Google (GOOG) is trading at $345 a share as I write this – down 54% from its high of $747 last November. That gives it a market cap of about $110 billion. Subtract the $14 billion in cash and investments…
About 6 months ago I wrote a post arguing that copper giant Freeport McMoran (FCX) was overvalued (“Freeport Valuation Bloated Here”, Top Gun FP, April 23, 2008). At the time, Freeport was trading at $118 a share and my call…
News just broke that Warren Buffett will purchase $3 billion of perpetual preferred stock with a 10% yield from General Electric (GE). As part of the deal, he will also receive warrants to buy $3 billion in GE common stock at…
Lehman’s bankruptcy filing in the early hours of Monday, Sept. 15, sparked a chain reaction that sent credit markets into disarray. It accelerated the downward spiral of giant U.S. insurer American International Group Inc. and precipitated losses for everyone from…
The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under section 13(3) of the Federal Reserve…
In light of recent events at Bear Stearns, Lehman Brothers and Merrill Lynch, there was a lot of fear heading into Goldman Sach’s (GS) 3rd quarter earnings report this morning (GS FY 3Q Earnings Release). But, as far as I…
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%…
This week’s trading has been dominated by concerns that Fannie Mae and Freddie Mac will essentially be nationalized by the US Govt and their common stockholders wiped out. The catalyst was a story in Barron’s over the weekend “The Endgame Nears…
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…