Of course no one is say “bear market”…only that things look bearish
Comments »Monthly Archives: August 2011
Yield Curve Reveals Japan 2.0
More Money Managers Weigh in on Future Expectations and Concerns
Another Bite Out of the Employment Apple
This is not where we need to be. We have the best education no? We have the most highly skilled no ?
Comments »European Markets Pare Losses on Hope and Guidance From Sarkozy & Merkel
Today’s Biggest Winners
No. Ticker % Change
1 MSHL 66.67
2 RLRN 23.37
3 FN 21.49
4 CARB 18.38
5 SYSW 16.14
6 PPHM 16.06
7 CRU 15.92
8 COOL 11.27
9 VSEC 11.18
10 ARTX 11.03
11 HEB 10.71
12 NURO 10.53
13 GAGA 10.12
14 GRRF 8.57
15 CDII 8.33
16 DVR 8.31
17 DNDN 8.30
18 WWIN 7.88
19 PGTI 7.73
20 TELK 7.69
21 REVU 7.42
22 LCRY 6.99
23 GLDD 6.63
24 CTNN 6.47
25 MERR 6.38
High Yield Spreads Blow Out While Equities Rise; Historically This Suggests Downside For Equities Going Forward
AEC has increased properties by 10% this year
They filed an 8-K recently.
Comments »Associated Estates Realty Corporation (the “Company”) acquired Waterstone at Wellington, a 222-unit apartment community on June 15, 2011, and Carmel Vienna Metro, a 250-unit apartment community on August 9, 2011. With the closing of the August 9, 2011 acquisition, the aggregate purchase price of the properties acquired in 2011 exceeded 10% of the Company’s total assets as of December 31, 2010.
The Waterstone at Wellington is a 222-unit apartment community located in Wellington, Florida. The Company, through a wholly owned subsidiary, acquired this community from Wellington, LLC, an entity controlled by Gables GP, Inc. for approximately $32.8 million in cash, which was funded primarily from proceeds from the Company’s unsecured term loan.
Carmel Vienna Metro is a 250-unit apartment community located in Fairfax, Virginia. The Company, through a wholly owned subsidiary, acquired this community from CP III Vienna Metro, LLC for approximately $82.6 million in cash, which was funded primarily from borrowings on the Company’s unsecured revolving credit facility.
Peter Schiff: “In other words it will encourage banks to lend to the government, which already borrows too much, and not lend to private borrowers, whose activity could actually benefit the economy.”
Schiff is unwavering in his beliefs. For that i give him credit. Let’s hope he will be dead wrong for ever.
Comments »Perry puts Bernanke in crosshairs
It was already tough for Bernanke to engage in more easing, but now he’s election fodder.
Comments »It would be “treasonous” if Chairman Ben Bernanke tried to use Federal Reserve policy to stimulate the economy before the election, Texas Governor Rick Perry said at a campaign stop in Iowa.
During an appearance in Cedar Rapids, in what appeared to be a backyard with a child’s slide, Perry invoked folksy language to explain what he’d like to do to Bernanke if the chairman decides to engage in more quantitative easing.
According to a video appearing on the left-leading website Think Progress, a reporter asked Perry what he would do about the Federal Reserve.
Standing next to a “Perry President” sign, the governor replied, “If this guy prints more money between now and the election, I don’t know what y’all would do to him in Iowa, but we would treat him pretty ugly down in Texas.”
“I mean, printing more money to play politics at this particular time in American history, is almost treacherous, or treasonous, in my opinion,” he added.
Norway’s Statoil announces big find
Comments »Norway’s Statoil received a huge boost in reserves when the company announced Tuesday that two previous North Sea oil discoveries are connected and together may represent the biggest find in the Norwegian continental shelf in 30 years.
Statoil said in a statement the Aldous and Avaldsnes oil discoveries together contain between 500 million and 1.2 billion barrels of oil equivalent – significantly more crude than previously thought.
Statoil owns a 40 percent stake in both discoveries.
Tim Dodson, the company’s vice president for exploration, called the combined discovery “giant.”
“Norway has not seen a similar oil discovery since the mid-80’s,” he said.
Dodson stressed that the discoveries show that the Norwegian continental shelf remains an attractive source for crude.
Trond Frode Omdal, an oil analyst at Oslo-based Arctic Securities ASA, agreed, saying the size of the discovering was surprising.
“I think the companies had almost given up making such a huge discovery in the North Sea,” he said, adding that the gross value of the Aldous and Avaldsnes oil discoveries could be as much as $40 billion.
Omdal said Norway’s proven oil reserves amount to 6.7 billion barrels, according to the BP Statistical Review, so a discovery containing 1 billion barrels is significant.
He said last year Norway produced 2.1 million barrels per day and that Statoil’s new fields might produce as much as 300,000 barrels per day.
