Here’s a short list of only the highest quality, bluest of blue chip, penny stocks:

  • AIG (39 cents)
  • Citigroup (98 cents)
  • E*Trade (66 cents)
  • Fannie Mae (39 cents)
  • Freddie (39 cents)
  • Unisys (37 cents)

Given the trading volumes, you might think these were real firms or something!

Now, for the not-quite-penny stocks:

  • Ford ($1.83)
  • GM ($1.83)
  • Las Vegas Sands ($1.97)
  • MGM ($1.99)
  • CIT ($2)
  • Kodak ($2.50)
  • Bank of America ($3.15)
  • New York Times ($4.00)
  • News Corp ($6.15)
  • Xerox ($4.36)
  • International Paper ($4.22)
  • Alcoa ($5.55)
  • GE ($6.75)
  • Dow Chemical ($6.56)
  • Wells Fargo ($7.95)
  • Dell ($8.50)

It looks like American Express ($10.83) is one of the few double digit stocks . . .

Category: Markets, Valuation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

109 Responses to “The Latest Craze: Blue Chip Penny Stocks”

  1. Ny Stock Guy says:

    This reminds me of that Chris Rock routine:

    http://www.youtube.com/watch?v=KNQRqAoT-2c

    Right now I can’t even get two ribs for one share of citi.

  2. ben22 says:

    BR,

    I could be wrong but Penny Stock doesn’t mean pennies, my understanding was that any stock that consistently trades below $5 is a penny stock. Am I wrong?

  3. Mannwich says:

    Just dumped my small amount of FAZ. Might still run from here but I’ll take my $$$ and go home. Only wish I had more.

  4. call me ahab says:

    That Kass and others are taking long positions mystifies me. Maybe it’s the saying “you can only look up when y0u are flat on your back” is where their rationale comes from. The way I see it all those “cheap stocks” can continue going down as well.

  5. leftback says:

    Lots of “Generational Buys”™ there, Bazza.
    America on Sale.

    This is the most AMAZING movie, isn’t it?
    As Mish would say “Things That Can’t Happen, Already Have”.

    ™Richard Bove, all rights reserved.

  6. TheUnrepentantGunner says:

    Anyone watch the Jon Stewart takedown of CNBC last night? Felix Salmon’s blog has the embedded video. Outstanding to say the least.

    Whats interesting is that for some of these companies, it’s becoming really hard to buy the stock. If you are paying a certain amount per share after your first 500 or 1000 or 2000 shares, tje percentage of commission to even enter and leave these positions becomes prohibitive. Say you take a 5k share stake in C right now, that might be 4% to get in and 3% to get out even if you made money. That makes your margin much thinner.

    And the discount brokerages have an advantage, what they might lose on execution normally doesnt matter since the spreads are so small on such high volume.

  7. Jdamon33 says:

    If there is an America going forward, the market must rebound from where it is at. Remember, it is always darkets before the dawn. I’m starting to dip my toes in (may be a lot of paranahs down there).

    BHO needs to show some leadership. He has been awfully quite on the markets since he took office. Saying he doesn’t worry about the fits of the markets may not be the best thing to say. I bet a lot of retiree’s are worried about the markets fits.

    He is ailenating himself from a lot of people (granted most of them probably didn’t vote for him anyway).

  8. Mannwich says:

    @jdamon33: Didn’t Obama just say the other day that stocks may be a “potentially good buy” the other day? What else do you want him to do? We were bound to go here since last year and should have gone here before now. They only delayed the process just a bit, which is likely making things worse.

    I would like to see O nationalize the zombies and get on with it but I think that’s what he’s doing anyway. It’s just taking longer than I would like. Agree with that.

  9. Bruce N Tennessee says:

    Lefty:

    Hope you left those long positions on the porch…you could get into Barry’s predicament with your toes…

  10. zdog says:

    I have some extra cash in an account I had forgotten about. Which of these should I buy and forget about again? Seriously.

  11. zot23 says:

    Toys.com was very cheap for a while too, I wouldn’t buy any of these at any price just now.

    None of this ends until the USA capitulates, takes it’s medicine, and figures out what it can produce and sell to the world other than movies about giant robots and fake/toxic financial instruments. By comparison, giant robots looks pretty damn good.

    I wouldn’t invest a cent before at least half the banks have been nationalized.

  12. llandson says:

    Does anyone know how, as an American, I can open an account denominated in yen in a Japanese bank?

  13. call me ahab says:

    @ zot23

    agreed. The market will continue to drift down until some bold action is taken regarding the banks. Nationalization or FDIC seizure may cause an abrupt sell off but I think in the end it will settle the markets.

