Charmin Posted April 10, 2007 Report Share Posted April 10, 2007 SCHN - Schitzner steel - new all time high. http://www.StockSharePublishing.com/ChartL..._1176174524.png Link to comment Share on other sites More sharing options...
Guest smsc Posted April 10, 2007 Report Share Posted April 10, 2007 Once again, the PigMen are making Vast Fortunes via the Prop Desks. No sooner than Matt Simmons appears on FSO this weekend, proclaiming "Peak Oil" and other assorted "crises" coming down the pike, the crude oil contract was bashed for a whopping $2.90 today.? Pretty much an all-out massacre. And, of course, Tim Wood comes on bleating about the much advertised, highly anticipated, oft discussed "4-year cycle top", yet the Plutocrats pushed the NYA today right back up to the highs. Will it hold?? Or will it break? No doubt, a correction is due now.? But its pretty funny to see the PigMen do these "In Your Face" bullying moves. Of course, reaping these fantastic trading profits enables them to afford even more lavish gifts and luxuries, such as expensive, over-the-top handbags and watches. In fact, you might was well use the price of high-end watches, "The Watch Index" to gauge the mood and the wealth of the PigMen and Plutocratic Elite. But first, look who is one of the highest paid CEO's on the planet..... Excerpts from yesterday's NY Times The richest paydays are supposed to be reserved for Wall Street titans, oil barons and banking moguls. So what is a handbag maker doing atop the list?? Lew Frankfort, 61, the chief executive of Coach, earned $44.4 million last year, putting him in the same league as the chiefs at much bigger companies, like Goldman Sachs and Occidental Petroleum. In fact, his pay was about twice as much as the head of Citigroup, the financial giant. Here?s the unusual part: almost nobody objects. Over the last five years, under Mr. Frankfort?s leadership, Coach?s earnings rose to $494 million from $64 million and its stock price jumped to $51 from $6. Coach also developed a cult-like following among fans of cushy items like leather iPod covers and key fobs. Given a soaring stock price and an enviable line of products, Mr. Frankfort is unapologetic about hauling in tens of millions of dollars. ?I believe that my role as the visionary and the leader is worth? the pay, he said in an interview. ?Absolutely ? I do not feel uncomfortable with it.? 574651[/snapback] If CEO pay is rising at 10 times the rate of the generic worker, why doesn't anyone get the idea of outsourcing CEO jobs or having H1-Bs take their place? Tech workers wages have not risen more than 2% a year in 7 years. If there was really a "tech worker gap" then salaries would rise until all of the 30 and 40 year old who gave up on tech and started their businesses would come racing back to tech-land. Anyway...MEGA-freaking-URANIUM!!!!! Up 27% today. Now my number one holding! Link to comment Share on other sites More sharing options...
wndysrf Posted April 10, 2007 Author Report Share Posted April 10, 2007 Uh-Oh...... "I told you not to buy stock with your credit cards!!" Link to comment Share on other sites More sharing options...
shorty Posted April 10, 2007 Report Share Posted April 10, 2007 AAPL is a bloated windbag about to burst close below 92 will cause sudden collapse Link to comment Share on other sites More sharing options...
Peek Paper Posted April 10, 2007 Report Share Posted April 10, 2007 Gross fun read.? Mauldin's touting Bill Gross's latest epistle, which isn't even on PimpCo's site yet.? Oooo Gross! his vizaids: 574725[/snapback] On the one hand, we have the reality of lower interest rates that will be necessary to re-re-re-invigorate the economy (perpetual recession dogma) ... On the other hand, we have higher interest rates necessary to fuel the inflationary fires that will shrink the public debt, right the wrongs of all debtors, and shport the shills and kriminals of Paulson and Sachs, Inc. Blue pill ... Bluer pill .... Nobody will payback the debt (red pill) and fill the rabbit hole ... Ross Perot maybe, 2 decades ago. And I really say maybe ... freakin' nut case. No matter. No immediate threats to nuclear annihilation out there tonight. Link to comment Share on other sites More sharing options...
Brisbane Bear Posted April 10, 2007 Report Share Posted April 10, 2007 If the Orbs is anything to go by,I think you will see a couple hundred points up on the Dow.. Link to comment Share on other sites More sharing options...
Charmin Posted April 10, 2007 Report Share Posted April 10, 2007 DBC commodity fund is struggling to break out from a recent supply line http://www.StockSharePublishing.com/ChartL..._1176182546.png Link to comment Share on other sites More sharing options...
jerboa Posted April 10, 2007 Report Share Posted April 10, 2007 There seems to be a widely held view on Wall Street that sub-prime, Alt-A and lack of housing price appreciation has had, and will continue to have, a very small impact on overall equity prices. And it is true that equity prices are holding up well at a time when corporate profits have slowed to mid single-digits in Q1 2007, and will likely continue to disappoint in Q2. I feel this can be best explained by the presence of huge sums of Private Equity. But even as the pace of investment has gone from hot to torrid, the inflow of new capital into private equity coffers has exploded. In just the past two years, new fundraising rounds by US-based firms have brought in $350 billion of capital-almost as much as what was raised cumulatively over the previous decade. Buyout firms now have roughly $300 billion of equity capital available to invest. With private equity transactions typically financed with $2 of debt for every dollar of equity, the total value of buyout firm war chests is closing in on a total of $1 trillion. Source: Private Equity's Road Map to Profits by Chris Bierly Bain & Company It almost seems reasonable to expect that Private Equity funding has placed a floor under the equity markets (the ?PE put?), and will in fact propel the markets upward irrespective of Q1 earnings reports. However, in the residential real estate market, we have seen a striking example of what happens when huge amounts of leverage are applied to assets on the basis of expected continuing high levels of appreciation. A deceleration of appreciation from double digits to single digits was all that was required to cause stress among the most highly-leveraged investors. Corporate earnings have likewise experienced an unprecedented string of double-digit growth. This growth slowed somewhat in Q4 2006, and looks to slow to mid single-digits in Q1 2007. Deals that made sense assuming a continued unbroken string of double digit earnings now need to be reevaluated, causing a loss of some upward momentum in the LBO arena. While this will likely only occur at the margins (among the more conservative PE firms), it could have a disproportionate negative effect on equity prices, since it will put into question the size and strength of the ?PE put?. I believe 2007 Q1 earnings and the accompanying outlook for Q2 and FY2007 should be watched very carefully. My guess is that Q1 earnings will come in much as expected, but that the lowered outlook for Q2 2007 and FY 2007 will cause a number of investors to sell, due to a reduced hope that their company/industry will be next on the Private Equity hit parade. Of course, if earnings and stock prices go down, wouldn't they be an even more attractive target for a PE buyout? - I'm so confused! Link to comment Share on other sites More sharing options...
Jimbo Posted April 10, 2007 Report Share Posted April 10, 2007 A TALE OF TWO CITIES Markets abhore a vacum. So private equity fills it. What it the vacume?????? The crazy differential between returns on bonds and returns on equity. Borrow eg SELL BONDS and BUY equities. A no brainer. Thats why Margie Patel resigned from Pioneer. There is no money in bonds - junk or otherwise. Bonds are houses of straw, gaudy pleasure palaces soaking in the gin of cheap credit and low rates, built on ocean front sandbars waiting for the storm to come in. Link to comment Share on other sites More sharing options...
DrStool Posted April 10, 2007 Report Share Posted April 10, 2007 There seems to be a widely held view on Wall Street that sub-prime, Alt-A and lack of housing price appreciation has had, and will continue to have, a very small impact on overall equity prices. And it is true that equity prices are holding up well at a time when corporate profits have slowed to mid single-digits in Q1 2007, and will likely continue to disappoint in Q2. I feel this can be best explained by the presence of huge sums of Private Equity. But even as the pace of investment has gone from hot to torrid, the inflow of new capital into private equity coffers has exploded. In just the past two years, new fundraising rounds by US-based firms have brought in $350 billion of capital-almost as much as what was raised cumulatively over the previous decade. Buyout firms now have roughly $300 billion of equity capital available to invest. With private equity transactions typically financed with $2 of debt for every dollar of equity, the total value of buyout firm war chests is closing in on a total of $1 trillion. Source: Private Equity's Road Map to Profits by Chris Bierly Bain & Company It almost seems reasonable to expect that Private Equity funding has placed a floor under the equity markets (the ?PE put?), and will in fact propel the markets upward irrespective of Q1 earnings reports. However, in the residential real estate market, we have seen a striking example of what happens when huge amounts of leverage are applied to assets on the basis of expected continuing high levels of appreciation. A deceleration of appreciation from double digits to single digits was all that was required to cause stress among the most highly-leveraged investors. Corporate earnings have likewise experienced an unprecedented string of double-digit growth. This growth slowed somewhat in Q4 2006, and looks to slow to mid single-digits in Q1 2007. Deals that made sense assuming a continued unbroken string of double digit earnings now need to be reevaluated, causing a loss of some upward momentum in the LBO arena. While this will likely only occur at the margins (among the more conservative PE firms), it could have a disproportionate negative effect on equity prices, since it will put into question the size and strength of the ?PE put?. I believe 2007 Q1 earnings and the accompanying outlook for Q2 and FY2007 should be watched very carefully. My guess is that Q1 earnings will come in much as expected, but that the lowered outlook for Q2 2007 and FY 2007 will cause a number of investors to sell, due to a reduced hope that their company/industry will be next on the Private Equity hit parade. Of course, if earnings and stock prices go down, wouldn't they be an even more attractive target for a PE buyout? - I'm so confused! 574765[/snapback] Good stuff, Jerboa! And welcome. I look forward to seeing more of your insights. Link to comment Share on other sites More sharing options...
DrStool Posted April 10, 2007 Report Share Posted April 10, 2007 Join the crowd during the day at IDS. Today's thread: http://www.capitalstool.com/forums/index.php?showtopic=8324 Link to comment Share on other sites More sharing options...
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