Posts Tagged ‘Reggie Middleton’

Goldman’s $430 Target, Screaming Buy On Apple At Its All Time High Is In Direct Contravention To Reggie Middleton’s Logic – Who’s Right? Well, Who Has Been More Right In The Past?

Courtesy of Reggie Middleton, posted at Zero Hedge and originally posted at Reggie’s BoomBustBlog

368322 09: A car passes by the sign in front of the Apple offices Computer April 21, 2000 in Cupertino, CA. The company is one of many computer technology corporations situated in Silicon Valley. (Photo by David McNew/ Newsmakers).

Goldman has recently issued a strong buy recommendation on Apple, offering a $430 price target. I have been on record many times stating that Apples will be facing the toughest competition of its existence since Microsoft nearly put them out of business. This, of course, appears to be in direct contravention to the Goldman Sachs call which just happened to come out the day Apple hits its all time high. Being that Apple has more than its fair share of fans who ignore common sense, this is enough to set the stock on fire. The question still remains though, “Is Goldman right?” Goldman very well could be right, but not for the reasons most retail investors believe. Despite overwhelming evidence plus plain old history to the contrary, many investors and mainstream media outlets still take the sell side of Wall Street at their word. Sell side analysts are marketing arms for the brokerage sales force, the investment banking sales force and the traders who move inventory in and out of their respective banks. What they are not are wealth and strategy advisers for retail and institutional investors. Their historical performance clearly illustrates this, thus their is not need to take this entrepreneurial investor and blogger’s word for it. Well, for those of you who either don’t know of me or don’t know of Goldman, here’s a quick recap of Reggie Middleton vs. Goldman Sachs:

Who was more accurate concerning Google? Google’s 3rd Quarter Operating Results: The Foregone Conclusion That Was Amazingly Unanticipated by the Street!!! Monday, November 8th, 2010

Who was more accurate concerning Lehman Brothers, the Ivy league, ivory tower boys doing God’s work or that blogger with the smart ass mouth from Brooklyn?

Please click the graph to enlarge to print quality size.

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As a matter of fact, who was more accurate during the ENTIRE Asset Securitization and Credit Crisis of the last three years?  We believe Reggie Middleton and his team at the BoomBust bests ALL of Wall Street’s sell side research:…
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As I Have Anticipated, There is Absolutely No Fire in the Torch, Except for the One That’s Frying RIMM’s Share Price

As I Have Anticipated, There is Absolutely No Fire in the Torch, Except for the One That’s Frying RIMM’s Share Price

Courtesy of Reggie Middleton

So it has been a month and a week since turning bearish on Research in Motion, and after more than 100% gains in ATM options, a launch of the companies most pivotal product and the figurative obliteration of market share by competitors Apple and Android, Rethink Wireless reports:

After a burst of enthusiasm around RIM’s launch of its latest BlackBerry, the Torch, the firm’s shares have slid again, amid reports of disappointing initial performance. The Torch 9700, the first smartphone to run the company’s upgraded operating system, BlackBerry OS 6, is seen as RIM’s crucial device to fend off the rising attack on its market from Apple and Android.
But online retailer Amazon has already slashed the price of the device to $99, less than a week after the phone shipped in the US on August 12, with an AT&T exclusive. It will soon appear in some European markets with Vodafone. According to estimates from analysts at Stifel Nicolaus and RBC, as reported by The Wall Street Journal, the Torch has sold just 150,000 units since launch, compared to 1.7m iPhone 4s in the first three days of that handset’s availability (and despite ‘Antennagate’).

But at launch, many analysts questioned whether it was enough to move ahead of Apple, HTC and other companies currently leading the field – or merely a catch-up device for a range that had fallen well behind the cutting edge.

In a new research note, analyst firm Gartner says it believes the Torch will appeal mainly to traditional BlackBerry users in the business world, and stop them defecting to other smartphones, but is unlikely to attract new users. It may fare better in Europe, where the BlackBerry has been making significant progress in the youth market, depending on carrier pricing and marketing.