  14. CNBC Sucks says:

    If I were Obama, I would in my Inauguration Day speech have just said, “Look, mofos, that piece o’shit Dow Jones False Prophet Index really at best should be at about 3,000, if you take the most conservative earnings projections and Ben Graham-type valuation techniques. We really need to exercise conservatism, MB-fuckin’-A fundamental techniques, and due diligence in how we value our assets, and not that technical bullshit and black-box discredited Black-Scholes mumbo jumbo that community college-educated traders use. The reality is that I am gonna have to build you a whole new economic system, just like all the black slaves built the economic system of the South.” Then, I would have had Aretha Franklin sing “R-E-S-P-E-C-T” to Bush and Cheney instead of whatever song she sang.

    You guys should be thankful Barack Obama and not The Great CNBC Sucks is not your President.

  15. AndrewShaw says:

    I think I’ll pile on Etrade and sweep the rest of my max-rate checking out via EFT. How to decide, I do like the fee-free atm withdrawals.

    Ah what the hell, I don’t feel like digging out the keychain password thingie. Maybe tomorrow.

  16. Mannwich says:

    Somewhere ‘ol Steve Barry is smiling.

  17. CNBC Sucks says:

    Goddamn it, Republican Ritholtz, why did you pick WordPress? If you ever find a comment edit widget, let me know.

  18. Gawdfather says:

    I guess Obama was setting up a pump and dump when he told folks to go long yesterday. He probably was in the Oval Office loading up on the double and triple short ETFs yesterday afternoon, haha.

  19. leftback says:

    Bruce asked: “Lefty: Hope you left those long positions on the porch…you could get into Barry’s predicament with your toes…”

    Bruce, my man. Your concern for my digits is touching.
    My biggest positions are crude oil, natural gas and TBT, so no major worries. Lots of cash on hand.
    Picked up some BMY, MRK, AA and VLO today, but more like toenails than actual toes.

    Wonder if JB is still long C? Big steaks on Steve Barry’s grill tonight, I would imagine.
    BTW, Bruce – $gaso says inflation will trump deflation – in a while. Got popcorn?

  20. TheUnrepentantGunner says:

    agreed cnbc the entire first paragraph was not meant to go in my previous comment but these are the things that happen when you aren’t given alot of brain cells to start with.

    my 2nd paragraph stands and is topical. id really like to see a list of all major online brokers and their baseline prices (not the make 300 trades in a week and your next trades are $3.99 for unlimited shares)

    i realize this has 0 effect or near 0 effect on a fair number of institutional sellers but for individual investors it could make a real difference, not to mention people buying from their 401k in some cases

  21. ben22 says:

    leftback,

    just curious, why Merck?

  22. leftback says:

    @ben22: MRK has been beaten to death ever since it was the Fortune cover stock years ago.

    Dividend payer, high yield, low P/E, solid non-discretionary business.
    Nothing clever going on here -cheap stock, overwhelming bearishness all around us.

  23. Jdamon33 says:

    Bottom line, BHO doesn’t give two sh*ts about people with money in the market. All he cares about is taking what they have and giving it to people who don’t have anything. Great way to run a freaking country guys. You wanted socialism, you got it!

    Now, where are my 40 days off a year (August is a month long holiday for Europeans)? It’s BS if we get treated like we live in a socialist country, but don’t get any of the benefits they get.

    I’m out of all my longs now, so I say let the f*cker go to ZERO!

  24. ben22 says:

    yeah that makes sense. I had once bought a hell of a lot of Merck after the Vioxx scandal and did really well and never went back. I haven’t taken a look at them in a long time so you’ve got my interest on this one.

  25. DL says:

    From http://www.cnbc.com/id/29530935

    Bank of America said it could suffer “grave harm” if it is forced to reveal data about an estimated $3.6 billion of bonuses paid to Merrill Lynch officials in the days before the bank acquired the brokerage.

    I’m certainly convinced.

  26. @call me ahab Says: March 5th, 2009 at 12:08 pm

    The way I see it all those “cheap stocks” can continue going down as well.

    No only can they continue to go down they can disappear altogether with the common not on the creditor list in any BK

    Be careful folks

    Notice also that whatever is hurting out there is pretty closely associated with debt. The further away a company is from having it or needing to give it to their customers so they can buy their products, the better the company appears to hold up

  27. HCF says:

    I love that term, “generational buy.” I’m guessing it really should me that these companies won’t exist anymore within a generation…

    C is basically the price of a soft taco supreme! Put THAT in our pipes and smoke it!

