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Wall Street Breakfast: Must-Know Newsby SA Editor Rachael Granby- Bank trio becomes duo. Wells Fargo (WFC) will become the largest U.S. bank by branches with its bid for Wachovia (WB), after Citigroup (C) withdrew from compromise negotiations late yesterday on concerns about the quality of some of Wachovia's assets. Wells Fargo, with a bid valued at $11.4B, expects the purchase to be completed by the end of the year, and denies it will have to absorb assets shakier than originally thought.
- Government considers next steps. As the financial crisis continues to worsen, the U.S. government is considering two dramatic steps to turn around, or at least slow, the damage: guaranteeing billions of dollars in bank debt and temporarily insuring all U.S. bank deposits. The moves, which would mark the government's most extensive intervention to date, are in discussion stages only.
- Credit stays frozen. As frozen credit markets refuse to thaw, the cost of default protection on corporate bonds reaches new global records amid investor concerns the credit crisis will trigger corporate failures as companies struggle to finance their businesses. Interbank lending remains limited, and borrowing from the Fed's expanded discount window continued its trend of setting new highs every week, as the total daily average rose to $420.2B vs. $367.8B last week.
- Oil demand withers. The International Energy Agency warned Friday worldwide oil demand...
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- An Outcry from Emerging and Developed Markets Alike by Jonathan O'Shaughnessy
- Long Term, Financials Look Good by Michael Filloon
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Oil Price- Oil Below $75: Increased Chance of OPEC Production Cuts by Money Morning
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Economy- Long Term, Financials Look Good by Michael Filloon
- Round 3 of the Recession: Main Street by Paul Fekula
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Long Ideas- Utilities Beginning to Generate Interest for Longs by Joe Kunkle
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Short Ideas- Why Short Sellers Are the Heroes of Wall Street by Investment U
- Salesforce.com: Pricey and Coming Down Fast by Charlie Bottle
- Google: 3Q Results Reveal Chinks in the Armor by Mark Krieger
- Jim Cramer's Picks -SampleBetter Choices - Cramer's Lightning Round (10/15/08)by SA Editor Rachael GranbyStocks discussed in the lightning round session of Jim Cramers Mad Money TV program,
Wednesday, October 15.Bullish Calls:Continental Resources (CLR) -- "This is a remarkable decline. All of the high quality ones are down so much, I can't go against it. This is where you pull the trigger.
3M (MMM) -- The moment this stock starts yielding 5%, I'm a buyer. Until then, keep your powder dry.Bearish Calls:Computer Sciences (CSC) -- This is a company that was going to be bought, but they passed up the chance. Now I don't want to buy it."Email continues...
Annaly Mortgage (NLY) -- I think this is a business model that needs to borrow money. Definitively do not buy."
Northrop Grumman (NOC) -- You can't own the defense stocks right now. If I had to own one, I'd look at Lockheed Martin (LMT) with its good dividend. - Stocks & Sectors -SampleSeeking Alpha - Stocks & SectorsInternet
- eBay: Q3 Looks Good but Q4 Guidance Disappoints by Greg Feirman
- Is Google Feeling Lucky? by Sam Gustin
- Why Today Could Suck for Tech by Kevin Maney
Media- A Triple Financial Whammy Afflicts Newspapers by Ken Doctor
- Three Years On, Buying MySpace Looks Like One of Murdoch's Smartest Bets by Erick Schonfeld
- How Will Arbitron Fare in This Market? by Sreeni Meka
Telecom- Ten Ways to Invest in Louisiana by Stockerblog
- Earnings Preview: Electro-Optical Engineering by theflyonthewall.com
- Shared Docks Via WiFi All the Rage by Dean Bubley
Financial- Switzerland Strengthens Its Banks; Short Interest Remains Low by Jessica Johnson
- Reality Bites As Stocks Continue To Collapse by The Mole
- LIBOR Shows Worst Is Yet to Come for Credit Markets by Keith Fitz-Gerald
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- An Outcry from Emerging and Developed Markets Alike by Jonathan O'Shaughnessy
- USANA Health Sciences Inc. Q3 2008 Earnings Call Transcript
- Perfect World Announces Share Repurchase Program by Trader Mark
- China: Hot Money Inflows Down, Nervousness Up by Michael Pettis
