The Dow Jones Industrial Average is back below 10,000. That doesn’t mean finding value in the market is any easier, says Mark Travis, who oversees $750 million as senior portfolio manager at Intrepid Capital, including the Morningstar five-star rate
From The Business Insider, Oct. 28, 2009: Tim Geithner’s getting ready to shovel more taxpayer money down the rat hole, this time to GMAC.
GMAC, in case you’re in understandable denial, has been bailed out twice already.
And now Tim Geithner wan
Beauty is in the eye of the beholder and that’s especially true for value investors. True value investors are typically attracted to stocks that most other investors wouldn’t touch.In his 2005 best-seller,
Value investor, hedge-fund manager and author Joel Greenblatt wrote “The Little Book That Beats the Market” earlier this decade. It was a hit and garnered a loyal following, even among novice investors.Greenblatt now has opened
Global warming is a myth, or at least far from certain, according to James Altucher, managing director of Formula Capital. “Peak temperatures world wide were hit in 1998 and the world has been cooling ever since,” Altucher says. Over the same t
America has a serious weight problem. According to the Centers for Disease Control, 30% of Americans are obese. It’s a problem that costs the nation billions and isn’t easily solved.
While policymakers debate the solutions, James Altucher, managing
From The Business Insider, Oct. 27, 2009:It is by now well known that the banks on the other side of credit
default swaps sold by AIG got paid out at par when the government
bailed out the insurance giant. …
If James Altucher had his way, it would still be business as usual at Galleon Group. Instead, the hedge fund is embroiled in one of the largest insider trading scandals in history; the company’s head, billionaire Raj Rajaratnam, has posted $100 million ba
Ever since the market bottomed in March, a parade of bears have warned about all manner of coming calamities:An end to the “sucker’s rally”A collapse of the financial systemA double-dip recessionA commercial real-estate collapseA decade of "
From The Business Insider, Oct. 27, 2009:Jeremy Grantham of Boston-based GMO
called the crash. He also called the rally. He also called a whole
bunch of stuff before that–although, as he is the first to admit, like
other value folks, he do
Most binges are followed by hangovers, and so the takeover boom earlier this decade is likely to translate into some hefty goodwill impairment charges for major European companies, as they mark down the value of assets bought when the party was in full swing.
This graph, lifted from a new report by Houlihan Lokey, shows the proportion of companies in each sector of the DJ Stoxx 600 index that have a book value of equity at least 10% above their market capitalisation. The bigger the dark blue line, the worse shape the sector is in – step forward autos, banks, insurers, other financial institutions, and real estate-companies.
Read the full Reuters story on the report here. And here’s an earlier HL release on U.S. goodwill impairment.
As head of the world’s largest custodian of financial assets, Robert Kelly is paid to be alert to buying opportunities. So it’s interesting to hear Kelly, chairman and chief executive of Bank of New York Mellon, tell reporters in Beijing that financial assets in Europe are more attractive than those in Asia and that, as a consequence, the bank is refocusing its businesses.
European financial institutions were hit harder by the global economic crisis than their global peers, and U.S. banks are in a better position to mount takeovers in Europe after going through a government-led process of consolidation and capital-raising, he said. “What you will see in coming quarters is that U.S. financial markets and banks are stronger than the European banks now,” he said.
If some European banks were to sell businesses to raise capital, BoNY would be interested in buying, he said. If timing counts for anything, Kelly’s interest has probably been piqued by Dutch bancassurer ING, which said on Monday it would split in two, transforming itself into a smaller European lender.