Category Archives: stocks

E*Trade: In Defense of Prashant Bhatia

Just as one shouldn’t shout "fire" in a crowded theater, one shouldn’t shout "run on the bank" in an analyst’s report. If you do that, as Citigroup’s Prashant Bhatia notoriously did in his report on E*Trade, you risk your report … Continue reading

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Mystery Stock Update

On Monday I wondered what stock could possibly have been worthless at the end of 2005, but worth $14 million at the end of 2006. A very loyal reader (really: the name on the comment is "averyloyalreader") pointed out that … Continue reading

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Rio Tinto Won’t be Independent for Long

When mergers get mooted, the stock-market reaction is generally predictable: the stock of the target company rises, and the price of the would-be aquirer falls. In the case of the latest proposed mining mega-merger, the stocks followed most of the … Continue reading

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Whole Foods Board Wimps Out, Exonerates Mackey

When the world found out that John Mackey, the CEO of Whole Foods, was a sockpuppet hyping his own stock on internet message boards under an assumed name, it was clear that he should resign immediately. Instead, the Whole Foods … Continue reading

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Bleg: Looking for a Free-Float League Table

Companies like PetroChina and Google, which have a very small free float, have been getting a lot of press for their enormous market capitalizations. Does anybody have a league table of the most valuable companies in the world by value … Continue reading

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What is a Deferred Tax Credit Noncash Charge, Anyway?

The NYT is a general-interest newspaper, which should be comprehensible to a broad reading public. And certainly me. But even the NYT can’t seem to explain clearly what’s going on at GM. What does this mean? DETROIT, Nov. 7 — … Continue reading

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Citigroup Datapoint of the Day

Floyd Norris: We may be approaching a time when Citi’s stock would do better if it did eliminate the dividend… Such a cut would save the company $10.8 billion a year. As it happens, that is just about the amount … Continue reading

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Name That Stock!

Two years ago, a benefactor donated a slug of stock to the Boys and Girls Club of Pittsfield, Mass. Back then, it was "basically worthless," according to John Donna, the club’s president. In December 2006, that stock was sold for … Continue reading

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China Datapoint of the Day

Value of PetroChina on Friday: $456.6 billion. Value of PetroChina on Monday: $1.004 trillion.

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Citi: Looking Weak

Never mind the Rubin news; that was all but a given. And the Bischoff news is not that much of a big deal either: the chap is the classic safe pair of hands who will be competent enough at managing … Continue reading

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Investment Banks: Much Room to Fall Further

Floyd Norris has a chart today which puts the recent share-price drops at Merrill, Citi, Bear and the like in context. Yes, they’re down from their highs, but the broker-dealers in general have massively outperformed the rest of the stock … Continue reading

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Markets: Still Inexplicable

You may or may not be aware that stocks are down quite a bit this morning, and, as ever, no one really has the foggiest notion why. David Gaffen, in a market round-up headlined "What Is Going On Around Here?", … Continue reading

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Beware Fund Managers Claiming Trading Prowess

Mark McQueen of Wellington Financial is patting himself on the back for staying long Goldman Sachs during the dark days of this summer. "Goldman was the trade of the year," he tells us, in a prime example of the bias … Continue reading

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Subprime: It’s Still Really Bad

Countrywide shares gained more than 32% today: that must mean the market thinks the subprime crisis is over, right? Not at all. For one thing, today’s close of $17.30 a share puts the company’s share price at pretty much exactly … Continue reading

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The End of the Merrill Myth

There is absolutely no silver lining to the $8.4 billion in writedowns that Merrill Lynch announced today. Merrill is being hit from all sides: sell-side analysts, on the conference call; journalists; ratings agencies; and, of course, the stock market. Dana … Continue reading

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Apple Datapoint of the Day

Apple’s market capitalization, @ $186.55/share: $162.23 billion. IBM’s market capitalization, @ $114.00/share: $157.32 billion. Yes, it actually happened: Apple is now worth more than IBM. Still hasn’t caught up to Google, though.

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The Citic Flip-Flop

On Friday, things seemed clear enough, with Citic issuing a clear denial that it would take an ownership stake in Bear Stearns. China Citic Bank, meanwhile, also denied that it was in talks to buy a stake in Bear Stearns. … Continue reading

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Wall Street vs Blogs, Analyst Edition

Bernstein Research media analyst Michael Nathanson is worried about "a new paradigm in how financial markets get information and how that information impacts our markets". He’s been putting out all this research about NewsCorp and MySpace, you see – but … Continue reading

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What is the Point of a Price Target?

What is a price target, and what is it for?
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Adventures in Technical Analysis, Citigroup Edition

David Gaffen notes today that Citigroup shares are now trading at a 2-year low of $43.97 per share. He then quotes this wonderful piece of advice from technical analyst Joseph Hargett: The $45 level “has not been breached on a … Continue reading

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China Datapoint of the Day

Eight of the 20 biggest public companies in the world, by market capitalization, are Chinese. The US has just seven of the top 20. To put it another way, China Mobile is worth more money than Microsoft, and China Life … Continue reading

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$6.66: The Number of the BEAS

Dana Cimilluca notes that Oracle is offering $6.66 billion exactly for BEA Systems, whose ticker symbol is BEAS. He asks whether this is a coincidence. The answer is that no, it isn’t. It’s another instance of tech CEOs being cute, … Continue reading

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Boeing’s Fastener Slowdown

Boeing doesn’t seem to be going into much detail about the "parts shortages" which have delayed the rollout of its new 787 Dreamliner by six months. But Jeff Matthews talked to a Boeing supplier a couple of weeks ago, who … Continue reading

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Stocks: The Hunt for Causality

It’s another day of volatility in the Dow, with an intraday movement of 200 points from high to low in the space of about 90 minutes. Barry Ritholtz is hunting for causality: is it something to do with the oil … Continue reading

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Bank Stock Datapoint of the Day

On Tuesday, shares in Goldman Sachs closed at a new record high of $239.20 per share. Goldman stock has risen by more than 50% from its August lows – a trajectory, says, Helen Thomas, "we’re more accustomed to seeing on … Continue reading

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