With the Dow having lost nearly 50% of its value since its highs in 2007 and panic being present all over the spectrum, one has to wonder if the insane risk-taking with a blind disregard for potentially negative consequences has disappeared from the investing world. Many have argued that people have now become extremely risk-averse and we have completely shifted orientation. Reading over investing websites such as this one (TMF), KaChing, SeekingAlpha, etc.; I am not so sure I agree with this analysis. [more]
I'm having a bit of a debate with myself, but it's the type of debate that I think the CAPS community could provide quite a bit of insight on. The big question: [more]
Devon Energy (DVN) just released 4th Quarter earnings and they took a huge $7.1 Billion asset writedown for their oil and natural gas properties. This seems to have surprised the market as Devon is down sharply despite having positive earnings if you exclude the writedown. [more]
Not sure if anyone was paying attention to it, but about 3 PM yesterday afternoon, Raser Tech's (RZ) stock experienced a dramatic surge from around $4 to $4.70. This was after trading in the $3.10 - 3.40 range a few days earlier. It is possible a short squeeze is occuring right now. The other alternative might be a large buyer coming in. I can not find any headlines on RZ that would indicate this spike was news-related.
IMO anyone shorting RZ right now is making a really bad bet. Despite their heavy debt load and low liquidity - their properties, intangible assets, and know-how are probably dramatically understated and don't really show up on the balance sheet. Going short, you might luck up and get a 40-100% return, but you risk a -1000%+ return to do so. Once they get their plants operating, the stock could move upwards in dramatic fashion.
Despite its one-star rating on TMF, large short interest, and huge amount of detractors, I think RZ is a good candidate for one of the biggest surprises of 2009. I did a write-up on it for Seeking Alpha a few months ago for anyone interested: [more]
“Insider Transactions at Commercial Banks”
As a bit of an experiment, I decided to examine insider activity at a large group of commercial banks. I appraised over 230 different commercial banks for this survey and gathered my list of banks off of Motley Fools’ tagged “commercial banks”. I did not examine some of the banks with extremely small market caps and I only examined a handful of banks that were not on this list, so it is by no means exhaustive, but it is a fairly large sample that should provide some ideas and insight. [more]