Arohan

Consumer Spending is Up, But at What Cost?

This is quite scary. There was too much excess in the system and some sort of sanity reset is much needed. There is too much emphasis put on increasing same store sales, etc and people are encouraged to consume out of recession, but this may not be the best for the long term. You want consumption, but quality consumption and hopefully there is a happy medium that maximizes consumer value and producer value

arohanvalue.blogspot.c...

Bank Stocks: Dividend Yield Post Subprime Meltdown

The dividend cut (WM) was widely expected and is in now. It is still a respectable 3.5%. Once the market comes out of the doldrums and assuming WM survives, the dividend will be ratcheted up again. So if you are investing now, you may actually get a very good yield on the money invested.

However, the risk in WM is not something everyone is going to be comfortable with

arohanvalue.blogspot.c...

Bank Stocks: Dividend Yield Post Subprime Meltdown

Mouthwatering!!!

You forgot Washington Mutual (WM) at almost 11% yield

While the ripples of the sub-prime fiasco may take some time to subside, an opportunistic investor will do really well to pick up some of the quality names today at a bargain price. The financials will eventually recover, meanwhile it is nice to collect these dividends as an incentive to wait

Long BAC and WM

I have also written about the opportunity in financials at arohanvalue.blogspot.c...

- Arohan