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EverydayInvestor (< 20)

June 2008

Recs

21

A List of Dead Banks Walking on the Nasdaq... and a Tearful Goodbye to a Bad Bank President

June 30, 2008 – Comments (13) | RELATED TICKERS: DSL.DL , GBCI , CORS

Okay, here is my quick list of some of the worst 'dead banks walking'. I got this list from the list of highest short interest stocks in Barron's last Saturday. I have done minimal due diligence and I comment briefly on each bank.   [more]

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16

Cheap stocks make for good investments

June 30, 2008 – Comments (14) | RELATED TICKERS: SCX , SMP

Besides disparaging just about all banks, alt-energy plays, and many other companies, I occasionally like companies. I am a value investor, and one of the best ways to invest is to buy companies that are trading for less than their net tangible asset value (NTAV), or, where possible, their net current asset value (NCAV). These stocks are sometimes referred to as Net/Net stocks.  [more]

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8

Saturday Morning Means French Music Videos and a banker beatdown!

June 28, 2008 – Comments (6) | RELATED TICKERS: PRK , BKUNA , FITB

This is what y'all get for not giving me enough recs on my last blog post on Park National Bank (PRK). Remember--I work for recommendations. Am I not good enough to deserve more recs than the Hypnotoad? Your lack of recommendations means that I won't even translate these lyrics. BTW, Nana Mouskouri has a great version of this song, not available online.   [more]

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12

Park National Bank (PRK): TastyLunch finds another loser bank

June 27, 2008 – Comments (15) | RELATED TICKERS: PRK , KEY , NCC.DL

In response to TastyLunch's comment on my last blog post, I looked into Park National (PRK). Here's Tasty's comments:  [more]

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13

Sandy Spring Bancorp (SASR): Another Overpriced Garbage Bank

June 23, 2008 – Comments (9) | RELATED TICKERS: SASR , BAC , WFC

As I have been repeatedly arguing in my recent posts on banks, book value matters. For average regional banks with significant risky loans to be trading above book value during the second greatest international real estate bust of the last 300 years is unreasonable and absurd. Among banks about which I have written, Sandy Spring (SASR) is most comparable to Synovus Financial (SNV). Both of them are solid regional banks with significant risky loan exposure. Neither is in any danger of going bust, although they both will almost certainly take significant write-downs on their loan books and they may be forced to raise capital. I found both of them through Reggie Middleton's Boom Bust Blog (post here), where they were both shown has having a large proportion of risky loans.  [more]

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13

Downey Financial (DSL): What Comes Next

June 22, 2008 – Comments (10) | RELATED TICKERS: DSL.DL , WB.DL , WAMUQ

Disclosure: I am short DSL. I may add to or close this position at any time without notice. I am not a professional bank analyst and I may have made errors in the following analysis. Please feel free to point them out.
  [more]

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21

Are your deposits insured? How to avoid losing money in the coming bank armageddon

June 20, 2008 – Comments (17) | RELATED TICKERS: NCC.DL , WAMUQ , WB.DL

I am not one to use the term armageddon lightly. But when major banks like National City (NCC) and Washington Mutual (WM) are trading under 30% of book and Wachovia (WB) is trading at under 50% of book value, what othe term is appropriate? The market is pricing in a fair probability of a number of very large banks being bought out at firesale prices (like just happened to PFB) or being taken over by the FDIC and then being dismantled.   [more]

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10

Penny Stock Perf Go Green Holdings Bites the Dust (The Reaper is Back)

June 19, 2008 – Comments (3)

As those of you who follow my blog and my trading should know, the last two months have not been good to my portfolio. The last couple weeks have definitely been a turning point and I have made back a quarter of my losses. I am a lot more diversified now, with 13 shorts on penny stocks right now and shorts on 4 banks. I just closed my shorts on three penny stocks today: OCTL.ob, NROM.ob, and PGOG.ob. OCTL and NROM were just little trades. PGOG was a lot better. I originally shorted it around $2.80 per share, and never could get many shares. However, covering today at $1.36 (too early as usual), I had more than a 50% profit!  [more]

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14

The Going Rate for Ailing Banks: 25% of Book Value

June 19, 2008 – Comments (6) | RELATED TICKERS: BKUNA , PFB

Some of you have scoffed at my pessimism regarding local and regional banks with high exposure to option ARMS, HELs, HELOCs, and construction loans. Other Fools have green-thumbed such stocks, mentioning as their reason how cheap these stocks are. But if these banks continue to take huge write-downs on their current loans, their book values will continue to shrink quickly.Their vaunted profitability over the last couple years has been a sham that the crushing of the housing bubble will finally expose.   [more]

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8

Hydrogen Hybrid Technologies (HYHY): another spammed stock

June 18, 2008 – Comments (1)

I'll sit back and relax on this one: TMFBent has a great writeup on the company. Also, check out the commentary on HYHY on its CAPS page.  [more]

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8

Get Firefox 3. Now.

