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AIG short squeeze in effect

admin — Sun, 30 Aug 2009 18:05:45 +0000

A recent and swift 200% move in AIG has taken the stock to over $50. Premiums in options in highly inflated, making a protective put buying strategy even more pricey, but still worth it!

This rally will most likely conclude this coming week, watch for a blow off volume as the signal, but remember, you do not want to be standing in front of any freight trains!

For further discussion on AIG visit the stock market message boards at hotstockmarket.com.

Fannie May (FNM:NYSE) breaks below July lows

admin — Mon, 18 Aug 2008 19:31:37 +0000

On July 11th FNM hit $6.68 on a big sell off. After an impressive rebound, investors are now realizing that nothing has really changed. In fact, Barrons came out with an article telling it as the shorters have already known for some time, should FNM and FRE get a bail out, it would most likely wipe out the share holders.

Freddie still holding above its July lows, but this weakness in financials will extend into the rest of the week.

More on these stocks at the Stock Market Message Boards at HSM.

Most actively traded bank stocks

admin — Thu, 13 Mar 2008 16:46:04 +0000

The banking sector seems to be leading the market like a nose ring on a bull. The following list of the most active banking stocks should be on your watch list as an indicator for what to expect. When we see this group start trading sideways and consolidating, we will know the bottom is in place.

List of bank stocks:

C – CITIGROUP INC
WM – WASHINGTON MUTUAL INC
WFC – WELLS FARGO & CO
BAC – BANK OF AMERICA CORP
WB – Wachovia Corp
JPM – JP Morgan and Co Inc
USB – US Bancorp
NCC – NATIONAL CITY
HCBK – Hudson City Bancorp
RF – REGIONS FINANCIAL CORP
UBS – UBS AG
BK – Bank Ny Mellon
BBT – BB&T CORPORATION
HBAN – Huntington Bancshare
FMT – FREMONT GENERAL CORP
SNV – SYNOVUS FINANCIAL CORP
PBCT – People’s Bank
UCBH – UCBH Holdings, Inc.
NYB – New York Community
BBD – BANCO BRADESCO SA ADS
IBN – Icici Bank Ltd
FITB – Fifth Third Bancorp

Citigroup: “Sorry, you can’t sell right now”

admin — Mon, 18 Feb 2008 04:03:58 +0000

NEW YORK, Feb 15 (Reuters) – Citigroup Inc. (C:NYSE) has suspended investor withdrawals from a $500 million credit hedge fund to give it a chance to “stabilize,” a bank spokesman said on Friday. The London-based fund, called CSO Partners, was facing investor redemptions after a 10 percent loss in November, prompting its manager John Pickett to resign, according to Citigroup spokesman Jon Diat.

The fund was up 27 percent since inception in August 2004 to Dec. 31, 2007.

“We have temporarily suspended redemptions of all shares of CSO to stabilize the fund and allow time to address its funding needs to meet anticipated obligations,” said Diat in a statement.

It is not unusual for hedge fund managers to suspend redemptions on funds in distress. Investment documents typically give the manager the right to put up temporary “gates” barring investor exits so managers don’t have to undertake a fire sale of assets to pay exiting investors.

In addition to suspending investor exits, Citigroup told investors it put $100 million into the fund in recent weeks and is looking for other funding sources.

“If they are invested in illiquid assets, chances are they cannot get out an equivalent amount of money investors are demanding without materially damaging the portfolio,” said Ferenc Sanderson, senior hedge fund analyst for Lipper Inc., a unit of Reuters Group Plc.

Sanderson said the fact that it is happening in a fund managed by one of the world’s largest banks means that “even having a big name and a big brand doesn’t leave investors immune to potential issues when they try to redeem.”

News of the fund was reported Friday by the Wall Street Journal.

Citigroup was trading down 34 cents, or 1.3 percent, to $25.40 on the New York Stock Exchange. (Reporting by Dane Hamilton, editing by Dave Zimmerman)