drmalaka

95 Comments

    • 5 Key Quotes from US Airways on the Airline Industry [view article]
      Did he mention a specific date they would be filing for bankruptcy? I hope he replaces the plane I flew on last week, it sucked. I thought they were going to ask us to get out and push.

      The official slogan of all the airlines should be "a crappy product with crappy service made in America by your trusty unions."       Jul 24 02:25 AM
    • Online Travel Trouble: American To Ditch Kayak; Is Orbitz Next? [view article]
      Great, make your service a little worse. Force the customer to search each individual airline website to find our flights. What a horrible industry. Add in the unions and they have no chance to survive. I was on a US Airways flight the other day, what a piece of crap plane, seat cloth tearing, ripped window shade.

      The problem with airlines is they compete on price and not service, so they cater to the traveler with the least money. Well, that and the unions of course. Bankruptcy can not come too soon for them all.       Jul 24 02:09 AM
    • Bank of America Buyback Announcement: Who Cares? [view article]
      Wow this is almost as incredible a piece of good news as when LEH raised $4 billion that they did not need but managed to spend in a month. Buy, buy, buy. No more writedowns, the ninth inning is here. Until of course a month from now when news starts leaking again of potential write downs. Jul 24 01:50 AM
    • Soup Target; Cramer's Mad Money (7/22/08) [view article]
      Cramer is a fool. Last week he said C was going to single digits. Which one is it? Before that he said stay away from banks when they reach single digits, now WM and WB are good buys?

      As for oil, its drop is a bad macro event. Oil is dropping because of a fear that global demand will drop because of a global slow down. Duh, a global slow down is not good for equities, it is bad. Global growth is all that has kept this theoretical market going at all.       Jul 22 10:48 PM
    • Bank of America, Citigroup Ignite Hope for U.S. Banking Industry [view article]
      Losses are directly correlated to operating income. These banks are in complete control of their writedowns. The numbers are fixed, if they expect to have a seven billion loss and have one billion in earnings then they write down 7 billion. If they have five billion in earnings then they write down 11 billion. Each creates a billion beat on estimates.

      They have enough writedowns for the next three years, they will continue to manipulate their earnings releases based on how low they can give guidance and then beat it by a billion.       Jul 22 10:36 PM
    • Financials: How - And When - We Reached the Bottom [view article]
      This article is well thought out but just plain wrong.

      Where are bank earnings? How much money are the Investment Banks going to make on M&A, securitization and the like in the next few years? It's hard to come near past earnings when you used to have ten revenue streams and you just lost your best three. Add that to dilution and the EPS will not approach past numbers for years and years.

      Who is Tom to decide he is comfortable with write downs? Please. Three months ago when the last rally started (oh, during earnings season, or is that lying season) we were told that we were near the end of write downs. Believing anything the banks say or do is sheer insanity. These are comfirmed liars and crooks, and you take their word.

      Sorry, but Whitney and Ackerman are much more reliable sources than any joker who pushes these banks. I think I will stick with believing those who have been right in this crisis, not the morons who keep telling me there is a bottom and no more write downs.

      Estimates for losses are between $1 and $2 trillion now, are we even near that. Of course not. And that does not include normal loans, credit cards, commercial loans.

      We will have write downs for years to come. The banks don't even know what is on their books. Their Teir III assets keep growing. Look for most of those assets to be written down eventually, quarter by quarter.

      Bottom. Yeah right, bottom of the barrel maybe.       Jul 22 10:20 PM
    • Earnings Season: Fundamentally Flawed [view article]
      Time to short the banks again. Sure they may go up for a few more days but like the opposite of catching a falling knife, you can not pick exactly where the top of this bull run will be.

      I said to a friend the other day, if I told you on Monday that you could short the banks at the price they traded for a month and a half ago would you do it? Well here we are, one week later you can short the banks at the same price they were trading at in early June. Has anything changed to make the banks better companies in the last week?

      To top things off, banks like WFC and PNC actually raised their dividend. This is strictly a stock manipulation play. There is no doubt that cash in king at this point in time, so why in the world would a bank look to send more cash out to its shareholders? This is a horrible business decision. They are making dividend decisions based on stock price, not on sound economic principals. They are doing long term damage to their companies in order to prop the stock price up today.

      C, MER, PFC, STI, COF and their cohorts will all be substantially lower in a month and a half than they are today.

