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[Chasing Value: EZcorp Still Besting Apple]]>http://www.bloggingstocks.com/2011/04/05/chasing-value-ezcorp-still-besting-apple/http://www.bloggingstocks.com/2011/04/05/chasing-value-ezcorp-still-besting-apple/http://www.bloggingstocks.com/2011/04/05/chasing-value-ezcorp-still-besting-apple/#commentsFiled under: , , , , ,

Last November I wrote Chasing Value: Apple's Great, but This Stock Is Better! with the audacity to state "...the potential to beat Apple's prospects by 33 to 1 -- now that is amazing!"

Yes you read that correctly. I still believe a dollar invested in EZCorp (EZPW) will earn 33 times that of a dollar invested in America's sweetheart Apple Inc (AAPL). Of course anyone can make any proclamations that they want. Few dare as I have to post the results when they are not favorable as I have over the past five years.

Today however, I will not be swallowing my pride as EZCorp, a leading pawn shop and cash advance company, has indeed out performed the tremendously successful Apple since the original story. It is worth mentioning to those that would point to Apple's ten-year run that EZPW was the better stock over the long haul as well.

Continue reading Chasing Value: EZcorp Still Besting Apple

Chasing Value: EZcorp Still Besting Apple originally appeared on BloggingStocks on Tue, 05 Apr 2011 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aaplapple incChasingValueezcorpEZPWfeaturedSheldon LiberTue, 05 Apr 2011 14:20:00 EST<![CDATA[Chasing Value: The NBA Should Learn from Others]]>http://www.bloggingstocks.com/2011/04/04/chasing-value-nba-should-learn-from-others/http://www.bloggingstocks.com/2011/04/04/chasing-value-nba-should-learn-from-others/http://www.bloggingstocks.com/2011/04/04/chasing-value-nba-should-learn-from-others/#commentsFiled under: , , , , , , ,

There have been many lessons to learn from the "Great Recession." But while the message is often clear, we can't always muster the courage, discipline or consensus to act on these lessons.

The National Basketball Association (NBA) is about to enter its second season -- the playoffs. And for a Laker fan in Los Angeles, there is much to look forward to. However, the current NBA collective bargaining agreement will end and we will have to witness another battle between the billionaires and the millionaires.

Why can't the NBA learn from other businesses that have successfully maneuvered through economic turmoil to achieve profitability?

Continue reading Chasing Value: The NBA Should Learn from Others

Chasing Value: The NBA Should Learn from Others originally appeared on BloggingStocks on Mon, 04 Apr 2011 13:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chasing ValueDavid StearnFfeaturedFordGEgeneral electricJNJjohnson and johnsonkobe bryantLebron JamesNBANBA contract negotiationsNBA Lockout 2011nba playoffsPGprocter and gambleSheldon LiberMon, 04 Apr 2011 13:20:00 EST<![CDATA[Chasing Value: Toxic Stock Update #3 -- BAC, BP, C, GE, GS, RIG]]>http://www.bloggingstocks.com/2010/12/13/chasing-value-toxic-stock-update-3-bac-bp-c-ge-gs-rig/http://www.bloggingstocks.com/2010/12/13/chasing-value-toxic-stock-update-3-bac-bp-c-ge-gs-rig/http://www.bloggingstocks.com/2010/12/13/chasing-value-toxic-stock-update-3-bac-bp-c-ge-gs-rig/#commentsFiled under: , , , , , , , , , , ,

In the middle of the summer with the stock market smoldering from the economic aftershocks of the BP (BP) oil spill, I decided to post a contrarian story emphasizing a very common refrain among value investors, "my pal Warren" being head of the class: buy on fear (sell on greed). This notion is continuing to work for what I called the toxic stock portfolio.

This is the third update to my ranting five months ago that six of the most reviled and most highly traded stocks featured by daily bad press as a group would outperform the overall market. It has, with the big winner rising from being one of the biggest losers.

