12/28/09 Midday Report: Light volume as the market tries to shed holiday pounds

The only real news today (other than that Nell Mcandrew is still hot) is that the extra day of shopping this year led to an increase in retail sales.  Amazingly enough, analysts also found that an extra serving at dinner led to an increase in people gaining weight, an extra shot of Jager led to an increase in people throwing up, and an extra hour in a Bangkok brothel led to an increase in people getting AIDS (and Money McBags loves any city whose name is a verb followed by a noun).  Retail sales were up 3.6% as retailers were better able to hold price and manage inventory, plus that whole extra day thing.  Without the extra day, analysts estimate retail sales were up 1% to 4%, so throw your favorite dart at whatever number you prefer.  Interestingly though and a positive sign, sales of electronics were up 6% as consumers still want their iPhones, netbooks, and Rabbit Habits.

In other market news, the street awaits Wednesday's treasury auction which has caused yields to increase and thus tempered market gains today and Israel raised their interest rates by another 25bps to fight off inflation.  Israel also announced that if inflation continues to rise, they will either send the Mossad after it or simply have it's mother nag it to death.  The rise in Israeli rates will increase the value of the shekel vs. the dollar which is good for Money McBags' favorite WILC though bad news for Americans planning on going on a kibbutz this summer.

In stock news, a tiny Money McBags watchlist stock, MBND, continues to rise after raising revenue estimates last week.  MBND installs Direct TV across the country with a specialty in multi-dwelling units and recently rolled up a number of players to become the largest Direct TV installer.  They finally worked out operating kinks last Q and earned $3.3MM of EBITDA and just guided to $260MM-$270MM of annual revenue.  So as long as they don't fuck anything up (which they did in the 2Qs prior to this last one, so the leash is shorter than a midget's nut hairs), they should earn at least $14MM of EBITDA and they have only a $20MM market cap and ~$55MM EV.  So they are trading at ~4x EV/EBITDA and <.1x revenues and that is if they realize no operating efficiencies.  This is either a $6+ stock or a roll-up cluster fuck, but worth keeping an eye on and doing some research as Direct TV continues to grow and MBND could ramp with it now that they have their operational issues "under control" (at least until the next fuck up).