      The author is completely correct about earnings season. The last market rally started at the begining of last earnings season. This rally started at earnings season. All this tells me is that earnings are manipulated and to invest on them is idiotic at best.       Jul 20 02:58 PM
    • Lehman: The End Game [view article]
      Enough of these idiotic comments like 'says you' that somehow people uttering the truth about these criminal enterprises (the banks) are responsible for their demise.

      What color is the sun in your world? If we all think happy thoughts the market will go up. Yeah.

      Stop listening to morons on television and start shorting or buying puts. Markets move in two directions, don't limit yourself to only one.       Jul 15 11:08 PM
    • Wachovia: The Big Tell? [view article]
      For anyone thinking of buying this stock, please look at the WM chart or the DSL chart. When these puppies start moving down their is nothing to catch them. There are no buyers out there.

      Whether this has to do with the stock being valueless, my position, or because people can not buy what they have no clue they are investing it, the point is moot. The only thing you need to remember is that either way investors do not want to touch this thing.       Jul 15 10:57 PM
    • Bill Ackman's Plan to Save Fannie and Freddie [view article]
      Whether you like the guy or not he has a good track record with what is going on right now.

      He was on the monolines from the beginning, pounding the table, and you can't blame him for their demise. I assume he is right on this one too. These two companies have absolutely no value for shareholders. The only thing that will be left of these stocks is what the taxpayer picks up, which of course is bs becuase the taxpayer should not be saving equity holders.       Jul 15 10:55 PM
    • Financials: Don't Believe the Rumors [view article]
      Sorry to say but this article lacks any grasp of reality or economic sense. FNE and FRE are a perfect example. If 1% of their loans default that is $15 billion. Unfortunately that is almost their entire capital base. LEVERAGE. LEVERAGE.

      Sad to think that you have been investing in this market and have no clue of what leverage is.

      Invest based on this analysis at your own risk.       Jul 15 02:33 PM
    • Where Is the Fear in the Markets? [view article]
      I have been surprised about how orderly this retreat has been. There really has not been any indication of panic selling. Jun 30 07:43 PM
    • Will a Drop in Oil Trigger a Market Recovery? [view article]
      I found the talking head television comments on this hilarous. Morons like those guys will cause the market to go up short term if oil drops but the real question is why? I do not recall the market dropping much between March and June when oil went from 100 to 135. These perma bulls are a joke, oil going up never effected their bullishness but if oil drops it will be bullish for stocks.

      This is a moot argument. Who cares if oil drops back to $100, how will that make things better? Right now stock prices do not reflect the reality on the ground based on $130 oil. Companies that have higher input prices and shipping prices have not been killed becuase of the oil rise. To see them go up becuase oil drops would not make sense. So if I get this correct, when oil rises it has no negative effect on stocks but when it drops it is positive for stocks.

      Bottom line is that the perma bulls and talking heads need to grasp at anything to keep their thesis alive that things are good. Well they are not. Our rediculous American consumer has gotten himself in a horrible position, he can't afford his house payments, his SUV payments, the gas to put in his gas guzzler, the food to put on his table but yet he is still going to Best Buy and buying new laptops and flat screens. Who is a bigger joke, the talking heads or the American consumer?       Jun 22 03:32 PM
    • Ranking Homebuilders by Discount to Book Value [view article]
      Anyone suggesting that home builders might be a buy is probably expecting the second half turn around in the economy and real estate to start in two weeks. Oh wait, the second half does start in two weeks.

      To speak this way in January was one thing, but to still think at the end of June that we are headed for a strong second half in the economy and a stable second half in home builders is just nuts.

      BZH ran from $5 to $12 from Jan to May, MTH from $8 to $24 in the same period. Where are they now? Wanting to buy into these beasts now is repeating the same mistakes. 2010 is when housing might bottom.

      MTH and PHM have had nice little runs over the past few days and should be topping out soon in my opinion, next stop...new lows.       Jun 19 05:31 PM
    • Pork Demand is Hog Wild While Supply Squeals [view article]
      I have been thinking about starting a position in meat of some sort and figured that beef was good but this works just as well. I have read quite a bit about farmers slaughtering their herds to limit costs of feed. With a bad corn season already underway feed is going to get even more expensive and there are going to be fewer animals to slaughter next year.

      Jun 17 11:23 AM
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