In a related story, Truck Drivers are asking for "Trucks" in order to do their job...no, wait...they already figured that one out.
Just when I thought I couldn't be further astounded by the utter stupidity, incompetence, arrogance and criminal negligence of our government...unreal.
Alcoa (AA): Q3 EPS ex-items of $0.04 beats by $0.13. Revenue of $4.6B (-34%) in-line. First-half measures making "strong positive impact on our cash position and profitability." Shares halted. (PR) Updated 4:40 p.m.: Shares resume trading, up 6.3% AH. [View news story]
As is the "earnings trend" lately, when you "beat" a ridiculous overshoot to the downside analyst number, and you're still in the red...well, guess what?...you're NOT doing well.
These analyst EPS "expectations" since the crash are some of the biggest sandbagging ploys I've ever seen.
California Pizza Kitchen (CPKI) raises Q3 EPS guidance to $0.22-0.24 from $0.19-0.21, vs. consensus of $0.21. The company says same-store sales in the quarter are down 5.3% compared to an expected decline of 6.5-7.5%. Shares up 2% AH. (PR) [View news story]
yet another "better than expected" mirage. Same store sales are doew 5.3% and the stock's up 2%.
Look, when an analyst "overshoots" to the downside, and you beat it, but are still in the red...you're not doing well. Story of this market however.
If not regulated, dark pools will keep growing and stealing business from stock markets, says CBOE chief William Brodsky, also chairman of the World Federation of Exchanges. The more the private trading platforms go unregulated, he says, "the more you’re going to see liquidity siphon off from exchange markets to these dark pools." [View news story]
Excerpt from the article:
“Our concern on the dark pools is that these have evolved without a careful regulatory plan,” Brodsky said at the conference today. “We’ve allowed the technology and the evolution of these markets to run way ahead of the regulators’ ability” to understand them.
As for "regulators", I picture a group of Monkeys sitting around a Rubics Cube
The SEC appeals a ruling that dismissed insider trading charges against Dallas Mavericks owner Mark Cuban because he wasn't legally an insider at Mamma.com. Cuban's sale of his stake avoided more than $750,000 in losses; his lawyers call the SEC's move a "desperate attempt to shock a heartbeat into a case that was dead on arrival." [View news story]
I'm glad the SEC has decided to pool it's resources to pursue this. It's important to the well being and direction of the free markets...unreal.
Heaven forbid if they were to investigate Hedge Fund trading (see: GS)
The lawsuit filed by Hertz Global (HTZ) could have a chilling effect on what analysts and investors say to business journalists. Hertz alleges it was defamed by Audit Integrity on CNBC when the firm named it as one of 20 major companies most likely to go bankrupt. (previously) [View news story]
Hey, I've got a revolutionary idea! Let's investigate ANYTHING said on CNBC for credibility, accuracy and bias.
Bullish remarks from Mosaic (MOS -0.3%) on yesterday's earnings call, with VP Mike Rahm saying potash demand "is on the brink of a recovery." The company says global grain and oilseed stocks at the end of the 2009-2010 crop year will not be sufficient to prevent a disruptive price spike if there's so much as a hiccup in production. [View news story]
"brink"...hmmm can't find that one on the calendar. Heck, lets just say 2011 and call it even.
Some senior bankers who quit their Wall Street jobs over the last year are wending their way back, a signal the financial-services industry, until recently seen as a wasteland, may be regaining its luster. [View news story]
Hmmm lets review why they are returning:
0% Fed funds rate = steepest yield curve in history (a monkey can make money off that)
record profits from grossly inflated fees and penalties.
High frequency trading (see: front running)
Derivatives, Derivatives, Derivatives (oh, did I mention collateral is optional?) (see: overleveraged risk taking)
Bonuses tied to profit (by the way, the higher the risk the bigger the profit so go for it!)
Banks permitted to publicly "upgrade" banks it's financially tied too (see: Goldman-Sachs, a "bank holding company" and "rater"...huh?)
Conclusion: We're right back to the old ways of banking, so of course they're flooding back
The best thing consumers can do is cancel these cards, shift the balance to a lower percentage loan/card and then...wait for it..."live within their means" by not extending themselves with credit purchases. As my wise father used to say, if you can't buy it now with cash, you can't afford it. A bit of a frugal lean some may say, but is he truly wrong?
