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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ValueWalk

System error blocked coronavirus stimulus checks from being sent to 26 states

By Aman Jain. Originally published at ValueWalk.

Discussions are still ongoing to finalize the next coronavirus package. If things go as per the expectations, we could have a stimulus deal next week and the IRS would start sending out the checks. Many, however, are still waiting for their first coronavirus stimulus checks, including those who didn’t get the payment due to an IRS system error.

Q2 2020 hedge fund letters, conferences and more

No coronavirus stimulus checks yet

As per an updated message on the IRS ...



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Zero Hedge

House Ethics Committee Finds Rashida Tlaib Violated Campaign Finance Rules

Courtesy of ZeroHedge View original post here.

Authored by Jack Philips via The Epoch Times,

The House Ethics Committee found Rep. Rashida Tlaib (D-Mich.), a member of the so-called “Squad,” violated campaign finance rules by receiving a campaign salary after she was no longer a candidate.

...



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Phil's Favorites

Why stock splits disappeared from our lives

 

Why stock splits disappeared from our lives

Courtesy of 

Apple is splitting its stock 4-for-1 in two weeks. What does it mean for you? What might it mean for the broader market? And why have stock split announcements become so scarce in recent years? Did something change?

The peak of the stock split era was from 1995 through 2000. Investors were buying stocks specifically because they were about to split. It was one of the dopiest aspects of an ...



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The Technical Traders

Melt-Up Continues While Metals Warn of Risks

Courtesy of Technical Traders

What a week for Metals and the markets, folks. The Transportation Index is up nearly 4% for the week.  The Dow Jones Industrial Average is up over 3% for the week.  Silver is up over 14% and reached a peak near $30 (over 23%).  Gold is up over 2.5% and trading above $2025 right now – with a peak price level near $2090.  If you were not paying attention this week, there were some really big moves taking place.

MELT-UP WITH HIGH RISKS – PAY ATTENTION

Overall, our research team believes the current “melt-up” price action is likely to continue as global investors continue to believe the US Fed will do everything possible to save the...



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Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



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Kimble Charting Solutions

Silver Headed Back To $50, Top Of The Cup & Handle Pattern?

Courtesy of Chris Kimble

Could Silver be creating a multi-decade bullish “Cup & Handle” pattern? Possible!

Did a retest of a handle breakout take place in March at (1), where Silver created one of the largest bullish reversals in decades? Possible!

Could Silver be creating a 40-year bullish pattern? Anything is possible! I humbly have to say share this; I’ve been in the business for 40-years and I haven’t seen anything like this.

Silver looks to have double topped back in 2011 at $50, which was the 1980 highs. After double topping, Silver ...



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Biotech/COVID-19

What the huge COVID-19 testing undercount in the US means

 

What the huge COVID-19 testing undercount in the US means

Health care workers use a nasal swab to test a person for COVID-19 in Pembroke Park, Florida. Joe Raedle / Getty Images News

Courtesy of Melissa Hawkins, American University

Researchers from the Centers for Disease Control and Prevention and other institutions recently published a study which estimated that the true number of people infected by COVID-19 could be six to 24 times high...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Sunday, 29 March 2020, 07:00:37 PM

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


Comment: Silver Shorts Are In a Bind | Ted Butler youtu.be/qQc0AoJp-Q8



Date Found: Monday, 30 March 2020, 05:21:45 PM

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


Comment: 5 Questions From You for Luke Gromen youtu.be/nVZD_fuxbQE


...

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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

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Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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About Phil:

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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