Posts filed under “Valuation”

Sell Rating on Brokers

Note: This was written Sunday, and scheduled to post later this week — but given the Lehman news, its more timely this AM:

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We have been discussing some of the issues surrounding the brokers. We have had an "AVOID" on the sector for the past 2 years (due to balance sheet concerns), and we reiterated a sell on Lehman Brothers (LEH) last week for due to Technical factors. (My pal Charlie Gasparino disagrees with me on this).

Research from Portales reveals the some of the details regarding exposure to further write-downs.

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click for larger table

Brokers_major_asset_class_writedown

Source: Portales

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I do not have high expectations for sector earnings in Q2’08, with more write-downs of RMBS, weak underwriting activity, and questionable trading returns.

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Previously:
Dirty Tricks at Lehman? (June 2008) 
http://bigpicture.typepad.com/comments/2008/06/dirty-tricks-at.html

Related:
Lehman Set To Raise $5 Billion Amid Losses (WSJ)
http://online.wsj.com/article/SB121296377617855623.html

Lehman Sheds at Least $120 Billion of Assets to End Bear Stigma (Bloomberg)   http://www.bloomberg.com/apps/news?pid=20601087&sid=aUaJYcbwzbjI& 

Where Will U.S. Banks Beg Next? (WSJ)
http://online.wsj.com/article/SB121296970442155821.html

Category: Corporate Management, Credit, Derivatives, Earnings, Valuation

Lehman posts Jumbo $3B Loss; To Raise $6B

Category: Corporate Management, Earnings, M&A, Valuation

Follow Analysts at Your Own Financial Risk

Category: Earnings, Trading, Valuation

Herb Greenberg’s 5 Simple Lessons

Category: Earnings, Financial Press, Investing, Legal, Valuation

Odd Data Point: Tech Passes Finance in SPX

Category: Earnings, Finance, Index/ETFs, Markets, Valuation

Buffett Sees ‘Plenty’ of European Acquisition Targets

Huge, nearly an hour long Buffett video, via Bloomberg:

click for  l o n g  video
Buffett_euro_ma

Billionaire Warren Buffett speaks at a news conference in Frankfurt at the start of a four-city European tour about his investment strategy and plans to add European companies to the portfolio of his investment and holding company Berkshire Hathaway Inc. Eitan Wertheimer, president of Israel’s Iscar Metalworking Cos., also speaks.

See also:  Buffett’s Shopping Trip to Europe Draws a Crowd

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Source:
Buffett Sees ‘Plenty’ of European Acquisition Targets: Video
Bloomberg, May 19 2008

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1JKvEK68ZUU

Category: M&A, Valuation, Video

S&P500 Profits Ex 3 Oil Cos = Awful

Category: Earnings, Energy, Valuation

Confessions of a Short Seller

Category: Psychology, Short Selling, Trading, Valuation

Only 5% of Wall Street Recommendations Are “SELLS”

Category: Investing, Psychology, Valuation

Oil Bubble?

Category: Commodities, Earnings, Energy, Psychology, Technical Analysis, Valuation