BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[The beggars of Wall Street]]>http://www.bloggingstocks.com/2008/10/06/the-beggars-of-wall-street/http://www.bloggingstocks.com/2008/10/06/the-beggars-of-wall-street/http://www.bloggingstocks.com/2008/10/06/the-beggars-of-wall-street/#commentsFiled under: , , , , , , , , , , ,

Everything is upside down these days. The folks with all the money and multi-million dollar bonuses are begging for a handout on the pretext that the economy will crash if they do not get one. We're not talking money for coffee or a snack, we're talking billions of dollars.

It is crashing anyway, or at least sinking. It is just a matter of what it takes down along the way. Apparently, the folks at the Treasury and Federal Reserve are now convinced that it will be everything.

The survivors are pawing at the defeated as Wells Fargo tries to grab Wachovia despite its previous tentative agreement with Citigroup Inc. (NYSE: C). While Citigroup gained a point in Wachovia deal over the weekend, the balance has since tilted in favor of Wells Fargo again.

Bank of America (NYSE: BAC) gobbled up Countrywide (done) and Merrill Lynch (NYSE: MER) (a work in progress), while JPMorgan Chase (NYSE: JPM) corralled Bear Stearns and Washington Mutual (NYSE: WM).

Sadly, only the federal government was big enough to swallow the problems of American International Group (NYSE: AIG), Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). Otherwise,those in the know think world financial markets would have crumbled due to the collateral damage, (pun intended).

When I posted Congress is screwing up -- think backstop not bailout!, I was concerned with the psychological effect as much as the financial effect of not approving the funding, but no doubt the people suffering the most are not those who created the pain.

Continue reading The beggars of Wall Street

The beggars of Wall Street originally appeared on BloggingStocks on Mon, 06 Oct 2008 10:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGBACBear StearnsBearStearnsBSCCCFCCitgroupcitigroupeconomic policyEconomicPolicyfeaturedFNMSheldon LiberSheldonLiberThe poorThePoorWachoviaWall StreetWallStreetWaMuwashington mutualWashingtonMutualWBWells FargoWellsFargoWFCWMMon, 06 Oct 2008 10:58:00 EST<![CDATA[$700 billion reprise: Conservative bankers? Surely you jest!]]>http://www.bloggingstocks.com/2008/09/22/700-billion-reprise-conservative-bankers-surely-you-jest/http://www.bloggingstocks.com/2008/09/22/700-billion-reprise-conservative-bankers-surely-you-jest/http://www.bloggingstocks.com/2008/09/22/700-billion-reprise-conservative-bankers-surely-you-jest/#commentsFiled under: , , , , , ,

Some of you will remember this story from last November when the door to our current world-wide financial industry meltdown was just beginning to crack open. At that time, we were facing tens of billions of dollars in losses and write-downs, but now we have witnessed hundreds of billions of dollars of the same and the government is telling us that it will take another $700 billion to shore up the industry.

Naturally, most of the people that got us into this mess are receiving golden parachutes as they abandon or are ejected from their burning empires. President Bush has been in over his head for years and turned a blind eye, (I think blind in both eyes) see: The George W. Bush economic plan? The shame does not end with Bush, though he has shown no leadership on the subject.

Sen. Christopher Dodd, chairman of the Senate Committee on Banking, Housing, and Urban Affairs, said of the recent Fannie Mae and Freddie Mac bailout, "Americans deserve to know if this proposal will help keep mortgages affordable, stabilize the markets and protect taxpayer interests."

Where were Bush and Dodd when the foundation for this crises was being developed See: SEC opens the gates and the world drowns.

The entire political system is jam-packed with conflicts of interest. Here are Senators Dodd's contributors by firm and industry as reported by OpenSecrets.org:
  • Top 5 Contributors, 2003-2008: Citigroup Inc. $310,294, SAC Capital Partners $282,000, United Technologies $263,400, American International Group 224,678, Bear Stearns $205,600.
  • Top 5 Industries, 2003-2008: Securities & Investment $,245,796; Lawyer/Law Firms 1,976, 063; Insurance $1,416,972; Real Estate $1,262,791; Commercial Banks $850, 544.

Continue reading $700 billion reprise: Conservative bankers? Surely you jest!

$700 billion reprise: Conservative bankers? Surely you jest! originally appeared on BloggingStocks on Mon, 22 Sep 2008 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AIGbailoutBankersBear StearnsBearStearnsBSCCCitigroupfeaturedLTCMMERMr. DrysdaleMr.DrysdalePresident BushPresidentBushSenator Christopher DoddSenatorChristopherDoddsheldon liberSheldonLiberMon, 22 Sep 2008 11:00:00 EST<![CDATA[Lehman Bros. and Bear Stearns are toast -- and on toast on eBay]]>http://www.bloggingstocks.com/2008/09/21/lehman-bros-and-bear-stearns-are-toast-and-on-toast-on-ebay/http://www.bloggingstocks.com/2008/09/21/lehman-bros-and-bear-stearns-are-toast-and-on-toast-on-ebay/http://www.bloggingstocks.com/2008/09/21/lehman-bros-and-bear-stearns-are-toast-and-on-toast-on-ebay/#commentsFiled under: ,

I've put together a good-sized Enron memorabilia collection, inspired by the affordability. I was able to buy an Enron lunch bag on eBay for less than the cost of a similar nonbranded product at Wal-Mart.

