September Stock Talk IV

DRYS under 40 bucks.  Wow.

Yep..I guess selling a company at 1.5 times earnings is the norm in this market.

Every single bulker has been killed due to the drop in the BDI and that drop has been brutal. Unfortunately financial firms who were speculating/investing in the FFA area (rate futures) are exiting to preserve capital and for that banking deal coming up (bank holding status) so futures rates have been cratering, but futures rates are not charter rates.

I wont sell a company at half of book value and 1.5 times earnings, I buy those stocks..tired mantra but I am not selling.

  It is getting slaughtered. I guess the shorts have to short something, and now that they can't short the usual suspects, perhaps they have chosen DRYS among otehrs to really hammer???

 

Vermeer,

The market is shorting and selling now and they will sort it out later.

The theory is that rates are dropping artificially for these shippers, and that is true in the short term.

The problem is that this company is both diversified (they have an oil rig leasing division which is worth MORE than the current market cap of the entire company)  and they have locked in rates for 68% of their fleet this year, and over 50% of their fleet all the way to 2011, on top of the revenues from the rig leasing division.

The market is wrong, but I cannot say when they figure it out..I dont sell a stock making great money on the cheap, I buy those.

You will make your check out to JPMorgan or whoever they sell your loan to.

Basically it will be no different than now

Hat,

It will probably be sold to another company, not a big deal.

You will make payments to some other firm down the road.

Watch JPM come in and get WB retail assets for pennies on the dollar.

JPM is turning into the banking monster for the next 10 years.

WFC needs to step in on this WB debacle and be prepared to snatch it away from JPM.

Absolutely. It is just a matter of time  before Wachovia goes the way of WAMU they ught to get it over with as soon as possible.

WB getting the HAMMER, smells like WM doesnt it?

DOW up, NAZ bouncing but on my screen out of 20 stocks I have ONE positive.

I have the average stock on my 20 being down 4% or so, this shows that the RUT and the middle belly of the market is getting creamed today, while financials are up and some broad names but the middle of the market keeps getting smacked.

Stick a fork in em they are done....

I must have missed that article Wallstreet . . . you had to know there was something behind this selling off of the BDI.  Hopefully rates bottom soon.  Amazing this stock has lost 50% of its value in just a month. 

This market is crazy.

So far, so good.  First time in about 34,000 years, it seems, that I have kept a "long trade" alive over a weekend.

If no bailout package over the weekend, then this little gain in SPY Friday goes caput at Monday's open.  If there is a bailout package rammed up our asses this weekend, will close out SPY some time on Monday.

Have a very safe and nice weekend, everyone.  Enjoy the football.

CC,

Of course we dont like the bailout but I have to gulp and know that the consequences are too high of not acting.

sasquatches, you think that WB gets bot at that level? It sure seems that the "buyers" are waiting for implosion lately...I wonder if after the euphoric bounce that the stock resumes its death march?

Details!!!

Tell me what you see.

basically isn't the government making artificial demand on CDO's? Aren't there people who have capital to buy these CDO's already? If these assets are worth less than what we thought they were, more write downs would occur which will just recreate the whole mess again.

The issue is that the CDO market is illiquid. I dont know if this will help longer term, since people and fundies are still gun shy, and that is a very scary thought.  

WSC-

Terms are all over the internet.  Marketwatch has a decent summary.

"The Street" isn't going to like that "ONLY" 250 B is available right off the bat.  Tons and tons of strings attached for the rest of the 700 B.

Needless to say, the SP 500 is going to get throttled at tomorrow's open.  Where it goes from there will be 100% determined by how badly the manipulators want to terrorize shorts, but it probably won't matter, cause strong shorts aren't going to budge-----they know the US economy couldn't be in more of a shambles.

even if they are liquid, the banks are trying to sell the assets at an expensive price which wouldn't create any demand for buyers to buy all the assets.

ccl - if the Street wants more B's then they need to force the issue and put a bank under

on second thought, is there even enough B's out there? probably not

If this is the "bailout" I am a bit worried.

Taking some CDO's off the balance sheet and trying to free up the trading doesnt deal with the margin issues, or how banks can de-lever themselves.

Maybe the agencies need to make these instruments available to retail and smaller investors at reasonable prices...if the price were right I would buy some AAA CDO's on the cheap.