by Arnold Joe
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Shorting opportunities:
I’ve been looking for more shorting opportunities for a while but still haven’t found a really good candidate. Casinos, retail stores and restaurants is where I have been focusing my attention because as the recession in the US worsens, these sectors should get hammered. The problem with shorting these sectors is that the stocks […]
Stock update:
Toll Brothers Inc. (N-TOL) released its second quarter results and there were no real surprises as the company lost money for the third straight quarter. Earnings per share was negative $0.59 bringing the six month EPS to $-1.20. Earnings were so weak that the company reported an operating loss (revenues minus cost of […]
Housing:
US Home builders must be feeling more confident about the housing markets as the number of housing starts in April increased 8.2% more than 100,000 than expected but still 30% below last April. All the gains were in the multiple unit dwellings. The housing permits also increased by 4.9%, the first increase in 5 […]
Oil:
Bloomberg reports that the Kazah Energy Minister believes that the large Kashagan field in Kazakstan has delayed commercial production for another couple years. The field was originally supposed to begin producing in 2005. This is another example of peak oil having been reached as all the big cheap oil fields have been found. The […]
Housing:
Hovnanian Enterprises Inc., the New Jersey home builder is planning on raising $191 million in a stock sale; the stock dropped 12%. This is interesting because the company just forecast on May 5th that its 2008 cash flow would triple to $300 million. Today’s news makes me think that perhaps the cash flows […]
Market Recap:
Lots of bad news out on the US financials today as Fannie Mae posts another big loss of $2 billion, UBS lost $10.9 billion (and is cutting 5,500 jobs), Wachovia increased its first quarter loss by 80% and Countrywide puts a stop to most home equity loan withdrawals in Las Vegas. As you would […]
Should North American investors be investing based on an economic environment that is recessionary or inflationary?
As mentioned previously, the US economy seems to be in a bull market as bad news (such as housing or employment stats) results in rising stock markets. If the market responds to bad news by pushing up the stock […]
