Day

May 21, 2012
It is absurd to think that because Facebook’s IPO hasn’t resulted in instant gains for investors that bought at the IPO price, the banks that led the underwriting are at fault.  IPO’s have the odds stacked against them for retail investors as insiders are selling their stock to the public.  They aren’t selling their shares...
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It appears that the loss in the CIO division of JP Morgan (JPM) is now effecting their willingness to buy back stock, even though stock buybacks at current prices below tangible book value would significantly boost intrinsic value.  I don’t think JP Morgan is making the right decision to do that as it reduces confidence...
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AIG’s investment strategy is to embrace distressed mortgages which are trading at discounted prices and offer attractive cash flows, in lieu of equities which are more impacted by shifts in the equity markets.  While AIG’s mortgage portfolio got them in a considerable amount of trouble during the “Great Recession” the primary problems that the company...
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Goldmans Sachs (GS) is staying aggressive by taking principal investments in the tech sector similar to a venture capital firm.  While the strategy has worked out quite nicely for Goldman lately I’m somewhat surprised to hear this due to the Basel III guidelines which reduce the attractiveness of principal investments for banks.  I would expect...
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This was a great article outlining the improving conditions in the U.S. auto sales market.  Of the three stock mentioned we at T&T Capital Management believe that GM offers the most compelling opportunity.  Europe has been a huge problem for the company, but if U.S. sales perk up over the next several years GM has...
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The conflagration in European financial markets has been gaining steam due to the ineffective policymakers.  The lack of a TARP-like program has investors and market participants questioning European banks capital.  The threat of a run on the banks is significant and the longer policymakers wait to address the situation the more expensive this issue ultimately...
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Kudos to Yahoo for getting this deal done with Alibaba despite the Scott Thompson debacle.  This should remove a significant overhang for the stock and the price seems quite reasonable.  The biggest risk now for Yahoo shareholders would be a poor acquisition that would be value destructive. http://online.wsj.com/article/SB10001424052702304019404577416571623411072.html?mod=WSJ_hp_LEFTWhatsNewsCollection INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS....
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