Single Digit Financial Midgets
Out of 254 financials in the S&P 1500 Composite Financial sector, 12 meet the criteria of being under $10, and having been over $20 in the past 3 years: CNB, ETFC, WM, HBAN, LEH, NCC, SOV, DRH, MTG, TSFG, BPFH, PBKS.
Thanks to Mike Panzner for the data screen
Thursday, September 11, 2008 | 01:50 PM | Permalink
| Comments (20)
| TrackBack (0)
add to de.li.cious | 
digg this! | 
add to technorati | 
email this post
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef010534a0e6df970c
Listed below are links to weblogs that reference Single Digit Financial Midgets:
Comments
I know the title isn't PC, but "Single Digit Little People" didn't rhyme . . .
Posted by: Barry Ritholtz | Sep 11, 2008 1:54:48 PM
Nevertheless, market up today. Strange......
Posted by: Jeff M. | Sep 11, 2008 2:10:12 PM
CNBC jumps head-first towards a new low. Running a ticker with LEH, MER, and WM stocks across the top of the screen. Classy.
Posted by: Dave A. | Sep 11, 2008 2:30:52 PM
Oh...
We represent the Lollipop Guild
The Lollipop Guild, the Lollipop Guild
And in the name of the Lollipop Guild
We wish to welcome you to Munchkin Land
Posted by: VennData | Sep 11, 2008 2:33:06 PM
Nothing strange about it.
I know many, many, many people who do not see anything terribly askew. Their understanding is that housing is down and markets are down. And it will come back.
According to these people, the markets have come back for the past 28 years. They'll come back again.
Nevermind that the massive credit bubble underlying the markets is coming apart.
Posted by: Mr. Beach | Sep 11, 2008 2:35:22 PM
(Munchkin 1) From now on you'll be history
(Munchkin 2) You'll be his...
(Munchkin 3) You'll be his...
(Munchkin 4) You'll be history
Posted by: VennData | Sep 11, 2008 2:35:51 PM
Mr. Beach is right. I know many people who think this as well. decades of a trend really trains the human mind. These are smart people. suggesting otherwise is like suggesting gravity will be turned off.
Surprises await.
Posted by: Red Pill | Sep 11, 2008 2:40:09 PM
(Munchkin 1) And we will glorify your name You will be a bust...
(Munchkin 2) Be a bust...
(Munchkin 3)Be a bust...
(All) In the hall of fame
Posted by: VennData | Sep 11, 2008 2:41:24 PM
Its called Muscle memory, and if prior dip buying worked, well then, there is your training.
That is, until it suddenly stops working. That's your bloodbath.
Posted by: Scott | Sep 11, 2008 2:47:18 PM
Erin Burnett growing a set and finally pressing Cramer! Wow, I love it.
Posted by: Jeff M. | Sep 11, 2008 2:49:54 PM
Guess I keep thinking reality will eventually set in. Maybe after Nov. 4th but it has to set in at some point, right?
I guess we'll know that all denial has been shattered when the market finally capitulates.
Posted by: Jeff M. | Sep 11, 2008 2:52:55 PM
Here's something one would have liked Cramer to consider when he talked up the effect of forced hedge fund liquidations on commodity stocks (which seems plausible enough to explain the violence and speed of the move):
If unwinding the huge long-commodity trade is over-crushing stocks in that space, what about the other huge "equity crack" trade? Could the apparent (and apparently unjustified) relative recent strength in financials and homebuilders simply be huge, prolonged, redemption-driven short-covering? I.e., beyond the obvious 10-percent short-squeeze events we witness after sweeping Fed/Treasury interventions?
If so, one would think that nonfundamental booster rocket would be due to flame out before too long, with a similarly sharp and prolonged reversal.
Posted by: Rosabarba | Sep 11, 2008 2:56:11 PM
Erin Burnett is just as stupid as the rest of the morons on cnbc.
In fact, I think she explicitly states that she is looking for positive news moreso than anyone else.
You'd think cnbc could start being more neutral given all of the problems in the economy, especially since their positive bias is brainwashing the average retail investor.
Posted by: Golden Times | Sep 11, 2008 3:00:22 PM
Wells Fargo (WFC) seems to be one of the major mortgage lending banks that has not yet seen big stock losses. Thoughts?
Posted by: tlm | Sep 11, 2008 3:20:24 PM
Hey its almost Friday, which means the Fed/FDIC will be making an announcement soon. Me thinks WM and LEH have until the end of the business day on Friday to turn bullsh$t rumors into reality.
Posted by: johnnyvee | Sep 11, 2008 3:23:25 PM
Rosabarba,
The answer is yes, and the solution is to own the SKF after the violent move down it's had in the last couple of weeks.
Posted by: ben | Sep 11, 2008 3:24:44 PM
I hate to say this - I am just as bearish as anyone here - but the fact that XLF held at 20 and SPX at 1215 is probably a short-term bullish signal for the market.
Rate cuts are back on the table and rate hikes must be off the table now. The FED will not cut in October right before the election but they could do conceivably do one now.
Re: Mr Beach comment, it's completely true, even really smart people are still in the buy-and-hold or buy-on-dips mentality and if you raise the possibility of a market meltdown you get the eye roll. Mind you these are the same people in general who said that housing always goes up. It's a very odd time indeed.
Posted by: leftback | Sep 11, 2008 3:37:35 PM
I have belatedly done so, shifting the smoking remains of the put positions I had in specific financials/homebuilders, with a healthy dollop of fresh money on top, all at SKF well below $120.
It is a much better feeling to be in the SKF/SRS than puts if you're a small-time amateur punter such as myself. The option Greeks are a savage bunch.
Posted by: Rosabarba | Sep 11, 2008 3:42:19 PM
The feds must be negotiating a sale of WaMu to WFC is all I can figure w/ the WFC share price. It fits--both commercial banks big into mortgages, on the west coast, and Buffett own's a big chunk of WFC, so everyone will believe the calvary has come to the rescue.
Posted by: Donkei | Sep 11, 2008 4:41:41 PM
Donkei,
You mean the CAVALRY has come to the rescue. Calvary is the place where Jesus was crucified. Of course, many financials will need some divine intervention just to survive.
Posted by: John | Sep 11, 2008 5:57:06 PM
