Jump to content

IDS World Markets Fri 12th October 07


Recommended Posts

  • Replies 251
  • Created
  • Last Reply

t?s=%5EAORD

 

 

Messing around on open but it looks like the direction could be down for a change. All Ords currently -0.5% with all sectors red. Healthcare is down the most, -1.2% and Materials and Utilities have the least loss, -0.1%.

 

In the miners, BHP and RIO are barely holding their own, +0.4% and +0.3% respectively. Golds are mixed: Newcrest +0.2%, Newmont flat and Lihir -0.2%.

 

Oils dipping: Woodside and Santos -0.7% and Caltex +0.4%.

Link to comment
Share on other sites

yours truly is at it again

 

here is another video story I did with the local ABC affiliate in Boise. You guys will love it.

 

Micron CEO Awarded Over $7 Million in Stock

 

just go into the local news video section and click on story: Micron CEO Awarded Over $7 Million in Stock (you may have to have Internet Explorer)

 

This was the printed story from channel 6 KIVI but the video is much better.

Micron's Board of Directors has given CEO Steve Appleton over $7 million worth of restricted stock. It's part of the company's equity incentive plan but it's drawing harsh criticism from some financial anal cysts.

Micron lost $320 million last year with Appleton at the helm and anal cyst Bob Coleman thinks giving Appleton 680,000-plus shares is essentially rewarding him for the company's losses.

Idaho Statesman Business Reporter Ken Dey said giving restricted shares to executives is pretty common. Dey explained the restricted stock cannot be sold or traded for a set time period and is not a bonus per se but the Board does have the discretion about how much stock to give.

"They don't have a set amount they give him," Dey said. "They base it on performance and how important he is to the company."

Which baffles Coleman's mind. He doesn't understand why Appleton is still viewed as an asset to Micron.

"It's amazing to give someone a $7.2 million-bonus of restricted stock for losing $320 million last year," Coleman said. "I don't know what the Board's thinking giving that kind of award to an individual that's lost that kind of money. It looks like goosing for management, if anything."

Link to comment
Share on other sites

yours truly is at it again

 

here is another video story I did with the local ABC affiliate in Boise. You guys will love it.

 

Micron CEO Awarded Over $7 Million in Stock

 

just go into the local news video section and click on story: Micron CEO Awarded Over $7 Million in Stock (you may have to have Internet Explorer)

 

This was the printed story from channel 6 KIVI but the video is much better.

Micron's Board of Directors has given CEO Steve Appleton over $7 million worth of restricted stock. It's part of the company's equity incentive plan but it's drawing harsh criticism from some financial anal cysts.

Micron lost $320 million last year with Appleton at the helm and anal cyst Bob Coleman thinks giving Appleton 680,000-plus shares is essentially rewarding him for the company's losses.

Idaho Statesman Business Reporter Ken Dey said giving restricted shares to executives is pretty common. Dey explained the restricted stock cannot be sold or traded for a set time period and is not a bonus per se but the Board does have the discretion about how much stock to give.

"They don't have a set amount they give him," Dey said. "They base it on performance and how important he is to the company."

Which baffles Coleman's mind. He doesn't understand why Appleton is still viewed as an asset to Micron.

"It's amazing to give someone a $7.2 million-bonus of restricted stock for losing $320 million last year," Coleman said. "I don't know what the Board's thinking giving that kind of award to an individual that's lost that kind of money. It looks like goosing for management, if anything."

614602[/snapback]

So your real name is Jacqueline Bennett?

 

:lol:

Link to comment
Share on other sites

Stoolie News Break-

 

rgw_toilet_wideweb__470x309,0.jpg

 

 

 

SOUTH Korean sanitation activists will launch a global toilet association by lifting the lid on a lavatory-shaped home south of Seoul.

 

The steel, white concrete and glass house, with a symbolic opening in the roof, will be ready for visitors next month, according to the World Toilet Association.

 

"Among its many amenities, the house features four deluxe toilets," said the group

 

The house is named Haewoojae, which in Korean means "a place of sanctuary where one can solve one's worries".

 

B)

Link to comment
Share on other sites

w?s=%5EAORD

 

 

Uniform downside today apart from IT. All Ords closed -0.3% with Healthcare down the most, -0.9% and fairly minor losses on the others. IT was the only green, +0.5%.

 

Nothing startling on the heavyweight miners: BHP +0.4% and RIO -0.4%. Ditto for the golds, Newcrest +0.3%, Lihir +1% and Newmont flat.

 

Distinctly red in Asia: China -2.2%, Honkers and Taiwan -2.1%, Sth Korea -1.6%.

 

 

On to UK/Europe:

 

t?s=%5EFTSE

 

t?s=^GDAXI

 

t?s=^FCHI

 

http://finance.yahoo.com/intlindices?e=europe

Link to comment
Share on other sites

China Trade Surplus Jumps 56 Percent to $23.9 Billion

 

Oct. 12 (Bloomberg) -- China's trade surplus jumped 56 percent in September to $23.9 billion, adding pressure on the central bank to increase borrowing costs and let the yuan strengthen faster to prevent the economy overheating.

 

The gap widened from $15.3 billion a year earlier, the customs bureau said on its Web site today, after gaining 33 percent in August. That beat the $21.6 billion median estimate of 20 economists surveyed by Bloomberg News.

Link to comment
Share on other sites

Japan Consumer Sentiment Barely Rises From 3-Year Low

 

Oct. 12 (Bloomberg) -- Japanese household sentiment barely rose from a three-year low in September, a signal that consumer spending is unlikely to accelerate.