Continue reading Chasing Value: Toxic Stock Update #3 -- BAC, BP, C, GE, GS, RIG

Chasing Value: Toxic Stock Update #3 -- BAC, BP, C, GE, GS, RIG originally appeared on BloggingStocks on Mon, 13 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACBank of Americaberkshire hathawaybpBP Gulf of Mexicobp oil spillbuy on fearCChasing Valueciticitigroupcontrarian investingcontrarian stocksfeaturedGEgeneral electricGoldman SachsGSRIGSheldon Liberstock pickstoxic stock portfoliotoxic stockstransoceanwarren buffettMon, 13 Dec 2010 12:00:00 EST<![CDATA[Chasing Value™: 2009 Results Crushed the S&P 500]]>http://www.bloggingstocks.com/2010/08/31/chasing-value-2009-results-crushed-the-sandp-500/http://www.bloggingstocks.com/2010/08/31/chasing-value-2009-results-crushed-the-sandp-500/http://www.bloggingstocks.com/2010/08/31/chasing-value-2009-results-crushed-the-sandp-500/#commentsFiled under: , , , , , , , , , , , , , , ,

Intuitive Surgical (ISRG) logoI have always felt that for all the blabbing we do -- or blogging, in my case -- we should try as best we can to be accountable for our good and bad calls. This report is long overdue, but I will post it anyway since all of my past year's picks and results have been made public.

The market was very harsh in the early part of 2009, filling investors fear and trepidation, and sinking to a March 9, 2009 bottom. Perhaps some of the bleeding has stopped, but the economy has not healed as bears and bulls seem to carry the day, or every other day.

Continue reading Chasing Value™: 2009 Results Crushed the S&P 500

Chasing Value™: 2009 Results Crushed the S&P 500 originally appeared on BloggingStocks on Tue, 31 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAUKYAEOamerican eagleAmericanEagleanadarko petroleumAnadarkoPetroleumanglo americanAngloAmericanannaly capital managementAnnalyCapitalManagementAPCBuffettchasing valueChasingValueDEOdiageoDJIAezcorpEZPWfeaturedGEgeneral electricGeneralElectricintuitive surgicalIntuitiveSurgicalISRGNASDAQNLYsheldon liberSheldonLibervalue investingvalue stocksValueInvestingValueStockswells fargoWellsFargoWFCTue, 31 Aug 2010 10:00:00 EST<![CDATA[Chasing Value: Shocked By Toxic Stock and Still Finding Deals]]>http://www.bloggingstocks.com/2010/07/20/chasing-value-shocked-by-toxic-stock-and-still-finding-deals/http://www.bloggingstocks.com/2010/07/20/chasing-value-shocked-by-toxic-stock-and-still-finding-deals/http://www.bloggingstocks.com/2010/07/20/chasing-value-shocked-by-toxic-stock-and-still-finding-deals/#commentsFiled under: , , , , , , , , , , ,

Yesterday I was shocked by the response to a poll I conducted in this very same column where I suggested that six out-of-favor stocks were a buy and would out perform the over all market. The results left me puzzled for several reasons.

For one thing I have been blogging for Aol. for over four years and I cannot remember an occasion that there was so much unanimity on anything before. I expected approximately equal votes for each of four possible responses to my question, and an appreciable number that might think I was off my rocker. Instead, I was jolted to a new reality when 84% of the respondents agreed that the six toxic stocks would outperform.

The six stocks are Bank of America (BAC), Citigroup (C), General Electric (GE), BP p.l.c. (BP), Goldman Sachs (GS) and Transocean (RIG). I thought I was taking a contrarian position and based on recent market activity that would seem to be the case. This raises another question. If my readers are any reflection of the market, how could the market move in the opposite direction of such overwhelming sentiment?

Continue reading Chasing Value: Shocked By Toxic Stock and Still Finding Deals

Chasing Value: Shocked By Toxic Stock and Still Finding Deals originally appeared on BloggingStocks on Tue, 20 Jul 2010 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACBank of AmericabpCChasing ValuecitigroupEbixfeaturedGEgeneral electricGoldman SachsGSibmJNJjohnson and johnsonrig of the daySheldon LibertransoceanTue, 20 Jul 2010 15:00:00 EST<![CDATA[Fearless Friday: BAC, C, and GE Report Earnings]]>http://www.bloggingstocks.com/2010/07/15/fearless-friday-bac-c-and-ge-report-earnings/http://www.bloggingstocks.com/2010/07/15/fearless-friday-bac-c-and-ge-report-earnings/http://www.bloggingstocks.com/2010/07/15/fearless-friday-bac-c-and-ge-report-earnings/#commentsFiled under: , , , , , ,

Tomorrow is filled with the potential to boost the market upward, or trip it up going into the weekend. Three financial giants are reporting: Bank of America Corporation (BAC), Citigroup, Inc. (C) and General Electric Company (GE). This could set the stage for a continued market rally next week as earnings season has been generally positive and a trend is developing.