The collapses of Lehman Bros. and Bear Stearns aren't anywhere near as interesting but the headlines have attracted a swarm of eBay listings. According to The New York Times, "When a big Wall Street firm goes belly up, one bet you can take to the bank is that memorabilia will be offered for auction on eBay within hours. "

If you're looking to support a charity instead of an opportunist -- or burned employee who, having lost his 401(k) grabbed a stack of mugs on his way out the door -- one seller sold a piece of toast with the initials "BS" and "LB" branded on each side. Proceeds benefit the Children's Diabetes Foundation in Denver. The price? A mere $15.50. A piece of toast that offers the ticker symbols of companies about to collapse would likely be worth far more.

As an investment, I don't think Lehman and Bear memorabilia are compelling: collectibles from the Enron and Worldcom blowups do not appear to have appreciated in value.

Lehman Bros. and Bear Stearns are toast -- and on toast on eBay originally appeared on BloggingStocks on Sun, 21 Sep 2008 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bear StearnsBSCChildrens Diabetes FoundationeBayEnronLEHLehmanmemorabiliaWorldcomSun, 21 Sep 2008 11:40:00 EST<![CDATA[SEC opens the gates and the world drowns ]]>http://www.bloggingstocks.com/2008/09/18/sec-opens-the-gates-and-the-world-drowns/http://www.bloggingstocks.com/2008/09/18/sec-opens-the-gates-and-the-world-drowns/http://www.bloggingstocks.com/2008/09/18/sec-opens-the-gates-and-the-world-drowns/#commentsFiled under: , , , , , , , , , , ,

In one of my recent rants I blamed the Bush administration for some of what ails us (The George W. Bush economic plan?) and now an Ex-SEC Official Blames Agency for Blow-up of Broker-Dealers, as reported by Julie Satow, staff reporter of the New York Sun, September 18, 2008.

In my post I simply tried to make the point that government policy and leadership does affect how laws are written, rules are enforced, and the sentiments of leadership affects things even when those leaders are not holding the smoking gun. I am not giving the legislature a free pass on this either, but policy is set by the President.

During the current administration, policies that were put in place in 1975 to prevent the kinds of transgressions we are witnessing now by financial institutions were shredded by the current SEC management.

Allegations are being made by a former SEC official, Lee Pickard, who says a rule change in 2004 are what led to the failure of Lehman Brothers (NYSE: LEH, not trading) , Bear Stearns (NYSE: BSC, not trading), and Merrill Lynch (NYSE: MER).

Now we learn that rules put in place regarding capital reserves, leverage limits, and basic accounting principals were removed, eased, and modified as reported: "allowing the broker dealers to increase their debt-to-net-capital ratios, sometimes, as in the case of Merrill Lynch, to as high as 40-to-1. It also removed the method for applying haircuts, relying instead on another math-based model for calculating risk that led to a much smaller discount."

As an example, up until 2004 the net capital rule required that broker dealers limit their debt-to-net capital ratio to 12-to-1. To make matters worse the SEC is not admitting the ERROR of THEIR WAYS, but are making excuses for the failings and considering even further liberalization of the rules governing lenders and investment houses.

It is an ironic twist and one that has many conservatives in an uproar that the current administration has been so liberal with fiscal policy and fiscal restraint that Federal spending has grown out of control and the controllers have turned a blind eye to their responsibility.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I owned BSC and now own shares in its acquirer JPM.

SEC opens the gates and the world drowns originally appeared on BloggingStocks on Thu, 18 Sep 2008 13:51:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BSCfeaturedLee PickardLeePickardLEHMERpresident bushPresidentBushSECsecurity and exchange commissionSecurityAndExchangeCommissionSheldon LiberSheldonLiberThu, 18 Sep 2008 13:51:00 EST<![CDATA[S&P rated deal 'structured by cows' according to SEC report]]>http://www.bloggingstocks.com/2008/08/02/sandp-rated-deal-structured-by-cows-according-to-sec-report/http://www.bloggingstocks.com/2008/08/02/sandp-rated-deal-structured-by-cows-according-to-sec-report/http://www.bloggingstocks.com/2008/08/02/sandp-rated-deal-structured-by-cows-according-to-sec-report/#commentsFiled under: , ,

The Wall Street Journal (subscription required) has obtained a draft version of the SEC's report on bond-rating firms and their role in the credit bubble, and some of the stuff is pretty scary.

In one e-mail, a staffer at Standard & Poor's, which is own by McGraw-Hill (NYSE: MHP) told another that "we rate every deal," and that "it could be structured by cows and we would rate it."