One only has to review any politician's tax returns, former employers, or political contributors to see their priorities, as well as how "in touch" they are with America and its needs.
Now that PPIP is finally starting to takeshape, Cheyenne Hopkins at American Banker wonders if there's any need for it. Most banks have already written down much of their toxic holdings, the FASB has kicked in with more flexible fair-value accounting rules, and the scheme's main problem - how to price the mongrels - remains unsolved. [View news story]
The "need" for it is a mute point. As long as the Fed and Treasury (aka: former and future large banking executives) remain loyal to "bank recovery" (see: "record profits") it will be pushed harder than the "ShamWow". Perhaps a rename to "P-PIMP" is in order.
With a letter to lawmakers, Bank of America (BAC) pledges not to hike credit-card rates or make sudden changes to customers' terms ahead of new consumer protections taking effect in February. [View news story]
Here's a hypothetical internal memo for you...
From: The desk of Ken Lewis To: BoA credit card executive staff Date: Sometime in late Spring 09
Dear fellow fleecers of the hard working American consumer. I want you to slowly jack the interest rate on all credit cards. Good credit, bad credit, impeccable payment history or not, it doesn't matter. Just jack them all up. You have until close of business on Oct 4th 2009 to complete this corporate action, because after that I'm laying down the "good guy" CEO act to Congress.
Oh, by the way, whomever has been diving in the Executive Swimming Pool that's filled with my bonus money, please be sure to sweep up the loose cash next time and not track it out into the hallways...it clogs up the cleaning crew's vacuums.
Gangsters taking exams is an unlikely bad omen for Japan, William Pesek writes. Evidence that the yakuza are testing on the equivalent of stockbrokers' Series 7 exam shows how quickly the underworld has infiltrated finance, and how it's struggling to keep up - a bellwether for the entire Japanese economy. [View news story]
The difference between the Japan gangs and Wall Street gangs?
Goldman Sachs' (GS) upgrade of bank stocks has gotten a lot of credit for this week's gains in financials - but those who listened to Goldman calling banks the "new utilities" in January missed out on big returns. Maybe Goldman's smart money isn't so smart? (see chart) [View news story]
At the risk of sounding redundant from my other GS related comments, a "Bank" (GS) should not be permitted to publicly "upgrade"/rate a sector (banking) that has direct influence on it's own corporate gain. The fact this is allowed to happen is beyond criminal and is at the least blatantly self serving.
Picture allowing the tobacco industry to function as the nation's lung cancer advisor or big industry giants to rate air quality assurance. What do you think the outcome would be?
The SEC is asking Congress to grant it direct access to real-time data on credit-default swaps and other derivatives. You mean they didn't have it already? Regulation might be good, DealBook says, since CDS trading brought the banking system to its knees. [View news story]
Just when I thought I couldn't be further astounded by the utter stupidity, incompetence, arrogance and criminal negligence of our government...unreal.
Hot Topic (HOTT) says its September same-store sales are down just 4% vs. estimates of a 6.6% decline; shares up 9.1% AH. [View news story]
Anyone seeing a "pattern"?
Alcoa (AA): Q3 EPS ex-items of $0.04 beats by $0.13. Revenue of $4.6B (-34%) in-line. First-half measures making "strong positive impact on our cash position and profitability." Shares halted. (PR) Updated 4:40 p.m.: Shares resume trading, up 6.3% AH. [View news story]
These analyst EPS "expectations" since the crash are some of the biggest sandbagging ploys I've ever seen.
California Pizza Kitchen (CPKI) raises Q3 EPS guidance to $0.22-0.24 from $0.19-0.21, vs. consensus of $0.21. The company says same-store sales in the quarter are down 5.3% compared to an expected decline of 6.5-7.5%. Shares up 2% AH. (PR) [View news story]
Look, when an analyst "overshoots" to the downside, and you beat it, but are still in the red...you're not doing well. Story of this market however.
If not regulated, dark pools will keep growing and stealing business from stock markets, says CBOE chief William Brodsky, also chairman of the World Federation of Exchanges. The more the private trading platforms go unregulated, he says, "the more you’re going to see liquidity siphon off from exchange markets to these dark pools." [View news story]
“Our concern on the dark pools is that these have evolved without a careful regulatory plan,” Brodsky said at the conference today. “We’ve allowed the technology and the evolution of these markets to run way ahead of the regulators’ ability” to understand them.
