BofA Management Is Running Out Of Gimmicks [View article]
This is less about real facts & understanding of Bank of America as it is getting people to read the rest of the crap he wrote and going to his web site.
Instead of getting worked up about his amateur opinion like he wants just don't click any of his links.
AIG (AIG +0.9%) has managed to buy almost $2B in Maiden Lane bonds - the investments grouped by the New York Fed as AIG's toxic assets. The insurer tried to buy the whole portfolio last March for $15.7B but was rejected; since then, it's had to go to auction winners like CS and GS to make the buys. (earnings) [View news story]
AIG failed because of a division called AIG Financial Products. That division is nearly completely winded down as of Aug 2011. It was the trading in credit derivatives that brought down an otherwise profitable insurance company.
The current AIG is just an insurance company and at this point these Maiden Lane securities are trading at such a deep discount that the yields are supreme and risk very minimal. Even so they've only bought a small portion of them as they said they were able to find MBS with better risk profiles elsewhere. Many of the same people that were shorting Mortgage Backed Securities in 08 are now going long on them as they believe even if a worst case scenario they represent good value. John Paulson & Goldman Sachs are amongs those besides AIG now going Long these MBS.
More details on the emergency-planning list BofA (BAC) submitted to the Fed last year: In the event of a market shock or severe downturn that necessitates capital raising, BofA would consider selling its retail-branch network in Texas and its U.S. Trust wealth-management unit, though execs might also choose to issue common stock before letting go of key chunks of the business. [View news story]
Jamie Dimon (JPM) continues to rail against over-regulation, telling Fox Business that policies coming out of Washington have led to a slower and rockier recovery: "It could have been better. I do think we have made this recovery slower and worse by uncoordinated policy, the debt ceiling crisis and tons of other things that were misguided." [View news story]
After 7 months and 3 public hearings, Philip van Doorn asks on "The Street," what's keeping the Fed from ruling on Capital One's (COF) purchase of ING's U.S. Internet ops? If the Fed blocks the deal because COF would become "too big to fail," it would then need to explain why it doesn't break up BofA, JPMorgan, Citi and a host of others. [View news story]
So if they do one stupid thing they should do something even dumber?
The real problem is the current US government has no economic know how and is throwing up road block after road block instead of letting the recovery occur.
More confirmation of the freefall in Greece's economy - its Q4 GDP shrank 7% annualized based on a seasonally unadjusted flash estimate. GDP fell 5% in Q3. "The policy cannot command democratic consent over time." [View news story]
The problem is they produce almost literally nothing. In the long run I think Greece is better off taking the hyper inflationary hit from leaving the euro zone and then watching tourists flock back because of the weak drachma. Greece really isn't this big of an issue.
To put it in proper perspective it would be a bigger deal if JP Morgan or Bank of America failed then Greece. They both have ~700 billion each in debt. As of June 30 2011, Greece has about 583 billion of external debt. Yes that's right both JP Morgan and Bank of America matter more then the whole country of Greece.
Bank of America (BAC -3%) is up 48% YTD, but Citigroup thinks the rally may be getting ahead of itself, and cuts its stock rating to Neutral from Buy. “BAC’s recent outperformance reflects the market’s increased comfort with its capital position, but at these levels we believe investor focus will shift to earnings, which have been weak,” Citi says, expecting 2012 EPS at $0.50 vs. $0.71 consensus. [View news story]
Ironically even with his assumptions of earnings of .50 cents a share for 2012. You're looking at a company with a value of easily $15.
This is a company with $20/share of book value and $5 a share of legal and bad debt reserves. New Management led by Moynihan has met every target he set thus far and is continuing to cut costs. One day soon people will stop hating banks and realize that Greece doesn't matter.
"The movement in Bank of America stock on most days has nothing to do with Bank of America," says Joe Saluzzi as BAC's single-digit price and plethora of outstanding shares make it the flavor-of-the-month for the HFT crowd. BofA replaces old favorite Citigroup, now with too few shares and too high of a price thanks to its reverse split. [View news story]
This is asinine.
It's funny how the bears don't understand Bank of America's rise at all. This was a stock depressed by the great unknown of all these legal liabilities. Slowly all the cases are being settled or dropped off the table and the liabilities are no where near what anyone thought they would be. It was insane that the stock was at $5. All it took was "no bad news" to make it return to $8 and all it will take for it to return to $13-14 is the same. It will pass the stress tests next month which will send it even higher. If it shows a fraction of it's earnings power from the past it's worth $20 and in a normalized earning environment who even knows? You're now looking at one of the biggest banks combined with the franchise of Merrill Lynch.
