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Spencer Knight

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  • As Congress debates the weighty economic issues of our times, you can rest easy knowing that 78% of the members didn’t major in business, economics, accounting, or any related field, according to a new study from the Employment Policies Institute.  [View news story]
    Unfortunately anybody who thinks a major in college means anything is a fool.
    Aug 25, 2011. 05:35 PM | 1 Like Like |Link to Comment
  • International Paper (IP +2.5%) is likely to proceed with its takeover bid for Temple-Inland (TIN +4.3%), though it now has the opportunity to lower its bid after Temple was sued for more than $1B for "fraudulently looting" a former subsidiary, RBC Capital says. The firm maintains its Outperform rating on IP.  [View news story]
    TIN exec's are really hurting shareholders. This deal may not get done until Q2 2012.
    Aug 24, 2011. 03:20 PM | Likes Like |Link to Comment
  • Perhaps in response to Google+'s (GOOG) early growth, and the praise given to its privacy controls, Facebook is rolling out several privacy-related upgrades that give users more control over how they share content. Facebook's valuation has fallen in recent months, though the market's decline may be more responsible than Google+.  [View news story]
    Google+ vs. Facebook is the same as Facebook vs. Myspace. Let's see if Facebook can win again...
    Aug 23, 2011. 03:48 PM | Likes Like |Link to Comment
  • New-home sales fall, 2011 could be worst year yet [View article]
    Good point. The problem is Americans want to see fast improvement since the majority only see things in the short term. With that said the drop in prices is forcing alot of people to stay put in their current home and not spend as they wish.
    Aug 23, 2011. 03:45 PM | Likes Like |Link to Comment
  • Dick Bove disagrees with Henry Blodget, arguing Bank of America (BAC -4.4%) doesn't need to raise capital as long as it continues to sell assets and generate profits. However, Bove does think Goldman Sachs (GS -1.7%) needs to seriously overhaul its management, given its shareholders' lack of faith.  [View news story]
    I don't know if I count a ttm EPS less than -1.00 as churning out profits. Obe of SA's Edit's Picks on 8/11 deals with how BAC predicted the market crash that can be found below.
    Aug 23, 2011. 03:11 PM | Likes Like |Link to Comment
  • Don't be fooled by stock buybacks - they're just "smoke and mirrors," says Josh Brown. The flurry of repurchases that we've seen over the past few weeks are actually more indicative of a market top than a market bottom. (Video).  [View news story]
    Buybacks indicate stocks are overbought and diluted.
    Aug 22, 2011. 10:23 PM | Likes Like |Link to Comment
  • There's little left to gain in buying stocks right now, says market strategist Bill Strazzullo. "The risk/reward doesn’t make sense. It's like walking through a mine field to pick up a quarter." He suggests a waiting for a pull-back to his anticipated bottom of 9,000.  [View news story]
    Q2 earnings have been worse than Q1 earnings. I haven't checked every company in the stock market, but many are expecting economic slowdowns. This is in tune with a predicted economic slowdown by several nations. Throw in essentially two large "bailouts" in Greece and the United States and the worldwide economic system is in trouble. I am considering the debt limit being raised as a bailout since it is essentially allowing someone to give the United States more money to spend. Of course where the money comes from is a question mark but that's a different story.
    Aug 19, 2011. 11:41 PM | 2 Likes Like |Link to Comment
  • Apple Needs to Loosen Its Purse Strings: Here's What It Can Buy [View article]
    AAPL should to look into EMC. It would nearly wipe out all of AAPL's cash but it may pay off in the long run. Not to mention AAPL would inherit VMW.

    With that said AAPL doesn't need to spend the cash pile on anything. The company cares about what is best for the greedy company, not what's best for greedy shareholders. And what is best for the company is keeping the cash in case any lawsuits come up in the future. Or if AAPL feels acquiring another company is worthwhile it is better to have an infinite cash pile to draw from.
    Aug 19, 2011. 09:18 PM | Likes Like |Link to Comment
  • Pessimistic investors pick up large batches of option contracts in Bank of America (BAC -5.6%) that would profit if shares fall more than 40% over the next three months. The November $4 put contracts were BofA's most heavily trafficked options contracts, with more than 63,000 changing hands.  [View news story]
    If these investors are correct things could get ugly for the stock market (i.e. Seeking Alpha's August 11th Edit's Pick How Bank of America Predicted This Crash).
    Aug 18, 2011. 03:59 PM | Likes Like |Link to Comment
  • 6 Cheap Stocks to Buy Now for 2012 Profits [View article]
    BAC is good for losses for a while. The only big banks to consider are WFC and and JPM and even those two are iffy.
    Aug 17, 2011. 11:46 PM | Likes Like |Link to Comment
  • Oil prices don't always fall because of weak demand; sometimes it's hedge fund managers getting killed because they trade on margin and need to begin "liquidating like mad," Jim Cramer says. Once they're done, he thinks oil prices will rise again, along with oil companies' stocks. He especially likes EOG (EOG +2%) and Conoco Phillips (COP +2.7%).  [View news story]
    I like EOG. The company is set to outperform many oil companies in the long term. But now I don't think I can like EOG anymore...
    Aug 9, 2011. 11:37 AM | Likes Like |Link to Comment
  • The Obama administration and four states accuse Education Management Corp. (EDMC -11.2%) of illegally paying recruiters to enroll students. The complaint says EDMC repeatedly made false statements to conceal its practices and receive $11B in federal and state financial aid - nearly all the company's revenue.  [View news story]
    I know this has been going on in CA for a long time...
    Aug 8, 2011. 09:10 PM | Likes Like |Link to Comment
  • Oppenheimer is starting coverage on Sandisk (SNDK), Nanometrics (NANO), and KLA-Tencor (KLAC) at Outperform. The firm thinks Sandisk and Nanometrics will benefit from strong flash memory demand, and KLA will gain from the growing complexity of the chip wafer inspection process, which should boost sales of its wafer inspection tools.  [View news story]
    Oppenheimer likes Tech right now. These initiations come after an upgrade of EMC on August 1st.
    Aug 5, 2011. 01:39 PM | 1 Like Like |Link to Comment
  • If someone (maybe a SA writer) tells you the market fell on "fears of a double-dip," ignore them, writes Felix Salmon. Such concerns don't arise overnight. Markets fluctuate and these things happen on occasion. If the sell-off occurred tomorrow, the NFP report would have been blamed. Remember, commonality is not causality.  [View news story]
    I ignore double dip talks right now. We can consider the 2000-2009 period a double dip recession if we wanted too. Since by definition the economy fell back into a recession after several strong quarters. And if your definition of "several" is over 30 quarters then it fits perfectly.

    On a more serious note, if the NFP data is bad tomorrow morning we could see another gloomy day. It would be fun if the NFP data is extraordinary to see how traders and investors react after today's mass selloff.
    Aug 4, 2011. 05:21 PM | Likes Like |Link to Comment
  • The bottom really falling out now, as the Dow hits 370 points down (-2.9%); S&P 500 -3.2%, Nasdaq -3.5%. Losses are broad and deep. Gold is up 0.5%; crude oil -2.2% to $89.88. Treasurys up sharply, with the 10-year yield -0.15 to 2.47%.  [View news story]
    Yesterday's intraday rally caused the extreme drop today. Still several hours left in trading but things are getting ugly.
    Aug 4, 2011. 11:59 AM | 1 Like Like |Link to Comment