US Stock Market

[Ashrafieh_101]

Originally Posted by suomynona

Yeah on C (holding at 18.8). I plan to keep it at least till 30-35 though even if it takes a year or two. I don't need the money now but I'd love to buy a nice HDTV with the gains one year from now :).
Do you plan to hold your stocks?

BTW ntebeh, there's a dividend of 32cents per share on C for August 24th I think.

Funny! I bought an HDTV last year with money I made on a biotech stock. I bought call options on Dendreon before the FDA was going to rule on one of their cancer drugs. My $380 turned into $4700 in 3 days!

A dividend payment is always welcome! BAC dividend yield is huge. It's about 9% and they said they're not lowering it. That's great!

Happy trading!

[suomynona]

Lehman Bros shares down 30-40% today. Talks with some investors from Korea failed but I read a report that mentions that other investors are interested:
http://www.bloomberg.com/apps/news?p...A8A&refer=home
This may give a serious lift (like 20%) to the stock. Watch out.

If LEH doesn't fail, the returns in 2-3 years will be huge.

[suomynona]

Originally Posted by suomynona

Lehman Bros shares down 30-40% today. Talks with some investors from Korea failed but I read a report that mentions that other investors are interested:
Bloomberg.com: Worldwide
This may give a serious lift (like 20%) to the stock. Watch out.

If LEH doesn't fail, the returns in 2-3 years will be huge.

It seems they're going bankrupt. No one is offering to buy them.

[suomynona]

Originally Posted by suomynona

It seems they're going bankrupt. No one is offering to buy them.

Bankrupt ! shares plunged 90% to 32 pennies ! They were worth 90 bucks a year ago !

[Souss]

AP
Stocks stumble amid new Wall Street landscape
Monday September 15, 10:13 am ET
By Tim Paradis, AP Business Writer

Stocks fall sharply after fall of Lehman, sale of Merrill; AIG remains big worry

NEW YORK (AP) -- Stocks tumbled and Treasury bond prices soared Monday as investors reacted to a stunning reshaping of the landscape of Wall Street that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co. The Dow Jones industrial average fell more than 330 points.


Stocks posted big losses in markets across much of the globe as investors absorbed bankruptcy plans at Lehman and Merrill Lynch's forced sale to Bank of America for $50 billion in stock. And perhaps most ominously, American International Group Inc. is asking the Federal Reserve for emergency funding. The world's largest insurance company plans to announce a major restructuring Monday.

The swift developments are the biggest yet in the 14-month-old credit crises that stems from now toxic subprime mortgage debt.

Investors are worried that trouble at AIG and the bankruptcy filing by Lehman, felled by $60 billion in bad debt and a dearth of investor confidence, will touch off another series of troubles for banks and financial institutions that may be forced to further write down the value of their own debt assets. Wall Street had been hopeful six months ago that the collapse of Bear Stearns would mark the darkest day of the credit crisis.

But AIG's troubles a week after its stock dropped 45 percent are worrisome for some investors because of the company's enormous balance sheet and the risks that troubles with that companies finances could spill over to the companies with which it does business. AIG, one of the 30 stocks that make up the Dow industrials, fell $5.63, or 46 percent, to $6.51 Monday as investors worried that it would be the subject of downgrades from credit ratings agencies.

"I think people were hoping that there was going to be a savior over the weekend and that hasn't happened," said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. "This is sort of groundbreaking type stuff."

In the first hour of trading, the Dow fell 326.33, or 2.86 percent, to 11,095.66.

Broader stock indicators also fell. The Standard & Poor's 500 index fell 34.61, or 2.77 percent, to 1,217.09, and the Nasdaq composite index fell 44.48, or 1.97 percent, to 2,216.79.

A sharp drop in oil below $100 also weighed on energy names, including several Dow components. Exxon Mobil Corp. fell $2.06, or 2.7 percent, to $75.44, while Chevron Corp. fell $2.31, or 2.7 percent, to $81.93.

Light, sweet crude dropped $5.02 to $96.16 on the New York Mercantile Exchange after damage to Gulf of Mexico oil infrastructure from Hurricane Ike was less than investors feared. Worries about a slower economy have also weighed on oil prices in recent weeks. Oil is down sharply from its mid-July highs when it hit a record over $147 a barrel.

