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rdullom

rdullom
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  • The next frontier for offshore drilling: deepwater fracking [View news story]
    Would this be of some benefit to affshore drillers longer term?
    Aug 8 05:28 PM | Likes Like |Link to Comment
  • The big threat to Wells Fargo profit streak: loan loss reserves [View news story]
    Anyone who is familiar with the banking industry and has studied and/or analyzed bank profits should not be shocked that reserve releases will dissipate over time. Earnings created by the reversal of previous loan loss reserves is not high quality earnings and investors typically do not put a high multiple on earnings from this source. Although the NIM may continue to be flat to down in coming quarters, an eventual rise in rates should help to grow the NIM Margins are currently still below what could be termed normalized levels.
    Jul 11 03:43 PM | 2 Likes Like |Link to Comment
  • Morgan Stanley slapped with $5M fine over 83 IPOs [View news story]
    Sounds like the Finra just needed another $5mm for their budget. This clearly is a joke.
    May 6 03:58 PM | Likes Like |Link to Comment
  • BofA blunder likely means no buyback this year [View news story]
    Is this really any different than Citi? The focus shold be on profitability and earnings. Less capital could mean at least a temporary hit to earnings and profitability. EPS will be affected because of the lack of buybacks. The valuation hit however appears to more than factored this in.
    Apr 29 03:54 PM | Likes Like |Link to Comment
  • BofA and Buffett amend deal [View news story]
    Do stockholders actually have a vote on this matter?
    Mar 3 08:19 AM | 1 Like Like |Link to Comment
  • Transocean Will Benefit From Rising Deepwater E&P Spending [View article]
    Comments on the keys to RIG's future. Need to improve margins to industry levels and raise returns on invested capital. Both require managing costs better and improving fleet utilization.
    Sep 24 02:38 PM | 1 Like Like |Link to Comment
  • Apache: Egypt Deal Sparks More Upside Potential [View article]
    Not sure this is as great a deal as Wall Street believes. APA's debt has been getting high, so they need the cash. Also, they are late to the Permian play. Company has seemed to be a buyer of properties over the pst several years but not as good at developing them, i.e. Canada, Poland etc.
    Sep 2 12:34 PM | 2 Likes Like |Link to Comment
  • Hewlett-Packard - Bump In The Recovery Road Offers Buying Opportunity [View article]
    A few questions. What's happening to tablet sales at AAPL and Samsung? A big problem with tablets is that you cannot create real content with a tablet. Look at Capex for corporations. Its down over the past few years, particularly as a % of GDP. At some point corporations will have to replace their aging PCs. Also, what happens to competition and pricing when Dell goes private? The new owners will probably be more interested in cash flow and paying down debt.
    Aug 22 03:31 PM | Likes Like |Link to Comment
  • An Occidental Undervaluing Redux [View article]
    I'm confused by some of your numbers in the valuation breakdown. I would think U.S. proved reserves would be worth more on a boe basis versus international. International contains more risk (Libya), and has a higher component of natural gas (which tends to be worth less per boe, all things being equal). Finally, what is the real incentive to split out California reserves and production into a separate co?
    Aug 20 05:16 PM | Likes Like |Link to Comment
  • A potential new legal front is opened against the banks as the U.S. sues Bank of America (BAC), seeking at least $1B in damages for allegedly misrepresenting the quality of home loans it (through its Countrywide unit) sold to Fannie and Freddie. [View news story]
    Is it not also the responsibility of the management of FNMA, GNMA,etc to analyze the loan portfolios that were purchased to assure that they fit their criteria? Also, didn't these portfolios receive investment grade rating from S&P and Moody's? Are they also being sued by the gov't?
    Oct 24 04:02 PM | Likes Like |Link to Comment
  • PNC Financial: Extraordinarily Well-Run Bank Selling At A Discount [View article]
    Although a housing recovery will help PNC and all banks, there aare other banks such as WFC thatt are more leverage to a housing recovery.
    Sep 26 03:23 PM | Likes Like |Link to Comment
  • Counterevidence Supporting A Positive Demographic Impact For Stocks [View article]
    Not sure I understand the relationship between ROE and demographics. ROE is a function of margins, asset turnover and financial leverage. Perhaps aging population could affect turnover, but I'm hard pressed to come up with anything else in the ROE equation that has a relationship to aging population. Another topic of related discussion is what will happen when the FED is forced to raise rates in order to fight inflation and bond prices fall. Many investors will have to facce the hard reality that one can lose $ in bonds also. Especially when they're forced to sell their bonds in order to meet health care expenditures, etc..
    Sep 17 10:44 AM | 1 Like Like |Link to Comment
  • Old Republic International's Q2 2012 And Remaining Uncertainty [View article]
    All good comments on ORI. However, I thought that the major problem in the general insurance sector in the 2Q was the impact of health care cost on workers comp. Granted that health care costs will continue to rise over time, but the Q/Q increase should not be that material, barring some statistical anomaly. Assuming the general insurance line gets back on track, normalized earnings should easily exceed $1.00 per share.
    Aug 9 01:12 PM | Likes Like |Link to Comment
  • The 30 bp decline in Bank of America's (BAC) net interest margin represents $1.27B in lost quarterly earnings power, says Josh Steiner, a "hit (that) is recurring, not one time." This deterioration in bank's underlying business may help explain the sharp decline in the stock (-4% today,  -4.8% yesterday) despite a headline beat on earnings thanks to a large reserve release.  [View news story]
    As implied, NIM could continue to shrink, particularly if rates stay flat or decline further and economic growth continues to slow or actually declines. If economic growth never recovers, then we have much larger problems to concern ourselves with, like what will we do for food. I assume that at some point over the next few years economic growth will begin to recover and thus interest rates will begin to rise. Given this, the NIM will begin to improve. The question is one of timing and it should be obvious from my remarks that I do not believe in market timing or in forecasts for the economy. Years of experience has taught me that even well educated economists cannot predict more than a few months out with any degree of accuracy.
    Jul 20 12:29 PM | Likes Like |Link to Comment
  • The 30 bp decline in Bank of America's (BAC) net interest margin represents $1.27B in lost quarterly earnings power, says Josh Steiner, a "hit (that) is recurring, not one time." This deterioration in bank's underlying business may help explain the sharp decline in the stock (-4% today,  -4.8% yesterday) despite a headline beat on earnings thanks to a large reserve release.  [View news story]
    This is a short term view of earnings. Yes, they lose this as higher earning assets run off, but rates won't continue down forever. When rates begin to rise, hihger earning assets will be added which will help to raise the NIM. Also, BAC is shrinking their debt, which also reduces assets and earning power.
    Jul 19 01:55 PM | 1 Like Like |Link to Comment
COMMENTS STATS
16 Comments
8 Likes