    HCF

  28. HCF says:

    > I’m guessing it really should me that these companies won’t exist anymore within a generation…

    I mean “mean” not “me” =)

    I’m guessing it really should mean that these companies won’t exist anymore within a generation…

    HCF

  29. huxrules says:

    GM says that they are not going to make it- I think its a ploy to go into Chapter 11 and then kill the unions. I don’t think that O-man will let this happen. He will spoon feed GM and possibly relieve GMs helathcare problems*.

    When the volt comes out I think it will be a game changer. The same time it comes out we will see tons of alt-energy projects in progress and it will fit nicely. If GM can make it that long however.

    F on the on the other hand says they are healthy and is bringing its extremely successful european cars over. They should be fine.

    Its a gamble.. I’d go for both of them.

    *just a guess- its what I would do

  30. CNBC Sucks says:

    “When the volt comes out I think it will be a game changer.”

    There is no bigger green freak than the Great CNBC Sucks, but your analysis makes me laugh. Do you even know what the volume projections are for that model given its market entry price point, and how incremental free cash flows would impact GM’s valuation? I am all for electric vehicles, but the Volt will probably be at best a non-significant item on present value and at worst a value destroyer for a long time, especially when you consider all the depreciation and amortization that would have to be applied to the income statement for years. The depth and comprehensiveness of your analysis indicates you should work for CNBC.

    GM has long been in the toaster, but the burning smell just reached the room.

  31. jason says:

    @Jdamon33

    Seems to me that he has talked about he economy and its issues non-stop. Maybe you should layout what you want him to say. Should he predict Dow 14,000? What do you want? Should he lie, is that your idea of leadership? I will admit I am not happy with how everything is being handled but the mess dumped on him is mind boggling in scope and that last thing I want is Obama to become Kudlow.

  32. Andy Tabbo says:

    difficult to see any kind of completed count on this move down from 875 if we take out 681, which the futures low from a few days ago…If you start seeing sub 680 prints on sp500 I would expect a decent little whoosh down to under 650….

    remember yesterdays rally that started on “positive developments out of China”….don’t mean to sound like a broken record but any “Hope-Based” rallies are not healthy at all….

  33. WFC (10% or so owned by Berkshire) is down about 15% today, but still not near as much as the biggies (C, BofA). What market play/risk management strategy did WFC have that BofA and C and JPM and all the rest didn’t? Their biggest competitor in the mortgage business was CFC, and it’s hard to slop around in the mud and stay clean.

    I wonder if the market bloom is fallen off the Buffett rose, as the Buffett mystique seems to me the only plausible reason they haven’t cratered like the rest, ’til now.

  34. Mannwich says:

    Good call yesterday, AT. I didn’t like yesterday’s market close. Didn’t feel to me like the rally would continue today. We’re due for a true rally any time now, but any hint of strength will be sold at this point.

    I just think there’s not much to hang our hats on for a true rally. Reality is merely setting in that this is going to be one ugly run here fundamentally and will not be fixed overnight (well at least those who aren’t still denial like the clown show hosts on CNBC).

  35. Andy Tabbo says:

    Curmudgeon….BRK….we pointed out here last week that staying above 77K was important as a 50% retrace of the whole bull move. 60K is now in the cards as the 61.8% retrace….anyone who ever wanted to own some Grandpa Warren stock….60,000 might be a good entry level….

  36. javasoy says:

    It’s not being talked about a lot, but I think everyone’s got the “D” word in their mind. The fact that WSJ pointed out there were large amount of $2.5 June put on GE were tendered on Tuesday says a lot. There are people out there expect this to be a 1930 style prolonged slump.

  37. Foghorn Longhorn says:

    There will be no sustained rallies.
    What has fundamentally changed since the Oct, highs?
    Can you say nothing, there I knew you could.
    We are entering the Greater Depression, deny this at your own peril.
    Go long, seeds, ammo, rice and beans.
    Oh, and I am an optimist.

  38. Winston Munn says:

    The way I see it, at an average of -200 per day in 33 1/3 days the DOW will be at zero.

  39. leftback says:

    I am not looking at anything very much except the US$ index and commodities.
    The $ cannot rise indefinitely chaps, not while Helicopter Ben still runs the printing press nightly.
    Now that BoE and ECB have eased and BoE announced QE, the $ is running out of steam.

    Looks like it will be our turn in the competitive currency debasement stakes very soon.
    At this point any QE comments from the Fed would be $ negative and equity positive.
    Bernanke will continue to take all necessary steps to avoid a deflationary spiral.