India- Indian Economy Has Much to Cheer About by Equitymaster
- India: RBI Cuts Cash Reserve Ratio by Equitymaster
- India: Markets Continue Downward by Equitymaster
Japan- Sanyo Enters Thin-Film Market, Goes Up Against Sharp by Greentech Media
Asia- Four International Dividend Stocks to Watch by David Hunkar
Eastern Europe- Reality Bites As Stocks Continue To Collapse by The Mole
- Alternative Energy Investing -SampleSeeking Alpha - Alternative EnergyAlternative Energy
- Seven Stocks for an Impending Apocalypse by H.J. Huneycutt
- Solar Shares Under Pressure From Credit Crunch and Pricing by Eric Savitz
- Trina Solar Looks Good, Though Market Yawns by Trader Mark
- The Electric Car Market: Wise Energy Use Stocks by Tom Konrad
- Investing in the Power of the Sea
- ETF Daily -SampleSeeking Alpha - ETF DailySector ETFs
- Too Early To Buy Homebuilders ETF by Larry MacDonald
- Utilities Beginning to Generate Interest for Longs by Joe Kunkle
- Two Global Infrastructure Investment Opportunities in ETFs by Investment U
New ETFs- First Trust Launches Infrastructure ETF with Global Reach by Index Universe
- Overview and Analysis of the Global Generic Drug Industry by Mike Havrilla
Emerging Market ETFs- Brazil Is the Best of BRIC by Carl T. Delfeld
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- The Daily Dispatch -SampleSeeking Alpha - Daily DispatchWall Street Breakfast
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US Market- An Outcry from Emerging and Developed Markets Alike by Jonathan O'Shaughnessy
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Housing & Real Estate- Too Early To Buy Homebuilders ETF by Larry MacDonald
- Another 'Root Cause' That Isn't: Tumbling Home Prices by Tim Iacono
Transcripts- TrueBlue, Inc. Q3 2008 Earnings Call Transcript
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ETF- Too Early To Buy Homebuilders ETF by Larry MacDonald
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Latest Comments25 Comments
uWink's Chances of Survival
As for the cash flow issue with the restaurants, whether they are or aren't doesn't quite matter at this point, they need cash, so we are here now.
As for the MV review of the restaurant, I agree with the screens being in the way of conversation.
But the food to me has been delicious every single time that I have been there (3 times already) and I've tried different things every single time to try and trip them up.
I think the whole deal is with the technology, not the food/restaurants.
Chris
Rick's Cabaret and eHealth Bucking the Trend
Nice rebuttal, and information.
I would have gotten around to that, but my recent post was not intended to cover every negative aspect of the club or downside.
Thanks again,
Chris
Fernandez: Top 5 Picks for November
You are most welcome...remember that my picks are meant to be held long term, so don't expect quick turns in the stocks I recommend, often they are in downturns, and that's why they are attractive to me.
Be prepared to lose up to 50% of your investment in any one of my picks at any time...that's just the vagaries of small and micro cap stocks.
Learn more about my investing style on my website and the risks you should know before buying any stock I recommend:
peakstocks.com/investi...
- Oh as for the question on ZIXI that I didn't answer: the stock price was too high for the valuation that I thought was fair for ZIXCorp at the time.
It has since gotten more reasonable, but still isn't what I would call cheap.
I am in the process of doing further diligence on it, and we'll see if it meets my criteria for inclusion.
Thanks for reading guys,
Chris
Fernandez: Top 5 Picks for November
Yea I was aware of that, this is standard litigation that comes out of the woordwork when someone wants to cry to their mommy that they lose money in one of their stock picks.
It isn't material at this point in time because it is not likely to go anywhere, unless AuthenTec's management did indeed materially mislead investors.
Chris
AAR: By Many Metrics, a Gift At This Price
Sure, but what if I told you that management is focusing now on increasing those cash flow figures and conserving cash, as opposed to further increasing their acquisitions, to pay down their debt and increase their cash flow?
There is always more to the story than meets the eye.
I didn't get to go into details on all of that, but add that to the list of positives as well. Look at the cash flow, and free cash flow for the last 3 quarters and you'll see the trend developing.
