Archive for 2012

Stock World Weekly: Culture of Greed

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Sabrient Divers – 03/18/2012


Top 5 Divers

Stock Rating Analysis
ANR SELL Degradation in recent earnings and declining long term growth prospects are pushing Alpha Natural Resources lower and lower in our stack.
AIXG SELL A double whammy of reduced long-term expectations and recent significant declines in historical earnings result in Aixtron showing up on our Divers list.
ARTC STRONGSELL A consensus is building that ArthroCare is showing weakening near term and long term prospects.
CCL SELL Expectations for Carnival are decreasing along with projected valuation.
CCC SELL Analysts are lowering long-term growth expectations for Calgon Carbon, and showing agreement about short-term earnings declines as well.




Sabrient Risers – 3/18/2012


Top 5 Risers

Stock Rating Analysis
TA STRONGBUY The projected value for TravelCenters of America is still rising quickly even though past earnings have already improved significantly.
PRIM BUY Primoris is one of the top candidates projected to achieve both higher than previously projected earnings in the short run and a higher earnings growth rate in the long run.
TCK STRONGBUY The long term projected growth rate for Teck Cominco is rising, and this is happenening at a time when historical earnings have already increased significantly.
PGNX BUY The projected value for Progenics is still rising quickly even though past earnings have already improved significantly.
GCA BUY Projected value continues to rise for Global Cash Access while long term increases in earnings growth are also becoming more widely expected.




On March 17, Here Are 17 Charts Summarizing The US Energy Situation, And Open Thread

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Since at this late hour on March 17th, better known as St. Patrick’s day, the only type of Oxidation-Reduction reactions our readers are interested in are those involving the conversion of ethanol into carbon dioxide, and any extensive verbalizing would be largely lost, we have decided to commemorate this day with 17 charts pertaining to those other far more valuable combustible products, namely crude, gas, and everything else that powers modern society. Luckily, since the charts are self-explanatory, they will not interfere with whatever other activities are customary for this time of day. Also, please use this post as an open thread for AA rejects.

 

And the most important chart:

source: Goldman sachs





Greg Smith vs Goldman Sachs

Courtesy of ZeroHedge. View original post here.

Submitted by MacroAndCheese.

macroandcheese.org

 

When I read Greg Smith’s op ed in the New York Times my very strong impression was, “Nothing new here, so what, not worth reading.” That’s certainly true as far as I was concerned, but when a friend not in finance told me the contents of the editorial was a surprise, I thought I had better weigh in. I even feel somewhat duty-bound to do so, because I spent many years on the “sell side,” that is, at firms like Goldman Sachs.

In fact I started my career at Salomon Brothers, the setting of Michael Lewis’ “Liar’s Poker.” Lewis was three years ahead of me, and spoke to my training class, as mentioned in his book, around the time of the great crash of ’87. Anyone who thought Smith’s litany of complaints about Goldman Sachs were new or surprising has either not read Lewis’ book, or has forgotten the contents--which is fair enough, since the book was published more than twenty years ago.

For those of us who were working at Salomon Brothers when Liar’s Poker was published in 1989, the contents of the book came as no surprise. In fact, we all thought he nailed it. Salomon in the day was a rough and tumble place where foul language, sports analogies, and ruthless internal competition ruled every day. This was not a place for brainy professors to come to share their knowledge and help client CFOs benefit society. This was a place to out-sell the guy sitting next to you so you would get a bigger piece of the bonus pool at the end of the each year.

How you did that was your problem. The idea at Salomon then and at Goldman now is that you as a salesman have to make as many sales as you possibly can. That means you have to get your customer to like you so that he will want to trade with you. But for most of the products that Salomon sold (and Goldman Sachs sells), the products were OTC--over the counter. There is no commission per se, there is just the bid and offer price. So it’s not only a volume game, it’s also a price mark-up game. If you think your customer will pay 101 rather than 100 for bonds, you can offer
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Guest Post: We [Don’t] Take Care of Our Own

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Ben Tanosborn

We [Don’t] Take Care of Our Own

A generation ago Bruce Springsteen was socio-serenading us with what soon was to become the iconic song, “Born in the USA.”  And now, seven presidential elections later, he’ll likely be sending his message with the song, “We Take Care of Our Own.”