  40. ben22 says:

    @AT,

    Let’s say we close at 684 today and get a bad number tom. morning and gap down early to 660 or just below, are you reading that as bullish?

    I have to imagine lots of quants have buys set up there or around there right?

    Also, are you seeing the next support line below 660 at 450 or somewhere else?

  41. Brendan says:

    @CNBC Sucks: I’ve got such a crush on electric cars that I built one in my garage. Gotta’ love being able to have an impractical fun weekend car that you only fill up once every month or two. But I’ve got to agree with your analysis for the most part though. The Volt is to Chevy what the Viper was to Chrysler when it came out, an advertising/PR expense. Plug in hybrids and full electrics will be a game changer in time, but I wouldn’t count on one car to save GM. The Prius was a big step, but Toyota, like Chrysler with the Viper, took a hit the first several years before it became a money maker instead of a money pit. The same holds for GM, but they’re no where near being in the financial situation that Toyota was when they started selling the Prius in the US. And even Toyota is now in the red. GM is going to be about 5 years late on this. They needed to sell them when people were spending money hand over fist, so they could start being profitable on them now (instead they were crushing the EV1s about that time… morons). Sorry, but the Volt is too little too late. I’m just surprised that it now looks like GM is going to go under before Chrysler. Back in December I thought for sure January 2009 was going to be carved onto Chrysler’s headstone. I guess I, too, could get a job at CNBC with my call on that one!

  42. Jdamon33 says:

    Crumudgeon, WFC had not a had a losing quarter – ever until they bought Wachovia. They bought them for $15b and got credits for $25b from the Gov. They were paid to take them over. Wachovia, which I will admit had toxic assets expanded their presence significantly and they have already taken a 1/3 write-down on the stuff they bought.

    WFC did a ton of mortgage origination, but sold off thier crappy loans to Freddie/Fannie. They still retain the servicing business. I have quite a few friends at WFC and they are all very very busy bringing in a ton of money on the servicing side.

    They were just rated as the #1 safest bank in the US and 21st in the world. Doesn’t sound like someone who will need to be nationalized to me. They also paid a dividend to the US Govt. on the money they were “asked” to take. They also have not slashed their dividend (although at a yield of over 11% I’m sure they will soon).

    If you are going to go long any banks, this might not be a bad one to own once clarity returns to the market.

  43. Mannwich says:

    @jdamon33: WFC also has tons of exposure to the ongoing/increasing the foreclosure morass on the West Coast. This was prior to their acquisition of Wachovia.

  44. Jdamon33 says:

    Jason, what I would like for Obama to do is to order congress/the SEC to eliminate or suspend the Mark-to-Market accounting rules. We have an illiquid market currently. Give the banks time to take these write-downs over a period of time, not all at once where it puts each and every one of them out of business. We are saying that the housing market will NEVER recover? Come on, we are in the midst of a very bad recissions. Asset prices aren’t reflecting reality any longer.

    Also, I would create a new type of uptick rule that would deter all the bear raids from happening. It is possible to do and would put the shorts on the defensive (until the figured a way around it).

    I would also INCENTIVIZE stock ownership, not disincentive it by raising the capital gains tax. I would slash capital gains to 10% across the board. You would see people rushing back into the market like crazy at these levels.

    I have more ideas, do you want me to go on? He’s the freaking president, he should be able to put in place some policies that will help the ONLY change millions of people have for a decent retirement.

  45. Jdamon33 says:

    Manwi ch, I understand that, but Wells has been very, very conservative in their loan loss models. Just watch, I believe they will have a blowout 1st quarter – you shall see.

  46. Mannwich says:

    @jdamon33: So THAT’S your solution, eliminate mark to market accounting? More window-dressing in hopes that the sheeple buy it and start buying the market again? C’mon man. You must be a Republican.

    Yes, let’s just ignore reality, spiff up the windows a bit, blow smoke up everyone’s asses and we’ll all be sitting in a circle holding hands, playing hackey-sack, singing “kumbaya, my lord” as the market resumes its ascent. Wake up.

  47. Mannwich says:

    @jdamon33: If you believe that, I’ve got a fallen bridge in Minneapolis that I’d like to sell you. That’s complete horseshit. You don’t think WFC has been involved in the option-ARM loans that are coming due over the next few years? You’re crazy.

  48. ben22 says:

    Jdamon33,

    Since you seem to have taken a look at WFC, what is the CRE exposure on the books for them and what is the current leverage ratio?

  49. Jdamon33 says:

    Mannwich, it is ONE of my solutions. Does it really make sense to try to value a group of mortgages that are currently paying each and every payment, servicing fees are being collected, interest is being collected, but the rule is requiring banks to value the loan portfolio at 5 cents on the dollar?

