Official Stock Market & Economy Thread

[nicefro]

fml!

 

[theconditioner]

Does anyone on here do DCF analyses on their stocks? Don't see much going on here. Haven't tried to look hard though.

 

[dajoka004]

FAZ is done for. I'm dumping on Monday barring a turn around. Nothing can stop the financials when they are being injected with billions upon billions ofdollars.

 

[nicefro]

when'd you get in dajoka?

 

[dajoka004]

Originally Posted by nicefro

when'd you get in dajoka?

$25.70 two Monday's ago (the 500 point gain day). Had I just waited a few more hours, I would have profited this past Monday. I was tempted tosell when it approached $25 on Monday, but I held, not anticipating a strong Tuesday/Wednesday in the financials.

Thankfully I didn't put too much money into it. Doesn't make up for how stupid I feel for falling into the trap.

I'm selling next week and probably putting money into GS ahead of their Q1 earnings. You know it's going to be good, although it really disgusts mewhat the big banks are being allowed to do.

 

[th0mas cr0wn]

Originally Posted by JCASH DA KID

wish I never held visa and sold in the 80's

cosign


I finally sold at 56 recently, it's up at 60 today

fml

 

[nicefro]

up

 

[cruthik3]

Crashing soon?

 

[nicefro]

hope so.

 

[truth 15]

PALM is up 24% (told you DaJoka) since I bought it and said it was a good buy two weeks ago. I sold half my shares today. DJI has added another 750 since mypost claiming the rally has legs.

Still holding some financials, SRS, AA, and gold.

 

[cruthik3]

Okay, I'm flip flopping back and forth in my head if I should get into my shorts. Maybe I'll wait to see how investors react to AA and the uptick rule.

 

[oh you mad]

Made some $$ today off some BPUR I was holding, which I bought for .17

 

[nicefro]

 

[theone2401]

Not much volume but I exited my longs at 8000 dow 840 S&P. Honestly I dont even have a guess at this point except I do not want to be long. I dont want tosee it test 840 again because I got a feeling its going to go through it tested twice already.

I actually sold AKS at 9.15 got it around 6

 

[theone2401]

SEC going to attempt to bring back the uptick rule and some other regulations for short sellers (useless) but they arent going to go after naked shorts.

Anyway this ensures that the rally is over or close to being over be careful out there folks.

Why dont they have a downtick rule?

 

[mnmballa2323]

NT, reccomend me a good short!!

 

[shch]

GS..........J/K, don't do it. I almost bit the bullet, lucky I didn't though. I'm also in need of some good short recoomendations.

 

[cruthik3]

I think I'll be getting into faz, skf and srs again tomorrow.

 

[cruthik3]

Wells Fargo First-Quarter Profit Climbed to About $3 Billion
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By Linda Shen

April 9 (Bloomberg) -- Wells Fargo & Co., the second- biggest U.S. home lender, said first-quarter net income was about $3 billion and that results atWachovia Corp., acquired about three months ago, were exceeding expectations. Shares of the bank surged in early trading.

The profit, of about 55 cents a share, compares with net income of $2 billion, or 60 cents, a year earlier, the San Francisco-based lender said today in astatement distributed by Business Wire.

Wells Fargo joins banks including Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. in saying results improved early this year. WellsFargo's ratio of tangible common equity to tangible assets was above 3.1 percent as of March 31, the lender said.

"Business momentum in the quarter reflected strength in our traditional banking businesses, strong capital markets activities, and exceptionally strongmortgage banking results," Chief Financial Officer Howard Atkins said in the statement.

The bank climbed 21 percent to $17.95 at 8:10 a.m. in New York.

To contact the reporter on this story: Linda Shen in New York at [email protected]


****

 

[theone2401]

Originally Posted by CruThik3

Wells Fargo First-Quarter Profit Climbed to About $3 Billion
Share | Email | Print | A A A

By Linda Shen

April 9 (Bloomberg) -- Wells Fargo & Co., the second- biggest U.S. home lender, said first-quarter net income was about $3 billion and that results at Wachovia Corp., acquired about three months ago, were exceeding expectations. Shares of the bank surged in early trading.

The profit, of about 55 cents a share, compares with net income of $2 billion, or 60 cents, a year earlier, the San Francisco-based lender said today in a statement distributed by Business Wire.

Wells Fargo joins banks including Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. in saying results improved early this year. Wells Fargo's ratio of tangible common equity to tangible assets was above 3.1 percent as of March 31, the lender said.

"Business momentum in the quarter reflected strength in our traditional banking businesses, strong capital markets activities, and exceptionally strong mortgage banking results," Chief Financial Officer Howard Atkins said in the statement.

The bank climbed 21 percent to $17.95 at 8:10 a.m. in New York.