Expectations are high, following solid quarters reported by State Street (STT) last week that surprised many, and JPMorgan Chase & Company (JPM), who followed up with a big beat this morning.

Sentiment seems to be on the bullish side as tomorrow is also options expiration time and those betting on the banks should be pleased to book some gains.

Continue reading Fearless Friday: BAC, C, and GE Report Earnings

Fearless Friday: BAC, C, and GE Report Earnings originally appeared on BloggingStocks on Thu, 15 Jul 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bacBank of AmericaCcitigroupearningsfeaturedGEgeneral electricjp morgan chaseJPMoptionsSheldon Liberstate streetSTTThu, 15 Jul 2010 18:00:00 EST<![CDATA[Serious Money: Buffett Going Global -- Part 5]]>http://www.bloggingstocks.com/2010/07/12/serious-money-buffett-going-global-part-5/http://www.bloggingstocks.com/2010/07/12/serious-money-buffett-going-global-part-5/http://www.bloggingstocks.com/2010/07/12/serious-money-buffett-going-global-part-5/#commentsFiled under: , , , , , , ,

To continue the saga of what might be on Warren Buffett's foreign wish list, consider the current holdings of Berkshire Hathaway (BRK.A/BRK.B), the largest of which is insurance. The insurance industry has been hard hit by the economy, but it also has the greatest potential to rebound of any industry. Insurance companies have huge cash flow and a large float (mandated by government regulation) that can be used for investments. This has been a major contributing factor in Buffett's success.

Unlike the construction, automobile or financial sectors that have been met with an economic tidal wave that destroyed demand, there is no lack of demand in the insurance industry. The insurance companies have been hurt by the shrinking of their investment portfolios more than loss of demand or even claims, accepting companies that wrote swaps, like American International Group (AIG).

When next "my pal Warren" invests abroad he may not have to go very far.

Continue reading Serious Money: Buffett Going Global -- Part 5

Serious Money: Buffett Going Global -- Part 5 originally appeared on BloggingStocks on Mon, 12 Jul 2010 14:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawayBRK.ABRK.Bcanadian companiesfeaturedinsuranceManulifemetlifeMFCSheldon Liberwarren buffettMon, 12 Jul 2010 14:30:00 EST<![CDATA[Chasing Value: American Eagle Will Soar Again]]>http://www.bloggingstocks.com/2010/06/30/chasing-value-american-eagle-will-soar-again/http://www.bloggingstocks.com/2010/06/30/chasing-value-american-eagle-will-soar-again/http://www.bloggingstocks.com/2010/06/30/chasing-value-american-eagle-will-soar-again/#commentsFiled under: , , , ,

Let's go around one more time with American Eagle Outfitters (AEO), the retailer with the pristine balance sheet that designs and manufactures its own clothing line targeted at the 15 to 25 year old age group.

It was one of my successful picks for 2009, rising from $9.13 to a closing price of $16.98, with a 52 week high of $19.86. Today it is trading near its 52 week low of $11.35, opening at $11.61 and trading up at mid-day.

I think this eagle will soar again and surpass it's previous high.

Continue reading Chasing Value: American Eagle Will Soar Again

Chasing Value: American Eagle Will Soar Again originally appeared on BloggingStocks on Wed, 30 Jun 2010 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AEOamerican eagle outfittersChasing Valuecontrarian investingfeaturedJNJjohnson and johnsonSheldon LiberWed, 30 Jun 2010 16:40:00 EST<![CDATA[Tesla IPO: Hot Stock or Portfolio Shock?]]>http://www.bloggingstocks.com/2010/06/29/tesla-ipo-hot-stock-or-portfolio-shock/http://www.bloggingstocks.com/2010/06/29/tesla-ipo-hot-stock-or-portfolio-shock/http://www.bloggingstocks.com/2010/06/29/tesla-ipo-hot-stock-or-portfolio-shock/#commentsFiled under: , , , , , , ,

The long awaited Initial Public Offering (IPO) of Tesla Motors (TSLA) stock hit the market at $17.00 a share and it is up in a down market, trading between $18 and $19 throughout Tuesday morning.

