LennyLichtenstein

Sheldon Adelson's Losing Streak

Felix was speaking to the ability to refinance debts. CIT is profitable today but may not exist tomorrow due to inability to refinace debts. Liquidity and solvency are different things. LVS may experience a liquidity crisis that sends the company into bankruptcy.

"What we don't need," you said. If you have a position you should disclose it. There is no problem with Felix's article.

Disclosure: Long CIT. No position in LVS

BofA, Lehman, AIG: The New Financial Realities

Garya you have a future in crime because you just burglarized this guy's post. Roger all good points.

This happened in what seems like a different world
Disclosure: Short AIG 10, 15 puts for september

Am I Crazy to Own Gannett?

Gannet has decreasing revenue on a business line that is unlikely to grow. Gannet cannot cut costs and hope to grow at all. Newspapers have certain fixed costs associated with their operations. Cutting back on journalistic/editorial talent will erode the value proposition they provide and make them more vulnerable to internet competition. Their future business will be far, far, less profitable at the current price point of a newspaper.

Valuation is necessarily forward-looking. It is reasonable to assume that Ganett will never increase their dividend. Could it be reasonably near here in five years? I know discounting the dividend seems like an antiquated method of valuation, but i see no other value to the long-term investor in this instance (other than their enourmously valuable careerbuilder.com). I expect declines in newspaper group profits to be exponential in coming years.

Disclosure: I am long gannet puts