marinsunshine

Penn West Energy: Too Good to Be True?

Trillions in stimulus translate into deteriorating value of financial paper in favor of appreciating hard assets. It may be difficult to envision inflation at this junction, but down the road that's exactly what will happen-we just don't know exactly when.

Wells Fargo Sham Revealed

I think fact checking is in order. Who says Wells can only get 6% on there money? They have all sorts of legal methods of higher yields, credit cards, servicing fees, foreign exchange trading, various commercial business lines, etc.,etc.

The Case for Wiping Out Fannie and Freddie Shareholders

It would be interesting to see what happens, if the FOMC decided to buy FN and FH stock through several technical resistance points. It would take might take several tens of millions, but they would get a good return by selling if back as the shorts begin to croak. I ordinarily don't advocate this sort of thing, but I think Fannie and Freddie are that important to the fabric of our country.

Why BofA Bought Countrywide

And PS to this guy who keeps posting the question about $7.12.

Merger stocks always trade at a discount which represents the risk of the deal breaking down etc. Granted we have a big discount here, but we also have a lot of shorts who want a better price to cover and have the ammo to move the market around a bit.

Why BofA Bought Countrywide

The reason Mozilo sold CFC is that the main problem they were having were all liquidity related. BofA has plenty of liquidity. problem solved.

Why would Mozilo and CFC agreed to the stock ratio of .1822?? CFC obviously had its feet to the fire. An all stock sale, at least provides some upside to investor of CFC who retain the BAC stock they receive and it gives them a heck of a lot more security than they had a week ago.

Ultimately, lewis has made the buy of a lifetime. Just the 1.3 trillion servicing portfolio in a low refi environment is a cash cow. Yes, foreclosures are rising, but that's bad news all round. Those in the best position to survive, will also be in the best position to profit. . .eventually.

BofA Will Lose Billions in Countrywide Deal

This writer has not even a basic understanding of M&A.
The piece is self-serving. I love it because it makes for a good arb opportunity. I don't have time to point out every erroneous assumption, but I will mention one thing- if Countrywide already owns FHLB-Atlanta stock then BAC will own the stock, it's on their Countrywide's balance sheet.

This article is absolute garbage. In response to the second question the widening of the spread is an indication of how many shorts are trying to push CFC down so they can bail. In my view, the bears have until Fed approval to cover their shorts. It wouldn't surprise me if Countrywide stock starts popping up on the fail-to-deliver list in the very near future. Just mho.

Jim Cramer's Mad Money Lightning Round Picks, 6/7/07

NLY will certainly be helped by lower rates, but since they invest primarily in MBS's higher default rates should give them a boost as well. Why? Because in the case of foreclosures Fannie, Freddies and Ginnies pay off at 100% of face value, meaning bonds purchased at a discount wil have capital gains in them in that scenario. It's sounds counter-intuitive, but that's the way it works.