It’s not fun talking shit about bad banks— anymore. It’s all sort of old hat to me. Everyone is doing it and it makes for boring blog. So, in an effort to spice things up a little, I found a few fresh names that can go down the rat hole, with very unsportsmanlike conduct.
Name of the company is: Manitowoc, ticker MTW, an old Cramer fav.
They make cranes and they are done. How’s that for in depth analysis?
No, but seriously, they just reported numbers 50% below consensus and they are in grave danger of breaking their loan covenants. Their crane business is so fucking bad, despite all of the holy rollers in China building shit out of thin air, they will fall below the required leverage ratios and fail to generate enough EBITDA to be considered solvent, inside of a year.
Bottom line: they need to renegotiate their credit agreements or go away. The most likely scenario is some sort of new agreement and the company slugs along, albeit badly injured. However, it speaks volumes about the so called “petrol oil boom,” via crane demand and foreign infrastructure projects. Case in point, MTW‘s competitor TEX. The whole industry is under fire and it debunks any stupid argument put forth by block headed bovines, regarding emerging market growth.
Pah.
Second on the list of doomed industries: oil services.
There are a lot of names to chew through. However, a select few standout as “red flags” with regards to their impoverished balance sheets.
The companies with the worst balance sheets are: BRNC, HERO, NR, BAS, PDC and SWSI.
Other weak balance sheets worth noting: SII, WFT, RIG and NBR.
If I had to choose one name to put a tombstone on, I’d go with BAS. No fucking way they can come up with the $200 mill needed by 2010.
No-fucking-way.
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Fly what do you think of cash ‘rich’ construction companies like FTLW?
FWLT even
Yea, but they make fucking awesome ice machines…
They are selling the ice machines.
Poof. No more ice.
Ice was gay anyway…
MTW sold Enodis for 160 mill
Fly, when did the Enodis deal go down. I believe they acquired it rather recently, no?
They divested it and got a bad price. I believe it was last qt.
God I miss the good old days.
Remember the color coded terror threats and feeling safe?
Not any more.
Why can’t the new guys bring the system back, or even merge that intricate warning system with the a high tech lie detector and make it a law that all financial networks (mostly CNBC) use it instead of the bug. That way when ever a host, (Kudlow’s one of my personal favorites) got irrationally exuberant with the truth we’d be safe once more. Because that little bug in the lower right corner would flash the appropriate color; green if the truth, yellow, orange or red depending on how egregious the lie, I mean opinion is.
True story – guy on the board of my co sold his icemaking and “foun-TAIN Coke” dispensing machine company to MTW for beaucoups over ten years back, right at the peak of the market. If that division sale you mentioned was the price they got for all those consolidations they did in the nineties, then they torched a shit-ton o’ shareholder lettuce in a very short period of time.
I almost find it hard to believe.
__
LOL!!! MTW is almost as pathetic looking a Crammmer..
At least the government has found a way to keep us from worrying about the terrorist threat – now we just fear the government. Maybe they need their own color coded warning system.
SII is a ticker that’s able to be traded… Long term, the thing is very weak.
Agreed on Oil Services.
ZM
Are they going to find a replacement for Ratigan or just let Tweety Bird ride the show all the way down. Maybe they could kill the show fast by putting Kneele in charge.
Jon Stewart should host Fast Money.
Magical Wells.
I worked at a small oil production company in Oklahoma City, as a drafting person.
We kept maps updated with the various well production updates for the geologist and engineers, for prospecting, etc.
In 1981, they were already frac’ing the wells and injecting steam, and a 50-100 BPD well was a good thing (for everyone but the investors).
Then, suddenly, Penn Square Bank in OKC was declared insolvent by the comptroller of currency, and the S & L saga of the 80’s began.
It all started right there, Penn Square was ground zero.
All energy loans were called, and that was about $30BBL oil.
I remember that they chained the doors of the bank, but the ATM still worked, and if you made an envelope deposit, the ATM would immediately credit your account.
