Tuesday, December 15, 2009
Friday, December 11, 2009
Next move for Financial Sector
Hello Traders,Buyers and Investors sorry for not posting quite few days.... but back again....
I have been closely watching the Financial Sector for past few days and what is the update and how are they planning ahead for future. Here is the play for common man and the companies. I have received a letter from CITI (NYSE:C) which states that the APR would increase.Good for the company and Bad news for us. Every mind in this time is Pre occupied with thoughts and fear of investment or skepticism is over ruling the very essence of unpredicted nature of future investments which is fueled by High degree of Volatility of the market.Agreed. But Fed has set few clear cut rules keeping in mind about the present nature of the market. Desperate times needs desperate measures.Fed has reduced the interst rates to http://www.federalreserve.gov/fomc/fundsrate.htm. As of Dec 16th 2008, the interest rates have been at 0-0.25. All the financial sectors have lost dead weight and have trimmed down to maximum that they are just for operations of business to carry on. So I would rather say unless and until the banks are filing for Chapter 11 I do not forsee any more further reduction in employment. But lets not allow a wave of optimism to flow in our minds. One should bare in mind that there are lot of option calls which makes us feel that the market is budding. Thats not the true nature of the market.So lets not loose track. Fed has also made clear statements that interst rates to the customers should not increase just because of 1 missed payments and the customers are to informed well in adavnce before increasing the APR. Now what would the effect of this? Revolving credit has already been blocked. If a person misses a payment or cannot pay, banks would loose the credit they have borrowed from the customers. In order to compensate this they have increased the credit card APR’s. How is that we are going to get benifited would be the next obious question? The financial sector investments are no more lucretive the way they used to pay dividends. Upon saying this, they would rather be more stable in the near future. The banks are instructed to show their progress in repaying TARP(Troubled assert relief fund).Few Banks are already on their way of paying the money but CITI is still hanging in the air to develop a program to pay back but it has reportedly planning to raise $20 billion in new equity to help it pay back the $45 billion it received in funding. Treasury has reportedly told Citi it could repay its TARP funds if it raised that amount.
Get the shares of CITI now. Other banks are Hutington Bancshare(HBAN) ,Bank of America (NYSE:BAC),US Bancorp(NYSE:USB),Wells Fargo(NYSE:WFC) .
Analysis:
1.Citi cannot be sunk easily.The roots are so deep in 30 different nations, it would take Hercules to sink it but remember it will be slow but steady. So this stock is GO GO…
2.HBAN is a local bank is a regional bank but backed up by the state Govt of Kentucky for 1 billion and its has more of low risk business and Yield has not dropped to this low. Get this stock and thank me and you later.
3.The only reason as why I would go for Wells fargo and US Bancorp is Waren Buffet. If he can invest and can steer the economy why not me. If lost he will loose atleast a billion folds than us and I don’t think that he is stupid to make such a move.I do not remember his exact name but he is Agarwal who is the man behind curtains for the futuristic investments. Since I am cocentrating only on financial sector for this post, I would also like to throw like on Hartfor Financials (NYSE:HIG). All I say is MAKE HAY WHILE SUN SHINES. One thing is for sure, what ever money we put in today in the market futurelooks brighter for the generations to come.
I have been closely watching the Financial Sector for past few days and what is the update and how are they planning ahead for future. Here is the play for common man and the companies. I have received a letter from CITI (NYSE:C) which states that the APR would increase.Good for the company and Bad news for us. Every mind in this time is Pre occupied with thoughts and fear of investment or skepticism is over ruling the very essence of unpredicted nature of future investments which is fueled by High degree of Volatility of the market.Agreed. But Fed has set few clear cut rules keeping in mind about the present nature of the market. Desperate times needs desperate measures.Fed has reduced the interst rates to http://www.federalreserve.gov/fomc/fundsrate.htm. As of Dec 16th 2008, the interest rates have been at 0-0.25. All the financial sectors have lost dead weight and have trimmed down to maximum that they are just for operations of business to carry on. So I would rather say unless and until the banks are filing for Chapter 11 I do not forsee any more further reduction in employment. But lets not allow a wave of optimism to flow in our minds. One should bare in mind that there are lot of option calls which makes us feel that the market is budding. Thats not the true nature of the market.So lets not loose track. Fed has also made clear statements that interst rates to the customers should not increase just because of 1 missed payments and the customers are to informed well in adavnce before increasing the APR. Now what would the effect of this? Revolving credit has already been blocked. If a person misses a payment or cannot pay, banks would loose the credit they have borrowed from the customers. In order to compensate this they have increased the credit card APR’s. How is that we are going to get benifited would be the next obious question? The financial sector investments are no more lucretive the way they used to pay dividends. Upon saying this, they would rather be more stable in the near future. The banks are instructed to show their progress in repaying TARP(Troubled assert relief fund).Few Banks are already on their way of paying the money but CITI is still hanging in the air to develop a program to pay back but it has reportedly planning to raise $20 billion in new equity to help it pay back the $45 billion it received in funding. Treasury has reportedly told Citi it could repay its TARP funds if it raised that amount.
Get the shares of CITI now. Other banks are Hutington Bancshare(HBAN) ,Bank of America (NYSE:BAC),US Bancorp(NYSE:USB),Wells Fargo(NYSE:WFC) .
