Use access key #2 to skip to page content.

What kind of week?

Recs

5

April 13, 2008 – Comments (9)

This week should be interesting.  Reporting later in the week are many of the troubled financial sector, JP Morgan, Wells Fargo, Merrill Lynch, Citigroup, Washington Mutual, Bankcorp...  It should be very interesting. 

Additionally, Google should be reporting and it will be interesting to see what kinds of signs of economic slow down they are showing.  This was interesting to me.  I thought that now that Google's share price is down 30% or so from its high that maybe the insider selling had slowed.  Well, no signs of that.  What I kind of found shocking was 3280 pages of insider selling.  That's 82,000 insider trades.

9 Comments – Post Your Own

#1) On April 13, 2008 at 9:18 PM, Cuchulainn1 (< 20) wrote:

I would think it would be a poor week for the bulls.  However, this market seems to be moving in opposites.  Up is down. 

Report this comment
#2) On April 13, 2008 at 10:04 PM, dwot (45.39) wrote:

Yes, the bad news days with gains has been amazing.  I can not fathom what investors are thinking.

Another bank with a captial infusion, Wachovia. Sale price $23-24/share.  The close was almost $28.  Investors gotta love that...

Report this comment
#3) On April 13, 2008 at 11:37 PM, dwot (45.39) wrote:

This story has been wanting Asian justice for Wall Street, the corrupt, immoral pigs...

http://www.nytimes.com/2008/04/13/business/13cash.html 

Report this comment
#4) On April 13, 2008 at 11:52 PM, dwot (45.39) wrote:

Comment on the link above... 

The models for home prices do not include deals that fall through because ass---- brokers put people's life savings into illiquid investments when the people said they wanted liquid investments -- unexpected downward pressure on homes...

I follow the market and made sure every penny was government guaranteed and I steered away from higher yields, just taking that as a signal that there could be problems.  

I suppose having a broker/financial adviser steer me into garbage that I admit if I'd tried to do an assessement on it I would probably not bought, but you ought to have right to expect a level of competence.  I looked after the fact and I'm not sure if I should call it incompetence, or negligence.

So, these people didn't look either, like me, they just said what they wanted and expected something assessed to meet their needs.  What are the fees for? 

Report this comment
#5) On April 13, 2008 at 11:56 PM, mandrake66 (42.17) wrote:

The one I'm personally waiting for is Bank of America, but I don't think they report until the 21st (beginning of next week). I just don't see how they've managed to maintain their price over the last couple of months, and I'm waiting to see when gravity finally catches up with them. I'm getting tired of their Wile E Coyote number.

Report this comment
#6) On April 14, 2008 at 9:14 AM, dwot (45.39) wrote:

I think Bank of America had the least of the sub-prime mortgages.  Buying Countrywide is their dumbest move.  Somewhere I read they said no to some of the lending practices of the other banks.

This is interesting, according to Mish  Merrill is saying that it doesn't need more equity at this point.  I believe late last year they were raising way more capital than their competitors.  I could be wrong, but I think they were the ones that no one took xmas vacation and they spent the time shoring up their balance sheet.  At the time I predicted it was a good move because second round to raise equity wasn't going to be a easy as the first round, which is also proving to be true.  Existing shareholder dilution from the second round of capital raising is disgraceful.

 

Report this comment
#7) On April 14, 2008 at 10:36 AM, mandrake66 (42.17) wrote:

Bank of America was not as exposed to subprime mortgages as the rest. They do have a $100 billion SIV on their books that I've been worried about, and I believe their exposure to the consumer is going to end up killing them, especially with credit cards.

My main worry about BAC is that they, like GS, are hiding things that will ultimately come out, or walking a tightrope whose far end isn't attached to anything. They both still have a 3-star CAPs rating, which I suspect to be delusional. So far each large financial has had the props knocked out from under their delusions to some degree, but not BAC and GS (for GS it is somewhat understandable).

Many people cite the dividend as their main interest in BAC. I believe that dividend will be cut sharply at some point when reality catches up with them. It may be this quarter, it may be the next one, they're pretty good so far at putting off the day of reckoning. But I'm waiting eagerly for their 1st quarter earnings.

Report this comment
#8) On April 14, 2008 at 11:55 AM, dwot (45.39) wrote:

I think it is criminal that the regulators have not required banks to cut all dividends until this financial crisis is finished and they can show profitability again for at least 4 quarters.

Report this comment
#9) On April 14, 2008 at 1:36 PM, dwot (45.39) wrote:

Here's a UK story on Wochavia.  California defaults are hitting hard.

Report this comment

Featured Broker Partners


Advertisement