Peter_Do

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  • Linn Energy (LINE -8.3%) and LinnCo (LNCO -10.8%) are off to another terrible start; shares have dropped ~38% and ~36% respectively since Tuesday's SEC inquiry announcement. The impact on Berry Petroleum (BRY -1.5%) has been less severe - shares have dropped ~7% - as some say its chances of getting another takeover offer are high if things don't work out with Linn.  [View news story]
    Agree. (Btw, I am an investor in LINN so want this to go positively.) However, just because something happened in the past do not mean that they are ok to do now. It could be that someone discovered a loophole (which is legal) and everyone follows suit. It's legit but regulators can come along due to too many outcries and then plug it. Again, that does not change the fact that the companies have assets that are worth x and generating cash flows y. Valuation is still the same since they did not lose any money. Just changing the reports.

    I just don't like the argument that we have done this all along and people are fine.
    Jul 5, 2013. 11:55 AM | Likes Like |Link to Comment
  • Linn Energy (LINE -8.3%) and LinnCo (LNCO -10.8%) are off to another terrible start; shares have dropped ~38% and ~36% respectively since Tuesday's SEC inquiry announcement. The impact on Berry Petroleum (BRY -1.5%) has been less severe - shares have dropped ~7% - as some say its chances of getting another takeover offer are high if things don't work out with Linn.  [View news story]
    Until something definitive comes out, don't think management can say anything. Legally they may not be able to get into any specifics anyway so it won't help. You can't have a debate when you are worried at all times that you may be revealing stuffs that can get you in trouble with the regulators.

    Need to let this thing runs it course. Or of course, there is the possibility that they are lying all along. Hopefully none of them are selling their stocks. That's the strongest message they can send.
    Jul 5, 2013. 10:32 AM | 4 Likes Like |Link to Comment
  • A Credit Analysis For Coal Mining Companies  [View article]
    Great analysis with just financial and no visible bias. Very informative!
    Jun 19, 2013. 11:31 AM | Likes Like |Link to Comment
  • Add Brian White to the growing list of Apple (AAPL -1.3%) fans who think a bigger iPhone is needed. "We are being told that the minimum size needed by Apple is a 4.5-inch display on the iPhone; however, a 5-inch to 5.5-inch would be optimal," writes the Topeka analyst after talking with Chinese/Taiwanese suppliers. Also: Cowen sees more room for iPad growth in the U.S., citing encouraging survey data, and BTIG's Walter Piecyk, who recently upgraded Apple, thinks a new capital-allocation plan will be timed to coincide with a downbeat FQ2 report (results are due on April 23).  [View news story]
    Mr. White needs a reason to explain why AAPL did not hit the $1,111 price target that he predicted.
    Apr 5, 2013. 02:13 PM | 1 Like Like |Link to Comment
  • Bank Of America Has Failed Shareholders  [View article]
    If you want dividend, you should not have bought BAC (or C). JPM, WFC are where you should invest. BAC and C are turnaround stories that were heavily discounted by the investment community who left them for dead. BAC is a story of cleaning up balance sheet and increasing capital efficiency, which is what management is doing. Can't be happier that they bought back the preferred and stocks. I rather they keep on buying back as long as the stock price is below tangible book.

    Also, not sure how the anger about "our tax payer money" rant comes about. They got capital injection from the government and they paid it back with whatever interest that the government demanded at the time. Contract fulfilled. Got nothing to do with paying dividend to stockholders as a mandate of heaven.
    Mar 17, 2013. 01:53 PM | Likes Like |Link to Comment
  • Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high)  [View news story]
    But that's not the product that they sell. The way the language of the ratings are worded, it is nothing more than an opinion. People choose to take those ratings and make it more than an opinion/assessment. Why is that their fault? Plenty of regulated (and respectable) investment houses issue upgraded to AAPL at $750 and downgraded to NFLX at $60. All worthy of having their heads cut off by the same standards.
    Feb 5, 2013. 05:22 PM | 1 Like Like |Link to Comment
  • Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high)  [View news story]
    But that is not what they are selling - their approval that you can invest based on their ratings. They are just selling a personal assessment. What you choose to do with it is your own decision. When people buy a house, they can bring along someone to assess the value of the home. But there is no guarantee that the home is worth that much. Stop condoning laziness and irresponsibility. It's ok to buy research to support your own work and personal research. But you still should do your own homework and have the character to stand behind your own decision. Everyone makes mistakes.
    Feb 5, 2013. 12:28 PM | 2 Likes Like |Link to Comment
  • Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high)  [View news story]
    This is ridiculous. The rating agencies did not ask people to rely on the ratings for the investment decisions. Many people (and funds) put in place the rating requirements as an additional way to tell people that their investment choices are supported. How is this different than I like a stock and then C or BAC analysts came out with upgrade and then I purchase but it turned sour. I can't go and sue them for that. Hind sight is 20/20. If the MBS is so "obviously" terrible why are we not suing all the analysts, managers and everyone person, including public pension fund managers, who bought them? It's obvious and they did not look. Just as guilty as the rating agencies. The exception is that they rating agencies just express their opinions, just like many of us here on SA. They do not have the burden of investing (and due diligence as a result) of a portfolio manager. The information that is provided to the rating agencies are also available to all money managers who bought them. Unless sometime tells me that rating agencies have access to additional information that investors do not have.