Another wrote that "rating agencies continue to create" an "even bigger monster -- the CDO market. Let's hope we are all wealthy and retired by the time this house of cards falters. ;O)"

Yes -- complete with the smiley face. If this seems reminiscent of disgraced analyst Henry Blodget's e-mails bashing stocks he was publicly pumping during the dot-com bubble, that's because it's exactly the same. The lesson here, once again, is this: e-mails ever really get deleted permanently and, if you're being shady or doing something unethical, make a phone call, talk with the person in a dark alley, or send them a letter that they can promptly discard. Don't send an e-mail!

Of course, S&P's investment-grade ratings on CDOs stuffed with dodgy loans turned out to be wildly optimistic, and the house of cards has done more than falter -- it's brought down Bear Stearns and wreaked havoc on the economy.

S&P rated deal 'structured by cows' according to SEC report originally appeared on BloggingStocks on Sat, 02 Aug 2008 14:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bear Stearnsbond ratingBSCCDOse-mailHenry BlodgetinthenewsMcGraw-HillMHPratings agenciesSECSPSat, 02 Aug 2008 14:40:00 EST<![CDATA[What's with Steve & Barry's and why should we care?]]>http://www.bloggingstocks.com/2008/07/21/whats-with-steve-and-barrys-and-why-should-we-care/http://www.bloggingstocks.com/2008/07/21/whats-with-steve-and-barrys-and-why-should-we-care/http://www.bloggingstocks.com/2008/07/21/whats-with-steve-and-barrys-and-why-should-we-care/#commentsFiled under: , , , , , , ,

As a sign of how disconnected one can be, I had to ask my 12-year old about Steve & Barry's. I had not heard of it and it is receiving way too many comments on our site to be ignored. My colleague Zac Bissonnette started blogging about it a month ago Steve & Barry's on the brink of bankruptcy? and the comments are still coming in strong as the story progressed.

Steve & Barry's filed for Chapter 11 bankruptcy on July 9, 2008, and information about its status and answers to frequently asked questions can be found here.

The company has been expanding rapidly and clearly hit a brick wall with consumer budgets severely strained and the economy facing uncertainty in the short term. However, this is supposed to be a discount chain. Perhaps the discounting amounted to selling dollars for ninety cents, and it could not make it up on volume.

This is a relatively small company, but clearly it matters to a lot of people. The number of comments we have received has surpassed most of our recent stories, even those of the Bear Stearns takeover (acquired by JPMorgan Chase (NYSE: JPM)) and the IndyMac (NYSE: IDMC) collapse.

Steve & Barry's might have had an IPO sometime in its future, but that is not likely in the current environment. What is it that makes this story so compelling to our readers? If it is because the stores are so great, what went wrong in your neighborhood?

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of any of JPM.

What's with Steve & Barry's and why should we care? originally appeared on BloggingStocks on Mon, 21 Jul 2008 15:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BSCChapter 11Chapter11consumerconsumer spendingConsumerSpendingIMBJPMSheldon LiberSheldonLiberSteve and Barryssteve barrysSteveAndBarrysMon, 21 Jul 2008 15:02:00 EST<![CDATA[SEC looks to crack down on rumors]]>http://www.bloggingstocks.com/2008/07/14/sec-looks-to-crack-down-on-rumors/http://www.bloggingstocks.com/2008/07/14/sec-looks-to-crack-down-on-rumors/http://www.bloggingstocks.com/2008/07/14/sec-looks-to-crack-down-on-rumors/#commentsFiled under: , ,

In a press release issued on Sunday -- presumably meant to be a warning to traders before the opening bell on Monday -- the SEC announced that "the SEC and other securities regulators will immediately conduct examinations aimed at the prevention of the intentional spread of false information intended to manipulate securities prices."

Cash-bleeding train wrecks like Bear Stearns and Lehman Brothers (NYSE: LEH) have complained that rumor-mongering has damaged investors by causing a precipitous slide in their stock prices. Bear Stearns executives have essentially blamed short-sellers for the company collapse which is, interestingly, the same argument made by Enron's former head honchos. Just saying.

I don't doubt that there's a fair amount of hanky panky on the part of short-sellers looking to profit from declines in share price, but I think that massive writedowns and a lack of transparency at these companies have been larger factors. As DealBreaker recently noted, "if a company can be brought down by the corporate equivalent of 7th grade girls passing notes in class, perhaps it doesn't deserve to exist anyway."

The Wall Street Journal notes (subscription required) that "The need for such a move by the SEC took on new urgency after a brutal week in the U.S. stock market, where major financial firms such as Lehman Brothers Holdings Inc., Fannie Mae and Freddie Mac were battered as rumors about everything from government bailouts to possible mergers flew across Wall Street."

This just in: Fed to rescue Fannie Mae, Freddie Mac. Apparently those mean short-selling trash-talkers were onto something.