Shares in RIM have fallen steadily since the launch of the Torch, dropping almost $5 per share since August 12. One analyst downgrading the firm was Scott Sutherland of Wedbush, who moved shares from outperform to neutral and wrote in a client note: “We continue to believe that RIM’s strategic positioning in the enterprise, alignment with carriers, new products, and international expansion will allow the company to participate in the solid
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An iPhone 4 Recall Will Hurt Apple More By Opening Additional Oppurtunity for Android Devices Than Increased Expenses

An iPhone 4 Recall Will Hurt Apple More By Opening Additional Opportunity for Android Devices Than Increased Expenses

Courtesy of Reggie Middleton writing at Zero Hedge 

Apple has had a hell of a time with what is arguably its most important product release since the initial iPhone in 2007. The handsets have been plagued with spotty screens, combustible USB ports, signal strength measurement inconsistencies, and the most damaging of the issues – an ill-conceived antenna design that causes attenuation when held from the lower left had corner. Steve Jobs did the Blankfein (Goldman Sachs CEO, stating that the Wall Street bank was doing God’s work) imitation by opening his mouth when he shouldn’t have and said that users were “hold the phone the wrong way”. Not only that, but Consumer Reports just came out with a report stating that they can not recommend the buying of an iPhone until the antenna situation has been rectified, prompting speculation that Apple will be forced to recall millions of phones.

As a matter of fact, the review was rather poignant:

“If you want an iPhone that works well without a masking-tape fix, we continue to recommend an older model, the 3G S.”

Apple iPhone 4 antenna problem solution tape
One solution to the Apple iPhone 4’s antenna problem is to cover the lower left corner with tape.

As evidence of the danger of relying on “lifestyle” marketing (see An Introduction to How Apple Apple Will Compete With the Google/Android Onslaught)…

It is very easy to fall out of favor with the trendy crowd. While I doubt very seriously that Apple is in danger of doing this anytime soon, a massive recall will open the door for devices which are technically much more capable, flexible and open than the iPhone, ex. the Android powered HTC and Samsung devices. Basically, the danger to Apple here is not the expense of a recall, but the loss of mindshare and potential widening of the opening for some very capable competition – an opening that did not have to be there!

Don’t believe me, click the link to the consumer reports article and peruse the comment section…

Posted by: John |
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How the US Has Perfected the Use of Economic Imperialism

How the US Has Perfected the Use of Economic Imperialism Through the European Union!

Courtesy of Reggie Middleton

The IMF, like many other international institutions, asserts that it has a “preferred creditor status”, and this has been a practiced convention in the past. Thus, IMF has de facto seniority rights over private creditors despite the fact that there is no legal or treaty-based foundation to support this claim and this seniority of rights for IMF will continue under the recent EU rescue plan announced as well as it has not been noted otherwise implicitly nor explicitly. This is the reason why Sarkozy said it is a said day when the EU has to accept a bailout from the IMF (aka, the US). The EU now, and truly, contains a significant parcel of debtor nations.

To add fuel to this global macro tabloidal fire, the Euro members’ loan will be pari passu with existing sovereign debt i.e. it will not be considered senior. Although there is no written, hard evidence to support this claim, it is our view that otherwise there will be no incentive for investors to hold the debt of troubled countries like Greece, which will ultimately defeat the whole purpose of the rescue package. Moreover, there are indications that support this idea. As per Dutch Finance Minister Jan Kees de Jager, “We are not talking about a special preference for the eurogroup loans, that’s not possible because then you would have the situation that already-existing rights of creditors at the moment would be harmed.” (reference http://www.businessweek.com/news/2010-04-16/netherlands-excludes-senior-status-for-greek-aid-update1-.html). Of course, if more investors did their homework and ran the numbers, that same disincentive can be said to exist with the IMF’s super senior preference given the event of a default and recoverable collateral after the IMF has fed at the trough.

The ramifications:

IMF’s preferred creditor status coupled with the expensive Euro members’ loans which are part of the rescue package can create a public debt snowball effect that could push the troubled countries towards insolvency when the IMF debt becomes repayable in three years time. This could be seen particularly in case of Greece (subscribers, please reference Greece Public Finances Projections). Even if all the spending cuts and revenue raising are achieved as planned for Greece, its debt will peak to 149.1% of the GDP in 2013. Please keep…
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Smoking Swap Guns in EuroLand: Sovereign Debt Buyer Beware

Smoking Swap Guns in EuroLand: Sovereign Debt Buyer Beware 

Courtesy of Reggie Middleton’s BoomBustBlog.com

Inner court, Fleet

There are broad indications hinting that Italy and Greece are not the only countries that have used swap agreements to manipulate its budget and deficit figures. France and Portugal may be two other European economies which have resorted to similar manipulations in the past in order to qualify as part of single currency member nations (Euro Zone). Below is a small subset of the research that I have been gathering as I construct a global sovereign default model. This model is very comprehensive and thus far has indicated that quite a few (as in more than two or three) nations of significance have a 90% probability of defaulting on their debt in the near to medium term.