    Everyone is at fault for greed and laziness.
    Feb 5, 2013. 12:24 PM | 4 Likes Like |Link to Comment
  • The Treasury violated its rules on executive pay as it went 18 for 18 in approving raises for AIG and GM execs over the past few years, according to SIGTARP. Treasury was warned of this a year ago, but disputes the report's findings.  [View news story]
    @Ted Bear: any data regarding the comments on BAC or just a random negative rant and assumption? I cannot find any info online regarding why they did it. However, the way I understand it, many banks set up subsidiaries in these offshore havens (Ireland, Luxembourg, Cayman etc...) because of the less regulated nature (and also less sophisticated regulation) of these jurisdictions which allow them to take more risks as well. So by moving it to London, it is actually a more conservative move and shine more light on these trades. So more transparent. Not obscuring like you suggest.
    Jan 28, 2013. 03:54 PM | 3 Likes Like |Link to Comment
  • Nokia (NOK) reverses course sharply after being higher earlier and is now -5.2% following its Q4 release. Despite net earnings of €202M - the company's first profit in six straight quarters - sales of €8.04B missed expectations of €8.12B and the company suspended its dividend.  [View news story]
    Actually, not sure if that is legal tho. Bordering on insider-trading/manipu... no? I am sure someone would sue if that is the case. Just to employ some lawyers.
    Jan 24, 2013. 09:21 AM | 1 Like Like |Link to Comment
  • Nokia: Positive News Followed By What?  [View article]
    Not sure I understand you. You want to know why they do not have their own OS? Like what they used to have with Symbian and was planning with Meego? Their decision to abandon it was because they do not have the resources to create a competitive platform to compete with iOS, Android and WP. They could not catch up with the competition and so they have to let it go and consolidate their resources around their strength as a premiere hardware company. They strategically allied with WP (and get paid for supporting the new ecosystem). Or if you are referring to creating apps for different ecosystem - they sort of doing that with the HERE app in iOS, the stripped down version of Nokia Maps.
    Jan 16, 2013. 09:23 AM | 2 Likes Like |Link to Comment
  • Nokia: Positive News Followed By What?  [View article]
    They do write their own apps. Nokia collection such as Nokia Pulse, Nokia Music, Nokia Transit, City Lense etc....
    Jan 15, 2013. 02:55 PM | 4 Likes Like |Link to Comment
  • More on Nokia: Lumia shipments totaled 4.4M, up from Q3's 2.9M and generally above forecasts. Stephen Elop says Lumia 920 sales were supply-constrained. Total smart devices sales were 6.6M, -64% Y/Y (withering Symbian base), but thanks to a higher Lumia mix, ASP jumped to €182 from Q3's €155. Mobile phone units were 79.6M, -15% Y/Y, ASP roughly even Q/Q at €31. 9.3M Asha phones sold, up from 6.5M in Q3. NOK +17.6%. (PR[View news story]
    I guess Elop saw your article about don't expecting any surprise and he says "surprise!"
    Jan 10, 2013. 10:22 AM | 3 Likes Like |Link to Comment
  • The Treasury announces an offering for its remaining stake in AIG. The government currently holds a 16% stake in the company - 234M shares - and will continue to hold some warrants following the sale. Shares -0.8% AH.  [View news story]
    You must have missed the news the Maiden Lane has been unwounded. And Fed made money on them.

    "August 23, 2012: Maiden Lane III LLC sold all remaining securities. Subsequent to the repayment of ML III LLC’s liabilities to the New York Fed and AIG, net proceeds from sales of the securities, as well as cash flow the securities generated while held by ML III LLC, provided a net gain of approximately $6.6 billion for the benefit of the U.S. public."

    http://bit.ly/zklcD1#
    Dec 10, 2012. 05:13 PM | 1 Like Like |Link to Comment
  • Qihoo (QIHU -1.1%) and Nokia (NOK +2.1%) will partner to offer a custom phone for the Chinese market, a source tells Marbridge Consulting. Qihoo, which could integrate its browser, antivirus software, and search engine with the phone, is no stranger to partnerships with phone OEMs. Neither is rival Baidu, which is teaming up with Lenovo to offer a phone leveraging its Android-based OS. Nokia, whose Chinese sales have plunged, just launched the Lumia 920T and 620 for China Mobile.  [View news story]
    Lumia 900 has handwriting input in Chinese. Both simplified and traditional character. I just checked again to make sure that I am not crazy.
    Dec 7, 2012. 04:53 PM | 1 Like Like |Link to Comment
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