I made a lot of empty envelope deposits over a few weeks, for some quick cash.
That was a gentler, kinder time in the USA, and the ATM was a brand new thing (of course).
This time around it is much, much, more frightening.
“They make cranes and they are done. How’s that for in depth analysis?”
lol, works for me.
After listening to this……
Ratigan’s a pretty cool dude.
http://www.trumix.com/podcast_checker.php?as=1&s=4523279&t=GSR%20-%20March%2028:%20CNBC
The Fly called this drop in oil perfectly,
We all could have made money on that call.
It’s that simple….just like: “They make cranes and they are done!”
Sweet timing.
Jon Stewart needs nostril reduction surgery
_
Jon Stewart, like all people that spell John without the “h”, packs fudge….and I do not mean he works for Cadbury. Fly, I can’t believe you would recommend Jon (sic) for anything.
Fly,
Should we be looking at DUG or SCO or both?
What is “Jon”‘s real name? I understand that he has a brother working on Wall St. do he probably had advice on how to skewer Cramer.
Fly..Great articles, succinct and spot on.Glad the journalism and you are back to your standard.
Geez, “Jon” is just short for “Jonathan” which is the preferred Hebraic over the more Christian “John” (later Hebraic names not as prevalent in the Talmud or Scriptures, since they don’t include the New Testament).
Don’t you hillbillies know any Jews?
_____________
So….Garfield’s owner is Jewish?
Illuminating…
Arriana Huffington, what an embarrassment to progressives like myself… Arrogant ass.
Jake,
Point taken…but seriously…do you know many straight guys named Jonathan? And of the three that you can come up with, how many shorten their name to just “Jon”?
Sully
My guess on Fast Money is they “promote”…Jeff Macke !
He’s prolly the closest thing they got to matching Ratigan’s “hyper-speak”…plus he’s already there.
Or, they may just let the show die a slow painful death.
Whatever…
.
Soros tops Roubini – says recession will never end – says G-20 must not fail, but probably will and a greatest depression will follow. WOW! Talk about DOOM! On the other hand, it could be another sign of the bottom.
what specifically about their balance sheets makes them bad?
It would be great if you could take say, HERO and go through the things that suck-ass about their balance sheet.
HERO I see current assets greater than current liabilities, and total assets greater than total liabilities, which is good.
It looks like they can pay short term liabilities…
Is it the fact that they have +95% of their “assets’ in property plant and equipment, and so much long term debt that makes their balance sheet so bad, or am I missing something else.
Sully-
I have a straight friend who is married who shortens his name to Jon. So that makes at least 4. Also, what about the actor Jon Voight, whose identity and first name spelling was in issue in a hilarious Seinfeld episode. Check out Adam Sandler’s Hanukkah songs and see if he’s mentioned; Sandler apparently keeps track of things like that.
Point taken…but seriously…do you know many straight guys named Jonathan? And of the three that you can come up with, how many shorten their name to just “Jon”?
Sully, I have to admit I’m perplexed ovah heah. Most of the guys I know named “Sully”* are Micks (like myself) from Noo Yawk, Bahstan, or Chicahhhgo. Far as I know, there are many Jews in those areas too.
I grew up on Lawn Guyland, where if you’re not Irish or Italian, you’re Jewish. I must know about 50 Jonathans and all but the most priggish were called “Jon” by everyone but their mamas.
___________
*(Of course, I probably know one hundred “Sullies.”)
_
Hey wawaweewa
Good Ratigan rant. CNBC is just stupid for letting this guy go.
Hey alf44
Macke is clearly someone you would want to have a beer with, but he is probably better as a color ranter vs HMFIC
I’m just saying.
Woody, you are true bean-eating, emu-strangling hillbilly.
What, you think “Jim Davis” is a goy?
Meshugannah!
_____________
Speaking of CNBC ….where is Charlie?
Anon, re: “Soros and depression.”
