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  • Kudos To Judge Lamberth: Bubkis Hedge Fund Claims Against Freddie/Fannie Get Heave-Ho [View article]
    Exactly what I would expect from a GOP shill that is trying to justify the failed presidency that was the Bush Administration. His comments make clear to me the reason that I believe that the GOP is trying very hard to destroy America. First they steal these two companies from private investors, then they try to give the business to the Crony banking organizations that they selectively bailed out and after they find out that the companies they want to have the business, don't actually want it under the same terms, they try to justify the failure now associated with their party. Freddie and Fannie were fine until Bush, Paulson, and Geithner decided that they should change accounting methods and write down mortgages on the books that would be there for many years to come. They didn't realize that the property values would stop falling and go back up. Reversion to the mean is a fairly common occurrence in economic conditions, and this political hack should have recognized it. Now the GOP is caught up in its web of lies and theft and is surprised that the people that now own the companies were smarter than they were. These idiots put 600 billion dollars per year in war expenses in off the book accounts for American taxpayers to pay long after they are dead and gone, which by the way will not be soon enough. These Bush Administrations failures should just accept their fate as being recognized as the worst administrators in American History and shut up. There is no justification for their failure and no revision of history on their part will correct that. Even Paulson said Fannie and Freddie were fine right up until our GOP led government decided to screw all of the small investors and community banks that owned them. That's right, these securities were not owned by Hedge Funds until our government took actions to force the Mutual fund industry to sell their securities because they were no longer listed on a major exchange. Who's fault is that, the G W Bush Administration's fault Bush, Paulson, Geithner, Bair, and others should have all gone to jail, but we can't prosecute someone for stupidity. We can however, refuse to vote for these idiots again. Oh, one other note, The preferreds were regarded as tier one bank capital, so as much as half of them are still owned by small banks that would like to get their money back from a government that stole it. So, screw you Stockman, you don't know what you're talking about, and I sure won't take your word for it. That being said, I owned these stocks before the great GOP theft and I own them now. I trust the constitution of the United States and I know that no GOP shill will get to make the call on this issue. So sit down and shut up. You had your chance and blew it. Its someone else's turn now, and we know they can't possible screw it up more that you guys did.
    Oct 4, 2014. 07:54 AM | 5 Likes Like |Link to Comment
  • Frannie Folly [View article]
    Taxpayers didn't win anything, as a matter of fact they will foot the bill for all of the legal challenges to come. The billionaires didn't lose anything. This was just the action of a single individual judge and his explanations reveal the many weaknesses in the Government's case. The Billionaires are still sitting on nice profits and the volumes did not indicate they were selling. Now that all of the late comers and non believer's have sold out, we will begin to climb again- because the billionaires will add to their holdings. And guys like you will miss the boat again and be pissed that the billionaires did not.
    Oct 3, 2014. 05:40 PM | 1 Like Like |Link to Comment
  • Tensions escalate between U.S., China over antitrust probes [View news story]
    This is what you get when one side wants free trade and the other is devoted to its citizens and its business. Maybe the USA could learn a lesson here if it pays attention. With all the jobs we have moved overseas and the manufacturing ties that are in China, they have the upper hand. That doesn't even take into consideration the fact that most Chinese citizens will buy a product that is produced by a national firm just because they feel that no foreigner can make it better. Look for this activity to increase, not dissipate.
    Sep 15, 2014. 07:07 AM | Likes Like |Link to Comment
  • Green Vs. Greed: The Difference Between Speculating And Investing [View article]
    There is no difference between investing and speculation. There are people that believed the GE story at split adjusted $60 per share in 2000 and saw it at $8 in 2008. Was Microsoft speculative at $75 pre 2000 or was it speculative at $14 in 2008. Do you invest in apple, Netflix, twitter, Chipotle, Tesla, Amazon or any other price action story. Speculation Vs. Investment is about a place in time and a perception of risk. Were or are the investors that still hold the GSE's more speculators than the hedge funds that have established newer positions. Its about making money, it has no such definition of how. Get over it.
    Sep 11, 2014. 01:18 PM | 2 Likes Like |Link to Comment
  • Carney: Legal victory of little use to GSE owners [View news story]
    The problem with this analysis is that this commentator is providing only one possible outcome from the suits. There are many. here are a few plausible ones

    1. Yes the government lied and took the companies without compensation and are forced to pay damages. Make whole would be customary and force the government to pay fair market for the common, and par value to the preferreds plus dividends for the securities they stole and return them to status quo.
    2. The government can keep their stake and pay for the securities at fair market plus dividends for the common and preferreds.
    3. The government is proven to have committed securities fraud and forced to relinquish all monies in excess of the funds lent. That would force all funds, including the preferred stock dividends to be returned to the shareholders.
    4. The entire process is deemed to be a fraudlent transfer and they have to make restitution.
    5. Collusion and coercion is proven between the Treasury and the Government appointed Board of directors and the 10% dividend declared null and void because the government changed accounting regulations in order to accomplish the theft. This results in all funds being returned for distribution.
    6. Enough embarrassing info is uncovered that the government moves to end the conservatorship to save face.

    These are just some possibilities.

    No one can be sure of the outcome, but the fact that the U S Government
    is trying very hard to avoid document production means that they are afraid of something much larger than losing. These suits could change the entire role of the government in the regulation of financial industry.
    Whoever is providing Carney with a paycheck should probably rethink his worth and cut his rate.

