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  • Restricting Access to Leveraged ETFs - Are Brokerages Outlawing Products or Strategies? [View article]
    when were the warning labels "dont hold for more than a day" added to the prospectus of these products??? I dont remember reading that -- though the fine print on these may have changed later. How this product was presented when put on the market -- specifically aimed at 401k holders that had no other shorting options!!! ---is that it was designed to give you a 2 or 3x times gain against the movement of that market. The risk of holding for more than a day or two was fraudulently misrepresented (if mentioned at all), nor were the technical aspects readily apparent to even sophisticated investors (as is the case with many of these leveraged products), and that is clearly why the Mass. financ. reg is stepping in.
    its true that this is way too late for the brokerages to step in and say "sorry" to individual investors who got hosed (including myself). but it will be entirely appropriate for the SEC to come in and whack these products. Undoubtedly, the reason brokerages are stepping in to cut off a product that they sell and make a ton of fees on (since trading in and out of these products is the only way to make it work) is because they simply do not perform as represented broadly in the prospectus.
    Aug 06 05:12 am |Rating: 0 0 |Link to Comment
  • Airlines: Bail or Let Them Fail? [View article]
    I'd have to agree, mostly, with the first 2 comments. Yet foreign carriers find themselves in much the same pickle -- even without the fierce domestic competition that you see in the US. First and foremost this is a recession driven problem, and like all large companies airlines are not very nimble. And even the newest carriers, without legacy costs (airline employees stick around forever, same as auto and steel before them) are finding it hard to come by a profit when everyone shops online to save a nickel. but you can't blame the consumer -- these carriers all have roughly the same safety record and all have passed FAA inspections. Its grim and something has to give. The current model is unsustainable, even with oil at 40$ a barrel. Mergers seem to be the only way to bring some rationality (ironically: less competion, higher fares) Yet, at present most dont deliver the efficiencies they promise. In fact, what you get at mergers like Delta and USair is more like twice the management and half the workers. Not a winning formula -- mainly because the executives in charge of bringing about such mergers are more concerned with the bonuses they recieve in the process than the actual results (sound familiar?).
    Jul 22 00:19 am |Rating: 0 0 |Link to Comment
  • 3 Ways to Profit from the Renewable Energy Bill [View article]
    u fool is spot on. and user 56271 obviously knows more than the author. look at the clean stocks today. woulda got slaughtered listening to this ariticle on sunday. oh' sure look at the long term.... yeah, you take a 20%hit in the meantime. worst kind of journalism
    Sep 29 11:00 am |Rating: 0 0 |Link to Comment
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