Investors will be watching to see whether the Dow moves below the 11,000 mark, a level it hasn't traded and closed under since mid-July. The S&P 500 last tested the 1,200 level in mid-July.

Bond prices surged as investors fled to the security of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, plunged to 3.54 percent from 3.72 percent late Friday. The dollar was lower against other major currencies, while gold prices rose.

Investors did have some more solid footing than they might have predicted at the end of last week, when Lehman's troubles and those of AIG weighed on the markets. A global consortium of banks, working alongside government officials in New York, announced a $70 billion pool of funds to lend to troubled financial companies.

And the deal for Merrill Lynch pays a 70 percent premium to the brokerage's closing price Friday. The stock has been squeezed in recent weeks, leading many Wall Street veterans to point to the company as the next behind Lehman as likely to run into trouble with bearish investors and get hit by intensified selling. The deal to pair the company with Bank of America, a huge bank with a big asset base, removes some of the worries that Merrill would be the next to fall after Lehman.

Merrill rose $5.13, or 30 percent, to $22.18, while Bank of America fell $3.82, or 11 percent, to $29.92.

[Souss]

Crisis on Wall Street: Roubini Predicts Another 20 Percent Stock Drop, Sale of Goldman, Morgan

After failing to find a buyer this weekend, Lehman Brothers filed for the largest bankruptcy in U.S. history while Merrill Lynch agreed to be acquired by Bank of America for $50 billion. Such extraordinary events set the stage for a wild Monday on Wall Street, and most likely beyond.

These incredible, once unthinkable developments have caught a lot of people off guard, but not Nouriel Roubini, of NYU's Stern School and RGE Monitor, whose alarming predictions about the housing market and financial system have been coming to pass with alarming frequency.

This morning, Roubini forecast another 20% drop in stock prices, and reiterated a prior view that there will be no major independent broker/dealers standing before this crisis ends. In other words, Goldman Sachs and Morgan Stanley should be seeking suitors today, or face a similar fate as Lehman later.

[Dry Ice]

Originally Posted by suomynona

Bankrupt ! shares plunged 90% to 32 pennies ! They were worth 90 bucks a year ago !

What's the expected effect on Wall Street?

[Abou-Eddie]

Originally Posted by Dry Ice

What's the expected effect on Wall Street?

Think of it as a hurricane that passed and wreaked havoc. Sunny days will follow, damage will be assessed, reconstruction will take place, and all will be newer and better when all is said and done.
Furthermore, while Wall Street is in shambles, Main Street is having a ball with lower oil and a stronger dollar.

[Danny Z]

Originally Posted by Abou-Eddie

Think of it as a hurricane that passed and wreaked havoc. Sunny days will follow, damage will be assessed, reconstruction will take place, and all will be newer and better when all is said and done.
Furthermore, while Wall Street is in shambles, Main Street is having a ball with lower oil and a stronger dollar.

What are you talking about, Bernanke is comparing it to the 1929 crash while Sitglitz is saying it is not that bad but it is not far because globalization will absorb the choc internationally so the whole world will feel this choc and it is not going to be easy on anyone.

[Abou-Eddie]

Originally Posted by Danny Z

What are you talking about, Bernanke is comparing it to the 1929 crash while Sitglitz is saying it is not that bad but it is not far because globalization will absorb the choc internationally so the whole world will feel this choc and it is not going to be easy on anyone.

This is why I called it a hurricane and not a mere storm. Nonetheless, as hard it is to imagine at this moment, some positive developments will take place even with all the damage done. Bank of America / Merrill Lynch is one for example. Although the Dow lost 500pts yesterday, it was not what I consider a panic day. The losses were mainly energy stocks (triggered by falling oil) and obviously the financials. The falls in energy stocks will be offset in the short term by the companies benefiting form falling oil (Airlines, Manufacturing etc...). The financials will keep being bumped until more consolidation will take place.
So, in my view comparing it to 1929 is not accurate to say the least. I did not hear Bernanke make that comparison that bluntly, I did hear many sensationalist commentators do that.