Sabrient Divers – 10/30/2010
by Sabrient - October 30th, 2010 12:00 am
Top 5 Divers |
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| Stock | Rating | Analysis | ||
| USG | STRONGSELL | USG has shown a significant decrease in recent earnings health, and analysts are also becoming increasingly skeptical about near-term prospects. | ||
| TXI | SELL | Degradation in recent earnings and declining long term growth prospects are pushing TI lower and lower in our stack. | ||
| UIL | SELL | A double whammy of reduced long-term expectations and recent significant declines in historical earnings result in UIL showing up on our Divers list. | ||
| AMT | STRONGSELL | Projected long-term growth for American Tower is going down, expected value is decreasing, and tough times are ahead. | ||
| STI | STRONGSELL | Expectations for SunTrust are decreasing along with projected valuation. | ||
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DiggSabrient Risers – 10/30/2010
by Sabrient - October 30th, 2010 12:00 am
Top 5 Risers |
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| Stock | Rating | Analysis | ||
| AMD | BUY | Projected value continues to rise for AMD while long term increases in earnings growth are also becoming more widely expected. | ||
| ALK | BUY | The projected value for Alaska Air is still rising quickly even though past earnings have already improved significantly. | ||
| RNT | BUY | Aaron Rents has shown a remarkable increase in projected value recently, with the majority of analysts expecting higher than previously expected earnings. | ||
| AA | BUY | The projected value for Alcoa is still rising quickly even though past earnings have already improved significantly. | ||
| AYE | BUY | Many analysts are expecting higher than previously expected long term growth from Allegheny Energy, and its near-term earnings outlook is also improving. | ||
Banzai7 Goes to the Rally (I only wish)
by Zero Hedge - October 29th, 2010 11:22 pm
Courtesy of williambanzai7
This is the Banzai7 open rally gear thread. If you can’t go the to tomorrow’s rally feel free to say it here!
If you need an emergency T Shirt or flyer design post your request…
More to follow…
WB7
Squeezed and Opting Out of Pensions?
by Zero Hedge - October 29th, 2010 10:00 pm
Courtesy of Leo Kolivakis
Ellen Kelleher of the FT reports, Squeezed Britons opt out of pensions:
Hundreds of thousands of Britons have taken a holiday from their personal pension contributions, in further proof of the severity with which household budgets have been squeezed by the economic downturn.
The latest data from HM Revenue & Customs show that contributions to personal and stakeholder pensions fell by more than £1bn in the 2009-10 tax year.
As many as 430,000 fewer UK residents put money away for retirement through these vehicles in the last tax period, a fall of 4.5 per cent, according to the Revenue’s estimates.
The decline in pension savings in the UK appears to be turning into a long-term trend. Since the 2007-08 tax year, as many as 730,000 fewer UK residents are putting money into personal and stakeholder pensions, while total pension contributions have dropped by more than £2bn, according to the Revenue’s data.
It showed that £18.2bn was contributed to private pensions, including personal pensions and stakeholders, in the 2009-10 financial year, down from £19.26bn during the previous 12 months.
Tom McPhail, head of pensions research with brokers Hargreaves Lansdown, attributed the shortfall to middle-class Britons’ tendency to favour short-term savings arrangements which have a more immediate impact on households’ bottom lines.
“When people are worried about job security, there’s a tendency to divert savings into shorter-term arrangements such as individual savings accounts, or to reduce mortgage debt,” Mr McPhail said.
Experts believe the losses underline the importance of the auto-enrolment rules, coming into force in 2012, which will see employers forced to pay into a private pension for their employees, or use the government’s new National Employment Savings Trust (Nest) pension scheme.
The minimum employer contribution will be 3 per cent of salary and employees will be enrolled once they earn about £7,500 a year – though they will pay contributions on earnings above roughly £5,700. Staff will put in a minimum of 4 per cent of pay up to a maximum salary of £33,500 in 2006 prices. Tax relief will add 1 per cent.
Nest will have an annual cap on contributions of £3,600 a year, and a ban on
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Democrats Are Running on Empty
by ilene - October 29th, 2010 9:12 pm
Democrats Are Running on Empty
By Joe Costello, Courtesy of The New Deal
Without meaningful reforms, our economy — and our politics — will continue to suffer.
New York, New York big city of dreams
And everything in New York ain’t always what it seems
You might be fooled if you come from out of town
But I’m down by law, I know my way around
Too much, too many people, too much
- Grandmaster Flash and the Furious Five
David Leonhardt has a piece in the New York Times on how the economy is hurting Obama and the Dems. It’s one of those articles that illustrates that when you’re reading the NYTimes, sometimes you need to check to see if you accidentally clicked over to The Onion. Two punchlines:
On the evening of Dec. 3 last year, the Bureau of Labor Statistics sent an advance copy of the next morning’s jobs report to the White House… It showed
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Democrats: ‘If We’re Gonna Lose, Let’s Go Down Running Away From Every Legislative Accomplishment We’ve Made’
by ilene - October 29th, 2010 8:57 pm
Democrats: ‘If We’re Gonna Lose, Let’s Go Down Running Away From Every Legislative Accomplishment We’ve Made’ | The Onion – America’s Finest News Source
By The Onion
WASHINGTON—Conceding almost certain Republican gains in next month’s crucial midterm elections, Democratic lawmakers vowed Tuesday not to give up without making one final push to ensure their party runs away from every major legislative victory of the past two years.
Party leaders told reporters that regardless of the ultimate outcome, they would do everything in their power from now until the polls closed to distance themselves from their hard-won passage of a historic health care overhaul, the toughest financial regulations since the 1930s, and a stimulus package most economists now credit with preventing a second Great Depression.