SEC looks to crack down on rumors originally appeared on BloggingStocks on Mon, 14 Jul 2008 10:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bscfannie maeFannieMaeFNMFREfreddie macFreddieMacinthenewslehRumorsSECshort sellersshort sellingShortSellersShortSellingMon, 14 Jul 2008 10:10:00 EST<![CDATA[Lehman issuing stock to employees smells of desperation]]>http://www.bloggingstocks.com/2008/07/02/lehman-issuing-stock-to-employess-smells-of-desperation/http://www.bloggingstocks.com/2008/07/02/lehman-issuing-stock-to-employess-smells-of-desperation/http://www.bloggingstocks.com/2008/07/02/lehman-issuing-stock-to-employess-smells-of-desperation/#commentsFiled under: , , ,

Lehman Brothers Holdings Inc. (NYSE: LEH) is trying real hard to convince its Gucci-clad workforce not to abandon ship.

According to CNBC, employees will receive 20% of last year's bonus in stock that vests over three years. "Lehman's decision to issue additional stock to employees is being interpreted by some in the market as a sign that the Lehman is not planning to sell itself for a below-market price," writes CNBC ON-Air Editor Charlie Gasparino.

Hmm. Didn't the same conventional wisdom believe that Bear Stearns was too big to fail and that the end of the write-downs at Wall Street banks was near? So, pardon me if I am a little skeptical.

As Fortune magazine notes, Lehman, like other Wall Street banks, got itself into trouble by making scores of bad real estate investments.

"Because it prided itself on real estate expertise - it helped popularize real estate-backed securities in the early 1970s - and investment prowess, Lehman risked far bigger proportions of its own capital doing deals than its major competitors did," the magazine notes. Little wonder that the stock is down more than 65% this year.

Sorting out through this mess will take years. Any Lehman employees who were smart enough to get hired probably know a bad deal when they see it. This well-timed leak to CNBC is part of Lehman's efforts to avoid becoming the next Bear Stearns.

For now, the ploy is working. Shares of the New York-based investment bank are trading up on the news -- Lehman shares closed up 6.68%. Over the long run, though, investors and Lehman employees will see through the smokescreen.

Lehman issuing stock to employees smells of desperation originally appeared on BloggingStocks on Wed, 02 Jul 2008 17:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BSCemployee stockEmployeeStockexecutive compensationexecutive payExecutiveCompensationExecutivePayinthenewslEHWed, 02 Jul 2008 17:10:00 EST<![CDATA[Seeing through the Bear Stearns conspiracy theories]]>http://www.bloggingstocks.com/2008/07/01/seeing-through-the-bear-stearns-conspiracy-theories/http://www.bloggingstocks.com/2008/07/01/seeing-through-the-bear-stearns-conspiracy-theories/http://www.bloggingstocks.com/2008/07/01/seeing-through-the-bear-stearns-conspiracy-theories/#commentsFiled under:

I try not to do posts solely for the purpose of linking to someone else's great work but this item fro DealBreaker is probably the funniest thing I've read since Bear Stearns' insistence that its liquidity was fine: an article in the latest issue of Vanity Fair cites unnamed sources stating that a few well-known hedge funds plotted the company's demise -- and then laughed about it over a celebratory breakfast.

Bess Levin rips into the conspiracy theories with the post Who Killed Bear Stearns And Then Laughed About It At Denny's? We're Gonna Go With NO ONE:
Let's just say they did spread the rumors, which I don't believe they did (and, as an aside: if a company can be brought down by the corporate equivalent of 7th grade girls passing notes in class, perhaps it doesn't deserve to existence anyway). There is no way in hell this meal took place. Ken Griffin and Steve Cohen are not stupid enough to go chest bump over egg McMuffins with the rotting corpse of Bear Stearns at their table (that kind of genius is -- or was -- reserved for the upper echelons of BSC management).

Exactly.

Seeing through the Bear Stearns conspiracy theories originally appeared on BloggingStocks on Tue, 01 Jul 2008 16:54:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bear StearnsBearStearnsBSCDealBreakerTue, 01 Jul 2008 16:54:00 EST<![CDATA[Serious Money: Five stable stocks for troubled times]]>http://www.bloggingstocks.com/2008/07/01/serious-money-5-stable-stocks-for-troubled-times/http://www.bloggingstocks.com/2008/07/01/serious-money-5-stable-stocks-for-troubled-times/http://www.bloggingstocks.com/2008/07/01/serious-money-5-stable-stocks-for-troubled-times/#commentsFiled under: , , , , , , , , , , , , , , ,

Six months of 2008 are now behind us and the stock market has not been a friendly place to most investors. Stability that was once found in household names that were industry giants is gone, and they have now been brought to their knees.

Many of them were the stocks we might have looked to in the past for stability, so you can be sure I put forward my five candidates with a little trepidation, but forward I go anyway. First a little review is in order.

