Analysis Topic: Companies Analysis
The analysis published under this topic are as follows.
Thursday, October 30, 2008
Bank Bailout Cash Fuelling Buyout Deals and Not Loans / Companies / Credit Crisis Bailouts
By: Money_Morning
William Patalon III writes: While the U.S. government's plan to invest $250 billion into U.S. financial institutions has been billed as a strategy that will bolster the health of the banking system and also jump-start lending, the recapitalization plan is likely to have a secondary effect – one that whipsawed U.S. taxpayers likely won't be very happy to learn about. Read full article... Read full article...
Monday, October 27, 2008
U.S. Treasury Crams More Money Down Bank's Throats / Companies / Credit Crisis Bailouts
By: Mike_Shedlock
Bloomberg is reporting Capital One, Key Among 14 Banks Getting $31 Billion .
Fourteen regional U.S. banks, including SunTrust Banks Inc. and Capital One Financial Corp., accepted at least $31 billion in government cash as the Treasury rolled out the second half of its $250 billion package to shore up lenders and thaw frozen credit markets.
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Sunday, October 26, 2008
GE Needs Fed Bailout To Finance Operations; Dividend At Risk / Companies / US Auto's
By: Mike_Shedlock
GE is struggling to get short term financing at a price it wants to pay. So what does GE do? The answer is twofold: 1) Borrow from the Commercial Paper Funding Facility
2) Pretend this is a good thing.
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Friday, October 17, 2008
Investors Should Still Avoid Banking Stocks Despite Bailout / Companies / Banking Stocks
By: Money_Morning
Martin Hutchinson writes:
The $250 billion bank bailout announced Monday is a great improvement on the $700 billion Troubled Asset Relief Program (TARP). However, for those thinking of buying bank stocks on the back of it I would point out one thing: Once the government's plan to take equity stakes in troubled financial institutions is implemented, each of the 117 million U.S. taxpayers will have an average of $2,136.76 already invested. Read full article... Read full article...
Wednesday, October 15, 2008
Paulson's New Plan to Buy Equity Stakes in Banks and Unfreeze Credit Markets / Companies / Nationalization
By: Money_Morning
Jason Simpkins writes:
The U.S. government yesterday (Tuesday) announced plans to invest $250 billion, more than a third of the $700 billion congressional bailout allotment, into nine of America's largest banks in an effort to bolster confidence in the financial system. Similar to steps taken by European governments earlier this week , the government will guarantee new debt and take equity stakes in the participating banks. Read full article... Read full article...
Thursday, October 09, 2008
US Assets Depressed Investors Price in Worst Case Scenario / Companies / Stocks Bear Market
By: Brady_Willett
On August 14, 2008 Warren Buffett disclosed a position in NRG Inc. In reaction to this news the regular Buffett followers rejoiced, bid up shares of NRG, and awaited their fat returns. Shares have fallen 55% since August 27. Read full article... Read full article...
Thursday, October 02, 2008
GE Hovering Over Critical Long-Term Support / Companies / Stocks Bear Market
By: Mike_Paulenoff
I noted to subscribers yesterday that General Electric (NYSE: GE) continues to hover just above a critical long-term support plateau between 23.30 and 22.00, which if violated and sustained could trigger a powerful long-side liquidation that drives prices to 18.00-17.00 next.Read full article... Read full article...
Thursday, October 02, 2008
Major Insurance Company On Verge Of Bankruptcy: Senator Reid / Companies / Credit Crisis 2008
By: Mike_Shedlock
Bloomberg is reporting Hartford, Prudential, MetLife Credit Swaps Widen to Records .
The cost to protect against a default by Hartford Financial Services Group Inc., Prudential Financial Inc. and MetLife Inc. rose to record levels on speculation that the turmoil in financial markets may be spreading to insurers.
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Thursday, October 02, 2008
UK Company Business Bank and Savings Account Guaranteed? / Companies / Credit Crisis 2008
By: Nadeem_Walayat
Whilst individual savers continue to adjust to yesterdays announcement by the Prime Minister, Gordon Brown to extend the 100% guarantee to the first £50,000 for individual savers. However this is an apt reminder that the guarantee does NOT extend much of the business sector, the consequences of which are that corporate runs on banks occur as corporate depositors which amount to some £1.2 trillion seek to immediately withdraw funds from potentially failing banks.Read full article... Read full article...
Wednesday, October 01, 2008
Corporations Implodes, GE Credit Default Swaps Soar, Ford Sales Plummet / Companies / Credit Crisis 2008
By: Mike_Shedlock
MarketWatch is reporting U.S. Sept. ISM manufacturing index plunges to 43.5%
WASHINGTON - The nation's manufacturers cut back production at a much faster pace than expected in September, the Institute for Supply Management reported Wednesday. This is the lowest level since October 2001. The ISM index plunged to 43.5% in September from 49.9% in August. This is the biggest drop in the index since 1984. The drop surprised economists. The consensus forecast of estimates collected by Marketwatch was for the index to slip only a bit to 49.6%. Readings below 50 indicate contraction. The ISM index has been holding near 50 since the summer. The previous low this year was 48.3 in February. Economists said the ISM index was near recessionary levels.
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Wednesday, October 01, 2008
HBOS Risk on Speculation of Lloyds TSB Takeover Bid Resistance / Companies / Credit Crisis 2008
By: Nadeem_Walayat
The shotgun wedding at the behest of the FSA for the rescue of Halifax Bank of Scotland (HBOS) by Lloyds TSB less than 2 weeks ago for £12 billion at a price of £2.32 per share is coming under pressure as speculation grows that Lloyds shareholders are not happy with the price being paid for a near bankrupt mortgage bank. The current HBOS market price of £1.34 is near half of the original Lloyds TSB bid price. .
