slee12dent

Implications of The Dollar Carry Trade

The low interest rate has helped the banks a great deal and push them into profit territory, even as their loan portfolio deteriorated. Fed will leave the rate as low as possible to help the banks recover.

Chrysler vs. Indiana: The Little Pension Fund That Could

Government does not want to reward speculators when it brings a company to bankrupcy. Equity holders are wiped out. Bondholders are getting pennys on the dollar. When no one else wants to rescue, the government will reluctantly help out but at a steep price to the investors, who are getting something instead of nothing. So why is Indiana pension fund whining about 28 cents on the dollar when it should be getting less when everything is liquidated? Sounds more like a coverup of a bad investment to me.

Chrysler vs. Indiana: The Little Pension Fund That Could

Why can government have a strong hand in this case? Nothing to do with the constitution. Government is the one who injected billions of dollars to Chrysler. Without this government money Chrysler is worth nothing.

GM Files Chapter 11: Its Bonds and Shares Rise

Another chance for the longs to get out. Take it as a gift.

Six Trends to Profit From

Improvement of American balance sheet? It looks like the opposite is occuring. We need to print money to get us out the hole. Actually it is widely recognized that interest rate will go up due to the growing money supply. Americans, especially baby boomers, are going to be hit with cost of living increases, higher commodity prices, etc.

Lazard Watch: Questioning Expense Related Detail

These consultants are making 400+ per hour and you are complaining about the $200 tip? Welcome to the corporate world where expenses are a necessary evil. You cant expect these consultants to cram in economy class or eat at mcdonald dressed in their armani suits. Why they can charge so much? because they are in high demand in this recession and bankrupcy experts are few. Lawyers are going to feast on the GM bankrupcy.

GM Common Stock Is Worth More than You Think

wow I have not seen something like this for a long time. I think the buyer of GM is the government who will own 70% of GM. If Microsoft wants to buy it, it needs to pay 50 billion first before paying the bondholder and the stockholders..

Thornburg's a Huge Bargain After Monday's Crash

PJ568,

I am disappointed as I read the deal. This is a dilution of grand proportion; it pretty much giving TMA away for 5 cents on the dollar. This shows how bad the situation is for TMA. And there is no guarantee TMA will survive the next round of margin call, if its portfolio continue to go south. It is a lesson learned for all of us, including me, who wish to invest in distressed companies.

Thornburg's a Huge Bargain After Monday's Crash

I am more interested in the preferred than the common. Anyone out there that own the preferred, are you still getting the dividend? The reason why preferred may be a better play is becaused of dividend, and more upside if someone acquires TMA.

Thornburg's a Huge Bargain After Monday's Crash

believe it or not, mr. market is pretty efficient at pricing stocks. There is no manipulation, just demand/supply. And I think $1.4 is a fair price given the risk/reward at this point.

Thornburg's a Huge Bargain After Monday's Crash

I am not an investor, but I want to offer some insight on this stock based on what I have learned about the stock market over the years..

Now what are the possible scenerio?

TMA can ...

1. sell more stocks - not likely as the margin call is 2x the market cap

2. get a loan - not likely because lenders are now demanding payment

3. FED bailout - possible, then it has to bail out all other lenders, too.

4. Cash infusion from investors - possible, but in all likelyhood TMA will have to settle of less. Which means less book value. Stock price may be half of what it used to be ($12 / 2 = 6)

5. TMA selling its portfolio - again it is stuck at the worst of time; going to settle for less, probably a lot less than capital infusion...stock price may be $4

6. Lenders negotiate with TMA - TMA is at the mercy of the lenders and may have to accept their terms.. stock price no higher than $6

7. Takeover by another co., like BAC to CFC - look what happened to CFC's stock price after deal announced - no premium, and a 160 million breakup fee to BAC. So best price i can think of is 4-6 dollars

Does that sound about right?