Market Currents
No shocker, U.S. bank regulators postpone indefinitely the January 1 implementation of Basel III...
-
Friday, November 9, 2012, 9:41 AM ETNo shocker, U.S. bank regulators postpone indefinitely the January 1 implementation of Basel III bank capitalization rules "due to the wide range of views," expressed by those affected.
Other date
Latest Articles
This news story has 8 comments:
I bought two stocks a few days ago, NMM and TEU, on advice and due to their dividend history and no bad news, in fact, pretty good numbers etc. I am now down 8% or more on the trade, and it is like a yoyo, precisely falling into the pattern of the lay investor and the traps out there. I will hold until my threshold of 10% loss is hit, then I will go away to the local pub and lick my wounds. Pretty soon now, I will enter a retiree's world of investing, and may just pull in my horns totally, buy annuities, collect my SS and be quiet. It isn't what I want, I enjoy the chase, but, not being chased time after time.
So, stay in touch, I will try to help me 1st, then you.
Capt. Brian
The Lost Navigator
B E W A R E...
One example is a warrant the was offered in a takeout of a junior mining company. Because the warrant was not offered to all shareholders of the company it needs to be listed as a liability and marked to market every quarter which increases earnings volatility. When commodity prices increase, stock prices increase, which means the liability increases causing a negative mark to market on the Income Statement and lower profits. When commodity and stock prices fall the opposite happens.
IFRS is more subjective and less transparent than the rules based GAAP which will lead to more judgment being taken by managers trying to hit the quarterly numbers.
These are not American standards but European standards which are not well suited for the number of global multi-national businesses headquartered in the US.
Under IFRS the Income Statement and Balance Sheets become less useful and the Cash Flow Statement becomes the most important component of security analysis although they move items around into odd areas as well.