Another Selloff Comes With Much Higher Volume On The Nasdaq; Futures Are Not Looking Good For Monday
October 5, 2008
Full commentary and Videos before the opening bell. 
Another Selloff Comes With Much Higher Volume On The Nasdaq; Futures Are Not Looking Good For Monday
Bailout Does Little to Curb Losses
October 5, 2008
The House of Representitives did their best to approve a “Bailout Bill” that will, as advertised save the economy from the brink of collapse. However, this failed to provide any sort of confidence for the market and stocks dove towards new lows. Our Bear Market has been able to take out 50% of the gains from the low of 2002 thru the high of October 2007. We’ve been able to do this within one year. I do not see this turning around any time soon. This market is not healthy, too many … [visit site to read more]
Bailout Does Little to Curb Losses
Four Stocks Worth Following
October 5, 2008
The Moneygardener submits:
With the S&P 500 index now re-visiting levels not seen since 2004, it is no surprise that several great companies with long histories of earnings and dividend growth are getting down to some notable lows. This massive sell off is not being felt the same across all sectors. Not surprisingly consumer staples seem to be holding up very well as recession fears loom. Consumer staples are typically products that people will continue to buy in hard times. Major selling is certainly at hand for companies operating in sectors that are directly affected by the broader economy in general and consumers discretionary spending.
Typically during such a steep, quick sell off like this it is wise to avoid ‘catching a falling knife’ when attempting to buy stocks at good value. Easier said than done, but one should try to wait until a particular stock stops going down and meets some support partnering with large volume before buying. Here are a few examples which I feel are notable and possibly worth taking a look at now or at some point soon. I am keeping a close eye on the following, and I’ll likely make a purchase soon based on a list of stocks which includes these four. Ideally equity investors should have a time horizon of more than seven years and ensure they are properly diversified.
U.S. Dollar Hits a 13-Month High
October 5, 2008
Mark J. Perry submits:
The U.S. dollar reached a 13-month high Friday versus major currencies (see graph above), the highest level since September 5, 2007.
U.S. Dollar Hits a 13-Month High
AAPS down on false report circulated (AAPL, rated BUY)
October 5, 2008
James Rogers:
Apple’s stock initially took a hit Friday morning after a false report circulated that Steve Jobs had suffered a major heart attack.
In an email to TheStreet.com , Apple’s vice president of worldwide corporate communications , Katie Cotton, categorically denied the story, which appeared on the iReport Web site.
iReport, which publishes "unedited, unfiltered" news posts from members of the public, subsequently removed the story , and Apple’s stock bounced back in later trading. By late morning, Apple shares were up 3.4%.
The Apple CEO’s health has recently come under close scrutiny. Jobs, who battled pancreatic cancer in 2004, appeared thin at the launch of the new iPhone in June, although Apple said he was recovering from "a common bug."
AAPS down on false report circulated (AAPL, rated BUY)
GENZ $89 Target Price…Undervalued by Both Projected P/E and PEG…Analysis Here (GENZ, rated BUY)
October 5, 2008
GENZ is undervalued, looking only at valuation relative to its Industry average valuations.
* GENZ has a Projected P/E of 16.40
* GENZ’s Industry (Biotechnology) has an average Projected P/E of 19.09
* Implies a Projected Stock Price of $89.34
* GENZ has a projected earnings growth rate of 15.62%
* GENZ has a PEG of 1.05
* GENZ’s Industry (Biotechnology) has an average Projected PEG of 1.23
* Implies a Projected Stock Price of $89.93
Source of the analysis and calculations:
http://www.freestockvalueranker.com/?method=peg_pe&symbol…
Why is this stock so undervalued?
Analysis date: Oct 4, 2008
GENZ $89 Target Price…Undervalued by Both Projected P/E and PEG…Analysis Here (GENZ, rated BUY)
Life Partners Holdings Inc (LPHI) is a BUY
October 5, 2008
Life Partners Holdings, Inc., through its subsidiary, Life Partners, Inc., operates as a financial services company that provides purchasing services for life settlements in the United States. The company facilitates life settlement transactions by identifying, examining, and purchasing the policies as an agent. Its financial transactions involve the purchase of life insurance policies at a discount to their face value for investment purposes. The purchasers of life settlements include high net worth individuals and institutional purchasers. The company was founded in 1971 and is based in Waco, Texas.
Life Partners Holdings Inc (LPHI) is a BUY
Credit Crisis Sharpens Anger Over CEO Pay
October 5, 2008
Trader Mark submits:
Expect a lot more of this in the coming year as more and more ordinary Americans are "left behind". And the heads we win,tails we still win approach still continues at the top of corporate America. Again, let me throw out the hairbrained idea of if, like Germany we limit executive compensation to say 50x the median worker. (they limit it to 7x) "Free market" capitalists will say, then the "best and brightest" will leave. I ask - to where? The only exclusions would be people who founded their own company and thus can enjoy the fruits of their labor as they take their company public - the shares they get at IPO should more than make for enough wealth for 50-100 people. Then if they are unhappy with the 50 to 1 ratio for CEO pay they can leave and start a new company - which would be good for US innovation. Most of the rest of the CEOs are highly paid babysitters. Is Coke really going to go out of business if some guy in middle management ran it? I know it won’t change - and after a year or two of anger things will continue on their old path, but just asking the questions - i.e. how can German companies stay in business of they are led by such incompetents who somehow only made 7x the average wage? And … do you think the median wage in America would go up if the CEO’s own wage was tied to the median in their company? I think that answer is very easy to figure out….
Let the shareholders decide? We’ve tried that system for a long while and it hasn’t done a thing. Other than Carl Icahn and a few others who actually try to buck the system, it’s broken. Most shareholders with scale are institutions who don’t want to get involved in this, their job is to make money - not be corporate activists. From the CNBC.com article (emphasis mine; my comments in italics):
Credit Crisis Sharpens Anger Over CEO Pay
Cannibalism: The Latest Hedge Fund Strategy?
October 5, 2008
David Enke submits:
As a follow-up to my earlier post, many of the hedge funds that are being forced to liquidate positions due to redemptions and deleveraging are seeing an opportunity to take advantage of the mass selling (see Financial Times article).
Hedge funds will often be holding many of the same securities, either due to using similar strategies, or simply from chasing the same hot securities. As hedge funds begin unloading these positions, selling pressure will naturally cause lower prices and additional selling in a kind of longer-term reverse short squeeze as the number of redemption notices increases.
Cannibalism: The Latest Hedge Fund Strategy?
Signed Rescue Bill Hasn’t Stopped the Market’s Downward Trend
October 5, 2008
Diane Lim Rogers submits:
The “sweetened” version of the financial rescue plan (remember, don’t call it a “Wall St. bailout”), considered by most to be (as a Washington Post story puts it) “the greatest intervention of the federal government into the private marketplace since the Great Depression,” passed the House and was signed by President Bush yesterday. And yet the Dow fell more than 150 points on Friday, to end its worst week (biggest point drop) in seven years.
Why? Well, Friday morning’s news of more than 150,000 jobs lost in September (and the ninth straight drop) had a lot to do with it. It’s kind of a stark reminder that this is a rather desperate “rescue”–more like being put on life support than going on muscle-boosting steroids. We know that even after this rescue is put in place, our economy will still be badly over-extended and under-invested.
Signed Rescue Bill Hasn’t Stopped the Market’s Downward Trend
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