 

An index that measures confidence among households with two or more people edged up to 44.1 points last month from 44 in August, halting a four-month slide, the Cabinet Office said in Tokyo today. The median estimate of nine economists surveyed by Bloomberg News was for an increase to 44.5. A number below 50 signals pessimists outnumber optimists.

 

Wages dropped in the first seven months of this year and fell about 10 percent in the past decade. Pay rose 0.1 percent in August as workers put in overtime hours to make up for a production slump caused by an earthquake in the previous month.

 

--------------

 

Japan's Wholesale Inflation Slows for Third Month

 

Oct. 12 (Bloomberg) -- Japan's wholesale inflation slowed for a third month in September as financial-market turmoil triggered by a U.S. housing slump damped commodity prices and strengthened the yen, making imported materials cheaper.

 

The producer price index climbed 1.7 percent from a year earlier, extending 3 1/2 years of gains and following a revised 2 percent advance in August, the Bank of Japan said in Tokyo today.

 

Economists say it's unlikely that producer prices will keep slowing, given that the Japanese currency has since weakened and commodities have rebounded. Yamazaki Baking Co. Japan's largest bread and pastry maker, this week said it would raise prices for the first time in 17 years to cope with higher wheat costs.

Link to comment
Share on other sites

In lieu of an inane post to bookend 7 years of increasingly inane bearish posts, i present a chart which, combined with a P.O.S.P.P.I., will accelerate a deep six dive and, one would think, take the shtock markit with it.

 

But all news is bullish. No thought involved. Buy, buy. buy ....

post-2304-1192178600.gif

Link to comment
Share on other sites

How To Trade Today For Fun and Prophet:

 

1) join the futures ramp prior to PPI, sell at 8:29

 

2) short the contrarian Good Cop/ Bad Cop "I Am For A Strong Inflation, Maria, And Also Baby Seals" sell-off , regardless of PPI value

 

3) buy just before the ConCon numbas ...

 

4) enjoy the flagpole Fed/Paulson Fix rally 'till 2:30, then sell

 

5) hit the golf course, or, if you prefer, play the green-red roulette wheel until the close.

Link to comment
Share on other sites

I was fascinated by Nolands observation, but when I went looking for the data today, I was confused. The balance sheet only expanded by 20 billion, and all of that was in Fed Funds sold. The mrotgouge portfolio actually shrank over the past 6 months. So I don't get it.

 

I'd appreciate if one of you green eyeshade types would root around in this and see what you come up with. I'd like to try to understand if the FHLBB was really creating new liquidity.

 

http://www.fhlb-of.com/specialinterest/fin...als/07q2end.pdf

 

Year end http://www.fhlb-of.com/specialinterest/fin...als/06yrend.pdf

 

and for more financials--> http://www.fhlb-of.com/specialinterest/bnewsframe.html

614517[/snapback]

 

 

Doc,

 

Noland is quite correct, total obligations increased by $173 billion: $110 billion in August and $63 billion in September. This information is available from FHLBank News releases dated: Press Releases

 

* October 2, 2007

 

* September 4, 2007

 

Exibit 1.

 

During the month of September, members increased participation in FHLBank borrowing programs.

As of September 30, 2007, advances (collateralized loans to members) outstanding for the FHLBanks

on a combined basis were $822 billion, up by $53 billion from August 31, 2007. Consolidated

obligations outstanding were $1,149 billion, up $61 billion from the previous month, funding the

lending business while assuring a prudent level of liquidity going forward. The net change reflects a

$61 billion increase in discount notes to $311 billion; outstanding bonds remained virtually

unchanged at $838 billion

 

Exibit 2.

 

During the month of August, members increased participation in FHLBank borrowing programs. As

of August 31, 2007, advances (collateralized loans to members) outstanding for the FHLBanks on a

combined basis were $769 billion, up by $110 billion from July 31, 2007. Consolidated obligations

outstanding were $1,087 billion, up $110 billion from July 31, 2007. Of this amount, $82 billion was

attributable to an increase in discount notes to $249 billion outstanding and $28 billion was due to a

rise in bonds outstanding to $838 billion.

614588[/snapback]

 

 

I didn't say that Noland wasn't correct, but it doesn't show up on the balance sheet. This looks to me like an asset shift, rather than outright asset creation as done by the Fed and FNMA. The total assets line of the balance sheet, and the mortgages held hardly increased. It looks like most of the increase in assets was confined to Fed Funds. But again, if they didn't increase their assets by a commensurate amount as compared with the increase in loans, then no net liquidity was created. They just shifted it from somewhere else. In the macro scheme of things, this does not seem like a big deal. The overall increase in the asset base is inconsequential. I misunderstood the original information.

 

 

 

A lotta bullz make the case that the market can't top because the "little guy" doesn't care about stocks.

 

But the truth is, most of the "little guys" don't have any money so they can't play the stock game.  That's why they gravitate to real estate and why all those late-nite infomercials tout those "no money down" RE systems.

 

When you've got no capital, an investment requiring "no money down" sounds pretty enticing. Something for nothing. Schlocks, on the other hand, require at least 50% down. And if you don't have the $25K to maintain a margin account, they require 100% down. That rules out more people than you might imagine.

 

Now that the "no money down" era in RE is drawing to a close, I guess the only thing left is the lotto or slot machines. Or crime, of course.

614596[/snapback]

 

That 25K would be to maintain a pattern trading account. The minimum margin to open a margin account is 2K. That would allow up to 4 round trip trades per week.

 

Hell most people could get that from just one credit card.

 

But I agree with your point. The public is not a factor in the market and doesn't need to be for a top to form. When the market topped in January 1973 it was almost purely an institutional market. The public had been out for the last 5 years, essentially wiped out in the 66 and 69-70 bear markets.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...