    Mark-to-Market only works when the markets are working. They aren’t right now. It’s like saying you have a mint condition ’57 Chevy, but since Chevy may go out of business, the value of the vehicle you own is ZERO. Would you give your prized possession away for nothing? Isn’t it worth something and won’t it be worth something at some point once the situation with GM is resolved.

  50. ben22 says:

    You know, for the life of me, no matter how compelling your argument I just don’t understand why anyone is trying to own banks right now. There are so many other places to put your money.

    It seems to me, no matter who you are, you can’t really define the risk at WFC or even C for that matter so why wouldn’t you just stay away. To me it seems just as smart as not buying Aetna, Humana or UNH right now because how do you define the risk? If they change healthcare, which they will, which one survives.

    I don’t think anyone could talk me into buying a bank right now, especially Dick Bove.

  51. Foghorn Longhorn says:

    Jdamon33 sez,

    We are saying that the housing market will NEVER recover? Come on, we are in the midst of a very bad recissions. Asset prices aren’t reflecting reality any longer.

    HaHaha

    Your inflated asset prices weren’t supported by reality.
    Ergo, that is why they are TANKING.
    This isn’t that hard to understand folks.

  52. Jdamon33 says:

    Mannwich, I’m not saying there aren’t issues with WFC (like all banks), but this was a $44 stock 3 months ago. They have one bad quarter because of the Wachovia deal and they are now being traded like they will be insolvent within the month.

    The level they have been beaten down to, doesn’t reflect the banks value IMHO. Do you really think the Gov’t is going to have to nationalize them? If you think that the Govt. will, then don’t buy. If you think they might gobble up Citi and BAC, then you might bet that they won’t try to gobble up a third one like WFC.

    BTW, they have option arms, but they didn’t do as many of those as you might think. they got rid of as many of those as they could by selling them to Fan/Fred.

  53. ben22 says:

    Jdamon,

    you sound just like Brian Wesbury right now.

    that’s not a good thing.

  54. It’s the NYSE’s new Dollar Menu

  55. TrickStar says:

    E-Trade?

  56. Mannwich says:

    @jdmamon33: WFC “was a $44 stock 3 months ago?” Huh? Yeah, it was trading there but nobody had a clue of what was on their balance sheet and nobody does now either. Nobody knows what these stocks are truly worth, although me-thinks that their valuations today more properly reflect their state than before. Owning those stocks is pure blind gambling/guessing right now. Nothing more.

  57. Andy Tabbo says:

    @ben22: I have three long term possible targets…..which is one of the frustrations some have with Wave theory and technicals in general (“too many if/then’s…”too confusing”)

    625 for Wave 1 = 5
    595 for 61.8% of entire 1932-2000 bull market
    553 for Wave 5 = 38.2% of entire decline.

    I’ll have a fourth target once this move from 944 starts to become “clearer”….I’m hoping this fourth target will align with one of those three major targets…..

    One thing for certain, from 944 in early Jan, I don’t see any kind of completed five wave move…..I can only see three waves….so we need to get a fourth UP and then a fifth DOWN….and then it should be all over….

    If I were to map out a perfect conclusion it would be a fall to 640s tomorrow….then a sharp 8 trading day rally back to 730′s (which will bring out the bottom callers again)…then a final collapse to 590′s with an outside shot of a 553 intraday panic spike. Of course nothing’s ever easy so I’m prepared for anything….neither short nor long right now.

  58. CNBC Sucks says:

    Thanks, Brendan. I am sincerely impressed with your ability to build an electric car. That is very cool.

    I really should not pick on anyone. The Great CNBC Sucks just likes to occassionally demonstrate to everyone that he genuinely is a Republican. No Democrat could ever be as much of a jackass as me.

    Mannwich – long time, no see. Heard you and lefty had a bet on when I would come back. It is good to see all you old familiars on here. I came back to cop some page views from Ritholtz while my page view generator Becky Quick is on vacation.

  59. ben22 says:

    AT,

    Thanks much, funny, I don’t feel any clearer but hey, like you said, lots of variables.

    As I brought up on the board two days ago, and caused a little stir, Kass was bullish and I mentioned the possible Summers speaking.

    Today, Kass seems to have some regret already and is trying hard now to make this work. This is what I mean:

    http://www.thestreet.com/story/10468121/2/kass-stop-firing-people.html

    And by the way, I’d be bold enough to say that what he is asking for here, will NEVER happen.

