Lufkin (LUFK) Reports Outstanding Earnings and Outlook: Stock Still Tanks?

Posted on October 15, 2008
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This morning Lufkin (LUFK) reported outstanding third quarter results and a growing backlog. Additionally, the company’s balance sheet remains pristine, with $110 million in cash and no debt. Despite the positives, the stock tanked, amidst continued deterioration of the equity markets, and extreme bearishness in energy-related equities as the stocks appear to be pricing in sub-$50 oil.

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Bel Fuse Ups Stake in Power-One (PWER)

Posted on October 14, 2008
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Bel-Fuse, a competitor of Power-One (PWER), and a major shareholder, recently upped it’s stake in PWER at share prices of around $1.30 per share.

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New Bailout Plan Still Falls Short: Remain Skeptical

Posted on October 14, 2008
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While The Market reacted positively, and correctly I might add, to the proposal of acquiring stakes in bank, a deeper look into the new TARP bank-ownership scheme, should convince you that there is nothing really extraordinary about this latest ‘printing press’ solution to the financial crisis.

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A Ray of Hope in Treasury Plan to Take Ownership of Banks: But Will The Government Do the Right Thing?

Posted on October 9, 2008
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I find some ray of hope in the recent announcement that the Treasury is finally considering taking ownership stakes in banks. Nationalizing, or in some way recapitalizing, the large commercial banks in the US, if done correctly, would, I believe, end this financial crisis and restore confidence to the system very quickly.

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Federal Reserve Now a Bank Like Any Other: Good or Bad?

Posted on October 7, 2008
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With a new lending facility to non-financial companies, the Fed is slowing moving away from its intended function of a ‘lender of last resort’ to a ‘lender of only resort’, posing a grave danger to the US economy.

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Another Angle on the Paulson Bailout Scheme: It’s OPM All Over Again

Posted on October 6, 2008
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In a somewhat comic state of affairs, the Treasury is going to use $800 billion to buy back from the banks what basically amounts to the same collateral that it has been lending against to the banks!

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Understanding Credit Default Swaps (CDS)

Posted on October 6, 2008
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An understanding of credit derivatives, and specifically Credit Default Swaps (CDS), is important for comprehending the current financial crisis.

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Massive Multiple Compression Following Bailout?

Posted on October 3, 2008
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Stock multiples may need to contract significantly from here, in order to compensate investors for the added risk of investing in this new financial environment.

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Why the Bailout News is Failing to Prop Up the Market

Posted on October 2, 2008
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Unfortunately, the bailout that was recently passed by the Senate and now stands for a revote at the House, will do nothing in my opinion to restore stability or growth, since it does not address the issues which have caused this financial crisis, nor does it implement changes that are necessary to get us out of this crisis.

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