In investing, opportunities arise when perception and reality diverge. Hence, it is important to understand not only reality but perception as well. This is a difficult concept to understand but, in my opinion, is the key to superior performance. *****…
In retrospect, the writing was on the wall: JP Morgan has increased its offer for Bear Stearns to $10 a share in stock (0.21753 shares of JP Morgan for every share of Bear). In conjunction with the increased offer price,…
The last time an opportunity of this nature existed to buy banks stocks this cheap was in 1990. The next time will be in 20 years. This is a once-in-a-generation opportunity. – Dick Bove, Financials Analyst, Punk Ziegel, “The Financial…
Borders Group (BGP), the bookstore chain, reported earnings before the open this morning. In addition, they announced that they have retained JP Morgan and Merrill Lynch to explore strategic alternatives and have arranged a special $42.5 million financing arrangement with their…
Mr. Thompson, President of the United States: The country is in a terrible state. People are starving and giving up, the economy is falling to pieces, nobody is producing any longer. We don’t know what to do about it. You…
At my recent talks on “How To Invest In The Coming Bear Market” at the Borders Bookstore in Roseville, CA, I’ve been advising people to reduce their exposure to stocks and to buy gold. The last couple days have provided…
After cutting rates dramatically (125 basis points cumulative) on Jan 22 and Jan 30 and notably weighting their concern towards economic growth, the Fed slowed down a bit today with a 75 basis point cut. It is a big cut…
The market is off to an excellent start today on the strength of not disastrous earnings reports from investment banks Lehman Brothers (LEH) and Goldman Sachs (GS). Financials (XLF) are leading the way with a gain of greater than 6%….
For JPM, we view the key risk to be its own balance sheet liquidity, although most of the real risk on BSC’s balance sheet has been back stopped by the Fed, thereby exposing JPM to little real risk over the…
This is the second day in the last week where horrible news might have led you to expect a big selloff that hasn’t materialized. Last Friday, a -63,000 jobs number really didn’t lead to too big of a selloff. And…