Credit Suisse Group (ADR) (CS)

With Credit Suisse current leverage about 70 to 1, they are going to have a difficult time when upcoming loans go bad.

great management

The banks won't do well for at least another quarter. According to my screener, CS is the worst of the foreign bunch.

CS vs. Industry:
ROE: -9.49 v 0
Div Yield: 0.2 v 4.51
P/B: 1.49 v 1
Sales (5-Yr Growth): -0.69 v 21.98
Debt/Equity: 5.01 v 3.6
Pre-Tax Margin: -30.6 v -3.9

Tech indicators showing momentum dropping Low 30s.

Highly leveraged bank that has billions of dollar losses yet to recognize. The bank has also a number of the lawsuits coming from the broken buyout transactions over the last year. In particular, together with Deutsche Bank, CS is facing more than $20 billion Huntsman lawsuit in Texas. CS's partner Apollo has already rolled over and testifying against the banks. Considering the fact that Switzerland does not even have resources to save CS even if it wants, Credit Suisse is likely to be in a fight for its survival.

Illiquid = Can't Sell
Bonus = Increased Taxes
These guys are not that dumb.
Credit Suisse failed to telling us something.
That they will guarantee the performance of these assets.
Which = a loss for everyone else.

capstone gold big time

V

Yes, CS operates in a lovely, stable country and its name sounds elegant ... but that won't do it any good in trying to find vital credit sources to keep it operating despite a balance sheet that induces investment panic. In order to stay afloat, it will probably need to sell off some of its best operations -- and what will remain might not keep it breathing. At best, expect more of the slashed earnings expectations and a long and scary road ahead before this one sees any return to economic soundness.

CS is one of the ten most heavily leveraged bank of the world with the most illiquid balance sheet. For instance it has about $4 billion of proprietary capital tied in its illiquid private equity funds, nearly 15% of its balance sheet equity. It is actually craving for a cash recapitalisation, as it is losing its cheap financing with its deposits decreasing every quarter from CHF 460 billion on 2007-06 to CHF 375 billion on 2008-06, so nearly $70 billion in one year. This Friday the Financial Times confirmed that CS tries to sell all or part of its asset management division. 2008 eanings estimates just turned negative, as per Thomson data. 2009 earnings estimates are slashed recently. CS may also go bankrupt.

stock beaten down due to a general sentiment against banks. best tier 1 ratio, swiss govt backing and access to capital outside the US. Also, once housing prices settle mark to market will start trickling down onto the upside. Already hedge funds are circling to pick up these distressed assets. Smart banks will hold on to the stuff. I am a buyer in the low 30's.

production good

spec bear

I hope its only a year or so.

good bank

Credit Suisse's core businesses of investment banking (55%) private banking, (wealth management (25%) and corporate and retail banking (10%)); and asset management (10%) are not being significantly negatively impacted by the US Mortgage crisis or global banking crisis. CS is best of breed for high end investors and is a bargain at $48.

CS is a solid investment house with the wealthy country of Switzerland backing them, esentially making sure they will not go under.
Unlike the U.S., Switzerland has only two major investment banks which are central the the stability and wealth of the country.

Cheep

qwerty

Bullish pick by stockabroad.com