Citigroup Inc. (NYSE: C) dropped from around $53 per share last year to around $30 in January and we can buy it today for around $17. Even at that price Goldman Sachs (NYSE: GS) has downgraded it to a sell and thinks there is more bad news to come. Citigroup was the largest bank in the world. Not any more.

General Motors (NYSE: GM) was the largest car maker in the world. That was before the stock tumbled from $43 to its current $11 range. A crushing blow to long time investors hoping that someone in the company could stop the ship from sinking.

Continue reading Serious Money: Five stable stocks for troubled times

Serious Money: Five stable stocks for troubled times originally appeared on BloggingStocks on Tue, 01 Jul 2008 15:02:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bear StearnsBearStearnsBerkshire HathawayBerkshireHathawayBRK.ABRK.BBSCCCBChubb CorpChubbCorpCitigroupcitigroup inc.CitigroupInc.DISDisneyfeaturedGeneral MotorsGeneralMotorsGMGoldman Sachs GroupGoldmanSachsGroupGSHNPHuaneng Power Intl ADSHuanengPowerIntlAdsIntuitive Surgical Inc ISRGIntuitiveSurgicalIncIsrgISRGLEHLehman BrosLehmanBrosMERMerrill LynchMerrillLynchMicrosoftMorgan StanleyMorganStanleyMSMSFTSheldon LiberSheldonLiberTEVATeva Pharm Indus ADRTevaPharmIndusAdrWalt DisneyWaltDisneyxcel energyXcelEnergyXELYHOOTue, 01 Jul 2008 15:02:00 EST<![CDATA[A Bear Stearns graphic novel]]>http://www.bloggingstocks.com/2008/06/16/a-bear-stearns-graphic-novel/http://www.bloggingstocks.com/2008/06/16/a-bear-stearns-graphic-novel/http://www.bloggingstocks.com/2008/06/16/a-bear-stearns-graphic-novel/#commentsFiled under: ,

Graphic novels are generally targeted toward a market the could best be described as anime freaks: junior high and high school kids who shop at Hot Topic, listen to bad music, and read graphic novels.

For reasons that aren't immediately clear, Portfolio decided to make the collapse of Bear Stearns Co. Inc. (NYSE: BSC) into a graphic novel, focusing on the days leading up to the fire-sale to the Fed-back JPMorgan Chase & Co. (NYSE: JPM). It's a neat idea but, by focusing exclusively on the company's last days, the comic portrays Bear's collapse as a run on the bank caused by malicious and unfounded rumors. The reality is that Bear made huge, risky bets on bad securities, and collapsed because of mismanagement. A "run on the bank" may have had something to do with it, but that's always the case: companies don't go under until people stop giving them money.

But in a financial press with a lot of very similar content, we should at least give Portfolio props for doing something a little different.

A Bear Stearns graphic novel originally appeared on BloggingStocks on Mon, 16 Jun 2008 18:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bear StearnsBearStearnsBSCGraphic NovelsGraphicNovelsPortfolioMon, 16 Jun 2008 18:26:00 EST<![CDATA[Newspaper wrap-up: New iPhone materials are cheaper, firm says]]>http://www.bloggingstocks.com/2008/06/16/newspaper-wrap-up-new-iphone-materials-are-cheaper-firm-says/http://www.bloggingstocks.com/2008/06/16/newspaper-wrap-up-new-iphone-materials-are-cheaper-firm-says/http://www.bloggingstocks.com/2008/06/16/newspaper-wrap-up-new-iphone-materials-are-cheaper-firm-says/#commentsFiled under: , , , , ,

MAJOR PAPERS:
  • The Wall Street Journal reported that executives from Ford Motor Company (NYSE: F) informed plant managers and union representatives that they intend to reduce overtime and that additional buyouts of union workers were necessary to cut costs.
  • The Wall Street Journal also reported that federal prosecutors are preparing to file criminal charges against Ralph Cioffi and Matthew Tannin, two hedge fund managers at Bear Stearns, now part of JP Morgan Chase & Co (NYSE: JPM), with securities fraud.
  • Investors who helped U.S. financial companies raise capital are currently losing nearly $10B on paper, according to an analysis by the Financial Times.
OTHER PAPERS:
  • Fortune reported that the materials used to build Apple Inc's (NASDAQ: AAPL) new 3G iPhone could cost as little as $100, while the components of the old iPhone cost $170, according to analysis by Portelligent, an Austin, Texas-based teardown specialist.
  • Steve Jobs appeared to be extremely thin during the unveiling of Apple's new iPhone last Monday, causing speculation by observers. Fortune speculated that Jobs' weight loss over the years is being caused by a complex operation he underwent in 2004, in order to treat a rare type of pancreatic cancer.

Newspaper wrap-up: New iPhone materials are cheaper, firm says originally appeared on BloggingStocks on Mon, 16 Jun 2008 08:13:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>3G iphone3gIphoneAAPLAppleBear StearnsBearStearnsBSCFFordFord MotorFordMotoriPhoneJP MorganJPMJpMorganMatthew TanninMatthewTanninRalph CioffiRalphCioffiSteve JobsSteveJobsMon, 16 Jun 2008 08:13:00 EST<![CDATA[Answers I Really Wanna Know...]]>http://www.bloggingstocks.com/2008/06/09/answers-i-really-wanna-know/http://www.bloggingstocks.com/2008/06/09/answers-i-really-wanna-know/http://www.bloggingstocks.com/2008/06/09/answers-i-really-wanna-know/#commentsFiled under: , ,

Minyanville's top dog, Todd Harrison, dares to ask in public what Wall Street types quietly consider in private. For more insight and ideas, visit www.Minyanville.com.

  • If Lehman (LEH) isn't the second coming of Bear Stearns, won't "sell the rumor, buy the news" come into play?

  • Why can't I shake the sense that a serious downside dislocation is lurking in the wings this summer?

  • Given the massive two-sided directional potential, have you defined your risk (both ways) in kind?

  • After all, doesn't setting stops remove emotion?

  • Another day, another dime (10%) for WaMu (WM) the killer whale?

  • What does it say that the New York Stock Exchange internals are still flat to the share?

  • The kid' from Oakland - what did you expect?

  • How could it possibly take me this long to see Charlie Wilson's War?

    R.P.

Answers I Really Wanna Know... originally appeared on BloggingStocks on Mon, 09 Jun 2008 16:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bear stearnsBearStearnsbreadthbscfinancialslehlehman brothersLehmanBrothersnysespxwamuwmMon, 09 Jun 2008 16:01:00 EST<![CDATA[Companies that vanished: Bear Stearns -- a lesson learned?]]>http://www.bloggingstocks.com/2008/06/06/companies-that-vanished-bear-stearns-a-lesson-learned/http://www.bloggingstocks.com/2008/06/06/companies-that-vanished-bear-stearns-a-lesson-learned/http://www.bloggingstocks.com/2008/06/06/companies-that-vanished-bear-stearns-a-lesson-learned/#commentsFiled under: , , , ,

This post is part of a series on some of the most memorable companies that have disappeared.

Going, going, gone!

No more Bear Stearns. What a shame. It did not have to be, but alas -- bad management, greed, and too much negativity on Wall Street made it unsustainable when sustainability is the word of the day. It is, or should I say was, one of the foremost investment banks on Wall Street for many decades.

JPMorgan Chase (NYSE: JPM) completed it acquisition of Bear Stearns (NYSE: BSC) on May 30, 2008. As a result, Fitch Ratings has upgraded the ratings of BSC and removed them from Rating Watch Positive, where they were originally placed on March 17. As the direct and sole owner of BSC, JPM has assumed the capital structure of BSC.

Bear Stearns had been one of the top investment banking, clearing, and brokerage firms in the United States, serving major corporations, institutions, governments, and high net worth individuals. Through several subsidiaries, it provided asset management, lending, and merger and acquisition advisory services. It's been a leading market-maker for NYSE-listed securities (through Bear Wagner Specialists), as well as for OTC shares, corporate and government bonds, and derivative products.

It was these derivative loan instruments that did them in. Bear Stearns, a company that for decades was relied upon to help its customers assess risk, fell short when it came to managing its own. Management was not watching very closely, and if they were, they did not understand what they were seeing. (See Serious Money: The page on Buffett Part V: Company Management.)

Continue reading Companies that vanished: Bear Stearns -- a lesson learned?

Companies that vanished: Bear Stearns -- a lesson learned? originally appeared on BloggingStocks on Fri, 06 Jun 2008 12:37:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bear StearnsBSCderivativesFitchInvestment BanksJP MorganJPMrisk managementSheldon LiberFri, 06 Jun 2008 12:37:00 EST<![CDATA[Cramer on BloggingStocks: Why own Lehman? ]]>http://www.bloggingstocks.com/2008/06/05/cramer-on-bloggingstocks-why-own-lehman/http://www.bloggingstocks.com/2008/06/05/cramer-on-bloggingstocks-why-own-lehman/http://www.bloggingstocks.com/2008/06/05/cramer-on-bloggingstocks-why-own-lehman/#commentsFiled under: , , , , , , ,

TheStreet.com's Jim Cramer says lots of names out there have genuine earnings power.

At an investment symposium I attended last night, someone asked me whether I thought Lehman Brothers (NYSE: LEH) (Cramer's Take) was going under. I said, no, no I didn't think so. It's got a great franchise with a good cash position, reduced leverage, much better management than Bear and a buyback that's kicking in that wouldn't if things were as bad as the bears make it out to be.

So, the individual asked, would I buy the stock? I said, "Why the heck would I do that? To catch a 2- or 3-point rally? There is no earnings power at Lehman."

I explained that some stocks are neither longs nor shorts -- that, to me, is Lehman. There's no reason to short it, because I don't think it is going under but many are betting that way, and there is no reason to go long it, because the place is set up for a period of big fees from fixed-income products, from structured products, but clients have at last figured out that they will lose their jobs if they keep buying this nonsense.