Good thing that true humanitarian never talks up his book.
________
Soros is a dishonest dick, talking his freaking book. I’ve seen his freaking fund in action doing the opposite of what he was saying once.
He can’t be trusted about anything he says.
Everyone know G20 is going to be a non event. He’s just trying to set the thing up so the market falls after that.
He’s the biggest douchebag on the street.
Good Morning Vietnam!!!!!!!!!!
second, we haven’t seen a guy named Charlie? everyone keeps talking about looking in the jungle for a guy named Charlie, I haven’t met anyone here named Charlie….
third, never trust a market players advise that is a fully grown adult but wears a bow-tie.
fourth, to all the poor saps that live in Fargo, “don’t eat the yellow snow”
T MOE, any good words from “MerlinsThirdCousin”
that is all, carry on.
5th-Never trust anyone who doesn’t watch CNBC
j- at http://www.oed.com/
“talking your book”
1. Picture of George Soros
2. Picture of Jim Rogers
That is all…
excerpt from Cashin’s Comments letter this morn:
What’s Happening At The Banks? – Savvy and sharp-eyed Greg Weldon put out a report that is jaw-dropping – at least
to me. Here’s the opening two paragraphs:
‘As reported by the Fed on Friday after the markets closed, Commercial Bank Credit PLUNGED by an eye-opening
(-) $91.0 billion during the most recent week (end-March-18), posting one of the largest single-week
contractions EVER, as evidenced in the chart on display below.
We note that last week’s plunge represents the third deepest in the post-gold-standard era, one of only four in
history that was in the $100 billion range, with all four declines of this magnitude having been posted since the
credit crisis began in August of 2007. ‘
Greg goes on to state that 100% of the decline came from a contraction in “Loans Outstanding.” Are the banks re-
freezing despite the Fed’s efforts? Greg examines the massive deflationary impact this might have.
308,
How do you get Cashin’s letter? Can’t find it anywhere.
WTF is up with MAC?
that fucker is up 10% one day down 10% the next, up 15% the next down 12% the next……
who the fuck is trading this bitch?
pick a fucking direction people……..
Get this Gm bullshit off of my TV. Shutting off CNBC now. going to bloomberg
this GM shit is pathetic..these fucktards are shitting their gay fucking pants….fuck GM and Chrysler..and all the UAW pigs too.
fly,
i understand as a fundie where you’re coming from with your love for the death of MTW.. but just looking at the chart, suppose some miracle happens or “fuckery” as you like to say… aren’t you kind of betting with bad odds that you’re going to get fucked by it shooting up?
He does a Cashin’s Comments letter every morning for U_B_S clients.
another excerpt:
Cocktail Napkin Charting – You may recall that traders had noticed the S&P’s habit of not being able to stay above its 50
day moving average for more than four days. Friday was the fourth day and, sure enough, yesterday we closed under. The
50 DMA will now provide near-term resistance 790/795 then the napkins suggest 805/810. Support could be the 780 level
cited in Monday’s Comments (and yesterday’s low). Should that break look to 760/765.
How come GM hired Roger Maltbie as CEO of GM?
At least he trimmed his moustache and put on a suit.
Be a little Patient, those of you who are short some of the banks. The shorts will jump on them again.
I got short GS at 11.50 and I will cover today if it runns up to 106.
MS, I got short at 26.10. MA does look to have some support here at 22, but she is looking weak and I will ride her for a while looking for her to fall to 20.
WFC- hard one to figure out. With the crazy action yesterday in the put options there has to be more to their story. There is still big open interest in the April 10 and 11 puts. the July 10 puts have a load of open interest too. There are some that must be hedging their bets they made at the begining of the latest rally. WFC has been bleeding slowly since hitting 17.60 after last Monday’s rocket ship of a day. Got short early yesterday @ 14.80. I am watching her closely and will not let it get to far away. looking for her to drop to 12 and maybe even 11
GM exec’s exposed for the idiots they are….who is gonna buy unless they slash prices…they are shit toast.