I say stay away. First and foremost, investors should take note of the fact that most IPO's end up as losing propositions. In the case of Tesla, which lost over $55.7 million last year and will lose more this year, the bleeding has just begun.

The car manufacturing business is very capital intensive and Tesla only hopes to stem the tide in 2012 when it projects a production run of 20,000 Model S all electric sedans for $50,000 each.

Continue reading Tesla IPO: Hot Stock or Portfolio Shock?

Tesla IPO: Hot Stock or Portfolio Shock? originally appeared on BloggingStocks on Tue, 29 Jun 2010 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BMWDept of EnergyDeutsche BankfeaturedGoldman SachsGSinitial public offeringIPOJPMJPMorgan ChaseMorgan StanleyMSFTSheldon Libertesla motorsTue, 29 Jun 2010 15:40:00 EST<![CDATA[Options -- A Foolish Bet on BP?]]>http://www.bloggingstocks.com/2010/06/28/options-a-foolish-bet-on-bp/http://www.bloggingstocks.com/2010/06/28/options-a-foolish-bet-on-bp/http://www.bloggingstocks.com/2010/06/28/options-a-foolish-bet-on-bp/#commentsFiled under: , , ,

Earlier today, I posted Whose Best Interests Are Served If BP Is Pushed into Bankruptcy? where I disclosed having taken a position in BP p.l. c. (BP), and for better or worse my first test will be the market close on July 16, 2010.

Over the past year, I have started reporting on various put options that I have been doing. In today's example, I sold to open BP at a July strike price of $22.50 (a naked put), receiving $0.50 per share.

My break even is $22.00, and the stock opened today at $27.65 with three weeks to go.

Continue reading Options -- A Foolish Bet on BP?

Options -- A Foolish Bet on BP? originally appeared on BloggingStocks on Mon, 28 Jun 2010 14:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bpFeaturednaked putsoil spilloptions tradingselling putsSheldon LiberMon, 28 Jun 2010 14:50:00 EST<![CDATA[Whose Best Interests Are Served If BP Is Pushed into Bankruptcy?]]>http://www.bloggingstocks.com/2010/06/28/bp-bankruptcy/http://www.bloggingstocks.com/2010/06/28/bp-bankruptcy/http://www.bloggingstocks.com/2010/06/28/bp-bankruptcy/#commentsFiled under: , , , , ,

BP logoThe daily cost of operations, clean-up and restitution to BP plc (BP) has reached $100 million per day (over the last three days), according to the company. Unless this is being broadcast to garner unlikely sympathy from a angry crowd, then the costs have reached a magnitude I would have thought unlikely, and my contrarian bet on BP may be at risk.

It's important for me to disclose from the beginning (not just in the footer) that I have wagered that BP is oversold through options and equity. How much so depends on a lot of factors. I made this calculated risk based on the assumption that forcing the company into bankruptcy is not in anyone's best interest. However, I am once again reminded of a great line from the The Maltese Falcon, in which Kasper Gutman cautions Sam Spade:

Continue reading Whose Best Interests Are Served If BP Is Pushed into Bankruptcy?

Whose Best Interests Are Served If BP Is Pushed into Bankruptcy? originally appeared on BloggingStocks on Mon, 28 Jun 2010 11:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BPBP bankruptcyBP cleanup costsCaroline BaumfeaturedGulf oill spillinthenewsoil spillSheldon LiberMon, 28 Jun 2010 11:10:00 EST<![CDATA[Serious Money: Buffett Going Global -- Part 4]]>http://www.bloggingstocks.com/2010/06/24/serious-money-buffett-going-global-part-4/http://www.bloggingstocks.com/2010/06/24/serious-money-buffett-going-global-part-4/http://www.bloggingstocks.com/2010/06/24/serious-money-buffett-going-global-part-4/#commentsFiled under: , , , , ,

Today we expand on investment criteria and start to look at actual stocks of non US companies that might be in the running for inclusion as one of Berkshire Hathaway (BRK.A/BRK.B) foreign holdings.

