Seeking Alpha

David Fry's  Instablog

David Fry
Send Message
David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest (www.etfdigest.com). Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
My company:
ETF Digest
My blog:
Dave's Daily
My book:
The Best ETFs: U.S. Equities (A Companion Guide To Building Your ETF Portfolio)
  • NEGATIVE NEWS FROM EUROPE UNSETTLES MARKETS 0 comments
    Oct 19, 2011 7:25 PM | about stocks: SPY, IWM, QQQ, AAPL, IBM, INTC, SMH, XLK, S, BAC, KBE, KRE, XLF, IYR, IYT, AA, XLB, XLI, XRT, XLU, IEF, TLT, HYG, UUP, FXE, FXY, FXA, BZF, GLD, GDX, SLV, JJC, DBB, DBA, JJG, USO, UGA, XLE, EFA, EWU, EWG, EWI, EWP, EWQ, EWZ, RSX, EPI, FXI

     
     

    The FT did report a euro zone divide now exists among leaders. A negative summary of this report comes from Zero Hedge with their sober view. Bank raids from the European Commission were noted atTheStreet where price-fixing is being investigated and may produce some scalps the masses seek. Greek riots were ubiquitous and easy to watch streaming on the web. I think the public would rather default than have the austerity demanded.

    One of the more interesting stories today was embedded in Morgan Stanley's earnings report. The street expected the company to earn $.30 but the company beat with $1.15 based on an accounting adjustment. How did that work? The company has debt, and plenty of it, but they adopted the unique DVA (Debt Value Adjustment) ploy. It goes like this. The company's debt has become worth much less in the open market. Ifthey bought the debt back in the open market they would gain $3.4 billion in profits--as CEO James Gorman stated: "It's a bizarre accounting anomaly". I'll say! Without this adjustment the company earned $.03. This is the kind of stuff going around these days that doesn't pass the sniff test. I wonder if you could perform this trickery as a small business person trying to borrow some money from a bank like Morgan Stanley. Not a chance in hell would be the answer.
     

    ...READ MORE

    Subscribe to our RSS feed  

    Stocks: SPY, IWM, QQQ, AAPL, IBM, INTC, SMH, XLK, S, BAC, KBE, KRE, XLF, IYR, IYT, AA, XLB, XLI, XRT, XLU, IEF, TLT, HYG, UUP, FXE, FXY, FXA, BZF, GLD, GDX, SLV, JJC, DBB, DBA, JJG, USO, UGA, XLE, EFA, EWU, EWG, EWI, EWP, EWQ, EWZ, RSX, EPI, FXI
Back To David Fry's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.