Although the message in 1984 was inconceivably misconstrued and misappropriated by conservatives then – Ronald Reagan, running that year for his second term in office, among them – this time around, as made visually clear in the video released a month ago, Springsteen is giving us the lyrics in his video underlined from beginning to end with a clear message: Ignore the words at your own peril. 

No hidden or subliminal message from the “Boss”. To most of us, it was clear in 1984, and it is clear today, what the laments were in post-Vietnam America… or what the dire struggles are today, both material and spiritual, all summed in the song with the missing “don’t”:

“Wherever this flag’s flown we [don’t] take care of our own”

No, Americans, singularly among people of the so-called First World, don’t take care of their own.  Half of America is in poverty, and few among the other half care or much give a damn about the situation, resorting to blaming it all on a lamentably greedy “one-percent.”  They prefer not to look in the mirror, naked… knowing full well how ugly they look in their obesity, exhibiting both, layers of fat and lack of cojones.

But if the civilian poor yells “help” but the cavalry stays home, as Springsteen tells us in his song… the culture in the military is quite different.  They do take care of their own.

Soldiering America dutifully lets you know that no American military member will be left behind; and the nation seems to find idiotic pride in such a vainglorious act… for at the end of the day, it’s all it is.  It is to honor the empire, the symbolism, and not for the love of the fallen or captured comrade at arms.  That’s the meaning in the military of “we take care of our own.”  Our soldiers are exempt from responsibility to anything they might do, any crimes they might commit against the yellow…
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Benzinga’s M&A Chatter for Friday March 16, 2012

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday March 16, 2012:

Sanofi to Acquire Pluromed

The Deal:
Sanofi (NYSE: SNY) and Pluromed announced Friday that they have entered into a definitive agreement under which Sanofi is to acquire Pluromed, a medical device company based in Woburn, Massachusetts. The acquisition is subject to customary closing conditions.

This acquisition reflects Sanofi’s commitment to bring innovative solutions designed to ease surgical procedures and improve patient outcomes.

Sanofi closed at $39.90 Friday, a gain of 0.18% on less than half the average daily volume.

Bell to Acquire Astral

The Deal:
BCE (NYSE: BCE) announced Friday that it has signed a definitive agreement to acquire all of the issued and outstanding shares of Montréal-based Astral Media and its leading specialty and pay television channels, radio stations, digital media properties and out-of-home advertising platforms in Québec and across the rest of Canada. Greatly strengthening Bell’s competitive position in the important Québec media marketplace, this transaction directly supports Bell’s strategy of investment and innovation in broadband networks and content.

Bell will acquire all Class A Non-Voting Shares of Astral for $50 per share, representing a premium of 39% based on Astral’s volume-weighted average closing share price on the TSX for the last five trading days, for a total consideration of approximately $2.8 billion. Bell will also acquire all Class B Subordinate Voting Shares for $54.83 per share, for a total consideration of approximately $151 million, and all Special Shares for a total consideration of $50 million.

Astral shareholders will vote on the transaction by May 25.

BCE closed at $40.06 Friday, a loss of 0.79% on slightly more than the average daily volume.

Hearing Renewed Chatter of AT&T Buyout of Leap Wireless

The Rumor:
AT&T (NYSE: T) to acquire Leap Wireless (NASDAQ: LEAP) for $15 per share, according to sources. The same rumor surfaced on January 3.

A spokesperson for Leap Wireless would not comment on the report. An AT&T spokesperson could not be reached for comment.

Leap Wireless closed at $10.10 Friday, a gain of 3.70% on slightly more than average volume.

