Buzz Bits: Dow and Nasdaq End Lower
Your daily Buzz & Banter highlights.
Getting short preferreds again... - Bennet Sedacca - 3:45 p.m.
My firm covered our shorts last week in the brokers and have remained simply long agency preferreds since then albeit in much reduced size.
We are stepping back into the water. But note in a very different way.
The good bank/bad bank deals will ultimately be a mess for the big banks in my opinion.
So my firm focusing on the good banks. Particularly those trading up against their call price.
I'm just starting to put these on and it may take a while, but the credit mess is far from over. If anything, in my mind, the Fed getting involved made things that much worse.
Bella Buzza! - Todd Harrison - 3:33 p.m.
- So the Dallas Fed president says that inflation is higher than expected in the face of a slowing economy. Thanks Scoop, but that's old news (and baked in to a point). Do you ever think we'll ever see a government official step ahead of the curve?
- Man, there sure are alotta Lionel Ritchie fans out there. Still!
- Voice Activated Key Strokes Anyone? My eyes have been fondling Bear Stearns (BSC) all session. Not because I was expecting anything, just because I simply can't believe the stock is a hat size.
- All of a sudden, the stock sprang to life. By the time my tired fingers could pound the keyboard, it was up 7% (before trading right back down) on the Senate hearing probing the roles of the Fed, Treasury and SEC in last week's deal.
- It's about time that someone (outside of Minyanville) asks those questions!
- Has anyone actually eaten a Peak Frean? Seriously.
- Trade, Meat, don't chase.
- Keep your eye on XAU 188ish. It's both a 50% retracement of the latest move lower and from where yellow metal equities broke down.
- I know there are women like my best friends who would have gotten out of there the minute their boyfriend gave them a gun to hide. But I didn't. I gotta admit the truth, it turned me on.
- Yeah, I need help. In a good way though, right?
- Fare ye well into the bell.
Wi-Maximus - Sean Udall - 10:59 a.m.
Clearwire Corporation (CLWR) continues to dominate the headlines with any venture and build outs in the Wi-max space. However, this time a couple MSO's are involved along with Intel (INTC) and Google (GOOG).
When I was on Happy Hour on Fox, Cody and I debated a bit about cable spending in the future. His very valid point was that in a tighter debt market the MSO's would not be able to ramp spending. My assertion was that the cables' now produce plenty of free cash flow to spend vigorously to compete with the Rbocs. Even with the tighter credit markets I think the MSO's will be able to fuel plenty of spend into broadband infrastructure in many forms. The bottom line is they have to.
Back to CLWR, it's a dangerous stock in a tech market that's punishing beta every day. So I've strictly been a short term trader of the name. If we return to a market that starts rewarding risk taking, then my stance on owning CLWR long term becomes much more constructive.
Longer term CLWR will be a battle of growth expectations, new market opportunities and the need for future funding requirements and how and who they partner with. So that's a number of moving parts to consider. If the big partners like the MSO's, INTC and GOOG can foot a lot of the bill that is much more beneficial to CLWR than a string of secondary issuances.
Position in GOOG
Mark 'em Up Baby - Quint Tatro - 10:00 a.m.
There are four days left in the quarter. That may not mean much to you but considering the S&P is up close to 1%, including this morning's dip, I'm sure it's creating a little performance anxiety among managers.
I'm looking for institutions to mark up what has been working and chase beta. I just bought some more IBM (IBM) on the dip because I view it as a prime mark up candidate and have reset alerts on all solars over their day high because I think they still have room to run.
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