Musings About The Floor Under Gold And Silver Prices [View article]
The article doesn't take into consideration 'sunk costs' of an operation. Even with a lower price production would continue (except at the most uneconomical mines) as long as current production costs are less than the sales price. Likewise, hedging and cash management would permit production to continue, even at a nominal loss. The 'floor' could quickly disappear.
More on Housing Starts: Housing starts of 917K up a hair from January, +27.7% Y/Y. It's the fastest pace of starts since June 2008. Building permits of 946K, +4.6% from January, +33.8% Y/Y. S&P 500 futures have erased losses (happened before housing print), now +0.25%. (full report) [View news story]
Bank of America (BAC) is the stock to own in 2013, says Meredith Whitney, calling it one of the most undervalued firms going into the stress tests. It's got value, catalysts, and momentum, she says, a very rare triple threat for a big bank. $15/share is a chip shot and the stock's a double over the next 18 months, she tells CNBC. Shares +0.8% AH. [View news story]
Ford (F) lowered CEO Alan Mulally's compensation by 29% to $20.95M in 2012 after the car maker missed its goals for profit, cash flow and market share. Mulally's package was made up of a $2M salary, a $3.95M bonus, and $15M of stocks, options and other compensation. Despite the wage cut, Mulally is still probably the world's best paid automotive CEO. [View news story]
Ford (F) lowered CEO Alan Mulally's compensation by 29% to $20.95M in 2012 after the car maker missed its goals for profit, cash flow and market share. Mulally's package was made up of a $2M salary, a $3.95M bonus, and $15M of stocks, options and other compensation. Despite the wage cut, Mulally is still probably the world's best paid automotive CEO. [View news story]
Money is only a scorecard to them. Their primary goal is the satisfaction of seeing their plans come to fruition.
The Sequester - Why No Wall Street Panic? [View article]
AC Will the government employees released (if there are any) qualify for unemployment? If so, the hand wringing over their lost expenditures may be overstated.
Cheniere Energy (LNG) says it's on schedule to start its natural gas export facility by 2015, and two dozen companies have applied for export permits hoping to tap lucrative European and Asian markets. But Kurt Cobb questions the logic of exporting natural gas from the U.S., citing that the U.S. still imports natural gas on a large scale and that exposing U.S. prices to the world market will invariably drag them higher. [View news story]
Our imports are from Canada and some of what we export would be Canadian.
A port in a storm, Campbell Soup (CPB) manages to stay green, with CEO Denise Morrison telling reporters soup season has unfolded better than expected thanks to a resurgence in the Chunky Brand and positive response to a price increase on condensed soups. "I'm not putting balloons up but it feels better ... It's been pretty bad for a long time." [View news story]
More people eating soup than Big Macs? Healthy for the population but not for the economy.
Market recap: Markets tumbled across the board - stocks, oil, gold and the euro - as what was already a broad-based decline became a full-fledged selloff after the Fed signaled growing unease about its stimulus efforts. While the S&P and Nasdaq fell more than 1%, the Dow was off only 0.7%, surprising considering the weakness in Caterpillar as it reported a global sales slowdown. [View news story]
So the Fed is running the country now instead of congress and Treasury?
Investors who fled in fear over potential tax increases from the fiscal cliff have barely broken a sweat over spending cuts only two weeks away, as no one wants to sell again on an armageddon story only to watch stocks climb to new highs. But investors expecting a deal may underestimate the potential impact; with some seeking an excuse to sell after the run-up, failure to reach a deal is "by a long stretch" the top candidate to prompt a real pullback. [View news story]
"I guess what I really want to know is how much of MY money that I work HARD to make is enough for the government? "
Wal-Mart (WMT -2%) slides as it appears sales are taking a hit from this year's payroll tax increase. Cleveland Research says comps are running negative YTD (Street expects +1.9%) amidst a broad slowdown in consumer spending. "The magnitude at WMT seems more significant than we would have expected." [View news story]
And gasoline has jumped 10% in the last two weeks.