WFC–Could it be it’s the put SELLERS that know something? Like some kind of buyout/merger above the strike? How do we know if it’s the option BUYER or the option WRITER that is the dumb money here?
why would GM slash prices?
they are going to wait until the government says they will subsidise the difference, then they will cut prices, but only after the government says they will give GM taxpayer money to offset the difference so GM doens’t loose any money and makes a profit off our backs, it’s a loose loose for us, and a win win for the executives of GM.
In my humble opinion, I think GM should offer all of their line up at 50% off, finance the vehicle at 0% for 6 years, and give free oil changes and free brakes for the 6 years and have the buyer pick out any of the receptionist girls from any dealership and you get complimentary blowjobs from her once per week for the 6 years as well.
then you might get some people in the doors?
comments on my plan welcomed.
Why sell a put if you have inside info, as that would be playing dumb. Buy the calls or buy the stock. Selling naked options is stupid- rotten risk reward wise. I am assuming like you that the seller of that put series is rational.
Prospectus
Good question. I don’t know the answer. Hopefully, someone can offer some insights.
I think the blow jobs are far too many years apart. You want people changing over every 3 years. Everything else looks good though.
Can someone check BOOM’s volume for me? Did it just trade 180k shares in the last minute? It’s highly unusual, and seems like a data glitch in TD ameritrade. Thanks in advance
10:43am
191,100 k shares on TOS.
Thinking glitch. price move was is not indicative of 191k unless some shenanigans are present.
I don’t see anything unusual in BOOM. Largest trade was 600 at 10:49. My software is only showing back to 10:44.
Shorting 6 contracts here due to continued weakness in homebuilders.
I’m showing 265k shares traded as of 10:53, with a huge spike at 10:43, what wawaweewa sees.
Odd. Prob nothing.
http://bit.ly/EMOqS Must read article
MOOBER: TDAmeritrade is always giving me these spikes. But in this case I can not see the volume spike you speak of.
Try using http://www.bestfreecharts.com
Fly organizes the annual Flatbush Avenue Gheys Club Reunion Rave at Grand Central Station this year, foah a little “variety” from the usual supper club location.
Be sure to check @ 2:17, where he breaks it down, Crooklyn style.
___________
Why the fuck was that stupid bint Ariana Huffington on CNBC? The woman is seriously stupid.
WFC–Could it be it’s the put SELLERS that know something? Like some kind of buyout/merger above the strike? How do we know if it’s the option BUYER or the option WRITER that is the dumb money here?
Good point, and I mentioned this yesterday. This is why I eschew listening to the pony-tailed Armenian and his “helpful” options services.
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Buy the calls or buy the stock. Selling naked options is stupid- rotten risk reward wise. I am assuming like you that the seller of that put series is rational.
Could be an interested buyer. If you’re willing to purchase at “x” why not sell the puts and get paid to wait?
Could also be shorts hedging.
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Isn’t Ariana just one of the Gabor sisters in drag?
Tra La La hedge Fuckery. Still in cash. Still in control until Low Risk sure money is ripe. If we break 800 in SP500 and the jobs report comes in as I expect shorts will get their nuts pounded. You need to hedge in this bullshit or you will get stopped out long or short. Unless you Day trade.
All the banks are being bid up. It is a mystery to me that people are now believing the bankers and their spewing of fake news of profitability after all of the lies they have told. Especially BofA. Merrill had worse books than Bear Sterns. Again all rallies that have been led by the banks have failed this one will be no different I don’t care what Doug Kass says.
Yesterdays big volume in the puts of WFC was triggered by a single buy of 100,000 contracts of the April 11’s
A bunch of SRS @ 56.60
SRS
A bunch more @ 56.20
Could be an interested buyer. If you’re willing to purchase at “x” why not sell the puts and get paid to wait?
Jake:
Why would an interested buyer sell puts as he may not get filled. An interested buyer would simply buy the stock or buy a call.