  60. Jdamon33:
    You do remember that Wachovia bought Golden West, right? I hope I don’t have to tell you what a stinker of a deal that was(because of all of Golden West’s toxic assets …. which now become WFC’s toxic junk). Why do you think Wachovia had to sell? And now that Wells owns Wachovia, they have all of Wachovia(and Golden West’s) garbage on their books. Where is Wells Fargo’s main business? On the West Coast. You do realize that CA, AZ and NV are ground zero(besides Florida) for the housing mess, right?

  61. ben22 says:

    @CNBC Sucks

    I would have thought Margaret Brennan got more page view generation on your site. I think your site is pretty funny, I’ve gone there a few times.

  62. Foghorn Longhorn says:

    For a yankee, Becky is pretty hot.
    Compared to southern girls, she is just a 7 or so. ;>)

  63. leftback says:

    @AT: With all due respect, I think there are no real targets here, there just aren’t really any useful technical landmarks down here, with the possible exception of SPX660. So we are just kind of floating around until such time as a rally actually does start and then Mr Market will have something to look down at. On the other hand, as you’ve pointed out we have set up a ton of resistance levels with each breached support.

    @Jdamon: Picking a bottom in the banks is a tale of delusion and dilution. Ask the Japanese. There might be a few good banks out there in the heartland that has no bad loans but the big actors are all rotten to the core.

  64. ben22 says:

    Wow,

    And here is one more link, I only read the first two e-mail in comments in those articles but what the hell are those guys smoking?

    http://www.thestreet.com/story/10468064/1/bofa-mailbag-readers-react-to-ken-lewis.html

    Again, I just don’t understand how you make an argument that BAC is A.O.K. and further to buy them now seems insane to me.

  65. Mannwich says:

    @jdamon33: Ask Borchers about the bank stocks. Funny, but we don’t even hear from him anymore, which is what I thought would happen last year when he was crowing about his being right “9 out of 10″ times with regards to the market. Humility is requirement number one in this game. I’m not killing it either but I also know my limitations and won’t run away and hide when I’m wrong.

  66. Foghorn,

    if only your spelling (error) would occur..

    Noun 1. recission – (law) the act of rescinding; the cancellation of a contract and the return of the parties to the positions they would have had if the contract had not been made; “recission may be brought about by decree or by mutual consent”

    http://www.thefreedictionary.com/recission

    and yes, Wachovia, thanks, especially, to the Golden West deal, is/was the K-o-D for WFC

  67. Mannwich says:

    I think we rally tomorrow. Not that it will be on anything any more significant than any other rallies we’ve had but we have to sometime, right?

  68. ben22 says:

    Mannwich,

    You are actually wrong about Borchers and I think I’m the only one on here that saw it.

    A couple of weeks ago BR had a handful of videos of an interview with GE CEO Immelt. The first comment on the video was from Borchers who said he was buying GE that day and that you only get one chance if you are lucky to buy stocks during a depression, something like that.

    I’m not sure if the video’s are archived but if they are you can go find it yourself.

    I think what he really meant was he loses money on 9 out of 10 trades.

  69. OT: Jeff,

    did you get a chance to see Silver Springs when you were down Ocala way?

  70. Mannwich says:

    Sorry, missed that one, ben22, but I remember late last year he was a regular commenter on this site crowing about his trades and how the market and economy would be “fine”. Was just due to irrational panic or something. Strangely, I don’t see those regular comments anymore.

  71. Foghorn Longhorn says:

    Don’t be tagging me with Jdamon33′s spelling, that was his quote not mine.

  72. Mannwich says:

    @Mark E Hoffer: Actually, we did not. Maybe the next time. I was a bit surprised though about just how impressed I was with the area (although I’m impressed by anywhere above 50 degrees in the winter, so I could have been drunk in Vitamin D from the sun).

  73. leftback says:

    I suspect the 12% home loan delinquency/foreclosure number was what caused a lot of people to throw in the towel today. The question a lot of us have been asking is: can we have a rally or even a market without the financial sector? Looks like we may find out. This is an historic event so we may see a historic divergence.

    Mark is right: Wachovia was the ultimate poison pill for Wells.

    M/W: the market will rally before SPX = 0. Tomorrow is as good a time as any.

  74. From Jonathan Weil @ Bloomberg:

    http://www.bloomberg.com/apps/news?pid=20601039&sid=aqf2tyZHBcgw&refer=home

    “Perhaps never before have so many banks’ balance sheets been so patently full of hot air. Bank of America Corp. last week disclosed that its loans at the end of 2008 were worth $44.6 billion less than what its balance sheet said. Wells Fargo & Co. said its loans were worth $14.2 billion less than their book value.”

