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Reflexivity revisited

DanielXX (November 29th, 2008) Writes:
img src="http://photos1.blogger.com/img/43/5843/160/thinking.jpg"br /br /emfont color="#0000FF"(P.S: Sorry for any disturbances the advertisements above may have caused you)/font/embr /Let's review the various perspectives about the relationship between stock prices and "business fundamentals" as most people understand it. First, there is the advice given by the Sage of Omaha about Mr Market being manic-depressive and that the prices he/she/it quotes can have a disconnect with underlying fundamentals. Then there is the typical technician's/efficient market theorist's view that price reflects underlying fundamentals, even though it might not seem so at the time to the outsider. And then there is George Soros, who advocates that market prices can actually emactively influence/em fundamentals. The last view is known as reflexivity, a term coined by Soros.br /br /Despite Soros' celebrity fund manager status, reflexivity has never really caught on in popular investment literature, partly because it does not really have mathematical grounding. It is more of a ...

Spreading Credit Woes Cause Government Intervention

QualityStocks (November 28th, 2008) Writes:

When it comes to the financial markets, September was a startling and unsettling month that Americans may never forget. We have witnessed the collapse and/or government rescue of financial services giants that are household names. The financial fears of the public and the resulting stock and bond market volatility have prompted the Federal Reserve and the U.S. Treasury to resort to bailouts and backstops on a historic scale.

What does it all mean for the future of our financial system? While cringing at the potential expense, some experts seem to agree with government officials that intervention is most likely necessary, and that the costs of these measures outweigh the potential risk of doing nothing in the midst of a crisis of confidence.

Here’s a look at what may have prompted this situation, what has transpired recently in the financial sector, and how the government has acted to stem the negative effects of

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Moving Made Easy at MoveMe.com

ETF Innovators (November 27th, 2008) Writes:
www.MoveMe.com makes moving easier with a full online menu of free services and guides to make your move successful and stress-free. The site was created in 2005 and does not charge users for any of the services as it collects fees from featured partners on the site if you choose to get quotes for moving services such as removal companies. Most of the featured partners on the site also offer special discounted rates for registered users of MoveMe.com. Free registration on the site is optional and allows users to get quotes, personalize your move planner, and create and save letters. The site also offers email alerts and newsletters so you won’t forget to do anything you may have missed, including a strict privacy policy that guarantees the site will not sell your personal data or send spam messages. The site ...

Fed Announces $800 Billion in Homeowner, Consumer and Small Business Aid

Contrarian Profits (November 26th, 2008) Writes:

The U.S. Federal Reserve and Treasury Department announced yesterday (Tuesday) $800 billion worth of stimulus measures to rev up three primary engines of the U.S. economy – homebuyers, consumers and small businesses.

This newest economic infusion follows a $700 billion banking system bailout package that was unveiled in late October. At least half the cash has been injected directly into U.S. banks and insurance companies, firing off a flurry of takeover deals – with more expected to come. And it precedes an anticipated package being designed by the new economic team that’s been assembled by President-elect Barack Obama. That package is still in its formative stages, but estimates of its ultimate size range from $500 million to $1.2 billion.

The $800 billion package unveiled by the Fed and Treasury Department yesterday consisted of several parts.

In one statement, the Fed announced it would purchase as much as $500

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A Capitalist’s Social Security, 401(k), and Retirement Plan Reform Program

Steve Selengut (November 24th, 2008) Writes:

What if there was an easy way to implement a whole new approach to retirement funding, pension planning, and Social Security? Would the politicians be interested? Let’s find out.

What if the new plan actually reduced payroll taxes, cut prices, created jobs, increased salaries, raised shareholder dividends, partially funded decreased healthcare costs, and was available to everyone?

Sound too good to be true, but it’s actually doable. The reasons for the present system’s failure are mostly political; the solutions are clear, practical, and non-partisan. What we want is a less expensive system for assuring that everyone is able to retire with an adequate income, higher than that provided now by Social Security.

