The problem is that this is worse than the worst-case scenario. – An executive closely involved with the Harrah’s LBO on the worst case scenarios factored into their models at the time of the deal, quoted in “Harrah’s Changes Its…
On February 8th, with the S&P trading around 1330 I wrote “Stocks Now Priced For Mild Recession”. Because I was expecting a severe recession, I didn’t yet feel that stocks fully discounted what was on the horizon. Nine months later…
So far in this bust the pain has been concentrated in single family homes and their associated mortgages and mortgage backed securities. But that’s not the only kind of debt that got out of hand during the boom. There were…
Under these agreements, Treasury will ensure that each company maintains a positive net worth. – Statement by Treasury Secretary Paulson on the bailout of Fannie Mae and Freddie Mac If anybody thought we had a pure free market system, they…
Four earnings reports out today from prominent retailers show that US consumer spending is clearly in recession: Men’s Warehouse (MW) – “You’re gonna like the way you look. I guarantee it!” – reported a 7.8% decrease in same store sales at…
This morning Darden Restaurants (DRI), owner of The Olive Tree and Red Lobster, lowered their full year forecast (Press Release). They lowered same store sales expectations for fiscal year 2009 from 2% growth to 0%-1% growth, revenue growth from 14%-15%…
Target (TGT) reported 2nd quarter earnings before the open this morning and what really caught my attention was the detioration in their credit card portfolio (TGT Earnings Release). Target, a $40 billion market cap company, has its own credit card…
The global economy — which had long remained resilient despite U.S. weakness — is now slowing significantly, with Europe offering the latest evidence of trouble. On Thursday, the European Union’s statistics agency said gross domestic product in the euro zone…
There’s something happening here. What it is ain’t exactly clear….. There’s battle lines being drawn. – Buffalo Springfield, “For What It’s Worth” Sooner or later in a bear market, even the glory stocks start to come apart. As a bull…
This morning before the open, used car seller CarMax (KMX) reported a dramatic falloff in sales in June and July. Comparable used unit sales fell by an average of 17% in June and July compared to last year! (KMX Press Release) …