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Bulls, Is that it? Come on, BLACK MONDAY


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http://news.ino.com/headlines/?newsid=68967072846901

 

'(AP:CHARLOTTE, N.C.) Bank stocks took another pounding Friday as fears of nationalizing the U.S. bank system, especially for Bank of America Corp. and Citigroup Inc., continued to circulate even as the head of one of the banks said he sees no reason his company should have to be taken under government control.

 

...

 

Bank of America CEO Ken Lewis issued a statement saying: "We see no reason why a company that is profitable with strong levels of capital and liquidity and that continues to lend actively should be considered for nationalization."

 

Lewis said the speculation was based on "a lack of understanding of our bank's financial position as well as a lack of appreciation for the adverse ramifications for our customers and the economy."

 

The rumors prompted other outcry from the banking industry. Diane Casey-Landry, chief operating officer of the American Bankers Association said the trade group does not believe nationalization is a solution.

 

"The talk of nationalization is both harmful to the markets and harmful to the system," Casey-Landry said.

 

...

 

BofA's Lewis, in a memo to employees on the posted on the company's internal Web site, wrote: "Bank of America does not need any further assistance today, and I am confident we will not need any further assistance in the future."'

 

You know, this all sounds vaguely familiar.

 

2/28/07: "fremont is fine. they still have an agressive buydown, good rates, etc. all the rumor mill morons can suck it." (http://forum.brokeroutpost.com/loans/forum/2/98146.htm)

 

3/2/07: "I JUST HAD A DISCUSSION WITH A FRIEND THAT HAD 2 REPS COME TO HIM FOR A JOB BECUASE THEY GOT WORD THAT THEIR COMPANY FREEMONT WAS SHUTTING THEIR DOORS AT THE END OF NEXT WEEK." (http://forum.brokeroutpost.com/loans/forum/topic.asp?TOPIC_ID=99113&whichpage=1)

 

Replies:

 

"Oh no, the friend of the friend of the rep!"

 

"I don't think so - they just came out with several new programs. They wouldn't do that if they were closing. Probably some hacks who couldn't cut it!"

 

"I heard the Internet is shutting its doors! Has anybody else heard that? My buddy said he heard it from his buddies girlfriend's sister in law, who said she heard it from her brother. Let me know asap! My badge looks sick! Thanks Big D!"

 

"I have a friend (not a friend of a friend of friend) that interviewed with them and is starting next month."

 

"this guy is on like 3 or 4 other posts spreading the most ridiculous rumors"

 

"You may get the feeling that real mortgage brokers have learned not to call a dead body a dead body until it is dead. Please take your stupid guru stuff elsewhere."

 

"Some folks get a rush out of regurgitating news. It makes them feel important."

 

"and I think Britney Spears will make it in rehab this time"

 

"There's no way I am going to give any insight on Fremont's financial position (the little bit that I do know about it) as I am looking to keep my job. But I will agree to what Craig mentioned. Our mgmt has always been very open about any negative changes or results we have had. That's the one thing we can usually rely on."

 

3/2/07: Faced with a likely cease-and-desist from the FDIC, Fremont capitulated and shut down its residential real estate lending. All that will remain is its industrial bank subsidiary (named "Fremont Investment & Loan"). Commercial lending operations will continue. Fremont has enlisted Credit Suisse to help sell off what it can, if it can. (http://ml-implode.com/)

 

3/4/07: Fremont shut down by the FDIC. (http://ml-implode.com/)

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anyone have opinions on HTE? I've been buying all the way down, and have continued to do so- can't resist that dividend return!

 

Yea I am holding few of these energy bags too. Including HTE. It all depends on where the energy price will be. If it won't recover to 50-60$ oil equiv by summer the dividents will be gone IMHO. And I give a 51% probability that it will recover :)

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anyone have opinions on HTE? I've been buying all the way down, and have continued to do so- can't resist that dividend return!

 

All of the royalty trusts have been getting SMOKED. The dividend may not be safe. AAV's divi has been cut several times. HTE is around 45%. No way that continues. I checked a chart going back ten years and didn't see any support for HTE. Does anyone have a chart that goes back farther?

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Doc, you note TBAC's quarterly supply estimate of $586B. My mind spins. Just sort of a dumb question, whose answer I am sure I know, but it's this.

 

Are you sure it represents "new" supply?

 

Do you know - approximately - what this would be on top of?

 

See for yourself. And they've been consistently behind the curve!

 

Anybody who isn't scared is...

TBACq109.PDF

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So does anyone have a guesstimate as to when they shut down CNBS......?

 

They have to be the cause of at least 50% or more of the market intra-day volatility.