"There’s a great deal on the line, and we know it isn’t going to be easy for us," said Senate Majority Leader Harry Reid (D-NV), speaking from the steps of the Capitol. "But if we suffer defeat, we will do so knowing we cowered away from absolutely anything we produced that was even remotely progressive or valuable in any way."
"And we will keep cowering right up until Election Day," Reid continued. "From Maine to Hawaii, in big cities and small towns, we will collapse into a fetal position and refuse to take credit for our successes anywhere voters could conceivably be swayed by learning what we have achieved on their behalf."
Democrats are spending millions of dollars on a last-minute campaign to remind Americans how utterly spineless they are.
House Speaker Nancy Pelosi (D-CA) acknowledged the task would be difficult, but said Democrats would remain steadfast in permitting their opponents to deride the accomplishments of the $787 billion Recovery Act, even as the nonpartisan Congressional Budget Office reports that the 2009 measure has created millions of jobs.
It’s Time To Take Some Off The Table!
by markettamer - October 29th, 2010 8:15 pm
Very little movement this week. We are just shy of the April highs and the market appears to be looking for direction. Next week could provide several catalyst events to move the markets. The elections, the Fed Meeting and QE2 as well as the nonfarm payroll report on Friday. Mix all that up with the recent terror concerns and you could have a recipe for stock market movement. My sense is that we are going down after a nice run up.
QE DID NOT WORK IN THE U.K.
by ilene - October 29th, 2010 7:17 pm
QE DID NOT WORK IN THE U.K.
Courtesy of The Pragmatic Capitalist
Pardon the constant QE coverage, but this is by far the most important topic in the market these days so it’s important that we exhaustively research and hammer out the details on the program. During my research last night I came across this excellent paper out of Europe titled “Innocent Frauds Meet Goodhart’s Law in Monetary Policy“. It is one of the most thorough debunkings of QE I have come across. In this paper, they studied the QE program in the UK and came to important conclusions that are also applicable to the USA:
“An empirical analysis of the effect of reserves on lending was conducted; we do not find evidence that QE “worked” either by a direct effect on money spending or through an equity market effect. These findings are placed in a historical context in comparison with earlier money control experiments in the UK. Overall, we conclude that policies with serious flaws continue to be supported because of their link to powerful innocent frauds, which have great intuitive appeal and are widely upheld.”
This research confirms many of my personal findings thus far. QE did not boost lending, did not cause interest rates to decline and perhaps most importantly it did not have an equity market effect. From an operational perspective this can be confirmed because QE is merely an asset swap between the central bank and the primary dealers. Because it does not add net new financial assets, boost aggregate demand or influence interest rates substantially there is no reason for the program to influence the equity market. That is, unless, investors falsely believe the policy is expansionary or could drive equities higher. Eager buyers may drive prices higher, however, without a subsequent change in fundamentals there is no reason for the gains to last (because there was no fundamental reason for the gains in the first place).
I’ve attached a portion of the paper below, however, it’s certainly worth reading in its entirety. The evidence against such a policy is quickly mounting. In addition to the damning comments by Minneapolis Fed President Kocherlakota, the BOJ findings that QE does not boost aggregate demand or prices and my own work this is just one more clear case showing that QE is likely to be a non-event and is certainly no panacea for the economy…
Lewis Black on America’s Education System
by ilene - October 29th, 2010 6:34 pm
Lewis Black on America’s Education System
Courtesy of Joshua M Brown, The Reformed Broker
Lewis Black on America’s educational system and the upside of getting students some experience with lotteries.
Majestic.
| The Daily Show With Jon Stewart | Mon – Thurs 11p / 10c | |||
| Back in Black – Education Crisis | ||||
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Obama Statement On Rampant And “Credible” UPS Package Terrorism
by Zero Hedge - October 29th, 2010 6:12 pm
Courtesy of Tyler Durden
Maybe someone can ask the administration why they let the planes take off with “credible threat” packages take off instead of halting them on the ground… But that’s a question for the soon to be appointed terrorism czar. And after all, how else could they get footage of a landing aircraft to divert the people’s attention from the fact that US debt is now $13.7 trillion.
Good afternoon, everybody. I want to briefly update the American people on a credible terrorist threat against our country, and the actions that we’re taking with our friends and our partners to respond to it.
Last night and earlier today, our intelligence and law enforcement professionals, working with our friends and allies, identified two suspicious packages bound for the United States – specifically, two places of Jewish worship in Chicago. Those packages had been located in Dubai and East Midlands Airport in the United Kingdom. An initial examination of those packages has determined that they do apparently contain explosive material.
I was alerted to this threat last night by my top counterterrorism adviser, John Brennan. I directed the Department of Homeland Security and all our law enforcement and intelligence agencies to take whatever steps are necessary to protect our citizens from this type of attack. Those measures led to additional screening of some planes in Newark and Philadelphia.
The Department of Homeland Security is also taking steps to enhance the safety of air travel, including additional cargo screening. We will continue to pursue additional protective measures for as long as it takes to ensure the safety and security of our citizens.
ad_iconI’ve also directed that we spare no effort in investigating the origins of these suspicious packages and their connection to any additional terrorist plotting. Although we are still pursuing all the facts, we do know that the packages originated in Yemen. We also know that al-Qaida in the Arabian Peninsula, a terrorist group based in Yemen, continues to plan attacks against our homeland, our citizens, and our friends and allies.
John Brennan, who you will be hearing from, spoke with President Saleh of Yemen today about the seriousness of this threat, and President Saleh pledged the full cooperation of the Yemeni government in this investigation.
Going forward, we will continue to strengthen our cooperation with the Yemeni government to
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
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