To contact the reporter on this story: Linda Shen in New York at [email protected]


****

This is not surprising at all. Even Meredith Whitney(banking analyst Bear) said they would be profitable. Citibank analyst even recommended shorting banks thatshould tell you right there bank stocks are going to go up. They made a ton of money from government transactions. Let me put it this way everytime thegovernment gives them money they get fees off of the transaction. I could go into more detail and post articles if anyone is interested but most of the bankswill be profitable this quarter which is why I think a successful test of 8K will run a little but these earnings are not sustainable. Why do you think theyare delaying the release of the bank stress tests? So the market can pop off of these earnings numbers.

Here is the headline from the NY Times (which is usually bought and paid for by wallstreet)

[h1]"Banks Holding Up in Tests, but May Still Need Aid"[/h1]
does that make any sense?


Meanwhile job losses continue at an accelerating pace (leading indicator) jobless recovery! buy buy buy

 

[cruthik3]

They said the big banks need more bailout, but most passed the stress test.

 

[theone2401]

Originally Posted by CruThik3

They said the big banks need more bailout, but most passed the stress test.

Yea that does not make any sense.

If the banks passed the stress test they do not need any more bailouts.

And this doesnt even include the fact that the scenario they used for the stress test is already to optimistic. Unemployment right now is already out pacingthe numbers they used for the stress test so......unless something magical happens and unemployment hits its inflection point (stops increasing at anincreasing rate) this "stress test" was a farce.

The Fed's "baseline scenario" for 2009 unemployment is 8.4%. Unemployment under the Fed's "adverse scenario" is seen at 8.9% for 2009.
unemployment is already at 8.5% in APRIL

In fact according to a bloomberg article YESTERDAY Oppenhiemer claims BOA needs 36 billion more dollars. You cannot make this stuff up.

 

[theone2401]

Bank of America Needs $36.6 Billion, Oppenheimer Says (Update3)

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By David Mildenberg

April 8 (Bloomberg) -- Bank of America Corp., the largest U.S. bank, needs to raise $36.6 billion in equity to bring capital ratios in line with its peers, according to Oppenheimer & Co.

With investors reluctant to commit new funds to lenders, Bank of America is more likely to raise capital by converting preferred stock to common, or issuing 5.2 billion shares through the Treasury Department's Capital Assistance Plan, said analyst Chris Kotowski in a report to clients today. Under the Treasury program, Bank of America may issue shares for $6.24 each, the report said.

Bank of America has already accepted two rounds of taxpayer support totaling $163 billion that included preferred stock purchases and asset guarantees. Chief Executive Officer Kenneth Lewis has said the Charlotte, North Carolina-based company will rebound from a fourth-quarter loss without more government assistance.

"It is perhaps unusual to model highly dilutive equity raises into earnings forecasts, but we believe that in the current environment, until credit quality stabilizes and capital requirements are more precisely known, it is the prudent thing to do," Kotowski wrote.

"We disagree with his assumption," said Scott Silvestri, a spokesman at Bank of America.

Earnings Estimates Cut

Oppenheimer cut quarterly earnings estimates for Bank of America to 2 cents a share from 10 cents because of expected higher losses on credit cards and other loans. Among New York- based banks, JPMorgan Chase & Co. is likely to earn 16 cents a share, down from 29 cents, while Morgan Stanley may post a 59- cent loss, compared with a previous estimate of a 37-cent profit, Kotowski said in the report. He raised the profit estimate for Goldman Sachs Group Inc. to $1.29 from 99 cents.

Doubling Bank of America's ratio of tangible equity capital as a percentage of risk-weighted assets to about 6 percent would put the company in line with the 6.3 percent average of the 25 largest U.S. banks, Kotowski said.

The tangible equity ratio is one of several gauges of a bank's financial strength, reflecting the value of the institution excluding goodwill, or the difference between the purchase price and the fair market value of an asset. Banks and regulators have more typically used Tier 1 capital, which includes preferred shares and other forms of equity.

"The basic foundation of Bank of America's capital base is preferred shares, including the $45 billion sold to the government, and regulators aren't going to order them to get to the mean in terms of tangible equity," said Tony Plath, a finance professor at the University of North Carolina at Charlotte. "This would be changing the rules of the game after the fact."

Bank of America shares declined 30 cents, or 4 percent, to $7.06 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 48 percent this year before today.

To contact the reporter on this story: David Mildenberg in Charlotte at [email protected]



This is in effect failing the stress test.

at the BOA shill disagreeing. NO %+##.

They just interviewed the CFO of Wells Fargo on CNBC and he dodged the question about paying back the TARP. Now if you expect to continue making money likethis why wouldnt you pay back the TARP?

Why hasnt any of these bankspaid back the TARP that they supposedly never needed?

 

[andycrazn]

cause they really like our money?

 

[theone2401]

Originally Posted by andycrazn

cause they really like our money?

But they are "worried" about the government limiting their executive pay and changing the terms of the loans on them. They are worried about thegovernment kicking out the CEO's like GM.

I guess my point is dont pay attention to what the banks say pay attention to what they do. Also dont forget these numbers are pre announced and the marketstill wont break 8k with any conviction...