Archive for July, 2009

  • The Goldman Sachs Careers Page
    , July 16th, 2009 at 3:49 pm

    Look, I help my readers out. Here’s the Goldman Sachs “Careers” part of their website.
    Be sure to tell them that you read this blog religiously — and you’ll be so in.
    One more thing, here are the Do’s and Don’ts for your Goldman internship:

    No matter where your summer experience takes you, you can benefit from these useful tips and hints. They may seem simple, but your colleagues will notice if you aren’t acting on them.
    The Do’s
    * Be eager for a challenge
    * Be yourself
    * Be open-minded
    * Be on time
    * Know the dress code
    * Observe and ask thoughtful questions
    * Treat everyone you meet with respect and professionalism
    * Understand that everyone makes mistakes
    * Carry a notebook with you at all times
    * Pay attention to the details
    * Be proactive
    * Show energy and interest
    * Set goals for yourself
    The Don’ts
    * Let a bad day get you down
    * Take on more than you can handle
    * Pretend to know something you don’t
    * Have nothing to do
    * Ask everyone the same questions
    * Take yourself too seriously
    * Talk negatively about co-workers
    * Focus all of your attention on senior management
    * Bring your personal life into the office
    * Surf the web all day (BWAHAHAHAHA – Eddy)
    * Spend working hours on social networking sites or texting friends

  • Iceland Votes to Join EU
    , July 16th, 2009 at 2:53 pm

    Obviously this isn’t a major story but it’s interesting that this vote only could have happened once the island’s economy went kablooey:

    Iceland’s parliament voted on Thursday to authorise the government to begin accession talks with the European Union, an all but unthinkable prospect until the global financial crisis wrecked the island’s economy.
    Members of parliament voted 33 to 28 in favour of an EU application following a final round of marathon debates that have lasted for several days. Two MPs abstained from the vote.
    The vote paves the way for an application to be sent to Brussels later in July — something which Icelandic Prime Minister Johanna Sigurdardottir has campaigned for vigorously following the country’s financial meltdown.
    If its application is approved by EU member states, Iceland would put the question on actual EU membership to voters in a referendum.

  • Earnings Are Running Better than Estimates
    , July 16th, 2009 at 2:39 pm

    Bloomberg notes that earnings are running 20% above estimates. The downside is that the bar was set low, as in it was buried a few feet below ground. Secondly, only a handful of companies have reported so far.

  • Baxter and Amphenol’s Earnings
    , July 16th, 2009 at 11:25 am

    We had two earnings reports this morning from our Buy List stocks, and so far, the results seem to be canceling each other out. Amphenol’s loss is wiping out Baxter’s gain.
    Amphenol (APH) reported earnings of 43 cents a share which beat the Street by a penny a share. In April, APH said to expect earnings between 41 cents and 43 cents a share, so this isn’t much of a surprise. But it’s a big drop from the 61 cents a share they made last year.
    The company sees Q3 earnings coming in—same as Q2—between 41 cents and 43 cents a share, which is below the Street’s view of 44 cents. Amphenol is a good stock but not a great buy right now.
    Baxter International (BAX) earned 96 cents a share which was two cents more than expectations, and one penny more than the high end of the range they provided in April. For Q3, they said to expect earnings between 95 cents and 97 cents a share (btw, I like companies with that kind of precise guidance). Last year’s Q2 came in at 85 cents a share.
    They slightly raised their full-year EPS guidance to a range of $3.76 to $3.80 from the previous range of $3.72 to $3.78. They had also raised guidance in April as well, so this is good to see.
    I like this stock but I’d like it more at $45.

