But that's like saying if Merrill Lynch, or Citigroup, or Bear Sterns don't get crushed by their leverage, they'll be ok. It's a foregone conclusion that MBIA (and the other monolines) are going to be crushed (one day).

DH, you're partially correct...

The market has already priced in that conclusion and these companies are all not folding up their tents and going home. They are receiving infusions of cash (and being diluted) but will survive and go to higher prices.

Sheldon,

Don't you think it's A) A little too soon to raise the victory flag on this idea; and B) A little deceptive to argue that you're gutsy call on financials has
panned out as you predicted.

In fact, you even acknowledge that its ridiculous to judge this idea over the short term in your own post:
"I do not see any quick fixes or turnarounds, just a slow plodding attempt to return to some sort of equilibrium"

Consequently, I must ask: Why, then, judge this idea after just a few weeks?

I mean, I think your financial call that was made one year ago is a better barometer of stock picking prowess. As Ben Graham said, "In the short term the stock market is a voting machine, in the long term it's a weighing machine.

Here's that call:http://www.bloggingstocks.com/2007/08/10/buy-on-fear-today-bear-stearns-countrywide-indymac-popular/

Two of these companies no longer exist (BPOP & IndyMac), one was bought for a huge discount to it price at that time (CFC) and here are the other two:http://finance.yahoo.com/q/bc?t=1y&s=WM&l=on&z=m&q=l&c=bpop


I'm not out to attack you, but similar to your post on RAIL, I feel like you don't actually understand the workings of many of these companies. And it scares me to think that you are deceptively convincing naive individual investors that your timing skills are impeccable.

For another example, you argued that Washington Mutual was a "safe haven and a defensive stock" at $39/ share (http://www.bloggingstocks.com/2007/04/11/chasing-value-washington-mutual-wamu-wm/), now the stock is trading for less than $5 per share.

So, let's figure something out: Is your latest ploy (the financial basket) a hedge against ignorance (aka a fear of betting on an individual name given your 0/5 track record in recent months) or do you actually understand what some (any?) of these companies do? Either way, let's get serious... 10 trading days is not a good "checkpoint" to see how an INVESTMENT idea is panning out.

KK,

1) It is early to say this was a good call, but not to early to report news of a large gain. For some reason you have chosen this post to rant about, but on this date that you write the stock is actually up 74% which you did not mention. As I reply today it is up 126%.

2) While I agree the long term is where the truth be told, not everyone thinks that way and I am sure the traders among us are licking their lips and may have already made bundle.

3) For some reason you chose to highlight just the financial stocks and my bad calls which I myself have done every time I misguided -- every time.

http://www.bloggingstocks.com/2007/11/27/serous-money-my-poison-financials-wm-bsc-imb-and-bpop/

Serious Money: My poison financials: WM, BSC, IMB, & BPOP

You have left out the stocks that have appreciated as if there were none. ISRG 500% ACH 400% PTR 300% and numerous stocks that have risen over 100%.

4) Lastly you state "I'm not out to attack you, but..." I would say that you are a hypocrite and that is exactly what you have done.

Anyone not examining the potential of the financial sector, which is the worst performing sector in the market has already missed some significant market beating gains. It most certainly is worth a look and I stand by the story and the investing concept.

Peace to all