|
|
|
Richard Franklin
Company Portland, OR (NCAA Football)
|
January 16, 2009 Look for a falling DOW, retesting the fifty two week low of 7,392.27. Look for more drops in bank stocks USB and Wells (at least Wells for sure, we shall see after USB reports) are heading lower, much lower. No surprise if Wells is also in single digits soon with BofA. Wells has “reserved” around 3.50% of their 84 billion loan portfolio but some published reports say that they need another 6.3 billion (around a total of 11%) before they are close to what the actual losses pending will be. And a third of Wells portfolio is in California real estate, which is almost all toxic. USB has around 43 billion in loans, and has the same “under reserved” problem, so down they go too. And Citi breaking into parts is actually going to make things worse before it gets better for Citi. Technically Citi is bankrupt. If they were a manufacturing company, and had bank loans instead of CDO’s and SIV’s they would all be called by the lenders. And sorry to see Circuit could not work things out, now Best Buy prices will go through the roof! Also next week, we adjust our favorites, and advise you what to sell, and what you should be buying. Want to comment? You can view our blog HERE. See our comments on silly, misleading and just plain dumb things companies do and say. Investing in stocks involves risk, and you should be prepared to understand those risks, including losing your principle investment, prior to investing in any financial investments, including, stocks, bonds and other types of investments.
Recommended sites:
Thank you for visiting.
|
