iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,418 Blog Posts

Enjoy Your Dilution

Before I dive into the banks, it’s worth noting how incredible the energy trusts have been, namely [[BPT]], [[SJT]] and [[FDG]]. For the most part, these fuckers have been spitting out fat divi’s, while appreciating in price.

In other news, are you ready for some financial dilution?

All of these envelope fuckers are busy setting up more dilutive financing. When I say “envelope fuckers,” I mean bankers. They’re all in one big “deathspin,” with “Stuntman Mike” driving the car.

Looking into my bag of tricks and honor, I like [[WFSL]], [[FMBI]], [[TCB]] and [[HRB]] on the short side. Meaning: bid those fuckers lower.

Also, “The Fly” is knee-deep into oil. I’m just rolling on you oil bears with spiked wheels and shit. While I write this Godly post, I see Vince “the old asshat” Farrell is calling the market “bear.”

Whoop-di-fucking-doo!

Finally, I hate tech. I want it dead, in the back of a ’68 Chevy, then driven into a lake.

Top picks: REW, short FMBI, short WFSL

NOTE II: Does [[GM]] at 11 bucks worry anyone? Anyone? Remember, once the big industrials go, due to major cuts in municipal contracts, then we will really get the ol’ knife to the gut treatment. Don’t forget to short [[CAT]] when that happens.

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45 comments

  1. POTP

    DIE ORCL, IBM , and CAT!

    may their kittens die in a freak barn fire accident.

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  2. BanD

    Couldn’t GM just hand grenade their employees and merge with F?

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  3. El Tiberon

    CAT (fucking MS Keyboard) brings to mind the following: An I-Banker I know quite well said their ability to place mining deals and every other firm participating in the sector has gone completely sideways in the last 30 days. Nothing like seeing a hot sector developing cracks…

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  4. fucktard

    dumped AMZN puts this am and bot GS puts with that dough….DOUGH!!.. i’m a fucktarded fucktard. die goldman.

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  5. boca

    It is definitely very strange to see GM this low. WTF, a fifty year low? Strange things are afoot in the market.

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  6. juice

    you can add BPOP to the walking dead

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  7. Donny

    Oh Fuck, we’re breaking down again.

    Dennis Kneale is about to have a cardiac arrest on CNBC.

    “We’ll be kicking ourselves because we didn’t buy the financials”

    “Next week has to be better, because it can’t get much worse”

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  8. El Tiberon

    When you hear GM CEO Wagoneer (sp?) is too deeply rooted for an ouster you know the company is heading down paths unknown…

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  9. The Fly

    DOW 5,000 here we come

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  10. CubsRock

    Fuck 11,300 and I’m now 100% long.

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  11. Hattery

    GE and GM getting hit is a sign of very bad things to come… bye bye bulls

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  12. Donny

    Oh No … Not now!

    Moody’s just put Morgan Stanly debt on watch for a possible DOWNGRADE. Downgrade all the fuckers!

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  13. boca

    agreed Hattery, those are very widely held.

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  14. boca

    Donny, they’re all downgrading each other.

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  15. The Fly

    “The Fly” interrupts this broadcast for several emergency credit downgrades:

    downgrade Tim Sykes to CCC
    downgrade Woodsheeder to B

    Upgrade Option Addict to AA

    More later.

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  16. america's oil crisis
    america's oil crisis

    cnbc is quite comical.

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  17. CubsRock

    Maybe you missed it Fly, Option Addict called for a $16 drop in RIG yesterday.

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  18. 2 pm

    sell now

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  19. The Fly

    OA is wrong, as evidenced by RIG strength.

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  20. gappingandyapping
    gappingandyapping

    Its 100% correct to say that AMR cannot survive with oil at 150. Sorry punch your calculator all you want but I just did every scenario I could find and it will not survive. Sorry.

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  21. calvino

    The Calvino sets an IED under Martay’s spiked tired truck, and sell more USO. One half of a partial share.

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  22. jeff

    **Fly’s don’t burn on the grill**

    PWE has done well too.

    Fly, you still like these? I think they are safe, after the tax situation has already been baked in. 2011 will bring yields down for the Canroys, but sure seem good for safer play.

    HTE
    BTE
    SJT
    PWE
    ERF
    PVX

    http://seekingalpha.com/article/83035-high-yield-canadian-royalty-trusts-what-s-the-catch?source=yahoo

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  23. Zenprofit

    Mr. Fly:

    Please tell us when it will be OK to go long (anything other than energy again.)

    Thank you.

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  24. The Contractor

    This move in oil feels like a blow-off top, at least for the short-term.

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  25. calvino

    Fuck you Jeff, I sold out of my Canroys in
    FEbruary, waiting for one more UNG dip. Fuck me too.

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  26. boca

    I draw your attention to the other sector (besides energy)showing mostly green today on the FINVIZ.com heat map of the S&P 500 sectors. It’s big pharma/healthcare. SGP and XLV are actually up today.

    Dead cat bounce or a slight rotation to a sector perceived as slightly safer?

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  27. calvino

    Calvino calms down having blown trhe studded tires off Martay’s toy USO truck. Profits taken.

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  28. jeff

    calvino may the Jesuits burn you at the stake tootsie roll dick

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  29. calvino

    The Opus Dei are en route to bind you and bring you to the dungeon now, Jeff.

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  30. BanD

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/27/cnbarclays127.xml

    US central bank accused of unleashing an inflation shock that will rock financial markets, reports Ambrose Evans-Pritchard

    Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall “below zero”.

    “We’re in a nasty environment,” said Tim Bond, the bank’s chief equity strategist. “There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth.”

    Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral. If it hesitates, the bond markets will take matters into their own hands. “This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that’s possible. It has lost all credibility,” said Mr Bond.

    Strategists at Barclays accuse Ben Bernanke of a policy blunder
    RBS issues global crash alert
    Read more by Ambrose Evans Pritchard
    The grim verdict on Ben Bernanke’s Fed was underscored by the markets yesterday as the dollar fell against the euro following the bank’s dovish policy statement on Wednesday.

    Traders said the Fed seemed to be rowing back from rate rises. The effect was to propel oil to $138 a barrel, confirming its role as a sort of “anti-dollar” and as a market reproach to Washington’s easy-money policies.

    The Fed’s stimulus is being transmitted to the 45-odd countries linked to the dollar around world. The result is surging commodity prices. Global inflation has jumped from 3.2pc to 5pc over the last year.

    advertisementMr Bond said the emerging world is now on the cusp of a serious crisis. “Inflation is out of control in Asia. Vietnam has already blown up. The policy response is to shoot the messenger, like the developed central banks in the late 1960s and 1970s,” he said.

    “They will have to slam on the brakes. There is going to be a deep global recession over the next three years as policy-makers try to get inflation back in the box.”

    Barclays Capital recommends outright “short” positions on Asian bonds, warning that yields could jump 200 to 300 basis points. The currencies of trade-deficit states like India should be sold. The US yield curve is likely to “steepen” with a vengeance, causing a bloodbath for bond holders.

    David Woo, the bank’s currency chief, said the Fed’s policy of benign neglect towards the dollar had been stymied by oil, which is now eating deep into the country’s standard of living. “The world has changed all of a sudden. The market is going to push the Fed into a tightening stance,” he said.

    Gazprom chief expects ‘radical’ change in oil price
    More comment and analysis from The Telegraph
    The bank said the full damage from the global banking crisis would take another year to unfold.

    Rob McAdie, Barclays’ credit strategist, said: “The core issues have not been addressed. We’re still in a very large deleveraging cycle and we’re seeing losses continue to mount. We think smaller banks will struggle to raise capital. We’re very bearish – in the long-term – on high-yield debt. The default rate will reach 8pc to 9pc next year.”

    He said investors had taken their eye off the slow-motion disaster engulfing the US bond insurers or “monolines”. Together these firms guarantee $170bn of structured credit and $1,000bn of US municipal bonds.

    The two leaders – MBIA and Ambac – have already been downgraded as the rating agencies belatedly turn stringent. The risk is further downgrades could set off a fresh wave of bank troubles. “The creditworthiness of many US financial institutions will decline in coming months,” he said.

    The bank warned that engineering and auto firms we’re likely to face a crunch as steel and oil costs surge. “Their business models will have to be substantially altered if they are going to survive,” said Mr McAdie.

    A small chorus of City bankers dissent from the view that inflation is the chief danger in the US and other rich OECD countries. The teams at Société Générale, Dresdner Kleinwort, and Banque AIG all warn that deflation may loom as housing markets crumble under record levels of household debt.

    Bernard Connolly, global startegist at Banque AIG, said inflation targeting by central banks had become a “totemism that threatens to crush the world economy”.

    He said it would be madness to throw millions out of work by deflating part of the economy to offset a rise in imported fuel and food prices. Real wages are being squeezed by oil, come what may. It may be healthier for society to let it happen gently.

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  31. jeff

    don’t threaten me again, or you will go down in the next towerz incident

    Call Viet Dinh and tell him to read you his patriot act

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  32. Coryea Capital

    Fly, What do you think of Puts on Steel? Check out SLX. Also, what do you think of STT? Since the financials are all grabbing their ankles, it seems like that this one should breakdown in the near future, no?

    P.S. – you f*cked up that rating system. Option addict = AAA rating, The gold fucking standard. Sykes might be a C- or so, somewhere in the Ambac range.

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  33. The Fly

    Sorry, only Senor Tropicana is AAA rated.

    I don’t short steel anymore. That’s so early 2008.

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  34. Danny

    TS is a nice one.

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  35. BOOMER

    market crumbles, BOOM goes up
    market goes up, BOOM crumbles

    this is why I am crazy

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  36. BOOMER

    .

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  37. Awake

    Anyone watching SKF or the financials at 1:45 EST?

    Huge bounces in MER, LEH, WFC, JPM, C, GS, MS, the list goes on. What the hell happened at 1:45? I’ve been trying to find news for an explanation and can’t find anything. Someone clue me in.

    Was watching SKF tick by tick on one of my monitors when it broke down, I want to know why the financials broke up.

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  38. Mushroomz

    QID > REW

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  39. Danny

    oil

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  40. Anton Cigur

    Shroomz,

    Please show your work.

    Not “down with” “the new math.”

    Long REW.

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  41. GOD

    At 1:45pm I started buying financials. I decided they were way too cheap.

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  42. BOOMER

    AKS didnt get the memo

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  43. gappingandyapping
    gappingandyapping

    VMW may be worth a look down here.

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  44. Jakegint

    SLW, QID, EEV.

    Shit, the market closes at 1:00 pm out here. What a fucked up concept.

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  45. anjing bau

    CFTC put a news release out regarding the possible use of their emergency powers under section 8…….

    they have used this 4 times in the past.

    Increasing the margin required would help force a turn in Oil.

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