In searching for global investment prospects that might interest Warren Buffett we have established that newly allocated capital would most likely pursue companies that pay a dividend and make products or operate in sectors that are well established and have a high level of certainty to exist decades into the future. This is basic to "my pal Warren's" investment philosophy, and there is no reason to think this will change.

In Part 2 of this series we then examined the size of a potential investment settling on a general range from $4 billion to $24 billion.

Continue reading Serious Money: Buffett Going Global -- Part 4

Serious Money: Buffett Going Global -- Part 4 originally appeared on BloggingStocks on Thu, 24 Jun 2010 14:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawaybrk.abrk.bDavid SokolfeaturedMidAmericannational gridnggSerious MoneySheldon Liberwarren buffettThu, 24 Jun 2010 14:30:00 EST<![CDATA[Serious Money: Buffett Looking Beyond Our Borders -- Part 3]]>http://www.bloggingstocks.com/2010/06/22/serious-money-buffett-looking-beyond-our-borders-part-3/http://www.bloggingstocks.com/2010/06/22/serious-money-buffett-looking-beyond-our-borders-part-3/http://www.bloggingstocks.com/2010/06/22/serious-money-buffett-looking-beyond-our-borders-part-3/#commentsFiled under: , , , , , , , ,

There are many places that Warren Buffett may choose to invest Berkshire Hathaway (BRK.A / BRK.B) capital. At the same time you can be sure there are places he will not set foot. It is not likely he will invest anywhere that does not have a vibrant, well-established stock market with a stable government. So, Mr. Hugo Chavez in Venezuela will not likely see any capital deployed from the likes of "my pal Warren" any time soon.

As a matter of fact, I would put the chances at slim of any South American country, besides Brazil, getting a look at all. Brazil is just too big and too vibrant to ignore. I would rule out Africa entirely except for indirect investments in oil and minerals through large conglomerates. The closest thing in the region would be Israel, at the furthest western reaches of Asia. He has already invested there and there is a high probability he would again. Investors from most of Europe and Asia have done the same, although many would rather not discuss it.

He has also invested in China, Great Britain, South Korea, and Switzerland. I would expect more money to be plowed into all of them again without reservation if the right deal materialized.

Continue reading Serious Money: Buffett Looking Beyond Our Borders -- Part 3

Serious Money: Buffett Looking Beyond Our Borders -- Part 3 originally appeared on BloggingStocks on Tue, 22 Jun 2010 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawayBrazilBRK.ABRK.BfeaturedGEgeneral electricGoldman SachsGSinternational investingIsraelMexicoSerious MoneySheldon Libervalue investingTue, 22 Jun 2010 15:00:00 EST<![CDATA[Serious Money: Buffett Looking Beyond Our Borders -- Part 2]]>http://www.bloggingstocks.com/2010/06/17/serious-money-buffett-looking-beyond-our-borders-part-2/http://www.bloggingstocks.com/2010/06/17/serious-money-buffett-looking-beyond-our-borders-part-2/http://www.bloggingstocks.com/2010/06/17/serious-money-buffett-looking-beyond-our-borders-part-2/#commentsFiled under: , , , , , ,

Warren BuffettTrying to figure out what Warren Buffett will invest in next is no small task. Although, you can bet it will not be small. In fact, he may try to acquire whole companies because anything else might not move the needle when it comes to increasing shareholder value at Berkshire Hathaway (BRK.A / BRK.B).

This post is a follow up to Serious Money: Buffett Looking Beyond Our Borders, where I concluded that Buffett will seek an opportunity to invest in a company that is paying a dividend and has a very easy to understand product or service that will not become obsolete any time soon.

