Wednesday, April 29, 2009

Pictures will Expose the Dominant LB/UCBH/ GDP 1st Quarter/Bloomberg Story on Results of Bank Stress Test/CBR/Pakistan Comes to Grip with Reality

RB wanted to do a photo essay to teach others how to expose the LB's.  These photos were taken in 1961, 1969 and 1992.  The ones from 1961 and 1969 expose the same person as an LB.  If you see any pictures like this in your photo album, then beware of the tyrant that wants to squash the RB, which is after all the side of the brain that makes all of the real money anyway.  LB just keeps the losses to a minimum and provides structure and order to what is ultimately nothing more than chaos.  LB likes to use the photo taken in 1969 as the profile picture of this blog to prove its dominance, to show who is really in charge, and to put RB in its proper place as nothing more than a constant nuisance and noise maker.

Bloomberg ran a story this morning that at least 6 of the 19 financial institutions subjected to the Fed's stress test will need more capital.  According to Bloomberg, the Fed is putting pressure on them to convert the government's equity preferred into common stock.   Bloomberg.comThis would be a negative development for existing shareholders for any bank required to do it.  I am not surprised by Morgan Stanley identifying Regions Financial and KeyCorp as two banks in need of a capital infusion.  Reports from yesterday claim that BAC failed the test which is also not surprising. BAC & the Stress Test/BMY/AVY/BAC Preferred Apparently, the Fed is allowing the banks to present an appeal.

The preliminary GDP report was worse than expected at 6.1%     For those looking for the bright side, inventories also plummeted by a record 103.7 billion.  BEA: News Release: Gross Domestic Product  It is for the best that those inventories are being worked down rapidly.

I started to read the UCBH earnings call transcript and stopped at page 3.  Seeking Alpha 
Thomas Wu, the President and CEO, said the bank observed indications of credit weakness in the condominium market in San Diego and Los Angeles in the 4th quarter.  Wow!  If they had sent me an email, I could have told them that much from information gleamed from sitting at my computer in Tennessee.  LB nixed this one for now.  Maybe it will read the rest of the transcript to see if there is any light at all.   

Today, I am going to try and make an assessment as to whether the fall in Bristol Myers is an an overreaction to the Dendreon news about Provenge, or whether some other news is causing the fall today. Dendreon's Provenge: A Behind-the-Scenes Look | Biotech | Financial Articles & Investing News | 
There was some news from 4/23 about the FDA extending the deadline for the review of BMY's new diabetes drug, Onglyza, to July 30th from April 30th.  

Ciber, a lottery ticket purchase, continues to disappoint.Yahoo! Finance
LB has nixed any adds on that one, but has not yet seen anything yet to sell the shares currently owned at a small loss.  Those are two separate decisions for LB. 

I was glad to see Pakistan has started to stand up some to the Taliban.  CBS News
It seems apparent to me that the Taliban want to extend their control beyond the tribal territories to seizing control of the entire country over time. 

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