The news has not gone down well with HBOS customers who appear to have been inundating the HBOS online service which has been showing signs of cracking under the strain, an unknown number of customers which includes yours truly are being met by the following page when attempting to log-in:
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Monday, September 29, 2008
Promising Upside for Pfizer / Companies / Futures Trading
By: Mike_Paulenoff
I have looked at dozens of charts this morning, and one that pops out at me because it looks promising on the upside is Pfizer (NYSE: PFE). Let's notice that the price structure has put in significant work around the 17.00 area in the form of double-bottom lows in May and again in Sept. Since the 9/17 low, PFE has clawed its way up the right side of the pattern and is "threatening" to climb towards a test of key resistance at 19.30 and 20.00/20 to complete and confirm the pattern. A break below 18.00 will begin to compromise the timing of the anticipated upside test of the key resistance levels.Read full article... Read full article...
Sunday, September 28, 2008
US Banking Crisis Explained / Companies / Credit Crisis 2008
By: Money_Morning
Shah Gilani writes: How Complex Securities, Wall Street Protectionism and Myopic Regulation Caused a Near-Meltdown of the U.S. Banking System - [ In Part III of his three-story investigation of the credit crisis,Money MorningContributing Editor Shah Gilani details how the very complexity of the global financial system brought us to the brink of a total meltdown. In a special addendum tomorrow (Thursday), the former professional trader and hedge-fund manager will detail a banking-system overhaul that would immediately end the credit crisis - possibly without a single penny of taxpayer money.] Read full article... Read full article...
Saturday, September 27, 2008
Bradford & Bingley Nationalised Another UK Bank Wiped Out by Tulip Backed Securities / Companies / Credit Crisis Bailouts
By: Nadeem_Walayat
Bradford and Bingley's slow 12 month death march towards the same fate as Northern Rock finally looks set to have come to an end with expectations on Sunday that the beleaguered bank will be nationalised with a view to a break of the bank and liquidation of assets so as to cover in part the estimated £20 billion bailout cost that is required to fill the gap between assets and liabilities. The toxic mortgages will probably end up with the government owned Northern Rock bank which will increasingly be seen as the UK Governments Toxic Mortgage Dump where the tulip backed securities of further bank busts and partial bailouts will end up.Read full article... Read full article...
Saturday, September 27, 2008
Credit Crisis Truth: The Real Story Behind the Collapse of AIG / Companies / Credit Crisis 2008
By: Money_Morning
Shah Gilani: In Part II of his three-story investigation of the credit crisis, Money Morning Contributing Editor Shah Gilani shows us how American International Group, a perfectly sound company that's survived for 89 years, was destroyed by some errant bets on a derivative security called a “credit default swap,” or CDS. It's
a story you'll read nowhere else . Editor
There's nothing fundamentally wrong with the core insurance business units of American International Group Inc. ( AIG ). Nothing at all. What imploded the venerable insurance giant was an accumulation of misplaced bets on credit default swaps.
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Wednesday, September 24, 2008
Bernanke's Confidence Trick Game / Companies / Credit Crisis Bailouts
By: Mike_Shedlock
MSN Money is reporting Buffett takes a stake in Goldman
The world's most famous investor is betting that it's time to buy into one of the battered financials. Berkshire Hathaway's (BRK.A) Oracle of Omaha Warren Buffett said late Tuesday that he is buying a $5 billion interest in Goldman Sachs (GS), one of the two investment banks left standing amid the fallout of the mortgage crisis. Berkshire Hathaway gets a perpetual preferred stock that pays a 10% annual dividend, which takes precedence over other payments to common shareholders in Goldman.
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Tuesday, September 23, 2008
A Bounceback for the Mid-cap Energy Sector? / Companies / Oil Companies
By: Evan_Smith
In the first half of 2008, mid-cap energy stocks significantly outperformed their large-cap counterparts as investors prized the faster production growth found in many of the mid-cap names.
The trend line fell off abruptly at the beginning of July, when market sentiment for energy and other commodities underwent a dramatic change. Distressed hedge funds and other investors have scrambled for cash in the third quarter, and to get that cash, they have sold the best-performing stocks of the first half of the year -- energy stocks, and more specifically, mid-cap energy stocks that are challenged to absorb the selling pressure.
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Tuesday, September 23, 2008
$700 Billion Banking System Bailout Profit Bonanza? / Companies / Credit Crisis Bailouts
By: Money_Morning
Martin Hutchinson wites: With the exception of a few curmudgeonly old Republicans, there has been general rejoicing at U.S. Treasury Secretary Henry M. Paulson's $700 billion banking system bailout. Indeed, to hear some commentators you would think it was cost free - they explain joyfully that assets will only be acquired at a discount, so of course there is a good chance the taxpayer will not be out of pocket on the deal. Read full article... Read full article...
Tuesday, September 23, 2008
Bank of America Says "Paulson Bailout Plan Benefits Mostly Goldman, Morgan" / Companies / Credit Crisis Bailouts
By: Mike_Shedlock
Surprise, surprise, surprise. Guess who the Paulson plan benefits?Bank of America's top credit strategy analyst says Paulson Debt Plan May Benefit Mostly Goldman, Morgan .
Goldman Sachs Group Inc. and Morgan Stanley may be among the biggest beneficiaries of the $700 billion U.S. plan to buy assets from financial companies while many banks see limited aid, according to Bank of America Corp.
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Sunday, September 21, 2008
Lehman's Bankruptcy and the Hidden $138 Billion Bailout of JP Morgan / Companies / Derivatives
By: Rob_Kirby
We are living in heady times. On Monday morning, something VERY strange occurred:
$138 Billion Post-Bankruptcy JP Morgan Advance to Lehman; At Least $87 B Repaid by Fed
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