More on this later. Now let’s dig into what we have found that looks like gross manipulation of the numbers in order to hide debt in several European countries. I think I’ll call it the Pan-European Ponzi. Conspiracy theorists are going to love this post.

Like Italy (see below), Portugal has also been known for years to take advantage of derivatives contracts to dress up its budget numbers in the late 1990s. In a recent press article (Debt Deals Haunt Europe) Deutsche Bank’s spokesman Roland Weichert commented that the bank executed currency swaps on behalf of Portugal between 1998 and 2003. He also said that Deutsche Bank’s (DB) business with Portugal included "completely normal currency swaps" and other business activity, which he declined to discuss in detail. He also added that the currency swaps on behalf of Portugal were within the "framework of sovereign-debt management," and the trades weren’t intended to hide Portugal’s national debt position (yeah okay!).

Though the Portuguese finance ministry declined to comment on whether Portugal has used currency swaps such as those used by Greece, it said Portugal only uses financial instruments that comply with European Union rules. Thus, if the use of these instruments complied with


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Reggie Middleton on Suntrust’s Q3-09 Earnings

Courtesy of Reggie Middleton

For all of you momentum chasing, non-calculating, never touched a spreadsheet, CNBC luvin’, James Cramer watchin’ bulls out there, I have a feeling you will be hearing a lot of I told’ja so’s over the next 12 months. I express this in jest (yes, I’m a part time comedian), but there is a serious streak here as well. I believe the equity prices are soaring on top of near, or actually, insolvent companies.

Well, hopefully by now you have heard of the Doo Doo 32 (As I see it, these 32 banks and thrifts are in deep doo-doo!), of which Suntrust was a founding member. Well, they are even on the board of the The Doo Doo 32, revisited. Click the links, they’re worth the read. Since Suntrust reported today, I though I would go over some of the numbers but before I do let’s get the flavor from the main stream media…

 
 

SunTrust posts 3Q loss but sees some signs improve   22 Oct 2009  -  The Associated Press: ATLANTA – SunTrust Banks Inc. on Thursday posted a big third-quarter loss as it set aside more money to cover bad loans, but said the rate at which mortgages were slipping into delinquency slowed for the first time in a year.

The bank reported a loss of $377.1 million, or 76 cents per share, compared with a year-ago profit of $304.4 million, or 87 cents per share.

The latest quarter included charges of 16 cents per share related to the valuation of certain debt.

Analysts polled by Thomson Reuters, on average, forecast a loss of 65 cents per share. Analysts typically do not include one-time gains or charges in their estimates. #ff0000;”>Why don’t these analysts have thier banks part with a fraction of that record trading revenue (I’ll be getting to that in my next post) and subscribe to BoomBustBlog!?

Net interest income, or money earned from traditional banking operations like deposits, slipped slightly to $1.17 billion from $1.18 billion. Total deposits reached $114.5 billion, up 14 percent from last year.

The bank more than doubled its provision for loan losses — money set aside to cover souring loans — to $1.13 billion, from $503.7 million in the 2008 quarter.

Loans considered


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Phil's Favorites

Canada's Green Shift Could Displace Three-Quarters Of Oil Workers

Courtesy of Charles Kennedy, OilPrice.com

Canada’s climate strategy to significantly cut emissions and become a net-zero emissions economy by 2050 will create a seismic shift in the large oil and gas sector, where up to three-quarters of the workers, or up to 450,000 people, are at risk of displacement, TD Bank said in a new report on Tuesday.

Canada aims to become a net-zero emissions economy within three decades, and to cut emissions by between 32 percent and 40 percent by 2030.

While those commitments could be critical to staving off the worst effects of gl...



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Zero Hedge

Canada's Green Shift Could Displace Three-Quarters Of Oil Workers

Courtesy of Charles Kennedy, OilPrice.com

Canada’s climate strategy to significantly cut emissions and become a net-zero emissions economy by 2050 will create a seismic shift in the large oil and gas sector, where up to three-quarters of the workers, or up to 450,000 people, are at risk of displacement, TD Bank said in a new report on Tuesday.

Canada aims to become a net-zero emissions economy within three decades, and to cut emissions by between 32 percent and 40 percent by 2030.

While those commitments could be critical to staving off the worst effects of gl...



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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

The Biden Yellen team have made their play, and it is not US dollar friendly.

Janet Yellen speech named "International Priorities — Remarks to The Chicago Council on Global Affairs" (here) can be summed to (via Luke Gromen) :


The US is accelerating a move away from "subjugating the US middle and working class to support the USD", to "subjugating the USD to support the US middle and working classes".



Well the above is true, but as we all know large US deficits and the trend of the US dollar are joined at the hip, and that trend is down '...

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ValueWalk

2021 Sohn Investment Conference Featuring Einhorn, O'Shaughnessy And More

By Jacob Wolinsky. Originally published at ValueWalk.

The 2021 Sohn Investment Conference will be held virtually on May 12, 2021 and Valuewalk will be covering the event. Stay tuned for our in-depth coverage!

Q4 2020 hedge fund letters, conferences and more

Check out our coverage of the 2020 Sohn Hong Kong Conferences here.

All proceeds from The 2021 Sohn Investment Conference will be directed to Rockefeller University, which will provide unrestricted funding for scientists working on some of the highest-risk, highest-reward projects primed to advance the treatment of pediatric...



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Biotech/COVID-19

How worried should you be about coronavirus variants? A virologist explains his concerns

 

How worried should you be about coronavirus variants? A virologist explains his concerns

A COVID-19 patient in an ICU unit in a hospital in Capetown, South Africa, in December 2020. A variant emerged in South Africa that has since spread to other parts of the world. Other new variants could emerge elsewhere. Rodger Bosch/AFP via Getty Images

Courtesy of Paulo Verardi, University of Connecticut

Spring has sprung, and there is a sense of relief in the air. After one year of lockdowns and social distancing, mor...



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Politics

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

 

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

Russian police officers beat people protesting the jailing of opposition leader Alexei Navalny, Jan. 23, 2021 in Moscow. Mikhail Svetlov/Getty Images)

Courtesy of Shelley Inglis, University of Dayton

Russian dissident Alexei Navalny, sick with a cough and ...



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Kimble Charting Solutions

Gold; Load Up The Truck Upon Hitting This Level

Courtesy of Chris Kimble

Gold has created lower highs since peaking last summer. Is Gold near a low? Where would a nice entry point come into play?

This chart looks at Gold ETF (GLD) on a weekly basis over the past few years. GLD hit the top of this rising channel at (1) last summer, as it was above moving averages and relative strength was hitting lofty levels.

The decline over the past 7-months has GLD creating a death cross. Warren Buffett sold his Gold holding before this death cross took place!

Where would one want to pick up some GLD at a nice risk/reward price point?

If GLD reaches rising channel support at (2), w...



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Digital Currencies

How nonfungible tokens work and where they get their value - a cryptocurrency expert explains NFTs

 

How nonfungible tokens work and where they get their value – a cryptocurrency expert explains NFTs

NFTs can be used to prove who created and who owns digital items like these images by the artist Beeple shown at an exhibition in Beijing. Nicolas Asfouri/AFP via Getty Images

Courtesy of Dragan Boscovic, Arizona State University

Takeaways

· Nonfungible tokens prove ownership of a digital item – image, sound file or text – in the same way that people ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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Promotions

Phil's Stock World's Weekly Webinar - March 10, 2021

Don't miss our latest weekly webinar! 

Join us at PSW for LIVE Webinars every Wednesday afternoon at 1:00 PM EST.

Phil's Stock World's Weekly Webinar – March 10, 2021

 

Major Topics:

00:00:01 - EIA Petroleum Status Report
00:04:42 - Crude Oil WTI
00:12:52 - COVID-19 Update
00:22:08 - Bonds and Borrowed Funds | S&P 500
00:45:28 - COVID-19 Vaccination
00:48:32 - Trading Techniques
00:50:34 - PBR
00:50:43 - LYG
00:50:48 - More Trading Techniques
00:52:59 - Chinese Hacks Microsoft's E...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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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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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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