    In my view, and I am not compensated for it, is that Carney is like many other commentators, all mouth and little thought. Just a second opinion
    Aug 18, 2014. 01:45 PM | 10 Likes Like |Link to Comment
  • I Feel Like A Thief Buying IBM At Today's Low Valuation [View article]
    The reason that IBM is not priced lower, is that IBM like many other companies has been supporting their share price through finamced buybacks. This has the effect of increasing earnings per share but it also causes higher debt levels. This in turn lowers real tangible asset values and the debt will eventually have to be replaced with rollovers at higher interest levels. At some point, this financing for shares will exhaust the credit available for the function. When that happens the share price could easily face an irreversable downward spiral. The earnings per share will drop and the free cash flow will free fall. There is no new revenue here to support higher valuations and cash constraints on other businesses that use IBM services (because they are doing the same thing) could relate to even lower sales and revenue numbers in the future. This is not the kind of value play I look for for olny a 30% total long term return on an investment. This horse is going to stay out to pasture and probably will never race again. Or in IBM speak, it's too late for the elephant to dance.
    Aug 9, 2014. 08:07 AM | 4 Likes Like |Link to Comment
  • Alcoa's EPS Smelted By Balance Sheet [View article]
    Here's the deal. You basically have an aluminum foundry trading at 25 times actual earnings in a market that should be 10-12. To me this means that the stock, with any hiccup could drop as much as 50%. No accounting tricks, no guesses, their numbers. That profit level is not adequate for the volume of sales and the share prices are not sustainable. Maybe if the turnaround gets underway and doesn't derail, I will look at them again later.
    Jul 10, 2014. 07:13 AM | 1 Like Like |Link to Comment
  • Treasury official: Recapitalizing GSEs would take 20 years [View news story]
    The rest of comment went on to say that most of the gains in the GSE's profits were tax credits and asset write ups. What she did not say was that most of the losses were taxes assessments, asset writedowns, and increased reserves forced on them by the government after that takeover. She is leaving her post in September and I for one hope a more intelligernt person gets it.
    Jun 14, 2014. 08:00 AM | 2 Likes Like |Link to Comment
  • The Nifty Fifty Market [View article]
    Kind of reminds me of 1998-1999 Nasdq when most of the gains could be traced to 5 stocks. That's the problem with weighted indexes, they don't reflect total market sentiment
    Jun 5, 2014. 08:42 AM | Likes Like |Link to Comment
  • Peabody Energy Trading At 35%-40% Discount To Perceived Intrinsic Value [View article]
    Some mopre info you might find interesting
    Jun 5, 2014. 08:01 AM | Likes Like |Link to Comment
  • Peabody Energy Trading At 35%-40% Discount To Perceived Intrinsic Value [View article]
    It makes no difference to me what you pump to your clients, but it looks to me like there is more pain in store before relief. What if coal just stagnates here. Markets can stay unreasonable longer than most of your clients can stay solvent. Just because a sector is down is not a reason to buy. As an advisor you should know that. So what if they move up 20-25% from here , the market is currently moving against them down is definitely a possibility. James River was once a 60 dollar stock, Freeport Mac was over 100. Maybe you are right, but my gut says not yet. The energy train is leaving and coal is still at the station. Gas can continue to eat market share for a long time yet. I know BTU has a gas presence but it is not large enough to compensate for lost coal revenue yet. You may be really bright and can see the future, but I am glad my money is not in your crystal ball portfolio. That is why advisors need clients, to make money from others. We all know you don't exist for clients to make money. Remember rule 405
    Jun 3, 2014. 05:00 PM | Likes Like |Link to Comment
  • Peabody Energy Trading At 35%-40% Discount To Perceived Intrinsic Value [View article]
    Coal stocks will go up when new contracts indicate more sales at better margins are possible. To invest before that is discernible is just like shooting your bankroll. Dead money. KOL appears to be rangebound in a fairly tight monetary band. Without a catalyst, promoters like this are just pumping their positions to get out of stale positions.
    Jun 2, 2014. 10:35 AM | Likes Like |Link to Comment
  • Chipotle: Buy Before It Gets Expensive [View article]
    All you need to know about CMG, Management and shareholder dilution in one ny times article
    May 15, 2014. 08:15 AM | Likes Like |Link to Comment
  • Why Does Mr. Market Fear American Realty Capital Properties? [View article]
    P E has a meaning for every investment. A reit is required to dispense 90+% of its earnings in oredr to maintain it favored tax status as a reit. Earnings have a direct impact on distributions and to think otherwise is pure folly. Many things impact earnings including interest rates, occupantcy rates, contract reveue streams, overhead, depreciation, increased debt loads, etc. But the fact remains if earnings drop, PE ratios increase and distribution rates go down. Sorry, thats basic math. What you pay for and investment matters. Financials of all kinds generally trade at lower valuations than more exciting industries and the reits are in that financial camp. Not bashing your choice, just experienced enough to have seen several reit cycles
    May 11, 2014. 08:15 AM | 3 Likes Like |Link to Comment
  • Why Does Mr. Market Fear American Realty Capital Properties? [View article]
    based on the quarter mentioned, the reit is trading on about a 13 PE ratio. That's pretty fully valued for this market. I am sure it will appreciate, if property values continue to ascend, but reits have difficulties with higher interest rates, and they are coming. Maybe thats the reason for the disappointment.
    May 9, 2014. 07:35 AM | 5 Likes Like |Link to Comment