SubscribeThe Fat Lady ain’t singing!
July 21, 2008
It ain’t over it seems. Apple (AAPL) aside, the big news after hours was American Express (AXP). The earnings are awful, the business is in the dumps and now AMEX wants to withdraw any 2008 forecast. Bloomberg reported:
Profit in the company’s U.S. card business dropped 96 percent to $21 million from $580 million a year earlier as provisions for losses more than doubled to $1.5 billion from $640 million. uncollectible debt in the unit rose to 5.3 percent of loans from 2.9 percent a year earlier.
After hours, my old friend Capital One (COF) was knocked for a loop on the news as well. The credit card industry has proven itself to be no better that two-bit loan sharks. They rape customers with exorbitant fees, ruin your life if you cannot pay and now lie to protect themselves. I am totally disgusted with the way they have handled themselves.
TDI Episode 66: Stock Tips and Mish-O-Nomics
July 20, 2008
Guest: Michael “Mish” Shedlock and Andrew discuss the current economy, the financial stocks and the unbelievable rules that are coming from the SEC and the FED. What are they thinking? Short-selling may break the back of the banks that have the biggest problems as they are now fair game, while the big brokerages have been…officially excluded. Even though it is a temporary action, I have to say: Nice work fellas! (not)
As promised, Andrew gives you a few stocks to look at as they are exhibiting strong fundamentals, good technicals and are setting up to move. If you want to learn more about how to find, research and invest in 
stocks, this episode is for you….
Mike Shedlock / Mish is a well sought after blogger that has been spot-on with the current economic debacle we are seeing. He is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance, low volatility, regardless of market direction. They provide wealth management for investors seeking strong performance with low volatility.
LISTEN TO PODCAST | LISTEN @ ZUNE - @ iTUNES
Mish’s blog provides global economics commentary 7-10 times a week. He is also a “professor” on Minyanville. Make it a habit to visit his Minyanville Profile. Mish also does weekly live radio on KFNX on the Charles Goyette show every Wednesday.
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Stocks discussed: Apple Inc. (AAPL), Aecon Tech (ACM), Adobe (ADBE), ITT Educational Services (ESI), Fannie Mae (FNM), Freddie Mac (FRE), Lehman Brothers (LEH), Goldman Sachs (GS)
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The ZachZone Stocks: Fannie Mae (FNM), Freddie Mac (FRE), GT Solar International, Inc. (SOLR), China Distance Educational Holdings (DL)
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CLICK HERE for a Virtual Tour of The Disciplined Investor Managed Growth Strategy
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The Week Ahead - Market Independnce Day!
July 1, 2008
From my post on MSN Money TopStocks:
It’s a whole new ball game. With the dollar’s historic lows and oil breaking about $140 per barrel, it seems obvious that as investors, we need to revisit the basic rules when it comes to risk protection and price targets. As we saw with last week’s romp on the market, the broad-based sell off was a signal that we may have finally approached the proverbial straw that broke the market’s back. What is next and will oil finally come down from the stratosphere?
Whether it’s transportation costs or materials that make up the basis of the manufacturing process, companies are going to need to be looking for cost-cutting strategies in order to maintain profitability.
Unless you have a portfolio chock full of short positions and maybe a smattering of energy-related stocks, you have had a lot to be worried about. The most troubling part of this earnings season is that we have not seen a more publicized account showing that companies are having a difficult time reaching lowered estimates. Perhaps it is time to reflect on goals and pay attention to downside risk in an environment that is showing a much greater potential for breakdown that a breakout.
Covering: (STD) (HRB) (ADBE) (CORL) (WDFC) (FDO)
Greenberger on the Hill - Enron Loophole Video
June 29, 2008
As a follow up to to the recent articles you may have read here, you may want to consider watching this. The recent testimony of Prof. Michael Greenberger on The Enron Loophole…Scary Stuff.. (turn your sound down a bit.. it is a touch loud!)
(Note: Prof Greenberger joined us on TDI Podcast #63 to answer some of difficult questions…)
Oil Index Set to Fall?
June 26, 2008
The ETF that tracks the US Energy Sector (AMEX:IYE) is starting to show signs that it may be ready for a real fall. As there has been a significant increase in the noise surrounding sky-high oil prices and regulators and politicians looking to increase oversight, they will surely end up trolling for a scapegoat.
Update 6/29/08 - Prof. Greenberger who has been testifying on Capitol Hill regarding the Enron Loophole is a Andrew’s guest on TDI Podcast #63. Listen Here
(CLICK CHART FOR LARGER VERSION)
Will that cause some of the recent froth to be lifted from the energy stocks? Maybe. Take a look at the index and think about the timing potential for ETFs that short similar indicators/indicies such as the UltraShort Oil & Gas ProShares (AMEX:DUG) which has a 200% negatively correlated price to the Dow Jones Oil and Gas Index. We have been adding that position to client portfolios recently.
The chart shows a recent break below the 50 day for IYE. All things considered, I keep on recalling the phrase: Trees do not grow to the sky.
Thoughts?
Disclosure: Clients of Horowitz & Company are LONG DUG at the time of publish.
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