BAC

Insider Buying Week 11-03-23 Insider Buying offers Clues as to where Bargains might Await

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The difference between the 10-year Treasury Bond yield and the S&P 500 dividend yield is the largest it’s been since 2007.  The spread between interest earned on Treasury Bills and dividends reached levels not seen in 40 years. ~5% money market rates and an S&P 500 dividend yield of 1.52% cannot coexist indefinitely. This is not a condition for equilibrium. Something must give. Great amounts of money will be made in getting this right. In the immortal words of Dylan, the poet laureate, “Something is happening here; But you don’t know what it is.” The market changed its narrative last week from higher for longer … Read more

Tech Stocks Long Overdue Comeuppance – Insiders are the Ultimate Value Buyer

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Nothing like a thousand point drop in the Dow to remind you that stocks don’t go up forever.  Neither do insiders blindly chase their stock price higher.  Just the opposite. They are the ultimate “value” buyer. Tech crashed and burned last week all because an impulsive Japanese billionaire, Masayoshi Son, gambled $45 billion in call options on big tech names. At least that’s what they’d like you to believe.  According to traders, there have been mammoth options trades that include buying call options on stocks like Amazon.com Inc., Adobe Inc., Netflix Inc., Facebook Inc. Microsoft Corp, generating chatter across Wall Street.The following companies … Read more

Some Insiders are Killing it- Everything is UP- Week Ending February 7, 2020

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Wow- did you see our pick of the week, Groupon?  Groupon rocketed over 50% Friday on better than expected quarterly earnings and an enormous short squeeze. GRPN traded 13 times normal volume which makes it prime for a price reversal. I listened to the earnings call and not sure how convincing the turnaround story will be. Didn’t hear on attaboy from the handful of analysts obligatorily covering the fallen unicorn.  It’s still mind number to think they turned down $5.7 Billion from Google. I’m going to make a mental note that when Google offers me $5.7 billion for my company, … Read more

Energy Lending Caught in a Squeeze

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Banks have sold off recently on a variety of perceived woes, some real, some not so real.  One of them is their exposure to energy loans.  This article shows the exposure the major banks have.  CiitiGroup has 3.48% of their loan portfolio, JPM 5.56%,BAC 2.48%,and WF C 1.91%.  All in all this looks manageable to me. Banks are clashing with regulators over loan reviews that could crimp the flow of new credit to the oil patch. Source: Energy Lending Caught in a Squeeze

Banking On The Banks: Is Morgan Stanley A Buy?

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According to Richard Bove, you’d be stupid to even think no.  While Bove is right, it’s lagged all but one of the big banks (WFC) with just a 30% gain YTD, that doesn’t have any effect on future results.  The catalyst here is the full merger with Citi’s remaining 49%.  Morgan Stanley Smith Barney is at present, a mash up of decades worth of mergers and acquisitions with very little though given toward how to seamlessly blend the smorgasbord of corporate entities into a well oiled machine (Trust me.  I worked there).  The computer systems are a mess (supposedly being … Read more

An ETF To Capitalize on Growth in Regional Banks

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Guest Post By: Benjamin Shepherd Thus far, 2012 has been a great year for the money center banks; shares of Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) have all gained more than 30 percent year to date. Solid balance sheets, growing profits and a strengthening domestic economy have underscored the fact that, thanks to aggressive intervention by government and banking authorities at the peak of the financial crisis, American banks are now the strongest in the world. According to the Federal Deposit Insurance Corporation’s (FDIC) most recent quarterly assessment of the banking industry, the sector posted its tenth … Read more

Pension Pulse: Hidden Burden of Ultra-Low Interest Rates?

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Guest Post By: Leo Kolivakis via Pension Pulse: Hidden Burden of Ultra-Low Interest Rates?.   Matthew Philips and Dakin Campbell of Bloomberg report, Banks Join Pensions in Squeeze as Federal Reserve’s Low Rates Erode Profit:   The Federal Reserve, which cut its target for the federal funds rate to a zero-to-0.25 percent range on Dec. 16, 2008, said last month that rates would remain “exceptionally low” at least through late 2014. While the unprecedented period of near-zero rates is meant to aid an ailing economy, it poses challenges for banks, insurers, pension funds, and savers. The hope is that by making mortgages and … Read more

U.S. judge pans rush in BofA $8.5 billion mortgage pact

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(Reuters) – A judge questioned why Bank of America Corp’s $8.5 billion settlement with mortgage securities investors was being rushed for approval and whether the trustee that negotiated it treated investors fairly. U.S. District Judge William Pauley set a September 21 hearing to consider requests from some investors to move the case to Manhattan federal court from a New York state court, where the trustee Bank of New York Mellon Corp wants it handled. That timetable is slower than Bank of New York Mellon wanted and could imperil a scheduled November 17 hearing before New York State Supreme Court Justice … Read more