cove3

5 Comments

    • What is Hank Paulson Thinking? [view article]
      The article mentions convertible senior debt by the government as a way to inject liquidity. Seems better to me than Paulson plan.

      However, I'd like to know why Warren Buffet eg in the Goldman purchase, prefers to use 10% preferred stock and warrants.
      Why didn't he use 10% convertible preferred stock, or better yet, 10% senior convertible debt. In the case of severe problems, the debt would have a high claim than his preferred, while his warrants could be worthless.

      Just an idea, because I would like to see the government use something more like a Buffet approach than the Paulson approach.

      Ron       Sep 30 08:33 AM
    • Winners and Losers in the Bailout Bonanza [view article]
      I am confused as to leverage/capital regulation which has existed for both investment banks and bank holding companies.

      I thought investment banks were exempt and that only the deposit bank and brokerage subsidiaries of bank holding companies were regulated as to leverage.

      Yet I saw that a few years ago, Goldman, JP Morgan etc were allowed to increase their leverage, implying some regulation existed.

      Also, the argument for Goldman becoming a bank holding company was that it would have access to depositor money. I thought that the deposit bank of a bank holding company could not play games with moving depositors money out to it's investment bank subsidiaries.

      Anybody know the answer to this?

      Ron

      Also       Sep 23 09:37 AM
    • The Housing Crisis is NOT Over [view article]
      The article left out a key point that even after the price declines, rentals are still 20% cheaper than owning. That has to narrow

      Ron       May 07 09:07 AM
    • Greg McCoach, Mining Speculator: $1000 Gold Still Very Cheap [view article]
      I don't think the info on what coins sold require a 1099 form is correct. According to the IRS, it 1099 reporting:
      1. Applies to all precious metal coins
      2. But only if the quantity sold exceeds a board of trade contract This appears to generate a 1099 only if more than 25 coin are sold.
      Several other Google hits same the same thing.

      www.irs.gov/instructio...
      Sales of precious metals. A sale of a precious metal (gold, silver, platinum, or palladium) in any form that may be used to satisfy a Commodity Futures Trading Commission (CFTC)-approved regulated futures contract (RFC) if the quantity, by weight or by number of items, is less than the minimum required to satisfy a CFTC-approved RFC. A sale of a precious metal in any form that cannot be used to satisfy a CFTC-approved RFC is not reportable.

      For example, Form 1099-B is not required to be filed for the sale of a single gold coin in the form and quality deliverable in satisfaction of a CFTC-approved contract because all CFTC contracts for gold coins currently call for delivery of at least 25 coins.

      www.usagold.com/cpm/pr...

      The following are reportable items as listed by the Internal Revenue Service. Also shown is the threshold number of ounces that triggers the need to file a Form 1099 with the IRS. Remember, the reporting requirement occurs when you as a client sell, NOT when you purchase.


      Gold bars (any size bars totaling 1 kilo -- 32.15 troy ounces -- or more)
      Gold Maple Leafs (25 ounces or more)
      Gold Krugerrands (25 ounces or more)
      Gold Mexican Onzas (25 ounces or more)
      Silver bars (1,000 ounces or more)
      U.S. 90 percent silver coins, pre-1965 ($1,000 face value or more)
      Platinum bars (25 ounces or more)
      Palladium bars (100 ounces or more)

      Apr 18 07:58 PM
    • Berkshire's See's Candy: Magic Formula Stock from 1972? [view article]
      Warren Buffet may be thinning the soup too much with See's. While a long time favorite of ours, the most recent purchases seem to have gone down in quality. In addition, we buy See''s from a cart at Lord & Taylor. I've watch the subtle decline from a 1lb box go to 12oz and now 11 oz, although the box looks the same. At the same time, the price has gone up from 11 to 12 to 15 now for the 11oz box. Unless you watch it closely, the buyer doesn't realize how they're skimping the weight down. It's a double price increase coupled with a quality decrease

      At some point, the soup becomes mostly water. I think Buffet is trying to extract too much profit from See's to fund his other ventures

      Ron       Mar 05 08:36 AM
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»