Could also be shorts hedging.
But why would a short sell puts to hedge. they would be buying a put, wouldn’t they?
Fly,
I just wanted to let you know that I know that I’m the baddest motherfucker alive period ever. What do you think about buying FAZ and SRS right now?
no shorts would not buy puts to hedge. sell puts or buy calls.
Correct Anon
Longs buy puts to hedge
Does anyone know of a site where I can find earnings dates by symbol. My system seems to always give me the wrong date
no shorts would not buy puts to hedge. sell puts or buy calls.
How does a shorter hedge by selling puts, anon? That’s not hedging, that would be increasing your position if the market goes lower.
Shorts buy calls to hedge
How can you know about covenants ratios an such requirements by the banks those agreements are between the lenders and the company I dont think is inside a 10k?
T MOE…I use
http://www.earningswhispers.com/calendar.asp
NASDAQ is suck on stupid and should start a grind down soon.
MSFT not having that big of an effect thus far.
KLAC issued a miserable AH update yesterday on the chip situation.
agreed moe. That’s what i hope i was conveying.
——–
Watch dollar yen closely folks. The Japanese just closed their year end and the inward pressure of Yen moving back home is over during this technical period.
The Japanese need a yen that’s a lot weaker. I’m thinking it goes through 100 and eventually all the way to 130 over the next 24 months.
I’m long Aussie yen and managed to get though the recent hiccup of the last few days.
Why would an interested buyer sell puts as he may not get filled. An interested buyer would simply buy the stock or buy a call.
Possibly, but it could be someone like me, who already has a position, and is willing to buy an additional amount, or be paid for the possibility. I do it all the time, fwiw.
(most recently in MON, which pays huge short term premia).
But why would a short sell puts to hedge. they would be buying a put, wouldn’t they?
If you are selling the ability to put a stock, then you are hedging your short, no? Buying the put would double a shorts exposure, if I’m thinking properly.
_____________
I know most of you wingnuts won’t like this article, but I agree with the nomiation for SEC Cheif…..get this puppet out of there and give us a guy with brass balls.
http://informationclearinghouse.info/article22312.htm
IBM files for patent that makes outsourcing even easier.
From Mish:
http://globaleconomicanalysis.blogspot.com/2009/03/ibm-files-patent-for-system-that.html
Why do we even bother making or doing anything in the
US. There isn’t one thing made here that can’t be done a lot cheaper somewhere else.
You want to save the country a shitload of money. Have insurance require patients travel abroad for expensive surgeries. This lady didn’t have insurance and saved 15X by going to India for heart valve surgery. Unfucking real.
http://www.cnn.com/2009/HEALTH/03/27/india.medical.travel/index.html
The Zombies favorite Chinese dish is Sum Yung Gai
HIG not taking part in the rally. Hurting from Moody’s downgrade of their debt.
Headed down to 5?
If you are selling the ability to put a stock, then you are hedging your short, no? Buying the put would double a shorts exposure, if I’m thinking properly.
think of it like this… you short a stock.
then you sell a put..
What happens if the price is lower than than the strike?
You end up with more stock.
that’s not really a hedge, is it?
T MOE buys more DUG at 25.40
buying a put is betting on the stock going down.
selling a put is bettong on the stock staying flat or going up.
if you’re short the security, you’d want to sell a put on that security to hedge.
HIG taking it in the face from nick manning.
Vince Farrel is an idiot. He called the bottom in September. what a dumb ass. Do the exact oppostie of what all the idiots CNBC contributors say and you will bank coin.
why is Cabrera and Kneale on a financial show..two fucking dirt stupid bitches…and both dog ass ugly
oh shit,,, yea… i got my calls and put on the wrong side… Sorry.. it’s 3 am here.
Vince has called multiple bottoms in this mkt. Sometime in late January he admitted he was wrong and went to the ambiguous statement of “bottoming process” FWIW
ARIS
“Droppin loads”