June 18, 2008 – Comments (2)

I am a heavy internet user. I usually have between 8 and 20 tabs open on my Firefox web browser. I am a trader, which means I often need to do research quickly. I do not have time for a buggy web browser. I just downloaded the new Firefox 3, and I have to say it is a great improvement on the old Firefox and it is better than every other broswer out there. Page rendering is better and much faster, there do not appear to be any memory leaks, and it does not slow down even with obscene numbers of tabs open. While I used Firefox 2 because it was so customizable and easy to use, the new version makes it so good that I can recommend it without reservation.   [more]

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13

Using the Texas Ratio and the Reggie Ratio to Identify Failing Banks

June 17, 2008 – Comments (6)

Disclosure: I am short SSBX, a company I analyze below.   [more]

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8

A few questions for Maxlife Fund Corp (MXFD.ob)

June 16, 2008 – Comments (1)

Here are a few questions that I would like the management of Maxlife Fund Corp to answer. Investors should consider what they believe the answers to these questions to be before investing in the company’s common or preferred stock.  [more]

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13

Wanna be like Mike? Read some of the blogs I read

June 15, 2008 – Comments (11)

Here is a partial list of some of the blogs I read. The links are to the RSS feeds. This is only a partial list of the most interesting ones. I also read, daily, the Wall Street Journal and the Financial Times. Weekly I read Business Week and Barrons and The Economist. Monthly I read Smartmoney, Forbes, and Fortune.  [more]

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11

Mr. Mortgage on May Foreclosure Report

June 14, 2008 – Comments (7) | RELATED TICKERS: DLS

The headline number is that NODs (notices of default) are increasing. Even worse, 75% of homes that get a NOD go back to the bank as REO. That means that the cure rate--those who avoid foreclosure--and the proportion of homes purchased at foreclosure auctions is at a low. Bank REOs now are the real estate market.  [more]

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7

Why I Did Not Buy an iPhone: Cheap Phone Service via SERO

June 13, 2008 – Comments (5) | RELATED TICKERS: AAPL , S

I wanted to buy a 3G iPhone. Really I did. I wanted to purchase a phone that would be good for mobile web and email. But I could not stomach the minimum $75 monthly charge (unlimited data + 500 minutes + 200 txt msgs). Luckily I have a wife who besides being the most loving and tender person in the world is also the best Googler in the world. She informed me of the wonders of the SERO (Sprint Employee Referral Offer). The idea was originally to reward friends of Sprint employees. However, for the last couple years it has been available to anyone who looks hard enough by using the referral email listed at FatWallet. For $30 per month you get unlimited data, SMS, and 500 minutes (with free nights and weekends). I bought an HTC Mogul; while it is not as cool or slim as an iPhone, it does mobile email and web quite well.   [more]

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11

Hi Mr. Bank Executive! You may not know me very well, but I'm your loan portfolio, and I'm about to blow up!

June 11, 2008 – Comments (2)

Legend Homes, the fifth-largest Oregon homebuilder, is now in bankruptcy. Regional bank stocks have taken a beating the last week as the MSM has finally realized that they will suffer from HELs, HELOCs, construction loans, and even normal 80% fixed 30-year purchase money mortgages. The one bank I am short went down 7% today. It is down 20% over the last couple weeks. A box o' chocolates to anyone who can guess which bank stock I am short. Hint: it is trading over book value and it has a whole lot of construction loans and HELs.  [more]

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12

The long journey out of debt: Americans must learn once again to save

June 11, 2008 – Comments (9)

Long, Long Journey - Enya
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9

How to get 1 million percent returns in under 1 year

June 05, 2008 – Comments (9)

Tenacious D: Tribute (long version)
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10

2008 First Five Months Trading Review

June 04, 2008 – Comments (14)

Despite my horrid months of April and May (and the last couple weeks in particular), 2008 has been a good time to short sell pumped up penny stocks. The following graphs show my realized trades only  (at the present time I do not have many unrealized gains or losses). I do not include the numbers on the Y-axis for privacy reasons.   [more]

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11

Yeah, about that company we bought 6 months ago ... that didn't really happen. Sorry. -- Love, management

June 04, 2008 – Comments (0)

Perhaps the most incredible thing ever -- a supposed reverse merger six months in the past was not correctly consummated and now the public company is left with no assets or sales. Unsurprisingly, this involves a Chinese company trading on the horrible OTC BB:  [more]

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9

NOOF = OOF!

June 03, 2008 – Comments (2) | RELATED TICKERS: NOOF , PLA

NOOF (New Frontiers Media, a cable smut purveyor) fell hard today. David Milstead has a nice little piece on it, as does Rick "The Dead Philospher" Munarriz at the Fool (Rick is also kind enough to suggest some wonderful free porn websites).   [more]

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14

KYUS.ob: Lessons from the fall of a pumped penny stock

June 02, 2008 – Comments (6)

Kentucky USA Energy (also known as KY USA--insert off-color joke here), a purported oil company trading on the dreadful OTC BB.has been profiled by Scientific Trades. It is the perfect example of a pump and dump. The company has few employees, no active drilling, and a few leases on drilling sites. It did not have the money to drill (which it needs to do so to maintain its leases) until it issued convertible bonds recently for $2.5 million. Unlike some pump & dumps that are run by the companies themselves, Kentucky USA Energy claimed in a recent 8k filing with the SEC that it had no knowledge of the pump & dump:  [more]

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29

Congratulations to Specbear, TDRH, and dwot for making Barron's

June 01, 2008 – Comments (23)

Pick up today's Barron's and take a look at page 36 - the Electronic Investor column. It talks about CAPS and mentions the above three CAPSers. Of course, they aren't the first ones to be profiled in stories about CAPS, as I was mentioned by the Globe and Mail back in February (although they never contacted me about that story).

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