Category Archives: Uncategorized

Quote of the Day: Bruce Lee could’ve been a hell of an investor

 

Learn the principle, abide by the principle, and dissolve the principle. In short, enter a mold without being caged in it. Obey the principle without being bound by it. Learn, Master, Achieve.  Bruce Lee 

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Factoid: Securities Firms

 

From 1998-2008 Securities Firms contributed $512,816,632 to political campaigns AND spent $599,955,649 in lobbying efforts.

Source: openscrets.org

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R&D spending hangs tough as corporate revenues and profits fall

 r-and-d 

My Comment: Front page of the WSJ has an article discussing R&D spending for the 28 largest spenders.  Even though revenues are 7.7%, research and development spending is down less than 1%.  This is somewhat surprising because auto, semiconductors and pharma are big contributors among the top 28 firms.  This is a good sigh because R&D spending today will fill the innovation pipeline for the future growth.

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Porn star against the Financial Crisis

laura-peregoMy Comments: Where do I start?  I know the US porn industry earlier this year asked for a $5 billion bailout.  It was HARD for me to take it seriously.  This is a funny story about a Euroland porn protesting in front of the Milan Stock Exchange.  Before we judge, we need to see this young lady’s entire body of work!

 

 

 

 

 

 

 

 

 

 

 

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Where do I start with T.G. “NEW” Bad Bank Plan? It sucks!

3308770389_a305fcf9a3My Comments:

If the plan fails and investors default, who gets stuck holding the bag?  Taxpayers lose because the loans to buy the bad assets are non-recourse.  The investors (i.e. hedge funds, pension plans, ultra high net worth individuals) are putting up just a fractional amount of cash to purchase the bad assets.  By some estimates they are only investing 3-10% of their own capital, the rest comes from us.  The taxpayers have most of the “skin in the game,” not the private investors.  If the plan fails, the private investors will like just default on the money borrowed from the fed to purchase the assets, leaving the taxpayer high and dry. Continue reading

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Oracle pays dividend, Nike beats EPS by 20 Cents and Goldman shares over $100

Goldman Sachs is over $100 per share for the first time since October 2008.   After the market closed Nike announced it beat the quarterly earnings estimate by 20 cents. Oracle announced its first ever dividend of $.05 per share.  Does this mean Oracle’s war chest of cash won’t be used to make a blockbuster acquisition?

 

Don’t believe the hype on these positive headlines.  Announcements like these may push the market higher on Thursday’s opening, but these are the exceptions to the overall market, which remains weak.  Banks and consumer discretionary stocks have rallied over the last 7 trading days, but it shouldn’t last. General Mills disappointed by 8 cents on higher costs of ingredients and stronger dollar.  If the maker of Hamburger Helper and Cheerios is struggling, a larger portion of corporate America is hurting than the trading of the 7 days indicates.  Kraft, Heinz, Kellogg and ConAgra were down over 2% on the earnings report of General Mills.

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AIG to pay $165 million in bonuses

So the government has an 80% (approximately) stake in AIG.  Don’t worry though, AIG hasn’t been nationalized. I’m glad the CEO of AIG admitted the bonuses are “distastefully” but for legal reason he still plans to pay them. 

The President has publicly stated he wants the bonuses blocked.  The Attorney General of New York requested AIG provide additional details of the bonuses, but has yet to receive the information. 

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