As for "regulators", I picture a group of Monkeys sitting around a Rubics Cube
The SEC appeals a ruling that dismissed insider trading charges against Dallas Mavericks owner Mark Cuban because he wasn't legally an insider at Mamma.com. Cuban's sale of his stake avoided more than $750,000 in losses; his lawyers call the SEC's move a "desperate attempt to shock a heartbeat into a case that was dead on arrival." [View news story]
Heaven forbid if they were to investigate Hedge Fund trading (see: GS)
The lawsuit filed by Hertz Global (HTZ) could have a chilling effect on what analysts and investors say to business journalists. Hertz alleges it was defamed by Audit Integrity on CNBC when the firm named it as one of 20 major companies most likely to go bankrupt. (previously) [View news story]
Now THAT would be a can-o-worms eh?
Bullish remarks from Mosaic (MOS -0.3%) on yesterday's earnings call, with VP Mike Rahm saying potash demand "is on the brink of a recovery." The company says global grain and oilseed stocks at the end of the 2009-2010 crop year will not be sufficient to prevent a disruptive price spike if there's so much as a hiccup in production. [View news story]
Some senior bankers who quit their Wall Street jobs over the last year are wending their way back, a signal the financial-services industry, until recently seen as a wasteland, may be regaining its luster. [View news story]
0% Fed funds rate = steepest yield curve in history (a monkey can make money off that)
record profits from grossly inflated fees and penalties.
High frequency trading (see: front running)
Derivatives, Derivatives, Derivatives (oh, did I mention collateral is optional?) (see: overleveraged risk taking)
Bonuses tied to profit (by the way, the higher the risk the bigger the profit so go for it!)
Banks permitted to publicly "upgrade" banks it's financially tied too (see: Goldman-Sachs, a "bank holding company" and "rater"...huh?)
Conclusion: We're right back to the old ways of banking, so of course they're flooding back
Lawmakers who wanted big banks to match BofA's (BAC) pledge not to further hike credit-card rates got one answer from Wells Fargo (WFC), who expects to raise rates for most customers by 3 percentage points on Nov. 30 - the day before Rep. Barney Frank wants new curbs to become effective. [View news story]
The best thing consumers can do is cancel these cards, shift the balance to a lower percentage loan/card and then...wait for it..."live within their means" by not extending themselves with credit purchases. As my wise father used to say, if you can't buy it now with cash, you can't afford it. A bit of a frugal lean some may say, but is he truly wrong?
Analyzing Larry Summers [View article]
Now that PPIP is finally starting to take shape, Cheyenne Hopkins at American Banker wonders if there's any need for it. Most banks have already written down much of their toxic holdings, the FASB has kicked in with more flexible fair-value accounting rules, and the scheme's main problem - how to price the mongrels - remains unsolved. [View news story]
With a letter to lawmakers, Bank of America (BAC) pledges not to hike credit-card rates or make sudden changes to customers' terms ahead of new consumer protections taking effect in February. [View news story]
From: The desk of Ken Lewis
To: BoA credit card executive staff
Date: Sometime in late Spring 09
Dear fellow fleecers of the hard working American consumer. I want you to slowly jack the interest rate on all credit cards. Good credit, bad credit, impeccable payment history or not, it doesn't matter. Just jack them all up. You have until close of business on Oct 4th 2009 to complete this corporate action, because after that I'm laying down the "good guy" CEO act to Congress.
Oh, by the way, whomever has been diving in the Executive Swimming Pool that's filled with my bonus money, please be sure to sweep up the loose cash next time and not track it out into the hallways...it clogs up the cleaning crew's vacuums.
Thanks,
KL
Gangsters taking exams is an unlikely bad omen for Japan, William Pesek writes. Evidence that the yakuza are testing on the equivalent of stockbrokers' Series 7 exam shows how quickly the underworld has infiltrated finance, and how it's struggling to keep up - a bellwether for the entire Japanese economy. [View news story]
Suits.
Goldman Sachs' (GS) upgrade of bank stocks has gotten a lot of credit for this week's gains in financials - but those who listened to Goldman calling banks the "new utilities" in January missed out on big returns. Maybe Goldman's smart money isn't so smart? (see chart) [View news story]
Picture allowing the tobacco industry to function as the nation's lung cancer advisor or big industry giants to rate air quality assurance. What do you think the outcome would be?