    And does this include that monstrous black hole, Golden West Financial, that Wells now owns by dint of buying Wachovia? Even supposing it does, as it should, this still doesn’t look good.

    He goes on to say, “Wells Fargo’s tangible common equity was $13.5 billion as of Dec. 31. On a fair-value basis, it was negative $133 million. That makes the bank’s $40.9 billion stock-market capitalization look awfully rich.”

    Don’t know if he’s right, but still…

  75. Mannwich says:

    @Mark: We did visit the Homosassa Wildlife park about an hour west of Ocala. Hung out with the manatees and other animals there. Was pretty impressed.

  76. ben22 says:

    Mannwich,

    I remember that, I saw all of those comments from him. I wonder what his handle was before BR switched the site around. It was really early in the morning when I saw this latest from him and I woke my wife up laughing.

    I’m almost sure that GE was trading at around 12.50 or so at the time so I wonder if he’s doubled down on his 50% loss or if he’s just hanging on for dear life now.

    Not to mention they wiped out the dividend since then.

  77. leftback says:

    @ben22: So many generational buys, so little time… ;-)

  78. @Jeff,

    that’s radical, my Mom was just down there, she was flipped-out (in a good way) by the Manatees..

    came back sounding like you do, “Shoulda stayed longer…really nice area..”

    ~~

    Foghorn,

    sorry ’bout that, see that now.

    this, though: “There will be no sustained rallies.
    What has fundamentally changed since the Oct, highs?
    Can you say nothing, there I knew you could.
    We are entering the Greater Depression, deny this at your own peril.
    Go long, seeds, ammo, rice and beans.
    Oh, and I am an optimist.”

    is something peep would do well to cogitate on..and, maybe, even take heed of.
    http://www.thefreedictionary.com/cogitate

  79. Andy Tabbo says:

    leftback: That’s the whole point of doing the analysis I do….to anticipate turning points where few can see it coming…

    I think March is going to be a very exciting month…..

  80. going broke says:

    AT agree, I appreciate your ideas and comments.

    and even with all the political ga-ga, financial g00-g00, economy blah-blah… although not lately, there is some good news out there from time to time… WMT raises divy 15%

  81. Foghorn Longhorn says:

    Mark,
    It won’t happen, I don’t have nice tits and a big ole pretty smile.
    And my message sucks.

  82. zot23 says:

    Anyone who thinks technicals are worth more than a pile of steaming dung in this market deserves the colontastic fleecing they are going to receive following them. It’s instant karma, the computer gives you a buy signal and next thing you know you’re selling that PC to make rent. I’m willing to be land off the Florida coast was screaming bounce back after it fell off a cliff in 1930 per the technicals, I wouldn’t have bought any.

    Cash, food, water, oil, gas, and guns are the only investments worth anything. Everything else is crap IMHO until we have any idea how much sewage is included in our system.

  83. batmando says:

    @ Jdamon33

    “Asset prices aren’t reflecting reality any longer.”

    Which reality does that happen to be?

  84. Mannwich says:

    I personally think that asset prices better reflect reality now than before. There are bargains to be had, for sure, but the sooner we accept reality, the sooner we can fix things and then get on with a true recovery and not merely continuing the CON-fidence game of “smoke & mirrors”. People aren’t buying it anymore. The genie’s out of the bottle for all to see. Only time (and, gulp, smart policies) will heal these structural problems.

  85. call me ahab says:

    I remember Borchers- that guy use to crack me up with his buying advice- I was amazed at how bullish he was- I certainly wasn’t feeling it.

  86. Foghorn,

    I hear ya, it’s sad, though, this: “Go long, seeds, ammo, rice and beans.
    Oh, and I am an optimist.” is, actually, what built the Republic, and any other that we’ve ever heard of.

    Maybe some Women will figure it out, anew, and make simple Intelligence “cool”, again.

    til’ then we get treated to Alyssa Milano, as “Lady Liberty”, riding a pole in a strip club as some form of ‘political parody’..

    something tells me that Quincy has the candids that delineate LL’s true fate..
    http://www.imdb.com/title/tt0074042/

  87. Foghorn Longhorn says:

    zot23
    Cash, food, water, oil, gas, and guns are the only investments worth anything. Everything else is crap IMHO until we have any idea how much sewage is included in our system.
    Ah, somebody with sense. Don’t forget plain old dirt. preferably dirt with running water, trees, fish, squirrels, cows, chickens, etc.
    You remember, just like our great grandparents did after/during the Great Depression Ver. 1.0.
    That is the reality we are headed for.
    You compete with the chinaman, you live like the chinaman.

  88. Mannwich says:

    @Foghorn: “You compete with the chinaman, you live like the chinaman.”

    That might be the best line I’ve heard/read in weeks.

  89. call me ahab says:

    “You compete with the chinaman, you live like the chinaman.”

    dude- you are cracking me up

  90. @Mark E Hoffer:

    “I hear ya, it’s sad, though, this: “Go long, seeds, ammo, rice and beans.
    Oh, and I am an optimist.” is, actually, what built the Republic, and any other that we’ve ever heard of.”

    That is about the most prescient observation I’ve seen in a while. Indeed optimism built the Republic, but of the type that’s not seen today. Yesterday’s optimism was founded on the confidence that with alot of hard work and a bit of common sense (knowing how to make the most of your seeds, ammo, rice and beans), you could make a go of things–survival was the battle, not whether the 401K looked a bit skinny. Today’s optimists are either hoping for something from government, or are being paid by the government to say optimistic things. It wasn’t always thus, else there wouldn’t be a Republic.

  91. that’s the nut of it: Foghorn: “You compete with the chinaman, you live like the chinaman.”

    most people, even the “Austrians”@ mises.org, hate the assertion that one Imports the conditions the Goods were made under, as well, when they’re Importing the Goods..

    we’ll figure it out soon enough..

  92. Foghorn Longhorn says:

    Didn’t you see the latest Long John commercial, rice and fish, 350 calories, $5.00, a bargain at twice the price, I’m sure.

  93. The Curmudgeon Says: March 5th, 2009 at 4:51 pm

    Curmudgeon,

    Yes, that’s the way it looks from this end, as well.

    As R.E.M. reminded us, previously: “The time to rise has been engaged,
    You’re better best to rearrange”

    hopefully, we’ll keep some Musicians around, there’s a lot of work to be done..
    http://www.mp3lyrics.org/r/rem/

  94. Foghorn Longhorn says:

    Mark.
    most people, even the “Austrians”@ mises.org, hate the assertion that one Imports the conditions the Goods were made under, as well, when they’re Importing the Goods..

    Well our recent history and ancient for that matter, indicates that we either import the third world goods or import the third world people/slaves to make the goods here.

    Let’s see, should I shoot my right foot or my left foot.

    We are so screwed. And yes, I am still an optimist.

  95. Foghorn,

    it’s only too bad that we didn’t hear more of this guy last month..

    “a vivid portrait of Bishop Richard Allen (1760–1831), a tireless preacher committed to ending slavery and fostering equality for blacks in postrevolutionary America. Born a slave in Philadelphia, Allen converted to Methodism when he was 17 during a revival held at his master’s house. After obtaining his freedom, Allen helped to establish two of the most important black-led organizations in early America: the Free African Society, a benevolent organization, and Bethel Church, the birthplace of the African Methodist Episcopal (AME) Church, one of the most powerful African-American denominations in the United States. Although Allen is best remembered for his religious leadership, his work moved far beyond these circles. According to Newman, his ability to create independent black organizations as well as initiate a published discourse among free blacks established him as one of the nation’s founding leaders.”
    http://www.amazon.com/Freedoms-Prophet-Richard-Founding-Fathers/dp/0814758266

    and, worse, that today’s ‘whitefolk’, let alone most of darker hue, can’t even imagine why the ‘abolishionist’-message should resonate with them, and for them, today..

    though, as I mentioned earlier, we’ll figure it out, peep are a resourceful bunch–when they care to remember..

  96. willid3 says:

    i have what might be a really dumb question. why is it we can get into a real tizzy of a %5 drop in the market, but we barely notice when bankruptcy filings are up %31, or that wages are basically the same as they were in 2000 (or down some) , and with inflation, no better that the 70s.

  97. DL says:

    Andy Tabbo @ 4:09

    “I think March is going to be a very exciting month”.

    Let’s not go too far out on that limb, now.

  98. Ken H. says:

    Blue chips,…That’s funny BR. More like cow chips.

    Don’t forget dogs foghorn,…inverters, simple solar panels, batteries,…etc.

    Built a bike that recharges batteries, pretty cool.

    Seriously Lefty, why play any banks, probably have a better shot playing the lottery?

    Settle in, Taxpayers are born every minute, don’t you know?

    Anybody know where Tarangilo Monzillo lives? I want to show him my dogs.

  99. Andy Tabbo says:

    @DL…..Ha!

    I realize that we’ve seen some real fireworks for 18 months now….so when I say it’s going to be exiciting, I mean more wild than usual….I don’t think we’ll get October kind of wild, but I think we should see some very dramatic price action this month.