Continue reading Cramer on BloggingStocks: Why own Lehman?

Cramer on BloggingStocks: Why own Lehman? originally appeared on BloggingStocks on Thu, 05 Jun 2008 09:09:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacbank of americaBankOfAmericabear stearnsBearStearnsbscfeaturedjim cramerJimCramerlehlehman brothersLehmanBrotherswachoviawbThu, 05 Jun 2008 09:09:00 EST<![CDATA[Bear Stearns -- Poof... and it was gone]]>http://www.bloggingstocks.com/2008/05/30/bear-stearns-poof-and-it-was-gone/http://www.bloggingstocks.com/2008/05/30/bear-stearns-poof-and-it-was-gone/http://www.bloggingstocks.com/2008/05/30/bear-stearns-poof-and-it-was-gone/#commentsFiled under: , , , ,

It took about ten minutes in a special meeting of the shareholders to approve the sale, acquisition or bail-out of Bear Stearns (NYSE: BSC) to JPMorgan Chase (NYSE: JPM). You can call it what you will, but the illustrious company is coming to a dismal end.

There was not much to say at Thursdays short meeting, but in brief remarks to attendees, James Cayne, who was Bear's chief executive when its problems took hold last summer, said "I have no anger, only regret," The New York Times reported. "14,000 families were affected. I personally apologize. I feel an enormous amount of pain and management feels an enormous amount of pain."

Pain and billions of dollars, to say the least. When the Federal Reserve, led by Ben Bernanke, arranged this shot-gun wedding, JPM was offering $2 per share for BSC and then upped the price to $10, prompting me to write JPMorgan's $10 offer for Bear still too cheap!. In any event that was the price and that's where it stands. Ten bucks for a company that was trading at $150 in the not too distant past. The last sixty bucks evaporated in one week!

It did not have to be this way, but alas -- bad management, greed and too much negativity on Wall Street made it unsustainable when sustainability is the word of the day. I have been doing a series of stories on Warren Buffett's ideas on investment and this one comes to mind: Serious Money: The page on Buffett Part V: Company Management.

So BSC will be no more and JPM will continue to prosper having far better management. Perhaps BSC should post signs to that effect in its offices, just like an unsuccessful business might after a change: UNDER NEW MANAGEMENT!

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture and planning firm. He writes Chasing Value and Serious Money columns. Disclosure: I am a shareholder in BSC.

Bear Stearns -- Poof... and it was gone originally appeared on BloggingStocks on Fri, 30 May 2008 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BSCfeaturedJPMSheldon LiberSheldonLiberFri, 30 May 2008 14:00:00 EST<![CDATA[JPMorgan Chase (JPM) rises on Bear Stearns' buyout approval]]>http://www.bloggingstocks.com/2008/05/29/jpmorgan-chase-jpm-rises-on-bear-stearns-buyout-approval/http://www.bloggingstocks.com/2008/05/29/jpmorgan-chase-jpm-rises-on-bear-stearns-buyout-approval/http://www.bloggingstocks.com/2008/05/29/jpmorgan-chase-jpm-rises-on-bear-stearns-buyout-approval/#commentsFiled under: , , , , ,

JPM logoJPMorgan Chase (NYSE: JPM) shares are trading higher on news that shareholders of Bear Stearns Cos. (NYSE: BSC) have approved JPM's $2.2 billion buyout of the investment bank. JPM will buy BSC for about $10 a share. The deal is expected to become official tomorrow. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JPM.

After hitting a one-year high of $52.31 last May, the stock hit a one-year low of $36.01 in March. JPM opened this morning at $42.69. So far today the stock has hit a low of $42.29 and a high of $44.06. As of 12:15, JPM is trading at $43.79, up 0.93 (2.2%). The chart for JPM looks bullish and deteriorating, while S&P gives the stock its highest 5 Stars (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $37.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 11.1% return in just seven weeks as long as JPM is above $37.50 at July expiration. JPMorgan would have to fall by more than 14% before we would start to lose money. Learn more about this type of trade here.

JPM hasn't been below $7.50 at all in the past year except for a short time in March and has shown support around $42 recently. This trade could be risky if the financial sector suffers some more in the coming months, but even if that happens, that position could be protected by support the stock might find just above $40, where it bottomed out twice in the past two months.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in JPM or BSC.

JPMorgan Chase (JPM) rises on Bear Stearns' buyout approval originally appeared on BloggingStocks on Thu, 29 May 2008 13:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bear stearnsBearStearnsBSCdealinthenewsInvestors ObserverInvestorsObserverJPMJPMorgan chaseJpmorganChaseoptionsThu, 29 May 2008 13:42:00 EST<![CDATA[Cramer on BloggingStocks: Bad outweighs the good in AIG ]]>http://www.bloggingstocks.com/2008/05/29/cramer-on-bloggingstocks-bad-outweighs-the-good-in-aig/http://www.bloggingstocks.com/2008/05/29/cramer-on-bloggingstocks-bad-outweighs-the-good-in-aig/http://www.bloggingstocks.com/2008/05/29/cramer-on-bloggingstocks-bad-outweighs-the-good-in-aig/#commentsFiled under: , , , , ,

TheStreet.com's Jim Cramer says some segments are doing well, but the losses in Britain show how bad it is.