What we need is a simple program, part mandatory and part voluntary, using experienced trustees who operate within the strictures of the prudent-man rule— a risk-minimizing legal doctrine that …

Loews Corp. a Hold for Now - Analyst Blog

Zacks Market Commentaries (November 20th, 2008) Writes:

Loews Corporation (L) experienced a 3Q08 net loss from continuing operations came of $0.33 per share, the result of higher-than-expected catastrophe losses and investment losses at CNA Financial Corporation (CNA), which more than offset the improved results at the energy and drilling subsidiaries -- HighMount Exploration, Diamond Offshore Drilling, Inc. (DO) and Boardwalk Pipeline Partners LP (BWP).

The spin-off of Lorillard in 2Q08 eliminated the company's overhang from tobacco litigation, permitting an increased focuses on broadening hydrocarbon interests. While the company has announced large capital investments (which would benefit results in the future), we reiterate our Hold recommendation as of now.

CNA Financial is the 14th largest property-casualty insurer in the U.S., providing standard commercial lines, specialty lines (specialty property-casualty, professional and financial), surety, marine, and other property and casualty coverage as well as life, and group insurance coverage. CNA is 90.0% owned by Loews. This insurance

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EV Transportation, Inc.’s (EVTP.OB) Business Strategies

QualityStocks (November 19th, 2008) Writes:

‘Green’ car rental company EV Transportation, Inc. has some very definitive growth plans for the next 12-24 months. With an ultimate goal of becoming a significant presence in the replacement vehicle rental market, EV’s plan has several objectives.

The first objective is to identify and obtain up to three targeted companies to increase the company fleet by more than 12,000 vehicles, available at more than 100 new rental locations. The company plans to commence these acquisitions within the next 12 months. Purchases will subsequently be consolidated in order to boost EV’s competitiveness in the replacement rental business.

Next, EV will develop and reorganize the new facilities to employ a “hub and spoke” growth strategy, thereby erecting a central hub in each major metropolitan area from which the company’s reach can expand outward. This allows for more efficient shifting of assets between locations to accommodate

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Mississippi Stocks

Fred Fuld (November 18th, 2008) Writes:
Until 1990, gambling in Mississippi was not permitted. Now it is a major source of revenue for the state and an attractive tourist attraction. Following are some interesting facts about Mississippi:1. 25% of total employment is generated by the agriculture industry.2. Mississippi most important agricultural products are poultry and eggs, forestry, soybeans and corn.3. The state offers different business incentives to new businesses and businesses relocating to Mississippi. They include tax credits, and tax exemptions.4. The top manufactured products are processed foods, beverages, dairy and grain products.5. Between 2004 and 2005 Mississippi’s export increased by 26% to achieve a record $4 billion.6. Mississippi’s top export are chemical products.7. Manufacturing firms employ 172,000 workers in the state.8. Mississippi’s oil reserves rank it number 13 out of 50 states, with 167 million barrels of oil.9. Mississippi has the ...

Bank of America to Boost Stake in China’s No. 2 Bank

William Patalon (November 17th, 2008) Writes:
Bank of America Corp. (BAC) will almost double its stake in state-owned banking giant China Construction Bank Corp., and will control nearly 20% of China’s second-largest bank when the deal is finalized. The official announcement yesterday (Monday) ends months of speculation that the Charlotte, N.C.-based BofA would dump part of its three-year-old investment the Beijing-based bank to offset the effects of the global financial crisis. In an article on Saturday, Money Morning reported that the deal was close, though noting that the actual timing was unknown. Bank of America plans to be “a long-term and significant strategic investor in CCB,” the U.S. lender said in a statement. The shares to be acquired to carry a restriction, however: They can’t be sold before Aug. 29, 2011, unless the China bank provides special permission. According to Caijing– the influential China ...
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The Problem With Big Government and Bailouts

Michael E. Brisky (November 14th, 2008) Writes:
Now that the bailout has has some time to sink in, we're seeing some of its effects. As expected, the government is providing little to no oversight and transparency into where the money is going.-Excerpt from Washington Post article- "In the six weeks since lawmakers approved the Treasury's massive bailout of financial firms, the government has poured money into the country's largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders.Along the way, the Bush administration has committed $290 billion of the $700 billion rescue package.Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste. Nor has the first monitoring report required by lawmakers been ...

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