NOVEMBER 20, 2008 (Dow 7552, down 445) - The Second Great Dpression is on the table. The government can't let the large financial institutioins fail; must make sure the annuities and life insurance are there for beneficiaries; stabilize housing prices through tax credits for buying new homes; use TARP money to buy toxic mortgage securities from the banks; must back Fannie and Freddie bonds with an explicit guarantee to lower mortgage interest rates; modify existing mortgages so they are affordable; set up tax credits for hiring people to stabilize unemployment; provide debtor in possession (DIP) financing for the auto companies and guarantee their warranties; start a trillion dollar infrastructure program to put people to work and push the European Central Bank (ECB) and the Bank of China (BOC) to lower rates to 2.00% to reignite growth in their economies. THese actions may remove systemic risk and cause some of the money on the sidelines to buy riskier assets. Still like the quality high yielders (see recent recommendations). The SEC chairman is in the pocket of the short sellers.
reports Tues after the close - recent secondary hurt stock - see a good qtr taking the stock back up - buy ahead of report
36.48
+31.41%
10/18/07
it's a back up the truck stock
40.28
+45.10%
12/19/07
am a buyer right here
47.08
+69.60%
01/22/08
would buy it down here
40.09
+44.42%
01/23/08
the market bottomed today - the new leaders are the financials & retailers
41.80
+50.58%
01/24/08
the stimulus package will help retail - will improve same store sales comps that drive retail stocks - expect stock to go up easily on easy comparisons with last year
43.44
+56.48%
08/27/08
missed the numbers & lowered guidance - the ensuing selloff is a buying oppty - we still want to bet on CEO Drexler as the analysts downgrade the stock - believe the co's website changeover caused the miss & that it will be fixed next qtr - see the stock going back to 35 over the next 12 months - would use scale-in buying
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