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October 2008



Earnings Preview for NN, Inc. (NNBR)

October 28, 2008 – Comments (0) | RELATED TICKERS: NNBR

I received an e-mail asking how I felt about one of my picks, NNBR, going into earnings next week and decided to answer with a short blog entry.   [more]



Fast Food and Steady Earnings – McDonalds (MCD) 3rd Quarter Earnings Review

October 25, 2008 – Comments (1) | RELATED TICKERS: MCD

On Wed morning, McDonald’s (MCD) reported per share earnings of $1.05, enough for something off the Dollar Menu with change back.  Analysts were expecting $0.98.  For the first nine months of 2008, MCD has earned $2.89 per share putting them on track to exceed analysts’ full year 2008 estimates.  [more]



Wells Still Rolling (WFC)

October 16, 2008 – Comments (0) | RELATED TICKERS: WFC

On Wed morning, Wells Fargo (WFC) reported 3rd Quarter 2008 results in a press release and recorded message.  The bank reported earnings of $0.49 a share, ahead of analyst expectations but 23% lower than a year ago and 7.5% lower than the previous quarter.  The results included a 13 cent per share write down for investments in FNM, FRE and LEH and 10 cents per share going toward increased loan loss reserves.  If the impact from the non-recurring security losses is excluded, earnings were only 2 cents per share below the same quarter last year.    [more]



The new TARP: Summary and numbers rundown for WFC

October 14, 2008 – Comments (1) | RELATED TICKERS: WFC

Treasury Sec. Paulson’s initial plan to buy troubled assets from banks has morphed in to an equity injection.  The initial $250 billion TARP funding will be used to purchase preferred equity in banks with half of it going to nine of the largest banks in the country.  [more]



General Electric (GE) Earnings Review

October 12, 2008 – Comments (1) | RELATED TICKERS: GE

On Friday, GE reported their FY 2008 3rd Quarter Earnings.  Links for the press release, conference call transcript and presentation.  GE’s diverse business model makes their earnings report a useful bellwether for the overall economy.  Finance, traditional and alternative energy, media, transportation, aviation, military, medical equipment, water treatment – GE does a bit of everything and their earnings report should be a very good indication of what’s working and what’s not.  [more]



Dow 30 Dividend Deals

October 09, 2008 – Comments (5)

On Tuesday I heard someone on a CNBC show mention that the yield on the Dow Jones Industrial Average was higher than 10-year treasuries. Decided to check and it's true. At Wednesday's closing, a portfolio equally weighted across the thirty DJIA stocks would have a dividend yield of 3.77% compared to the 10-year at 3.63%. I used the dividends for the DJIA stocks as reported on Yahoo, except the payout for Bank of America (BAC) was adjusted to account for their recent announcement halving the dividend.  [more]



Naming Names on Bailout Pork

October 05, 2008 – Comments (3)

For those interested, Taxpayers for Commonsense has put together an analysis of the ‘Top 10 Tax Sweetners in the Bailout Bill.’  Of particular interest, they tried to associate names with the pork where possible.  Unfortunately, they didn’t have names for many of the add-ons, so I’m sure this list should be much longer.   [more]



That Wacky Wells Deal – What the Spread Says

October 04, 2008 – Comments (1) | RELATED TICKERS: WFC , WB.DL2 , C

On Friday morning Wells Fargo (WFC) and Wachovia (WB) announced that WFC was purchasing WB in a stock transaction at 0.1991 of WFC per WB share.  The press frequently reports these deals at the equivalent total or per share price when the deal is announced; you probably saw reports saying WFC was paying $7 per share or $15 billion for WB.  It’s important to know that those valuations are based on the price of WFC stock at a given point in time and will fluctuate.  This Marketwatch announcement does it right, giving the valuations along with the basis.  I haven’t checked, but I’m sure the Yahoo boards are full of posts wondering why WB isn’t trading closer to $7.  [more]

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