Continue reading Serious Money: Buffett Looking Beyond Our Borders -- Part 2

Serious Money: Buffett Looking Beyond Our Borders -- Part 2 originally appeared on BloggingStocks on Thu, 17 Jun 2010 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawaybrk.abrk.bfeaturedGEgeneral electricGoldman SachsGSPKXPoscoSerious MoneySheldon LiberThu, 17 Jun 2010 13:00:00 EST<![CDATA[Serious Money: Buffett Looking Beyond Our Borders]]>http://www.bloggingstocks.com/2010/06/16/serious-money-buffett-looking-beyond-our-borders-next-moves/http://www.bloggingstocks.com/2010/06/16/serious-money-buffett-looking-beyond-our-borders-next-moves/http://www.bloggingstocks.com/2010/06/16/serious-money-buffett-looking-beyond-our-borders-next-moves/#commentsFiled under: , , , , , , , , , , ,

Stories are starting to appear that "my pal Warren" is gearing up for a major foreign acquisition. One of my dear friends Randy S. is taking a post graduate business class at UCLA where this issue is a part of the course. He is supposed to figure out what non US companies Berkshire Hathaway (BRK.A/BRK.B), led by Warren Buffett, might be considering for investment.

Ahh yes, the prediction business, quite tricky indeed. Starting with some basics, in most cases I would stick to the time tested philosophy that past performance is not an indicator of future success. That said, I think in the case of Buffett, it does. There are many clues along the trail based on his past performance.

Here are some basic consistencies from the existing portfolio that I would expect to hold true going forward.

Continue reading Serious Money: Buffett Looking Beyond Our Borders

Serious Money: Buffett Looking Beyond Our Borders originally appeared on BloggingStocks on Wed, 16 Jun 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AXPberkshire hathawaybrk.abrk.bcoca-coladividend investingdividend stocksfeaturedhdtvHome DepotJNJjohnson and johnsonKonamilowLowesPetroChinaptrSerious MoneySheldon Liberwarren buffettwells fargoWFCWed, 16 Jun 2010 18:00:00 EST<![CDATA[Chasing Value: ADM, CVX, RTN and TAP for Investors, Not Traders]]>http://www.bloggingstocks.com/2010/06/14/chasing-value-adm-cvx-rtn-tap/http://www.bloggingstocks.com/2010/06/14/chasing-value-adm-cvx-rtn-tap/http://www.bloggingstocks.com/2010/06/14/chasing-value-adm-cvx-rtn-tap/#commentsFiled under: , , , , , ,

Raytheon RTN logoIf you're a stock trader, then this post is not for you because these stock picks are long-term bets for people looking to beat the traders using the best time-tested strategies. We have been in a very volatile market as of late. It has knocked down many quality companies creating opportunities.

Today I ran a stock screen using six value metrics to find big companies with low stock prices. I found a few dozen, but selected the household names.

Continue reading Chasing Value: ADM, CVX, RTN and TAP for Investors, Not Traders

Chasing Value: ADM, CVX, RTN and TAP for Investors, Not Traders originally appeared on BloggingStocks on Mon, 14 Jun 2010 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ADMArcher Daniels MidlandChasingValueChevron corp.CVXfeaturedmolson coorsRaytheon CompanyRTNSheldon LiberTAPMon, 14 Jun 2010 15:00:00 EST<![CDATA[Sunday Funnies: Market Reruns Not Returns]]>http://www.bloggingstocks.com/2010/06/13/sunday-funnies-market-reruns-not-returns/http://www.bloggingstocks.com/2010/06/13/sunday-funnies-market-reruns-not-returns/http://www.bloggingstocks.com/2010/06/13/sunday-funnies-market-reruns-not-returns/#commentsFiled under: , , , , , , ,

All it takes is one story to ignite the market, reverse fortune and increase volatility. In the past two weeks this has happened a lot, as the tug-of-war between bulls and bears plays out. The fervor created by headlines portrays investors with little conviction about what to do with their money.

Inflation or deflation, what can we look forward to? Is China going to blow-up its economy with its very own housing bubble? Will Greece default and others follow? Will BP p.l.c. (BP) stock fall deeper than its undersea gushing Gulf of Mexico oil well, and take other oil service companies down with it?

Does any of this matter -- yes and no.