Fed’s Hoenig: BREAK UP THE BIG BANKS
Home construction slows
Comments »WASHINGTON (AP) — Builders broke ground on fewer single-family houses in July, leaving home construction at depressed levels.
The Commerce Department said Tuesday that builders began work on a seasonally adjusted 604,000 homes last month, a 1.5 percent decrease from June. That’s half the 1.2 million homes per year that economists say must be built to sustain a healthy housing market.
Single-family homes, which represent 70 percent of home construction, fell 5 percent. Apartment building rose more than 6 percent.
Building permits, a gauge of future construction, declined 3.2 percent. Jill Brown, vice president of economics at Credit Suisse, said that decline suggests “very little forward momentum.”
The number of homes under construction is the fewest in 40 years. Just 413,000 homes are under construction, after accounting for seasonal factors. A decade ago, roughly 1.6 million homes were built.
Though new homes represent just 20 percent of the overall housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and about $90,000 in taxes, according to the National Association of Home Builders.
The Echo Box is Already Killing Ron Paul With Silence
While some of his measures may be harsh; he appears to be the best candidate representing all walks of Americans.
No matter your gripe he has real deal answers and a deep understanding of all the issues.
If he continues to get ignored with silence then is can be nothing other than a concerted effort to keep him off the voters mind.
Comments »Factory output rises; non-automotive output consistent
Comments »WASHINGTON (AP) — A busy month for U.S. automakers lifted overall factory output in July by the most since the Japan crisis. A stronger manufacturing sector is the latest evidence that the economy may not be as weak as some had feared.
The Federal Reserve said Tuesday that factory output increased 0.6 percent last month. That’s the biggest increase since the March 11 earthquake in Japan, which disrupted supply chains and limited output by some U.S. auto plants.
The resurgent auto industry accounted for nearly all of the increase in factory production. Motor vehicles and parts jumped 5.2 percent. Excluding that category, factory output grew only 0.2 percent.
Overall industrial production jumped 0.9 percent — the biggest increase this year. Unusually hot weather in July drove demand for energy generated by utilities. Mining output also increased.
Output by factories, mines and utilities has risen nearly 13 percent since a recession low in June 2009. But it remains about 6.5 percent below its pre-recession peak from September 2007.
Goldman Has a Soft Spot for Utilities Despite Falling Yields
“Low interest rates and valuation drive our more constructive view on Regulated Utilities and Diversified Utilities ”
Comments »Automakers Help Out Factory Output Numbers
Reporter for News of the World Confirms Phone Hacking Was a Widely Discussed Issue at the Tabloid
Fitch Reaffirms U.S. Triple A Rating
Upgrades and Downgrades This Morning
Upgrades
ARO – Aeropostale upgraded to Hold from Underperform at Jefferies
TOL – Toll Brothers upgraded to Hold at Stifel Nicolaus
UL – Unilever PLC upgraded to Outperform from Underperform at Exane BNP Paribas
HSFT – HiSoft Tech target raised to $22 from $20 at Stifel Nicolaus
RVBD – Riverbed Technology upgraded to Buy from Neutral at Suntrust
EPR – Entertainment Properties initiated with a Neutral at Goldman
POWL – Powell Inds initiated with a Buy at Stifel Nicolaus
ECYT – Endocyte initiated with an Outperform at Cowen
SPB – Spectrum Brands upgraded to Buy from Neutral at Suntrust
FB – Fabrinet upgraded to Overweight from Neutral at JP Morgan
S – Sprint Nextel upgraded to Buy at Collins Stewart
STZ – Constellation Brands initiated with a Buy at Capstone
PII – Polaris Inds upgraded to Outperform from Market Perform at BMO Capital
PKE – Park Electrochem initiated with a Buy at Stifel Nicolaus
AGN – Allergan upgraded to Outperform from Neutral at Credit Suisse
WSO – Watsco upgraded to Buy from Hold at BB&T
CVD – Covance upgraded to Buy from Neutral at Lazard
EL – Estee Lauder upgraded to Outperform from Market Perform at BMO Capital
CRL – Charles River upgraded to Neutral from Sell at Lazard
Downgrades
MMI – Motorola Mobility downgraded to Sell from Hold at Argus
PCLN – Priceline.com initiated with a Reduce at Nomura
TWC – Time Warner Cable downgraded to Neutral from Outperform at Macquarie
RIMM – Research In Motion downgraded to Sell from Hold at Societe Generale
EE – El Paso Electric added to Conviction Buy List at Goldman
LIFE – Life Technologies upgraded to Outperform from Sector Perform at RBC Capital
PCG – PG&E removed from Conviction Buy List at Goldman
AMAT – Applied Materials tgt cut to $14 from $17 at Citigroup
A – Agilent target lowered to $50 from $59 at Stifel Nicolaus
BRO – Brown & Brown initiated with a Neutral at Macquarie
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