Hearing Renewed Takeover Chatter in Nabors Industries

The Rumor:
Nabors Industries (NYSE: NBR) has…
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As Retail Sells, Central Banks Wave Gold In With Both Hands

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

As recent entrants in the gold market watched paralyzed in fear as gold tumbled by over $100 on the last FOMC day, on the idiotic notion that Ben Bernanke will no longer ease (oh we will, only after Iran is glassified, and not before Obama is confident he has the election down pat), resulting in pervasive sell stop orders getting hit, others were buying. Which others? The same ones whose only response to a downtick in the market is to proceed with more CTRL+P: the central banks. FT reports that the recent drop in gold has triggered large purchases of bullion by central banks in recent weeks. “The buying activity highlights the trend among central banks in emerging economies to buy gold, even as some western investors are losing patience with the metal. Gold prices have dropped 13.8 per cent from a nominal record high of $1,920 a troy ounce reached in September, and on Friday were trading at $1,655.60.” Well, as we said a few days ago, “In conclusion we wish to say – thank you Chairman for the firesale in physical precious metals. We, and certainly China, thank you from the bottom of our hearts.” Once again, we were more or less correct. And since past is prologue, we now expect any day to see a headline from the PBOC informing the world that the bank has quietly added a few hundred tons of the yellow metal since the last such public announcement in 2009: a catalyst which will quickly send it over recent record highs.

More on what was perfectly obvious to most except the propaganda pushers:

The Bank for International Settlements, which acts on behalf of central banks, has been buying significant quantities of gold on the international market amid falling prices, traders said.

 

According to several estimates, the BIS bought 4-6 tonnes of gold, worth roughly $250m-$300m at current prices, in the over-the-counter physical market last week, with purchases particularly strong at the end of the week. The total purchases over the past three or four weeks were likely to be as much as double that, the traders added.

 

In a note to clients this week, Credit Suisse referred to “aggressive central bank buying seen last Friday”.

Of…
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Ugly = Beautiful; Beautiful = Ugly: Ray Dalio On Deleveraging

Courtesy of ZeroHedge. View original post here.

Submitted by Econophile.

This article originally appeared on The Daily Capitalist.

I’ve been working on an article about the state of economic recovery and have been studying deleveraging, debt levels, bank balance sheets, foreclosures, and the like. So I was very pleased to find a long research piece put out by Bridgewater’s Ray Dalio on that topic. As readers may know, I am a fan of Dalio and I appreciate his often unique and out-of-the-box view of the markets and the economy. Bridgewater also agrees with my belief that the economy is heading for stagnation and decline this year.

Dalio’s piece was very disappointing because it was an incorrect look at how business cycles work and the role of deleveraging and the liquidation of malinvestment. It may actually lead one to make bad investment decisions.  Because Bridgewater’s macro economic forecast came to conclusions similar to mine, I had assumed that perhaps they had done a somewhat “Austrian” analysis, but now I question that. Again, as I mentioned in the above article, you don’t have to be “Austrian” reach similar conclusions, but they would have to look at indicators an “Austrian” would look at and interpret them in the same way.

Dalio’s article, “An In-Depth Look at Deleveragings” is apparently authored by him. It concludes that the best way to “deleverage” is a “proper” combination of debt reduction (defaults and restructurings) and debt monetization (monetary inflation). This is what he considers to be a “beautiful” deleveraging whereas deleveraging by debt reduction and austerity are “ugly.” The ugly ones cause recessions/depressions and deflation which is bad. Beautiful deleveragings minimize debt reduction and revive economies with monetary stimulation.

Unfortunately this is a very conventional view and it is wrong. 

I’m not going to get into the entire 31 page article, but he examines six historical events that supposedly exemplify “beautiful” and “ugly” deleveragings. They are the U.S. Great Depression (1930-1932), Japan (1990 to present), Spain (9/2008 to present), UK (1947-1969), and U.S. 9/2008 to 2/2009 (pre-QE). At the end he tackles an analysis of the Weimar hyperinflation. 

I’m not as familiar with the UK and Spain, but I am familiar with both U.S. events and the Weimar hyperinflation. Dalio unfortunately accepts the conventional wisdom of contemporary neo/Keynesian-Classical-Monetarist econometric analysis of these events and fails to understand most of the real causes underlying these crises.…
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“We Are This Far From A Turnkey Totalitarian State” – Big Brother Goes Live September 2013

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

George Orwell was right. He was just 30 years early.

