Finney says "Hello 2007"

Following up on our March 29th breakfast with Evermay Securities strategist Kizziah Finney, we called to discuss his optimistic market call of two weeks ago. Finney answered his phone with a "hello 2007". Beyond that he deferred to the market's behavior rather than discuss his prior positive call. "What you've got here is something that's almost too good to be true, so the market will pause soon, step back some maybe. The really amazing thing that's going on is in small cap land, lost in the chaos of late '08 and most of '09, there are stocks in the small cap sector, industrials, rails, materials, that are going up by 50% or even 100% in the last month, not out of line with their earnings or market position, just completely overlooked and presumed dead if banks would not rollover debt. Banks are not stepping up business lending at this point, just no longer retracting. This is better than a Minetta Tavern ribeye if you happen to have invested in this small cap sector, and that's my ultimate statement. Look at Greenbrier, Trinity, Akamai or Brush to see some serious recent performance. Only major position down here today was Las Vegas Sands, but that's up 800% since accumulating a position in March '09 so no sweat. What to do now? There could be worse problems."

Do you see the market selling off now that such positive gains have come through, we asked.

"Yeah maybe, but not in any meaningful way, nothing big", said Finney, "with JPM leading the way banks will stop apologizing and show how much money they can make, and the U.S., deficit spending, strapped states, and all still looks a lot better than most of the globe, tea party aside still having a leader who smiles and works. Money has to find a home, and the U.S. says come to papa despite challenges. There may be some profit taking soon, but the guess here is that the market will prove resiliant and be higher by the end of June than it is today, maybe much higher."

That's a bold statement we commented. Can we quote you.

Finney thumped the table hard enough to be heard over the phone, "Quote me, of course, no harm there, you ask my opinion and it's yours. If I'm wrong I'll still eat dinner so what's the big deal."