Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Berkshire Gets the Axe - Again


Strengthen your portfolio in good times and bad.

Berkshire Ratings Cut Again

Warren Buffett's Berkshire Hathaway (BRK) took another hit from the ratings agencies, this time from one of its own. The Wall Street Journal reports Moody's Corp (MCO) cut the long-term rating of Berkshire from its top Aaa rating to Aa2, citing the global recession and "severe decline in equity markets."

Berkshire holds a 20% stake in Moody's making it the company's largest shareholder. (Shares of Moody's itself have dropped 70% since the start of 2007.)

Berkshire has come under fire, with big losses in its financial portfolio. Last month, Fitch Ratings also cut Berkshire's AAA rating due to similar economic concerns, as well as exposure to long-term derivative contracts.

From the Bull Pen: Bulls can look to FedEx (FDX). This stock sits in the Dow Jones Transportation sector, necessary for a broad market rally. A sell stop can be set below the 50 DMA ($46).

From the Bear Cave: Bears can actually look to Moody's for a downside play. The stock could likely get a lift should it break out of this narrowing range. But longer term it could be headed for new lows. One option is to fade (read: sell) the stock if and when it reaches $25-26.

Quick Check Around the World

Asian trading closed with the Hang Seng 2.95%, Nikkei 3.74%, India 0.57%, Shanghai 1.38% and Taiwan 4.12%.

Glancing towards Europe, we see the CAC 0.43%, DAX 0.89%, FTSE 0.15%

As of 8:10 AM EST, S&P Futures are trading +13 to 836.00, and Nasdaq futures are +15 to 1314.00.

A Look at Commodities

Over in commodities, crude oil is trading +1.18 to 50.56 while gold is +0.30 to 886.20 this morning. Silver is -0.350 to 12.300 and copper +4.15 to 204.00.

The dollar index is -0.215 to 85.5000.

On the Radar


08:30 Initial Jobless Claims
08:30 Continuing Claims
08:30 Trade Balance -36.5b
08:30 Import Index (MoM & YoY)

Happy Thursday! Good luck, Minyans!

In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos