SIRI IntraWEEK Thread 08-03-09

[Big Ben]

FAZ is making a move and its cheap. BAC could have a red mark on the board, that does not happen much with them.

Relmor what do you think of a triple short of the financials on the Russell, FAZ?

[SiriusBuzz]

Hummmm, who was it that first said that.

Me. I said it well before the app was launched.

[candleman]

Candleman...few comments about those good American companies.
BofA, GE, Citi bank are borrowing money for 0% and lending it out at 6% or higher. How long are they going to be able to borrow at that rate, not forever. Bernake will have to fight inflation and raise rates at some point...this will squeeze their margins. B of A should not exist, they should be bankrupt right now. I will admit their stock price does go up everyday, and they are probably undervalued. I would price it at 25/share...I know this sounds crazy to say they should be bk on one hand and be undervalued on the other, but hey its a crazy world we live in. F should also be bankrupt, they took a 2b loan in the summer before the credit markets tighten up, check one for the CEO Malowy(wrong, don't care). So when you say have a little faith in our American companies, I feel your making a point for my side of the debate.

I will admit BAC and the XLF go up and only up...why I have no idea! I am half tempted to buy BAC at 16.68 just to say I have 10 shares or 100. The XLF has to cool off sometime. GLA

What I was trying to say about these companies is that they ARE surviving. If we would have let BOA or GE (which does a lot more than financial) or Ford (which didn't need our help) fail, unemployment and the recession would have been much worse.
The fact that WE as Americans stepped in and helped them out shows me that this is a great place to invest in.
We won't fail ourselves, because we're smarter than that.

Sirrius will survive and thrive because it's an innovative idea that really doesn't have any competition yet.

My one concern is that the buying habbits of Americans has changed (and that is probably a good thing). I hope we'll still part with 15 bucks a month for entertainment.

I wish Sirrius would find a proper way to stream the content through the web at a reasonable price. That will be the iccing on the cake!

[relmor2003]

FAZ is making a move and its cheap. BAC could have a red mark on the board, that does not happen much with them.

Relmor what do you think of a triple short of the financials on the Russell, FAZ?

Just had a R/S to make it more bulky to own. The market is going up, stalling, retracing barely, and going back up again. Is this a trend you want to fight against? Not so sure. At 10000 or 9500, I might be more inclinded. C just broke out, so im not so sure. Granted C is not on the index, but it is a bank that people follow.

[candleman]

I have to ask, are you taking into account inflation in the cost of goods. As an example, if that shirt you used to get for 5 dollars now cost you 7 dollars your sales have to be greater just to make up for the increase of inflation of just the product alone not to mention the increase of everthing else.

Being a Business Major, I do take that into consideration.
Over the past year, we've been able to negotiate better lease terms. They were getting out of hand, and now they are reasonable again. We've seen very little increase in basic wholesale prices. And our employees are living without the standard 6% yearly raises we were paying for the last 10 years. Now they get 2%.

I think more and more companies will be telling this same tale.

My paycheck as owner is a bit lower. But, to be honest, it was too high to begin with.

I think we all got a shock last year and now we're hopefully going to remember those lessons and try a bit harder to live within our means.

It's just a hope of mine. But, I've always been a positive thinker. It's been a pretty good approach for the last 54 years. I think I'll keep thinking positively!

[john]

Me. I said it well before the app was launched.

Please, are you kidding me, here is the link to the thread I started, goto the 15 line down. It is in black and white.


http://siriusbuzz.com/forum/showthread.php?t=1817


Did you notice the date of that thread and that does not include all the other times I have said it BEFORE in post.

[candleman]

Just had a R/S to make it more bulky to own. The market is going up, stalling, retracing barely, and going back up again. Is this a trend you want to fight against? Not so sure. At 10000 or 9500, I might be more inclinded. C just broke out, so im not so sure. Granted C is not on the index, but it is a bank that people follow.

I've done very well with C over the last 10 weeks. I think it's a good long and a tough daytrade right now.

[Big Ben]

Candleman, I see your angle and that is one school of thought, but the other school, Rick Santelli, feels the recession would be about 6 months over if capitalism would have eaten those companies up. By fluffing or propping those companies up we have elongated the dip, turned a v into an L. Our economy is consumer based and right now stupid people can't take from their HELOC loans to make stupid purchases...ie above ground pools, trampolines, riding john deere toy for little Johnny. In the past 5years most purchases were items people could not afford without the wealth affect from housing. Now the wealth is gone, a few trillion or so, and it is not coming back to zero growth for maybe 3-5yrs....at this point your mortgage payments will be back to one for one. Maybe a few years after that real estate might appreciate, yeah. Just something to think about.

Real Estate is dead and all the businesses that go with it are too. Shit commercial lending has not even hit the fan yet.

[john]

Being a Business Major, I do take that into consideration.
Over the past year, we've been able to negotiate better lease terms. They were getting out of hand, and now they are reasonable again. We've seen very little increase in basic wholesale prices. And our employees are living without the standard 6% yearly raises we were paying for the last 10 years. Now they get 2%.

I think more and more companies will be telling this same tale.

My paycheck as owner is a bit lower. But, to be honest, it was too high to begin with.

I think we all got a shock last year and now we're hopefully going to remember those lessons and try a bit harder to live within our means.

It's just a hope of mine. But, I've always been a positive thinker. It's been a pretty good approach for the last 54 years. I think I'll keep thinking positively!

candleman, while I think what you are doing for the American way of life is good and I thank you for it. I have to say that while sales are better by 6% over 1997 that did not make up for the cost you had to pay for inflation on everything else. Are you going to try and tell me that you got a reduction on your lease at a time when everyone else was paying more 1997 to 2004. Maybe now you got a reduction in rent but that was after huge increases. the point being even if you take into account a small inflation rate of 3% (cost of living) then a 6 % increase in sales from 1997 is not going to make up for it.


candelman, I dont know your bussiness but what I do know is that from what you said, if your sales are only 6% better then they were in 1997 then you are not making even close to what you did in 1997 even with a 6% increase in sales.

[Sirius Roadkill]

new hack at theculdesac.com has JC's latest bash piece out . . rough.

Goldman Sachs must be planning a buy

It's actually pretty humorous:

"The company continues to bleed, and I don't think that "cash for clunkers" is going to save it. Subscribership continues to decline. The balance sheet is a mess. Investors don't care about the better guidance, and the stock is selling off once again."

where does JC find these feckless shills?