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Buzz Bits: Dow, Nasdaq Reach Higher


Your daily Buzz highlights...


Editor's Note: This is a small sample of the content available on the Buzz and Banter.

Earnings Report - MV News

(ACN) reports 4Q EPS of $0.39 vs. $0.38 cons on revs in-line of $4.31 bln.

Bring it Home Buzz - Todd Harrison - 3:46 PM

  • Man, talk about anticlimactic. Who knew that Television's JeffMacke's Tie® would be the highlight of my day.

  • Hey wait a minute, the day's not over yet and we have two very big levels within a kitten's whisker (BKX 114 is the other, lest you were nappin').

  • Thank you Bennet for jogging my A.D.D. I wanted to toss my thought in the ring on the whole "the market is cheap" thing. Remember Minyans, value traps and multiple contraction are the fatal flaws of fundamental analysis.

  • Shocker!

  • My take on the whole short interest thing? I think it matters in select situations--for instance, when a thin name has a very high percentage of the float short---but I concur that, on the aggregate, it's not as predictive as it once was as a function of the proliferation of derivatives (on and off-board).

  • OK, I'm starting to get a little excited for tonight. Thank you President Fish (for the belated birthday present). There aren't many things better than seeing Clapton with your best friend of 20 years!


And so it begins? - Fil Zucchi - 1:40 PM

I recently slapped on a decent sized dark side shot on BankUnited Financial (BKUNA). If you want to know the skinny on this one check here. In a rare instance of a short position not blowing up in my face immediately, according to a research report by Keefe Bruyette, BKUNA may be looking at a bit of an "issue."

The problem stems from a loan to a Joint Venture owned by Technical Olympic (TOA) which yesterday pretty much bit the dust. According to Keefe's analyst, BKUNA appears as one of the syndicate members that financed the JV. However, it is unclear to what extent, if any, BKUNA has exposure to the financing.

Be that as it may, someone out there is holding a $500 mln+ bag of bad news. While I certainly would not complain if BKUNA led the beginning of the unraveling of the housing-related debt bubble, the more important fact is that such unraveling appears to be starting, and if this story is any indication, it just may get ugly a lot sooner than people think.

Thanks to Minyan S.T. for the heads-up !

Position in BKUNA

Speaking of Real Estate - Kevin Depew - 12:55 PM

Slowing real estate. It's all residential, right? I mean, commercial real estate and property REITs are still OK, right?

Actually, I'm seeing multiple DeMark sell signals in a number of commercial property REITs.

  • Equity Office Properties (EOP) has multiple daily DeMark sell signals.
  • Hospital Properties Trust (HPT) has TD-Sequential sell signals on the monthly and weekly charts though not yet on the daily.

Surely we needn't worry about commercial offices and real estate in the nation's capital, right? Doesn't government historically "protect" office property values by recycling a significant portion of corporate tenants through administration changes every 4-8 years?

  • Corporate Office Properties (OFC), which owns, leases and acquires suburban office buildings in the greater Washington D.C. area has multiple DeMark sell signals on the monthly chart, and is nearing a potential sell signal on the weekly.

Well if a few of the residential and commercial office REITs charts are showing signs of stress, then maybe we should look at apartment REITs since apartment demand should surge in a broad-based housing slowdown.

  • Avalonbay Communities (AVB) last week registered a DeMark sell signal on the weekly chart.
  • Equity Residential Properties (EQR) shows multiple DeMark weekly sell signals.

Sympathy for the Devil - Jeff Macke - 12:21 PM

Quick thoughts from the Garden State where I'm gearing up for Fast Money tonight at 5pm on CNBC:

  • Marketwatch Minyan Herb Greenberg is providing an insightful blow-by-blow of the Corleone Family... er... Hewlett-Packard (HPQ) Fifth Amendment Fest. HP's strategy seems to be one of attempting to clear their name by refusing to talk at all except to issue blanket denials. Hey, it's working out great for Barry Bonds, which is why he's the most beloved and untainted of American heroes.

  • Speaking of which, Don Henley isn't even the most underrated guy from the Eagles. That title goes to Joe Walsh who is the Kirby Puckett of rock.

  • In other "Shouldn't that be illegal or something?" news, it doesn't seem much of a reach to suggest Carl Icahn and Kirk Kerkorian have unstated agendas when they publicly threaten to buy enormous blocks of stock in press releases? I'm a fellow Federated (FD) shareholder of Mr. Icahn's so I guess I shouldn't complain...

  • Then again, if his idea is to replicate the value creation his group has managed at Blockbuster (BBI) since gaining board seats last year, I'll take a pass on playing along with him.

Position in FD

Ruh Roh Rastro - Bennet Sedacca - 10:53 AM

See the chart here of AAII Bulls. Nearing the highs reached at the last couple of tops. I know many have party hats on, but I am going to be a party pooper here and now.

There are so many divergences in the run for the roses in the ridiculously price weighted Dow that I have stopped looking for them.

We stay defensive even if unpopular. I met with many big time real estate guys last night here in Central Florida and heard some disturbing stories from $5,000,000 spec houses sitting empty to multi billion dollar real estate syndicates near collapse to a major REIT walking away from a $500,000 deposit on a shopping center....

If the market goes to 13,000 on all of this, so be it. We are invested, just see much risk and am under weight. Not popular to be sure, but being right in the markets isn't usually synonymous with being popular. Nothing close to advice just the truth.

Go Daddy, Go Dow, Go Goldilocks - Woody Dorsey - 10:32 AM

The Grand Daddy of indices is getting a big play. This is classic anchoring on a ticker, concept and a price level. We all know this is silly or simple-minded. Why does it happen? It happens because we like simplistic stories and the media gives them to us. It happens because we don't know what is going on and we want to have an answer of some kind.

This "Dow Syndrome" is a tell that financial culture is invested in the upside of things right now. Remember in March of 2003, everyone was anchored on the ticker/acronym of WMD? That was a tell of a negative assumption in financial culture.

We should be greatful for this "GoDaddyDowGoldilocks" story.... It tells you that this is a finale rally. A cohesive completion will finally result in a real intermediate term correction. But, as noted before, this will likely take some more time to unfold. Go Daddy Dow but don't expect me to follow you. You are too old to profit from.

What you need to know... - Jon Doctor J Najarian - 8:20 AM

McDonald's (MCD) Increases Dividend - MCD's board approved a 49% increase in its dividend, as they cited confidence in the ongoing strength of its business and the reliability of its cash flow. The Oak Brook, Ill.-based company said it will raise the annual payout to $1 a share, up from 67 cents. The new dividend will be payable on Dec. 1 to shareholders of record on Nov. 15.

General Motors (GM) & Nissan/Renault CEOs "Cordial" – Both CEOs said their talks of a possible combination could continue after mid-October. There was an unofficial deadline of Oct 15th, so this continuation is viewed as good news for how well the CEOs are getting along.

Higher Gas Prices Increased Late Pays - Late payments on credit card bills increased lockstep with high energy prices but may ease just as quickly. The American Bankers Association said credit card payments 30 or more days past due increased to 4.41% in the April-to-June quarter.

Steel Inventories Rising - Steel inventories are rising, but has this already been taken into account? The rising supplies come as auto makers are reducing production, and some say they could signal that some other parts of manufacturing are weakening.

Position in MCD

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