Financial

  • More thoughts on Fannie and Freddie-

    U.S. plan to save Fannie and Freddie

  • AIG - Not good- Isn't this the 2nd CEO they've canned in the last couple years? Billions in losses and an SEC investigation... and most damning of all, this chart. I did this chart as part of a personal project as I have policies with this company. AIG had a monthly close below the last vestige of what could be called major support. That resistance zone will not be overcome any time soon. This is a scary chart that tells us the 'credit crisis' - as the media likes to call it - is far from over.

  • Thornburg Mortgage (TMA) Turnaround- As any reader of the AMP site or book knows TMA was on our avoid list. We are all looking for a change in the market. Then we will acquire a position over time - providing that the turn/trend continues and the stock performs as expected. The bottom of a market is led by financials. Today, in the face of more weak data TMA reported improved fortunes and a positive outlook. I see this as a change in the fortunes of the Company and have purchased a small position - 100 shares at $12.02 U.S. I am looking to Thornburg having signalled that it will be one of the survivors in the mortgage business - and as such it will benefit from : 1) the loss of many of its competitors 2) the lower financing charges as a result of Fed rate cuts 3) the financial institutions it deals with will have the confidence to provide funds to TMA because it has a strong balance sheet and a business plan and management that has proven itself. Jeffries analyst - interviewed on CNBC Upgraded TMA to a buy Company is focused on ultra high end borrowers
  • PIPES in 2007-

    Rodman and Renshaw, LLC was ranked numero uno (#1) for the most active investment bank while Enable Capital Management ranked as the number one most active institutional investor in the PIPE market in 2007.

    From Sagient Research comes the following information for the PIPE market for 2007:

    • Sichenzia Ross Friedman Ference, LLP ranked as the number one most active issuer counsel
    • Schulte Roth & Zabel, LLP ranked as the number one most active investor counsel in the PIPE market in 2007.
    • PIPE market with a total of $83.59 Billion raised in 1,434 transactions. 2007 is the fourth consecutive record-setting year in the PIPE market.

    PlacementTracker, a flagship product of Sagient Research Systems, is well recognized as the leading provider of research, data, and analytics covering the PIPE market.

  • Thornburg Mortgage ( TMA) Turnaround- As any reader of the AMP site or book knows TMA was on our avoid list. We are all looking for a change in the market. Then we will acquire a position over time - providing that the turn/trend continues and the stock performs as expected. The bottom of a market is led by financials. Today, in the face of more weak data TMA reported improved fortunes and a positive outlook. I see this as a change in the fortunes of the Company and have purchased a small position - 100 shares at $12.02 U.S.
  • Can You Handle the Truth?- Uh oh! You’ve learned so much about FOREX trading and you've gone so far loosing Money and tired of Seminars, and yet nothing to show of. No, you’re not dumb, BUT you didn’t have a trading plan. My point is that you can fill your mind with plenty of information, but without a good trading plan and the discipline to stick to it, you will NEVER be profitable.
  • Which Banks are Buys Now ?- On Wednesday, January 23rd ,U.S. stocks rallied the most in two months on speculation lower borrowing costs and a plan to bail out bond insurers will restore confidence in the financial system. Be cautious but the banks are the third group ( see yesterdays letter in the archives as to gold and oil ) that will profit from the lower rates. Simply stated ,they will pay less for deposits - compared to the rates they charge on loans they make. Free Money
  • All About Resets In Housing as Numbers Get Worse- When I saw the new numbers from S&P’s S&P/Case-Shiller home price index yesterday I wasn’t all that surprised. I suspect my readers were not surprised either. For those that are not familiar, the Case-Shiller Index is a closely followed metric of U.S. home prices (See a PDF summary of the report). It shows that prices are falling sharply across most of the nation. This obviously is putting more pressure on the consumer.
  • Could Aon’s Board of Directors Be the Real Force Behind its Sell-Off, Buy-Back Strategy?- In a new strategic plan that seems tailored for reassuring investors on Wall Street, Aon Corporation (NYSE: AOC) announced late Friday that it intends to sell off two of its business units for $2.75 billion so that the company can use the proceeds for a stock buy-back program.
  • A Wide Moat Gem - Fidelity National Finance- Regardless of market conditions research continues. In times like these we are ever updating our list of interesting stocks and preparing when the proverbial “Fat Pitch” crosses our path. One stock of particular interest is Fidelity National Finance (FNF). Fidelity is at the pinnacle of companies in the title reinsurance field. It is one of top 5 with approximately a 28% share of the US market. Title insurance is a very interesting type of insurance that is used in almost all real estate transactions.
  • Fed will cut rates again-

    More Rate Cuts to Come - and this belief will help carry the market higher

    The Fed has an academic focus - or at least was accused of being too academic. By that , critics meant it was uninterested in the turmoil of the real world of foreclosures and credit collapse. The action of the.50 % point cuts on Tuesday give a signal that the fed is aware and active in the real world.

    Now the " worry " and talk on CNBC will focus on the next Fed meeting and the direction of Fed bias.