The Federal Housing Administration should be able to avoid a first-ever bailout, Commissioner Carol Galante is due to tell a House panel today. The FHA plans to take further steps to avoid foreclosures and increase the amount it charges borrowers to insure their loans against default, which should be enough to offset any shortfall. In November, an independent actuary said the FHA could need aid of up to $16.3B. [View news story]
It Can Happen Here: The Confiscation Scheme Planned For U.S. And U.K. Depositors [View article]
Musings About The Floor Under Gold And Silver Prices [View article]
More on Housing Starts: Housing starts of 917K up a hair from January, +27.7% Y/Y. It's the fastest pace of starts since June 2008. Building permits of 946K, +4.6% from January, +33.8% Y/Y. S&P 500 futures have erased losses (happened before housing print), now +0.25%. (full report) [View news story]
Bank of America (BAC) is the stock to own in 2013, says Meredith Whitney, calling it one of the most undervalued firms going into the stress tests. It's got value, catalysts, and momentum, she says, a very rare triple threat for a big bank. $15/share is a chip shot and the stock's a double over the next 18 months, she tells CNBC. Shares +0.8% AH. [View news story]
Ford (F) lowered CEO Alan Mulally's compensation by 29% to $20.95M in 2012 after the car maker missed its goals for profit, cash flow and market share. Mulally's package was made up of a $2M salary, a $3.95M bonus, and $15M of stocks, options and other compensation. Despite the wage cut, Mulally is still probably the world's best paid automotive CEO. [View news story]
Ford (F) lowered CEO Alan Mulally's compensation by 29% to $20.95M in 2012 after the car maker missed its goals for profit, cash flow and market share. Mulally's package was made up of a $2M salary, a $3.95M bonus, and $15M of stocks, options and other compensation. Despite the wage cut, Mulally is still probably the world's best paid automotive CEO. [View news story]
The Sequester - Why No Wall Street Panic? [View article]
Will the government employees released (if there are any) qualify for unemployment? If so, the hand wringing over their lost expenditures may be overstated.
Cheniere Energy (LNG) says it's on schedule to start its natural gas export facility by 2015, and two dozen companies have applied for export permits hoping to tap lucrative European and Asian markets. But Kurt Cobb questions the logic of exporting natural gas from the U.S., citing that the U.S. still imports natural gas on a large scale and that exposing U.S. prices to the world market will invariably drag them higher. [View news story]
The Bear Finally Shows Its Fangs [View article]
True. Because the populace believes someone else will be paying for it; not them. Spending someone else's money is a pleasurable experience.
20 Signs The U.S. Economy Is Heading For Big Trouble In The Months Ahead [View article]
So how does granting citizenship to all those working off the clock and sending their money home create any new employment?
A port in a storm, Campbell Soup (CPB) manages to stay green, with CEO Denise Morrison telling reporters soup season has unfolded better than expected thanks to a resurgence in the Chunky Brand and positive response to a price increase on condensed soups. "I'm not putting balloons up but it feels better ... It's been pretty bad for a long time." [View news story]
Market recap: Markets tumbled across the board - stocks, oil, gold and the euro - as what was already a broad-based decline became a full-fledged selloff after the Fed signaled growing unease about its stimulus efforts. While the S&P and Nasdaq fell more than 1%, the Dow was off only 0.7%, surprising considering the weakness in Caterpillar as it reported a global sales slowdown. [View news story]
Investors who fled in fear over potential tax increases from the fiscal cliff have barely broken a sweat over spending cuts only two weeks away, as no one wants to sell again on an armageddon story only to watch stocks climb to new highs. But investors expecting a deal may underestimate the potential impact; with some seeking an excuse to sell after the run-up, failure to reach a deal is "by a long stretch" the top candidate to prompt a real pullback. [View news story]
All of it!
Wal-Mart (WMT -2%) slides as it appears sales are taking a hit from this year's payroll tax increase. Cleveland Research says comps are running negative YTD (Street expects +1.9%) amidst a broad slowdown in consumer spending. "The magnitude at WMT seems more significant than we would have expected." [View news story]
The Federal Housing Administration should be able to avoid a first-ever bailout, Commissioner Carol Galante is due to tell a House panel today. The FHA plans to take further steps to avoid foreclosures and increase the amount it charges borrowers to insure their loans against default, which should be enough to offset any shortfall. In November, an independent actuary said the FHA could need aid of up to $16.3B. [View news story]