These companies are not going to see their markets jump back immediately. Their earnings power has been lowered. This is a reason to sell not buy. The theory that if the company writes off $2 billion it should see its…
For all of you geting swept up in the euphoria over all these speculative Chinese stocks, forget about it. I have a better alternative for you: Yum! Brands (YUM) (website). Yum is the operator of Taco Bell, Pizza Hut and…
Google (GOOG) has made about a 25% move, from below $500 to around $610 at the close today, over the last 8 weeks (since Thurday August 16th) (Chart). What’s interesting to me is that Google itself hasn’t really reported any…
Homebuilders have been on fire this week mainly, it seems, on the strength of a Monday upgrade by Citigroup Homebuilder Analyst Stephen Kim. Check out the moves in some of these builders (as of Fri 10/5, 1pm EST): KB Home…
This morning Merrill Lynch (MER) announced an estimated $5.5 billion in writedowns ($4.5 million related to mortgage backed securities and $1 billion to leveraged loan commitments) and forecast a loss for the quarter of up to 50 cents per share…
An interesting chart from BeSpoke Investment Group shows more than 80% of the companies in the S&P Financials trading above their 50 day moving average. That’s a higher level than we’ve seen since before the emergence of problems with subprime…
Henry Blodget, the infamous Merrill Lynch analyst who put ridiculous price targets on internet stocks during the tech bubble (the most notorious being his $400 target for Amazon.com in October 1998) and was ultimately barred from the securities industry, wrote in a…
On the strength of upgrades yesterday from Citigroup Homebulder Analyst Stephen King and then an “interesting” interpretation of today’s pending home sales number, homebuilders have staged a nice 7% bounce over the past 2 days (Chart). The bulls sure are…
Days like today really hurt my credibilty when I try to tell people that the stock market is intelligible. Two huge global banks, Citigroup (C) and UBS (UBS), gave us some insight into what to expect when they report 3rd…
In a blistering and fact filled diatribe at TheStreet.com, “Facebook Won’t Help Microsoft”, Senior Writer Vishesh Kumar makes clear the meaning of Microsoft’s potential purchase of a slice of Facebook at a price that would put a $10 billion value…