Showing posts with label Metallica. Show all posts
Showing posts with label Metallica. Show all posts
Saturday, October 27, 2012
Saturday, January 30, 2010
Saturday, March 21, 2009
Tuesday, December 02, 2008
"for whom the bell tolls, it tolls for thee"
You know things are tough when shareholder letters quote Donne. This is just the beginning of a sobering letter written by the executives of TINY to their shareholders yesterday:
"FELLOW SHAREHOLDERS:
"No man is an island, entire of itself; … and therefore never send to know for whom the bell tolls, it tolls for thee."
-John Donne, Meditation XVII from Devotions to Emergent Occasions
In June of this year, just before the end of the second quarter, we raised additional equity capital by placing 2,545,000 of our common shares at $6.15 per share (stock was $3 the day they sent this letter), for net proceeds after all offering expenses of $14,383,497 (They are essentially saying they have a sweet profit on their self short). Upon the announcement of this registered direct offering to financial institutions, we received a fair amount of criticism from shareholders, even from some of our long-standing shareholders. Some expressed their opinion that we should not have raised additional capital at all, given our debt-free status and our relatively large holdings of U.S. treasury securities prior to the offering. Others objected to our timing, wondering why we did not wait for the stock market to improve, as June of this year was the worst June in the U.S. stock market since 1930. Although we had no idea at the time that June's market tremors were just a prelude and that the world financial system would collapse in the third quarter, we raised that additional capital at the end of the second quarter because we have always believed in maintaining a balance sheet with a margin of safety."
Reposted rock blog.
"FELLOW SHAREHOLDERS:
"No man is an island, entire of itself; … and therefore never send to know for whom the bell tolls, it tolls for thee."
-John Donne, Meditation XVII from Devotions to Emergent Occasions
In June of this year, just before the end of the second quarter, we raised additional equity capital by placing 2,545,000 of our common shares at $6.15 per share (stock was $3 the day they sent this letter), for net proceeds after all offering expenses of $14,383,497 (They are essentially saying they have a sweet profit on their self short). Upon the announcement of this registered direct offering to financial institutions, we received a fair amount of criticism from shareholders, even from some of our long-standing shareholders. Some expressed their opinion that we should not have raised additional capital at all, given our debt-free status and our relatively large holdings of U.S. treasury securities prior to the offering. Others objected to our timing, wondering why we did not wait for the stock market to improve, as June of this year was the worst June in the U.S. stock market since 1930. Although we had no idea at the time that June's market tremors were just a prelude and that the world financial system would collapse in the third quarter, we raised that additional capital at the end of the second quarter because we have always believed in maintaining a balance sheet with a margin of safety."
Reposted rock blog.
Thursday, September 11, 2008
Nightmare on Wall Street 3: Enter Sandman
With Halloween approaching and blood all over markets I thought that it was time for another installment of Nightmare on Wall Street, part three. The eight below are hourly plots of some of the worst blugeoned stocks over the past two weeks. I want to stress that these are not just some no-name penny stocks that are dropping like stones in freshwater, we saw Washington Mutual drop more than 50% before rebounding a little yesterday afternoon:
And of course we all know about the governemnt sponsored entity (GSE) that manages half the US mortgage market, Fannie Mae (FNM). Thats some serious market value (about $8B) that just got decapitated:
I don't know about youbut when I look at these charts, Metallica just comes to mind. The destruction, the horror, the scale of it all, enter sandman:
Lehman Brothers (LEH), one of the biggest US financial institutions in the US, founded in 1850, is at the center of the most recent panic. LEH appears to be about to file for bankruptcy as evidenced by reports of their inability to raise capital at any cost and their rapidly declining market value (currently $3B (and falling)):
Taking a step back to look at the broader picture, the S&P 500 hasn't really declined all that much in magnitude yet but the chart is anything but bullish. The benchmark index still lies below major resistance at 1265 and the declining short and long term trendlines. Any rallies are sharp and quick to get sold, I doubt the S&P can move much higher before heading back down to test the recent lows:
So there's evidence that this relentless selling is not isolated to the financials. Take a look at Apple, ouch. Some important longer term trends and support levels have been diced on AAPL this week, I have puts:
Not even our good renewable friend JASO is immune to the power selling:
Oh, and how could I forget about AIG, it one of the dow components and the 18th largest company in the world. AIG has lost almost 30% (about $30B in market cap) since Monday morning:
This last one is more for fun since it doesn't demonstrate a significant downtrend in the short term. To keep with the theme, United Airlines (UAUA) did get bludgeoned pretty bad earlier this week when Bloomberg incorrectly reported that United had filed for bankruptcy. The stock lost nearly all of its value in a few minutes before recovering:
These must be long sleepless nights for the dudes on Wall Street. Unfortunately, the waking life does not escape the nightmares in the headlines. It seems we will be hearing news of market gore for some time to come.
In other news, the bears are getting aggressive.
And of course we all know about the governemnt sponsored entity (GSE) that manages half the US mortgage market, Fannie Mae (FNM). Thats some serious market value (about $8B) that just got decapitated:
I don't know about youbut when I look at these charts, Metallica just comes to mind. The destruction, the horror, the scale of it all, enter sandman:Lehman Brothers (LEH), one of the biggest US financial institutions in the US, founded in 1850, is at the center of the most recent panic. LEH appears to be about to file for bankruptcy as evidenced by reports of their inability to raise capital at any cost and their rapidly declining market value (currently $3B (and falling)):
Taking a step back to look at the broader picture, the S&P 500 hasn't really declined all that much in magnitude yet but the chart is anything but bullish. The benchmark index still lies below major resistance at 1265 and the declining short and long term trendlines. Any rallies are sharp and quick to get sold, I doubt the S&P can move much higher before heading back down to test the recent lows:
So there's evidence that this relentless selling is not isolated to the financials. Take a look at Apple, ouch. Some important longer term trends and support levels have been diced on AAPL this week, I have puts:
Not even our good renewable friend JASO is immune to the power selling:
Oh, and how could I forget about AIG, it one of the dow components and the 18th largest company in the world. AIG has lost almost 30% (about $30B in market cap) since Monday morning:
This last one is more for fun since it doesn't demonstrate a significant downtrend in the short term. To keep with the theme, United Airlines (UAUA) did get bludgeoned pretty bad earlier this week when Bloomberg incorrectly reported that United had filed for bankruptcy. The stock lost nearly all of its value in a few minutes before recovering:
These must be long sleepless nights for the dudes on Wall Street. Unfortunately, the waking life does not escape the nightmares in the headlines. It seems we will be hearing news of market gore for some time to come.
In other news, the bears are getting aggressive.
Saturday, September 06, 2008
Saturday Rock Blog: For Whom the Bell Tolls (Fannie & Freddie Bailout)
Links:
Gov't May Soon Take Over Fannie, Freddie - Washington Times
Gov't Takes Control - Reuters
Washington's Fannie & Freddie Plan: Why Now? - Forbes
Game Plan: Time for a Rate Cut? - Cramer
Fannie Mae, Freddie Mac Are Taken Over by U.S. Treasury to Avoid Collapse - Bloomberg
S&P slashes Fannie, Freddie preferred stock to junk -Reuters
The Details & Comments - Calculated Risk
My take on why this is happening now and not months ago, the strength in the dollar makes it possible. This action will no doubt end the rally in the dollar and we'll just have to see how commodities react to this news next week. While the feds talk a strong dollar they secretly love a weak one because it makes American goods and services more competitive. So this inflationary action (a bailout) is likely to put pressure on the dollar. Take a look at the US Dollar index, talk about a bear market rally, wow:
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