One day people will rue the fact that they didn't pay even $8 for Bank of America.
Amazon.com (AMZN) Q4 EPS of $0.38 beats by $0.19. Revenue of $17.43B (+35% Y/Y) misses by $780M. Expects Q1 revenue of $12B-$13.4B, largely below $13.4B consensus. Expects operating income of -$200M to $100M. Shares -8.5% AH. (PR) [View news story]
Great company. Terrible stock. Seems to me they'd have to have net profits of 4.5 to 5 billion to even get this things close to a more normal 20 P/E. How many years into the future is that?
Once upon a time the assumption was that margin would improve but it seems with more competition and a drive for revenue (which is also missing now) they are earning even less.
Why Is Zynga Held To A Double Standard By The Media? [View article]
You're missing the point. The boat is already sailing. Caesar's has a partnership with 888 another brand that former gamblers know and is well associated with the World Series of Poker. MGM has an agreement with bWinParty Gaming who was the biggest poker site in the US prior to the UIGEA. And also now International Gaming Technology bought an offshore company and they do business with all the casinos already and regulators already.
These guys are years ahead of Zynga. They've done real money and had satisfied customers in the US and currently operate world wide businesses. They've dealt with regulations and regulatory agencies.
Why is Zynga going to be able to get a significant portion of the pie?
Why Is Zynga Held To A Double Standard By The Media? [View article]
There's no reason Zynga has any jump on Online Gambling besides one of it's largest stock holders JP Morgan telling you so. I'd bet on the major casinos and their alliances with offshores entities being much better positioned to take a piece of that pie. Many of the major casinos have alliances with software and network providers that have the experience dealing with the regulations, security, and exactly what users want. Not to mention that Harry Reid is integral to Online Gambling legislation and is the Senator from Nevada whom you bet will be protecting his backyard.
"High taxes help the richest, too" asserts Cornell economics professor Robert Frank, as the increased public spending would "produce clear gains in satisfaction for the wealthy," such as better-maintained roads. And besides, what difference does it make it if you have a home that's 15,000 square feet or one that's 10,000? [View news story]
The government is not an efficient allocator of capital. There is no guarantee that more taxes will be allocated in a way that will help anything. Just look at all the new "regulation" we have. Most of it is insanely stupid and growth prohibitive instead of really making anything safer.
China Mobile Is A Win-Win For Investors [View article]
"The Chinese government through its 100% ownership of China Mobile Communication Corporation, owns over 70% of CHL. This means that CHL benefits from government regulations that are designed to protect CHL's control over the Chinese mobile phone market."
Have you done any real research? The Chinese government has been actively "evening the field" in Cell phone technology. China Mobile was forced to use a homegrown 3G technology as opposed to the US Standard while it's competitors China Unicom and Telecom were allowed to use the more tested US standard. Unicom is nipping at the heels of China Mobile in 3G subscribers. Average Revenue Per User is very low for China Mobile and they have more customers in rural areas and more non 3g subscribers.
I still think there's growth potential in cell phones in China.
Cell phones as a % of mobile phones (as of 2011) China 71% Japan 95.1% US 103.9%
Clearly the spread here will get closer to the Japan and US over time and we're still behind in China in terms of 3G acceptance so I defintiely think there's opportunity in this arena but it's tricky!!!
BofA Management Is Running Out Of Gimmicks [View article]
Instead of getting worked up about his amateur opinion like he wants just don't click any of his links.
AIG (AIG +0.9%) has managed to buy almost $2B in Maiden Lane bonds - the investments grouped by the New York Fed as AIG's toxic assets. The insurer tried to buy the whole portfolio last March for $15.7B but was rejected; since then, it's had to go to auction winners like CS and GS to make the buys. (earnings) [View news story]
The current AIG is just an insurance company and at this point these Maiden Lane securities are trading at such a deep discount that the yields are supreme and risk very minimal. Even so they've only bought a small portion of them as they said they were able to find MBS with better risk profiles elsewhere. Many of the same people that were shorting Mortgage Backed Securities in 08 are now going long on them as they believe even if a worst case scenario they represent good value. John Paulson & Goldman Sachs are amongs those besides AIG now going Long these MBS.
More details on the emergency-planning list BofA (BAC) submitted to the Fed last year: In the event of a market shock or severe downturn that necessitates capital raising, BofA would consider selling its retail-branch network in Texas and its U.S. Trust wealth-management unit, though execs might also choose to issue common stock before letting go of key chunks of the business. [View news story]
Jamie Dimon (JPM) continues to rail against over-regulation, telling Fox Business that policies coming out of Washington have led to a slower and rockier recovery: "It could have been better. I do think we have made this recovery slower and worse by uncoordinated policy, the debt ceiling crisis and tons of other things that were misguided." [View news story]
After 7 months and 3 public hearings, Philip van Doorn asks on "The Street," what's keeping the Fed from ruling on Capital One's (COF) purchase of ING's U.S. Internet ops? If the Fed blocks the deal because COF would become "too big to fail," it would then need to explain why it doesn't break up BofA, JPMorgan, Citi and a host of others. [View news story]
The real problem is the current US government has no economic know how and is throwing up road block after road block instead of letting the recovery occur.
More confirmation of the freefall in Greece's economy - its Q4 GDP shrank 7% annualized based on a seasonally unadjusted flash estimate. GDP fell 5% in Q3. "The policy cannot command democratic consent over time." [View news story]
To put it in proper perspective it would be a bigger deal if JP Morgan or Bank of America failed then Greece. They both have ~700 billion each in debt. As of June 30 2011, Greece has about 583 billion of external debt. Yes that's right both JP Morgan and Bank of America matter more then the whole country of Greece.
Bank of America (BAC -3%) is up 48% YTD, but Citigroup thinks the rally may be getting ahead of itself, and cuts its stock rating to Neutral from Buy. “BAC’s recent outperformance reflects the market’s increased comfort with its capital position, but at these levels we believe investor focus will shift to earnings, which have been weak,” Citi says, expecting 2012 EPS at $0.50 vs. $0.71 consensus. [View news story]
This is a company with $20/share of book value and $5 a share of legal and bad debt reserves. New Management led by Moynihan has met every target he set thus far and is continuing to cut costs. One day soon people will stop hating banks and realize that Greece doesn't matter.
"The movement in Bank of America stock on most days has nothing to do with Bank of America," says Joe Saluzzi as BAC's single-digit price and plethora of outstanding shares make it the flavor-of-the-month for the HFT crowd. BofA replaces old favorite Citigroup, now with too few shares and too high of a price thanks to its reverse split. [View news story]
It's funny how the bears don't understand Bank of America's rise at all. This was a stock depressed by the great unknown of all these legal liabilities. Slowly all the cases are being settled or dropped off the table and the liabilities are no where near what anyone thought they would be. It was insane that the stock was at $5. All it took was "no bad news" to make it return to $8 and all it will take for it to return to $13-14 is the same. It will pass the stress tests next month which will send it even higher. If it shows a fraction of it's earnings power from the past it's worth $20 and in a normalized earning environment who even knows? You're now looking at one of the biggest banks combined with the franchise of Merrill Lynch.
One day people will rue the fact that they didn't pay even $8 for Bank of America.
Amazon.com (AMZN) Q4 EPS of $0.38 beats by $0.19. Revenue of $17.43B (+35% Y/Y) misses by $780M. Expects Q1 revenue of $12B-$13.4B, largely below $13.4B consensus. Expects operating income of -$200M to $100M. Shares -8.5% AH. (PR) [View news story]
Once upon a time the assumption was that margin would improve but it seems with more competition and a drive for revenue (which is also missing now) they are earning even less.
Why Is Zynga Held To A Double Standard By The Media? [View article]
These guys are years ahead of Zynga. They've done real money and had satisfied customers in the US and currently operate world wide businesses. They've dealt with regulations and regulatory agencies.
Why is Zynga going to be able to get a significant portion of the pie?
Why Is Zynga Held To A Double Standard By The Media? [View article]
"High taxes help the richest, too" asserts Cornell economics professor Robert Frank, as the increased public spending would "produce clear gains in satisfaction for the wealthy," such as better-maintained roads. And besides, what difference does it make it if you have a home that's 15,000 square feet or one that's 10,000? [View news story]
China Mobile Is A Win-Win For Investors [View article]
Have you done any real research? The Chinese government has been actively "evening the field" in Cell phone technology. China Mobile was forced to use a homegrown 3G technology as opposed to the US Standard while it's competitors China Unicom and Telecom were allowed to use the more tested US standard. Unicom is nipping at the heels of China Mobile in 3G subscribers. Average Revenue Per User is very low for China Mobile and they have more customers in rural areas and more non 3g subscribers.
I still think there's growth potential in cell phones in China.
Cell phones as a % of mobile phones (as of 2011)
China 71%
Japan 95.1%
US 103.9%
Clearly the spread here will get closer to the Japan and US over time and we're still behind in China in terms of 3G acceptance so I defintiely think there's opportunity in this arena but it's tricky!!!