The big, bad Italian bank, Unicredit, is going to market–raising 7.5 billion euros. I anticipate this to be the first of many capital raises, onerous in nature–greatly dilutive to current shareholders. Keep in mind, Unicredit is raising capital at a 69% discount to current share price. You need to be careful when navigating the financial landscape.
My largest position, LULU, is sprinting higher today. I anticipate my enemies in LULU, those who oppose all that is good and just in this world, to be skinned alive today. Should you stare into the abyss that is unlimited in nature, which is the potential downside of short sellers of LULU and decide to short DECK, based upon specious rumors of warm weather (it’s cold as fuck today), you may indeud share a similar fate.
Let it be known and have it spread like the plague, 2012 will be the year of “The Fly”.
After yesterday’s purchase of TZA, my cost basis is now $26.40, or down 2.3% from current prices.
Do you need to worry today?
Well, European yields and CDS spreads are hardly moving. People are only concerned about the dilutive effects of egregious share offerings. Nevertheless, I do not sense imminent danger here. As a matter of fact, I would be surprised if the bulls laid down and let the disgusting clowns– who live on Twitter– dictate the tone, so early in the new year.
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FIG. (Ten minutes from post to FIG. What the hell, is everybody here busy trading?)
i suppose they are without words
Pffffft. This whole Eurotrash problem goes away as soon as the Gretsky house sells.
This comment should be trimmed with gold and immortalized in the newly-minted iBankCoin QUOTE BOARD OF HISTORY.
Thank you, Sir.
In the banking sector, at least, equity sales (if received) can actually contribute to strengthening the sector.
Not that I’d want to play Russian Roulette by trying to decide who’s going to raise and who’s not, but you could make an argument that this is all a salve to the current Euro problem, and bullish for the West.
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It’s pretty damn warm in the Rockies, in Park City it was almost 50 degrees yesterday with only a 20″ base on the hill. Sundance is coming up in a couple weeks, that’s where the whole uggs phenomenon started 10 years ago. A female friend of mine whose in charge of procuring items for the swag bags given out to celebrities tells me this year it’s all about “duck” boots, a more waterproof footwear. Personally, I find the ugg look every bit as sexy on a woman as a pair of 6″ stiletto heels (given they’re not being worn by some 250 lb. lodge lizard)
Duck boots? You mean the LL Bean variety?
What is with the 70’s love and these women?
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Evidently , the English farmer look is gonna be HOT this year.
Funny! I live in park city too and see so many new Ugg boots every year.
TMoe’s really Robert Redford!
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Only on the weekends my friend
Are you going to wait for PPT o/s to sell TZA?
yes
From Reformed Broker…10 predictions for 2012:
The European debt crisis begins to ease, even as Europe experiences a recession.
The US economy continues to muddle through yet again.
Despite slowing growth, China and India contribute more than half of the world’s economic growth.
US earnings grow modestly, but fail to exceed estimates for the first time since the Great Recession.
Treasury rates rise and quality spreads fall.
US equities experience a double-digit percentage return as multiples rise modestly for the first time since the Great Recession.
US stocks outperform non-US stocks for the third year in a row.
Dividends and buybacks hit a record high.
Healthcare and energy outperform utilities and financials.
Republicans capture the Senate, retain the House, and defeat President Obama
and NO…Bank of America will not file bankruptcy.
Ladies and Gentlemen… many months ago in a moment supreme stupidity, I purchased a large amount of SODA. I was rightfully bitch-slapped by the stock gods for this impudence and have bathed in the red glow of failure since then. Today, the stock gods have rewarded my humility and brought me back to even. God Bless America and hello stop-loss.
Many US banks had to do similar dilutions (as per Unicredit) to stay alive. Others were simply erased by the FDIC.
Monsieur Le Fly, can you release that joke I just posted from Le Moderateur?
I promise, it has no bad words in it.
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