If you think the disclosure is bad for these financial insurers here, it is every bit as poor over there in the U.K., where we just learned that housing prices dropped the most ever on record.

Most of the major monoline insurers, and of course AIG (NYSE: AIG) (Cramer's Take), have exposure to Britain in ways that we are all too familiar with over here. The only difference is that I believe the trajectory was considered far more certain over there than here. AIG in particular bragged about this business in December, to show their diversification away from the U.S. Kind of like how Bear (NYSE: BSC) (Cramer's Take) bragged that by putting a lot of different mortgages together from Florida and California and the rest of the country and varying their ratings you have created a wondrous, diversified instrument called a CDO.

Continue reading Cramer on BloggingStocks: Bad outweighs the good in AIG

Cramer on BloggingStocks: Bad outweighs the good in AIG originally appeared on BloggingStocks on Thu, 29 May 2008 09:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>abkaigbsccfeaturedjim cramerJimCramermbiThu, 29 May 2008 09:20:00 EST<![CDATA[Before the bell: BSC, UAUA, YHOO, AAPL, TIVO, PFE]]>http://www.bloggingstocks.com/2008/05/29/before-the-bell-bsc-uaua-yhoo-aapl-tivo-pfe/http://www.bloggingstocks.com/2008/05/29/before-the-bell-bsc-uaua-yhoo-aapl-tivo-pfe/http://www.bloggingstocks.com/2008/05/29/before-the-bell-bsc-uaua-yhoo-aapl-tivo-pfe/#commentsFiled under: , , , , , , , , , , ,

Before the bell: Futures mixed ahead of GDP; after COST, SHLD reporting

Bear Stearns (NYSE: BSC) shareholders are due to approve the buyout by JPMorgan Chase (NYSE: JPM) today, marking what many feel as an end of an era as the 85-year-old company collapsed due to the subprime mortgage crisis.

The chief executives of UAL Corp. (NASDAQ: UAUA) United Airlines and US Airways (NYSE: LCC) are set to meet today to discuss a possible deal despite concerns that threaten the deal, according to two people briefed on the discussions, the AP reported. Stocks of both airlines are up over 2% in premarket trading.

In other deal news, Yahoo (NASDAQ: YHOO) CEO Jerry Yang said that Yahoo is not a company under siege and that he is still waiting for a clearer proposal from Microsoft Corp. (NASDAQ: MSFT) about a possible partnership between the two firms. He said said that Yahoo "did not walk away from the proposal - Microsoft did. We were willing to do the deal on the right terms."

Continue reading Before the bell: BSC, UAUA, YHOO, AAPL, TIVO, PFE

Before the bell: BSC, UAUA, YHOO, AAPL, TIVO, PFE originally appeared on BloggingStocks on Thu, 29 May 2008 08:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aaplbscdellinthenewsjpmlccmsftpfetivouauayhooThu, 29 May 2008 08:30:00 EST<![CDATA[Before the bell: XOM, UPS, GS, BUD, DELL, AAPL, AEO ...]]>http://www.bloggingstocks.com/2008/05/28/before-the-bell-xom-ups-gs-bud-dell-aapl-aeo/http://www.bloggingstocks.com/2008/05/28/before-the-bell-xom-ups-gs-bud-dell-aapl-aeo/http://www.bloggingstocks.com/2008/05/28/before-the-bell-xom-ups-gs-bud-dell-aapl-aeo/#commentsFiled under: , , , , , , , , , ,

Before the bell: Futures higher as oil drops further

Exxon Mobil (NYSE: XOM) is set to face disgruntled shareholders, including members of the Rockefeller family at its annual meeting today. They want to split split Exxon's chairman and chief executive positions. Other proposals include seven about the company's environmental policies.

The Wall Street Journal reported that Bear Stearns (NYSE: BSC) plans to hand over documents to the Securities and Exchange Commission showing that several Wall Street firms, including Goldman Sachs (NYSE: GS), Citadel Investment Group and Paulson & Co., cut their exposure to Bear in the weeks leading up to its collapse.

United Parcel Service Inc (NYSE: UPS) shares rose in Europe after Merrill Lynch upgraded the company's stock from Neutral to Buy.

Continue reading Before the bell: XOM, UPS, GS, BUD, DELL, AAPL, AEO ...

Before the bell: XOM, UPS, GS, BUD, DELL, AAPL, AEO ... originally appeared on BloggingStocks on Wed, 28 May 2008 08:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aaplaeobscbuddelldltrgsinthenewsmwtivoupsxomWed, 28 May 2008 08:18:00 EST