 

This crap ain't gonna last.....I don't think Yomama & Co. want to be fielding frantic phone calls all day about the dopey stock market.

 

Seems to me that they have more pressing things to do.....read: putting out all the flaming bags of dog scat that were left hidden around the White House.

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Santelli going ape sh^t on Krudlow's show.....

 

Just tossed his print out of the Homeowner bailout act into the air...

 

Housing Bailout Examples....what a crock

 

Housing Plan Fact Sheet Q&A

 

Trader Joe Predict-O-Ball

 

The number of folks that will qualify for this stoopid f^^king program is going to be ASTONISHINGLY LOW.....a complete embarassment....and my guess, based on what we have seen to date, the first of many.....

_________________________

 

"Hey Honey.....you know that job you were gonna quit in June.....quit now so we can get the govi refi.....then go back to work after we get the new rate locked in.......meanwhile we can sip ice tea on the front porch while those idiots accross the street struggle to do the right thing and pay on their current mortgage.....IDIOTS.....told them they should have only put 5% dow....BWAHAHAHA"

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From the crew that runs my workplace:

 

FOSTER CITY, Calif.--(BUSINESS WIRE)--Electronics For Imaging, Inc. (Nasdaq:EFII), the world leader in customer-focused digital printing, announced today that its Board of Directors has approved a $100 million share repurchase program, including a $30 million accelerated share repurchase (the ?ASR?), utilizing a portion of proceeds from the recently announced sale of the Company?s real estate in Foster City.

 

The new share repurchase authorization replaces the previously approved share repurchase program, including a remaining amount of approximately $33 million that was available for repurchases under such program.

 

The Company also announced that it entered into an agreement (the ?ASR Agreement?) with UBS AG, London Branch (?UBS?) to repurchase $30 million of its common stock under the ASR. The final number of shares to be repurchased under the ASR will be determined based on market prices of the Company?s common stock during the term of the ASR Agreement. As a result of entering into the ASR, the Company expects that, during the term of the ASR, UBS will be purchasing the Company?s common stock in the market. The Company expects to complete the repurchases under the ASR in the second or third quarter of 2009, with the final completion date subject to the discretion of UBS. The repurchased shares will be held as treasury stock.

 

?We are very pleased to deliver on our commitment to monetize our real estate assets, which was a key element of our strategy to restore shareholder value,? said Guy Gecht, CEO of EFI. ?With the real estate deal completed we are moving forward in returning cash to our shareholders with this new share repurchase program.?

 

How does a share buyback "return cash" to shareholders, unless it is a rescue for institutional bagholders?

 

The real estate sale was a good one, $137 million. Unfortunately $100 million will be wasted on the share buyback. Many employees asked why in these difficult economic times so much money would be spent on share buybacks. Answers were not to anyone's liking.

 

Depending on the stock price in the buyback period this could represent perhaps 15 to 25% of the total float.

 

The whole restoring value to shareholders thing is kinda of weird. The real estate sale was a one trick pony, unless the HQ building is sold too. What happens if the stock tanks with the rest of the market? Oops, doesn't seem like that was thought about too hard.

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http://news.ino.com/headlines/?newsid=68967072846901

 

'(AP:CHARLOTTE, N.C.) Bank stocks took another pounding Friday as fears of nationalizing the U.S. bank system, especially for Bank of America Corp. and Citigroup Inc., continued to circulate even as the head of one of the banks said he sees no reason his company should have to be taken under government control.

 

...

 

Bank of America CEO Ken Lewis issued a statement saying: "We see no reason why a company that is profitable with strong levels of capital and liquidity and that continues to lend actively should be considered for nationalization."

 

Lewis said the speculation was based on "a lack of understanding of our bank's financial position as well as a lack of appreciation for the adverse ramifications for our customers and the economy."

 

He's being politically correct here. If he were honest, he'd say "This speculation about BAC getting nationalized is based on some big investment bank wanting to short huge blocks of BAC high, and cover the shares low, just before I respond to these rumors. Rumors floating around during the week of options expiration are almost always based on this type of maneuver."

 

Not to say that BAC will not get nationalized eventually.

 

Congrats, Trader Joe, on figuring out the Pig Men game plan here.

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So does anyone have a guesstimate as to when they shut down CNBS......?

 

They have to be the cause of at least 50% or more of the market intra-day volatility.

 

This crap ain't gonna last.....I don't think Yomama & Co. want to be fielding frantic phone calls all day about the dopey stock market.

 

Seems to me that they have more pressing things to do.....read: putting out all the flaming bags of dog scat that were left hidden around the White House.

 

Well, Obama & Co. need to sell a lot of Trashuries. Maybe CNBS is helping them do that. The more volatile and crazy the stock market is, the more people will flee to Trashuries.

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