Chris
GeoEye-1 Releases First Images, Awaits NGA Approval
Paul: I recommended GEOY 2 times, at $22.00 and again at $16.50...just take a look at my website and the buy recommendations, and you'll see the exact prices which I told people to buy GEOY.
I thought I explained myself well in telling people that I have almost a full position, so I didn't need or want to purchase more right now when there are other bargains out there.
Read the full story before commenting.
Yea: AAR is still a great buy, Zacks is full of it, for some reason they are always late to the party.
They are great contrarian indicators. When they add a stock to their top 10 buy list, it's time to get out.
They are dead wrong about AAR as well. They are not overleveraged in the least, and their cash flow will be strong this year as they focus on paying down debt.
Chris
5 Possible Picks in a Tumultuous Market
It is outside my scope of knowledge.
Sorry about that.
Chris
Hoping AAR Will Rise Above Airline Cutbacks
Thanks, I appreciate it.
Yea, GeoEye was an absolute steal when I recommended it at $22, and then again when it fell to $16.50!
I think we still have more upside from here to around $30-35 or so, but not as much as before of course.
Thanks for reading,
Chris
uWink: Worth the Risk at This Price
If you visit my site, I have full disclosure that I own every single stock that I recommend to my readers.
My average cost in uWink is about $1.08 right now, so I am hurting right along with everyone else.
Do some research guys before you criticize something you don't really know too much about.
If you really want to understand the uWink story, read my articles, see if it is really a pump-and-dump.
Take a look at my thorough and exhaustive research on the company, my talks with management, etc.
There's more out there than a little post here and there on Seeking Alpha!
But either way, thanks for reading guys!
Chris
GeoEye-1 Launched Successfully
Yea, it was pretty exciting, sort of surreal in a sense, especially thinking about how they are able to pinpoint exactly where they are going to enter a certain space, etc.
I had a good time watching it, even if I was a little bit nervous!
Let's hope the satellite checks out, and works as it should, and if it does, then it's full steam ahead for GeoEye.
Chris
ETF Investing Guide: One-Page Summary of the Entire Guide
In fact I liked the information and tightness so much that I am citing some of your work in an upcoming post on my website.
Thanks again, and be on the lookout for it with full attribution.
Regards,
Chris
It's a Good Thing uWink Isn't a Restaurant Company
Remember that before I post things I do my research and homework.
In so doing, I speak with the management of the company that I cover.
As such, in this case, management has told me on numerous occasions, that they are not planning to open any more company-owned locations.
If they happen to open some franchised locations (this is a big if that I detail further in my research report on uWink), that would be ok with them, but their whole intent and focus was to produce the best POS and entertainment/hospital... software they could.
That involves trial and error, and yea, occasionally pissing some guests off with things that didn't work.
That's why the Woodland Hills location is a testing ground, as their other locations will be too.
I will say this again to reiterate it: uWink is not a restaurant business, they are a software company that designs products for the hospitality industry (restaurants included), and happens to own and operate three of their concepts to highlight their software and show proof of concept.
If there's one thing Nolan Bushnell is good at, it's video games and entertainment, that's where the investment thesis lies, in selling this stuff to other businesses, and allowing them to lower their overhead and increase productivity.
Chris
CPI Aerostructures: Good Things Come in Small Packages
Take care,
Chris Fernandez
GeoEye: It's Make or Break Time
Basically because of the debt covenants that GeoEye has and the notes outstanding, it makes it look like institutions own more than 100% of the shares outstanding. This also has to do with reporting periods, and the fact that certain institutions report after others, so sometimes this time overlaps and skews the real number.
Unmot: Indeed there was a launch delay for about 2 weeks...I'll be writing all about this and tomorrow's conference call as well.
I like your optimistic targets, but to be honest, i don't see that happening.
With the amount of depreciation expenses that GeoEye will face, their net margins and operating income will be affected, however their cash flow statements should show much improvement.
I would be weary of any valuation above $30 per share, and that's what I'll be looking at as well.
It's all about the launch at this point, and we are once again delayed.
Chris
GeoEye: It's Make or Break Time
The key for GEOY will be the launch...10 days and counting.
Chris