May 9, 2008
Countrywide Financial: A Management and Regulatory Failure!
Analysis of:
B. of A. should exit Countrywide deal: analyst | www.marketwatch.comAuthor: GLG Expert ContributorImplications: 1.The Up-Side of Bank Of America walking away from the Deal - a positive Earnings per Share Ratio for Shareholders.A potential positive savings of the current staus: 2.0% to 9.0%. 2.One other Up-Side - Eliminate a remote possibilty of having to raise additional Capital and maintain an...
May 7, 2008
Financial Marketplace requires an Increase in Capital Reserves: Losses Abound.
Analysis of:
Countrywide loses $893 million in 1Q on rising loss reserve | biz.yahoo.comAuthor: GLG Expert ContributorImplications: 1.Severe downturn in the housing market and credit-related charges require an Increase in Reserves as a cushion for possible losses. 2.A windfall in the housing boom market reverses the direction of the Institution: Profitability becomes a hugh loss burden. 3.Forecasts DO NOT meet Earnings...
May 7, 2008
Undervaluation of Shares: Expectation of a New Target Price.
Analysis of:
Ahead of the Bell: Analyst upgrades Wachovia to 'Buy' | biz.yahoo.comAuthor: GLG Expert ContributorImplications: 1.A "Buy from a Hold" target price? Expectations are high and , perhaps, enhanced speculation. 2.The basis of formulation is a cut in dividends to the shareholder and common/preferred stock offerings.Liquidity is non-existent! 3.Commercial Losses are "Reasonable"?.Due Diligence must be...
May 5, 2008
Sovereign Fund:A Disappointment is on the Horizon
Analysis of:
Saudis to launch $5.3bn sovereign fund | www.ft.comAuthor: GLG Expert ContributorImplications: 1.A First atempt to enter the Financial Arena without the appropriate Due Diligence may, likely, be a failure. 2.A Strategic Formulation of portfolio management for the purpose of a long-term Rate of Return , which may not materialize and, thereby,become a hazard to the Industry....
May 2, 2008
Price per Share drops - Citigroup Inc MUST bolster Depleted Capital!
Analysis of:
Citigroup to Sell $3 Billion in Stock | www.nytimes.comAuthor: GLG Expert ContributorImplications: 1.Stock Offerings are Hugh - additional capital is needed after a recent Capitalization of $37B. Endless Re-capitalization? 2.Excessive losses on Mortgages, Bonds and Loans are materializing at a faster pace than expected by management. 3 The Insitution in question will not be able to...
April 28, 2008
The Current Credit Marketplace: Are Traditional Banking Insitutions Reputable?
Analysis of:
Corroded to the core: How a staid Swiss bank let ambitions lead it into folly | www.ft.comAuthor: GLG Expert ContributorImplications: 1.Investment Banking Division exposes the Institution to incrediable losses by way of securities linked to the troubled US housing market. 2.The most salient issue is: The inability to sell the same and an, ultimate loss in capitalization. 3.Decision - Making by Management: a clear lack...
April 28, 2008
Banking Industry: Ownership by US Insitutions or Foreign Entities
Analysis of:
Some Banks Rethink Investments as Money Tightens | www.nytimes.comAuthor: GLG Expert ContributorImplications: 1.A Troubled Financial Banking Marketplace COULD lead to the concept of US Capitalization, which is the basis of our Financial Heritage. 2.American Bankers in discussions with Foreign Governmental Entities is considered to be Realistic? 3.The Salient Issues on the table - "What is our...
April 24, 2008
A Substantial of the Firm's Preferred Stock: Voting Rights and Capital Infusion
Analysis of:
Double Take: JPMorgan Quietly Raising $6 Billion | www.housingwire.comAuthor: GLG Expert ContributorImplications: 1.A search for Capital in a Down - Side Financial Marketplace , perhaps, a signal of Material Undercapitalization. 2.Due Diligence and Disclosure should be of paramount importance. 3.Tainted Financial Posture caused by mortgage - related losses and write downs due to all credit market classes....
April 21, 2008
"Cherry Picking" - Choose the Assets and Credit Rating"
Analysis of:
Citi allows loan ‘cherry picking’ | www.ft.comAuthor: GLG Expert ContributorImplications: 1.Purchase an asset at a deep discount - well below origination value. A menu of leveraged loans to private equity and the opportunity for profitability. 2.A list of loans purchased for $.10 on the dollar ( $1.00 ) , in addition to assumption of debt.Value-added to the puchaser by way...
April 17, 2008
Predictions: Value-based Information on Citigroup
Analysis of:
Wall Street braced for further $11bn writedown at Citigroup | business.timesonline.co.ukAuthor: GLG Expert ContributorImplications: 1.Additional write-downs by a Major player in the Banking Idustry will affect the stock price, financial marketplace and, stockholder. 2.It is, entirely, possible that the mentioned Financial Insitution will set a precedent in the community of peers. 3.From profitability of $2.00 + per...