2 things. It puts a size to the problem so now investors have some idea how big an issue fixed income losses are for the firm. Second, it allows the firm to start selling the bad assets and to try to get good prices for them -- now that the assets have been written down the pressure is off -- no more need to justify a price that isn't sustainable. The companies are now free to sell some of the assets with some patience (don't have to hold a fire sale).

Probably helps DFR but notice that stock was down 1% today. Big winners are the secular growth stories such as FLIR, CME, AAPL types as well as others. Many expect growth to become harder due to a slowing economy -- that means secular growers get big premium valuations. I think that is one reason FLIR and CME are going up.

I like FLIR but valuation is important too -- love the company but like the stock.

Trick then is to buy the secular growers when others are doubting them -- just like people were doing with NVT in the spring and with FLIR last year.

will keep an eye on various stocks including ESE -- Esco Tech -- sells automated meter equipment for utilities to automate meter reading. stock has pulled back due to missing estimates or lowering guidance. don't know much about it yet but will do some more reading.

lots happening with GOOG but its getting reflected in the stock and its too late tonight to discuss it.