Continue reading Sunday Funnies: Market Reruns Not Returns

Sunday Funnies: Market Reruns Not Returns originally appeared on BloggingStocks on Sun, 13 Jun 2010 19:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bpGlobal Economyoil spillSheldon LiberSunday FunniesSun, 13 Jun 2010 19:00:00 EST<![CDATA[Financial Reform Has No Credit Default Swap]]>http://www.bloggingstocks.com/2010/06/09/financial-reform-has-no-credit-default-swap/http://www.bloggingstocks.com/2010/06/09/financial-reform-has-no-credit-default-swap/http://www.bloggingstocks.com/2010/06/09/financial-reform-has-no-credit-default-swap/#commentsFiled under: , , , , , , , , , , ,

Voltaire said, "Common sense is not so common" and George Bernard Shaw commented that having " ...enough of it was genius."

This reminds me of Warren Buffet, CEO of Berkshire Hathaway (BRK.A) or Steve Jobs, CEO of Apple Inc. (AAPL) that have both displayed plenty of the former and arrived at the latter in their business pursuits.

Derivatives like Collateral Debt Obligations, or CDO's, and Credit Default Swaps, get their value from something else entirely: total hype in an environment of smoke and mirrors.

It turns out that if you build layer upon layer of derivatives until you have no idea what the original underlying value truly is, it becomes so convoluted that a genius can't comprehend it at all. It is self evident that nobody could even determine all the counter-party risk.

Continue reading Financial Reform Has No Credit Default Swap

Financial Reform Has No Credit Default Swap originally appeared on BloggingStocks on Wed, 09 Jun 2010 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAPLAIGAppleberkshire hathawayBRK.ABRK.BbuffettCcitigroupcredit default swapsfeaturedGMOJeremy GranthamJPMPaul Volckersecond-lifeSheldon LiberSteve Jobswells fargoWFCWed, 09 Jun 2010 15:00:00 EST<![CDATA[Chasing Value: E-Trade Is Adrift]]>http://www.bloggingstocks.com/2010/06/07/chasing-value-e-trade-is-a-adrift/http://www.bloggingstocks.com/2010/06/07/chasing-value-e-trade-is-a-adrift/http://www.bloggingstocks.com/2010/06/07/chasing-value-e-trade-is-a-adrift/#commentsFiled under: , ,

E-Trade logoOne of my 2010 stock picks seems to be adrift closer to its 52-week low ($11.52 July 8, 2009) on a long slow downtrend. On June 2, 2010 E-Trade (ETFC) did a reverse 10 for 1 stock split and is now trading back in the teens, having closed last Friday at $14.06. For the time being, it is trading under the symbol ETFCD.

This allows many pension funds and other institutions to hold positions in the stock that they could not before when it was under $5.00 per share (significantly) due to restrictive investment guidelines.

E-Trade management may have been counting on this to inject some life in the stock or at a minimum some additional support. This has not been the case as the stock continues to erode with the other financial stocks.

Continue reading Chasing Value: E-Trade Is Adrift

Chasing Value: E-Trade Is Adrift originally appeared on BloggingStocks on Mon, 07 Jun 2010 14:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chasing VAlueetfcETFCDfeaturedSheldon Liberstock splitsMon, 07 Jun 2010 14:10:00 EST<![CDATA[Sunday Funnies: Gov't Can't Clean Up Its Own Act]]>http://www.bloggingstocks.com/2010/06/06/sunday-funnies-govt-cant-clean-up-its-own-act/http://www.bloggingstocks.com/2010/06/06/sunday-funnies-govt-cant-clean-up-its-own-act/http://www.bloggingstocks.com/2010/06/06/sunday-funnies-govt-cant-clean-up-its-own-act/#commentsFiled under: , , , , , , , ,

During the ongoing environmental disaster caused by BP plc (BP) that is spewing thousands of barrels of oil a day into the Gulf of Mexico (only now reducing the spill rate), there have been many calls to have the federal government take over the cap and recapture effort. This is a very lame idea.

First of all, nobody has more incentive in bringing this disaster to an end then BP because no entity has suffered more financially or seen its reputation eroded faster.

Continue reading Sunday Funnies: Gov't Can't Clean Up Its Own Act

Sunday Funnies: Gov't Can't Clean Up Its Own Act originally appeared on BloggingStocks on Sun, 06 Jun 2010 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BlackwaterBPgulf oil spillHALhalliburtonSheldon LiberSunday FunniesXeSun, 06 Jun 2010 16:00:00 EST