In its April cover story, Wired has an exclusive report on the NSA’s Utah Data Center, which is a must read for anyone who believes any privacy is still a possibility in the United States: “A project of immense secrecy, it is the final piece in a complex puzzle assembled over the past decade. Its purpose: to intercept, decipher, analyze, and store vast swaths of the world’s communications as they zap down from satellites and zip through the underground and undersea cables of international, foreign, and domestic networks…. Flowing through its servers and routers and stored in near-bottomless databases will be all forms of communication, including the complete contents of private emails, cell phone calls, and Google searches, as well as all sorts of personal data trails—parking receipts, travel itineraries, bookstore purchases, and other digital “pocket litter.”… The heavily fortified $2 billion center should be up and running in September 2013.” In other words, in just over 1 year, virtually anything one communicates through any traceable medium, or any record of one’s existence in the electronic medium, which these days is everything, will unofficially be property of the US government to deal with as it sees fit.

The codename of the project: Stellar Wind.

As Wired says, “there is no doubt that it has transformed itself into the largest, most covert, and potentially most intrusive intelligence agency ever created.

And as former NSA operative William Binney who was a senior NSA crypto-mathematician, and is the basis for the Wired article (which we guess makes him merely the latest whistleblower to step up: is America suddenly experiencing an ethical revulsion?), and quit his job only after he realized that the NSA is now openly trampling the constitution, says as he holds his thumb and forefinger close together. “We are, like, that far from a turnkey totalitarian state.

There was a time when Americans still cared about matters such as personal privacy. Luckily, they now have iGadgets to keep them distracted as they hand over their last pieces of individuality to the Tzar of conformity. And there are those who wonder just what the purpose of the NDAA is.

In the meantime please continue to pretend that America is democracy


Here
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Zero Hedge

It's D-Day For The Repo Market: On Monday $100 Billion In Liquidity Will Be Drained - What Happens Next?

Courtesy of ZeroHedge View original post here.

Last week's apocalyptic report by repo market guru Zoltan Pozsar, which for those who missed it predicted that an imminent market crash and loss of control of overnight rates by the Fed would spark nothing short of QE4, sparked an unprecedented panic at the Federal Reserve, which just two ...



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Phil's Favorites

Litigation is the real reason financial reports are becoming harder to read

 

Litigation is the real reason financial reports are becoming harder to read

Courtesy of Mark Humphery-Jenner, UNSW

Westpac can expect a bumper turnout of shareholders at its annual general meeting in Sydney on Thursday, many of them angry at its alleged role in facilitating child exploitation in the Philippines, its 23 million alleged breaches of anti-money-laundering laws, and its initial ritualistic response to the allegations.

This included donating A$18 million to an anti sexual exploitation charity, followed by the ...



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Chart School

Funds are getting ready to move out of USA

Courtesy of Read the Ticker

Just before the hang over in the US equity markets, money will move and take their well earned gains else where. Here is why.

More from RTT Tv







Charts in video.

US is in the late cycle boom.

Click for popup. Clear your browser cache if image is not showing.




US stock market with the US dollar, they have risen together from 2012. A change of this will force money to move.


Cli...



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Kimble Charting Solutions

Euro Breakout In Play? Gold Bulls Sure Hope So!

Courtesy of Chris Kimble

The Euro has spent much of the past 2 years trading in a down-trend.

Though precious metals like Gold have fared well, this has been a bit of a headwind because it means that the US Dollar has remained firm.

Big Test In Play for the Euro

The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).

If the Euro can succeed in breaking out at (3), it would be bullis...



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Insider Scoop

8 Healthcare Stocks Moving In Friday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Sarepta Therapeutics, Inc. (NASDAQ: SRPT) stock surged 36.4% to $137.00 during Friday's pre-market session. The market value of their outstanding shares is at $6.1 billion. The most recent rating by Janney Capital, on December 13, is at Buy, with a price target of $175.00.
  • GlaxoSmithKline, Inc. (NYSE: GSK) shares surged 1.1% to $46.44. The market value of their outstanding shares is at $112.9 billion. According to the most recent rating by UBS, on November 21, the current rating is at Buy.
  • AstraZeneca, Inc. (NYSE: ...


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Digital Currencies

Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

Courtesy of ZeroHedge View original post here.

Authored by Kollen Post via CoinTelegraph.com,

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Dep...



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Members' Corner

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market

 

For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid worldview. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? How did it gain so much influence? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and partisan propaganda media strategies and tactics in his new book, ...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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