Ricard

67 Stocks Returning 50%+ This Past Month

Let's see, AIG, Citi, Freddie and Ambac...maybe this is a speculative CODE PINK stage...:)

Citi's 'Special Asset Pool' Is Actually Toxic

Well argued article regarding the risks of holding C. I'd point out that it is no coincidence that the government has chosen an equity option in this company, which has conveniently split itself into non-toxic and toxic entities. There's no secret here...I'm not sure why the author is treating Citi Holdings like a legitimate firm, and is surprised by the toxicity of this arm.

I think it would be rather convenient for the government to trade in its ownership for Citi Holdings - it would eliminate toxic debt from an insolvent firm, strengthen the financial sector, and allow for the government to dispose of these assets in an orderly manner. Furthermore, it will allow the government to justifiably exit out of its unpopular equity position. There's a good speculative case for going long C.

MBIA Reports a Profit: $1.1 Billion in Expected Recoveries on Claims

Thanks for the perspective.

I've done a similar options play with my speculation on Citigroup with similar results.

I think given that the sky did not fall on us (the primary fear since the collapse last October), it's safe to assume that with a LOT of time, these stocks may eventually recover to some fraction of their pre-crisis worth. To expect stocks like MBIA and C to recover, say, 30% of their 2007 values within a year or two is totally reasonable, and options allow you to capture that rise with minimum capital outlays. Well done.

Ben Graham Had It Right

I think Graham should be core curriculum. Business are supposed to be run FOR THE OWNERS, so it should follow that business leaders should know what the owners want. The fact that this perspective is so lacking in business schools goes a long way in explaining the corporate predicament we are in right now.

If anyone thinks that Graham's viewpoint on corporations is antagonistic to those who want to run a profitable business, I'd like to hear your point of view.


On Mar 11 08:55 AM kelm wrote:

> Graham went broke twice following his own advice and when they launched
> a fund devoted to following his methods rigorously it significantly
> underperformed for ages. Though Buffet learned from Graham he modified
> his thinking a lot. There is god reason he is not taught in Business
> schools (not that B-schools should be focusing on stock investing
> - aren;t they supposed to teach one to lead a business?)

S&P's Best and Worst of 2008

LOL, I thought I'd never see WalMart in a top performing chart again...

Corporate Fraud + Government Intervention = Bailout Nation

Mr. Quinn,

I've read most of your articles on seekingalpha, and must say that your analysis is illuminating and long overdue.

However, in this article, I found the rhetoric to drown the message. Far too much blame for the housing bubble has been placed at the footsteps of the regulators, when we all know well enough that bubbles like this are mainly caused by rampant speculation of the market participants. No one forced the middle class to leverage 110% of their home's value at unbelievable prices. That was mainly due to a total disregard for what the home was actually worth. The regulators are trying to clean up this mess as they always do, but it seems this one was far larger than the last one they had to clean up in the stock market.

However, I do absolutely agree with you on the criminal nature of corporate parachutes. I've heard the argument that salary caps would discourage the very best from seeking these kind of jobs, but let me ask you this - if the very best of us are the ones that are acting in this criminal manner, then let the very worst that currently reside in our prisons take over as CEOs - I'd imagine they would do a better service to the public than the current ones who are destroying our future.