  • Let’s Try a Small Thought Experiment
    , July 16th, 2009 at 10:14 am

    The stock market is up again and I’m outraged!! The market closed yesterday just 1.5% below our June 12th high, and we’re up about 38% from the March low.
    How could so many market gurus lead us astray!
    Shiller, Taleb, Schiff, Roubini. They all FAILED to see this horrible bull rally that has crippled MILLIONS AND MILLIONS of shorts.
    Congress needs to investigate! I want to see people go to JAIL!
    In the spirit of Jon Stewart, don’t they know that investing isn’t a game???
    Think of all the children of shorts who now go hungry every night. Think of the shorts who have seen their retirement savings get ransacked by this cruel bull market. Think of all those investors who now can only afford a BMW 328 i? It makes me sick!
    Let’s start compiling a list of VILLAINS who are responsible for this rally!
    I can’t wait to Matt Taibbi take these frauds down!
    I DEMAND that Shiller, Taleb, Schiff and Roubini go on Jon Stewart’s show and GROVEL, and say that they’ll try to do a better job in the future. These people need to be publicly HUMILIATED!
    They have NO SHAME.
    I DEMAND that left-wing groups start a petition asking CNBC to BAN everyone who missed this cruel and vicious rally.

  • Prominent Economists: Leave the Fed Alone
    , July 15th, 2009 at 2:48 pm

    Here’s a petition that’s been signed by a slew of well-known economists (you can see the names at the link):

    Amidst the debate over systemic regulation, the independence of U.S. monetary policy is at risk. We urge Congress and the Executive Branch to reaffirm their support for and defend the independence of the Federal Reserve System as a foundation of U.S. economic stability. There are three specific risks that must be contained.
    First, central bank independence has been shown to be essential for controlling inflation. Sooner or later, the Fed will have to scale back its current unprecedented monetary accommodation. When the Federal Reserve judges it time to begin tightening monetary conditions, it must be allowed to do so without interference. Second, lender of last resort decisions should not be politicized.
    Finally, calls to alter the structure or personnel selection of the Federal Reserve System easily could backfire by raising inflation expectations and borrowing costs and dimming prospects for recovery. The democratic legitimacy of the Federal Reserve System is well established by its legal mandate and by the existing appointments process. Frequent communication with the public and testimony before Congress ensure Fed accountability.
    If the Federal Reserve is given new responsibilities every effort must be made to avoid compromising its ability to manage monetary policy as it sees fit.

    Earlier this week, my in-box was crammed full of morons who insisted in perpetuating the lie that the Federal Reserve is a private bank. However, I’ve never fully understood the sacredness of central bank independence. Why is this some great ideal? The Fed is a dependency of Congress and I don’t see what’s wrong with treating it that way.
    Can anyone point to an instance of where Fed independence turned out to be helpful? Perhaps the early 1980s but I highly doubt Paul Volcker would have intimated by anyone. The Fed doesn’t need to be independent. It does need to have latitude and flexibility within a framework of Congressional oversight. If the Fed fails to do its job well, that’s a political issue and politicians should be held accountable.
    The function of the Fed has changed a lot in the past year and I think it’s reasonable to revisit some core assumptions. Questioning the Fed’s independence is a good start.

  • Used Car Prices Up in June
    , July 15th, 2009 at 1:51 pm

    Today’s CPI report showed that “used cars and trucks” rose nearly 1.4% last month. That’s not seasonally adjusted. This might be evidence that used cars are doing well which may say something about Nicholas Financial (NICK). It’s a small bit of news, but worth passing on.
    By the way, NICK just posted their latest annual report. The stock is still going for less than two-thirds of its book value.

  • Carney Defends Capitalism
    , July 15th, 2009 at 1:32 pm

    John is spot on. CIT really made a mistake in not failing earlier and more massively. Oh well.

  • Lap Dances Apparently Not Hurt By Recession
    , July 15th, 2009 at 12:06 pm

    Guess what strip club stock is 200% in the last four months?
    Rick’s Cabaret International (RICK)
    Special bonus! Hear Erin Burnett make a reference to Mark Haines’ ass. It’s not business, it’s CNBC.

  • Today’s Rally Is Led by the Cyclicals
    , July 15th, 2009 at 11:57 am

    It’s all about the cyclicals:
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