Five Days of Misery

Saturday, November 03, 2007 | 11:30 AM

Nice piece in Barron's about the under-performance of the Financials this week:

"Big sell-offs often create bargains, but, as Barron's has warned ("No Bargains in Brokers," Oct 29) investors should tread carefully. Financial companies typically have huge balance sheets and relatively modest capital bases, making them vulnerable to asset write-downs. Bottom fishers in financials already have been burned badly this year."

Earlier last month on CNBC, I noted that the Banks and Brokers were major "avoids, with at least another 20% downside -- but I didn't mean this week!

Here's a table from the Barron's piece:


Five Days of Misery

Investors' confidence in financial companies was shaken last week. So were the share prices of some of the sector's erstwhile stalwarts.

Stock Change 2007*
Company/Ticker Price Week YTD EPS P/E
Citigroup (C) $37.73 -11.5% -32.3% $3.74  10.1
American Intl
Group (AIG) 
59.12 -4.9 -17.5 6.74 8.8
Bear Stearns (BSC) 102.16 -12.1 -37.2 11.12 9.2
Merrill Lynch (MER) 57.28 -13.3 -38.5 2.87 20.0
Washington Mutual (WM) 23.81 -16.7 -47.7 2.37 10.0
AMBAC Financial (ABK) 23.51 -46.9 -73.6 7.84 3.0
MBIA (MBI) 35.51 -29.5 -51.4 6.32 5.6
MGIC (MTG)  18.00 -7.1 -71.2 -2.50 NM

NM = Not Meaningful.

Sources: Bloomberg; Thomson Financial

   

>

Source:
The Week That Shook the Financial Sector
ANDREW BARY
Barron's NOVEMBER 5, 2007   
http://online.barrons.com/article/SB119404861681681133.html

Saturday, November 03, 2007 | 11:30 AM | Permalink | Comments (14) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00e54f7909fb8833

Listed below are links to weblogs that reference Five Days of Misery:

Comments

'Underperformance' of the financials?

That's a kind word. ;)

Posted by: Jmay | Nov 3, 2007 12:22:18 PM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner