Posts filed under “Short Selling”

Bove: Fed Rescue for Bear Stearns

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"The Federal Reserve’s
actions today may have been strongly influenced by Bear Stearns’
problem."

-Dick Bove, Punk Ziegel & Co.

Go figure: This morning’s announcement by the Fed seemed to be designed to help the
brokers and their fixed-income hedge fund clients who were struggling
– so said Brad Hintz, Bernstein Research covering the Financials. (we noted similar sentiment here)

He’s not the only one. Influential Bank/Broker analyst Dick Bove of Punk Ziegel (quoted above) specifically mentioned Beat Stearns (BSC) as the beneficiary of the Fed’s largesse.

According to Marketwatch: "Bear’s stock dropped 11% on Monday on concern that its borrowing costs
are rising. For a brokerage firm, which relies on steady access to
financing, such disruptions can restrain its businesses and leave it at
a disadvantage to financially stronger rivals."

Pretty wild stuff — $200 Billion in Fed lending against junk paper, to bail out one mid-size investment bank.

And the market’s reaction: Dow up 3.55% (417 points), Nasdaq +4% or more than 86 points, S&P500 up 3.7% or 47 points 

Ain’t Socialism grand?

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Source:
Fed action may have targeted Bear Stearns   
Alistair Barr, MarketWatch
MarketWatch 3:57 p.m. EDT March 11, 2008
http://tinyurl.com/2m4nv5

Category: Credit, Derivatives, Federal Reserve, Markets, Short Selling

Batten Down the Hatches!

Several weeks ago we discussed the likelihood of a tradable low being put in place. On January 23, 2008, we thought conditions were in place that would allow agile traders to play for a bounce — but advised that long-term investors avoid the sloppy tape. At that time, we suggested an 8, 10, or 12%…Read More

Category: RR&A, Short Selling, Trading

The Monolines Are F#@%ed!

Category: Corporate Management, Credit, Derivatives, Short Selling, Taxes and Policy

Fannie Mae: Ouch!

Category: Corporate Management, Credit, Derivatives, Earnings, Short Selling, Technical Analysis, Trading

Fannie Mae Looks Like Hell

Fannie Mae’s fuzzy math: Fortune magazine reported that the lender changed the way it discloses bad loans, which could be masking rising credit losses. “Investors might want to take a closer look at Fannie Mae’s latest earnings report. Lost in the unsurprising news of the mortgage lender’s heavy losses was a critical change in the…Read More

Category: Corporate Management, Credit, Derivatives, Short Selling, Valuation

Ursine !

Category: Markets, Psychology, Short Selling, Trading

Yeah! We’re #79! (of 83 global bourses)

Category: Investing, Markets, Short Selling

NYSE Short Interest Hits New High

Category: Data Analysis, Markets, Psychology, Short Selling, Technical Analysis

Can You Judge a Homebuilder By Its Book Value?

Category: Data Analysis, Investing, Real Estate, Short Selling, Technical Analysis, Valuation

Are Hedge Funds Ruining Traditional Sentiment Readings?

Category: Markets, Psychology, Short Selling, Technical Analysis