Analysis:
1.Citi cannot be sunk easily.The roots are so deep in 30 different nations, it would take Hercules to sink it but remember it will be slow but steady. So this stock is GO GO…
2.HBAN is a local bank is a regional bank but backed up by the state Govt of Kentucky for 1 billion and its has more of low risk business and Yield has not dropped to this low. Get this stock and thank me and you later.
3.The only reason as why I would go for Wells fargo and US Bancorp is Waren Buffet. If he can invest and can steer the economy why not me. If lost he will loose atleast a billion folds than us and I don’t think that he is stupid to make such a move.I do not remember his exact name but he is Agarwal who is the man behind curtains for the futuristic investments. Since I am cocentrating only on financial sector for this post, I would also like to throw like on Hartfor Financials (NYSE:HIG). All I say is MAKE HAY WHILE SUN SHINES. One thing is for sure, what ever money we put in today in the market futurelooks brighter for the generations to come.
Wednesday, November 18, 2009
Nov18th--Airline a watch for stocks...
A new outlook for the Airline industry could set a trend in increasing the stock values of the shares
as we see a seasonal shift for the holidays to come. Airline industry relies on customers and services and the amount of service is directly proportional to the business they make. There is an early shift in the way the things are working these days. The stressed out pilots, safety of the passengers ,mishandling of the luggage and claims used to be OK with the airline industry. Now that the tables are turned, there is no scope to spend and extra dime and all the airline operators have become extremely vigilant about the expenditure they are incurring. Its been a time where they are trying to reduce the number of mishandling in every possible case.
Coming to the economy stand point of view, as viewed the world is slowly loosing its lust over the dollar and things are being viewed different. The rise in the Oil price, competition of the other airlines, operating costs of the airline have limited the leverage of the airline quarterly turn over. That being said, investors are more vigilant about the investments into the airline industry. nevertheless , one has to strongly believe that the Quickest mode of transportation is by Airways. Risks are always there but , airline operators would not like to go OUT OF BUSINESS.
Investments: Out of all the alliances of airlines, star alliance is making real good progress in setting up new trends and its considered as one of the prestigious alliances of all airlines.So any investment in star alliance would be a good bet for trading or investments. few airline industries which caught my attention are
Allegiant Travel Company
(Public, NASDAQ:ALGT)Southwest Airlines Co.
(Public, NYSE:LUV)AirTran Holdings, Inc.
(Public, NYSE:AAI)JetBlue Airways Corporation
(Public, NASDAQ:JBLU)US Airways Group, Inc.
(Public, NYSE:LCC)have a watchful eye on these stocks. They could claim the future. Ofcourse gaints like Delta is always there.
have a nice day and Nice Hedge
Tuesday, November 17, 2009
season welcome--Nov 17th 2009
Seasonal stocks play a vital role in the boost of the sales and for the investors
or Traders.A quick pick for today is Target and comparison to
the Wal-Mart.(NYSE:WMT).Wal-Mart is playing a strategic role in boosting
up the sales and increasing the share values.But all the equations of the
money do not apply. The margin of the Wal-Mart is based on the Dollar value.If the Dollar
value falls then Wal-Mart falls. How is target able to survive this and still boost up its sales?
All the sales boost bythese stores are temporary in nature and would go down once
again after the festival season.If you are planning to play on trading few stocks
i would go for at this time would be
Target,
MGM,
Southwest Airlines Co.
(Public, NYSE:LUV)
These companies have long standing history of maintaining good stock values without over
burdening consumers.There would be an increase in the stock price for sure but not a major
change.Watch out for post season they will tumble down. Play on Edge and Hedge that’s all.
Cool then cya tomorrow
Monday, November 16, 2009
Updates on Nov 16th 2009
Hey All,
Knowledge is money right. right choices at the right time makes us billionaires not a surprise. So where is the market heading to? crisis of stocks all down with bubble. Is it a good news or a bad one? Well , mixture of both. Some ones lose is others gain. Thats the way money equates. Any ways thoughts can be saved to later.
Market Analysis:
Whats the global market upto? India brought 200 billion tonns of Gold. Some say its stupid i feel we are smart.
its my strong feel to get stocks of enery companies mostly refiners. i forsee and unpresidented surge in the price of oil in the forth coming days the reasons are the production in the gulf is reducing which makes demand high and the dollar is sorry weakening which means we got to pay more dimes for a gallon.
the drop in the gas price is a temp note bcos of reduced demand which makes the best time to get those stocksi would suggest valero
ATPG too
we can also go for
local or small time gas companies of
marshall or something
but for sure
the gas price will rise
adding to this
gold price may also rise . We have seen a wheel of balance between gold and oil. Pradoxically , that does not hold good any more. The case was well established when the dollar was strong and steady. Not any more is the case .
due the fact that india brought 200 million tonns
go raise its gold holdings to circulate money
smart we are arnt we
so i dont see a reverse trend
of the gas and gold
anytime in the near future
there is an demand
for the steel
and the companies like AKS
TX
are sharing their share from south american contitents
sooo they are maintaing their stock holdings in a steady pace
steel would be put to test
in the future
but would prevail
out
I know my analysis is heading right
any comments and suggestions are appreciated?
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