Ockham Research Staff @ December 19, 2008 # One Comment
A sweeping downgrade of financials by credit rating agency S&P was one of the major stories of the day. Or on second thought, what does this tell us that we did not already know, and so far the market has not even noticed.
More on: S&P Warns of More Financial Pitfalls Ahead
Ockham Research Staff @ December 18, 2008 # 2 Comments
As many companies are cutting staff expenses across the board, Credit Suisse has come up with a clever method of accomplishing two goals at once. For starters, the company will give their employees a bonus the amount of which will not be known for quite some time, and the company is reducing its exposure to risky debt. Interesting idea, I wonder how the CS employees feel about it.
More on: Salaries and Traditional Bonuses Are On the Retreat
Ockham Research Staff @ December 16, 2008 # No Comment Yet
Goldman reported a wider than expected loss for their recent quarter, but the marketplace has brushed that aside and bid up the price more than 11 percent. We are concerned that Morgan Stanley might not get the same treatment if they are to slip up tomorrow.
More on: Goldman’s Results Foretell Trouble for Morgan Stanley
Ockham Research Staff @ December 15, 2008 # One Comment
A recent study suggests what we have been trying to explain for quite a while now, that in addition to lacking credibility, Wall Street Research ratings appear to not perform very well either. We think this fascinating study is worth a read for both individual and institutional investors.
More on: Study: The Analysts Aren’t Wearing Any Clothes
Ockham Research Staff @ December 9, 2008 # One Comment
A bit of perspective from our email inbox.
More on: What a Difference a Year Makes!
Ockham Research Staff @ November 21, 2008 # 4 Comments
DeVry is an interesting stock in this recessionary environment. The company is showing strong growth from an influx of unemployed people looking to improve their skills in order to reenter the workforce. However, we would hold off on buying right now until the stock drops into the mid 40’s. There are many more undervalued stocks in this market.
More on: DeVry Thrives as Unemployment Spreads
Ockham Research Staff @ November 14, 2008 # No Comment Yet
The Wall Street research analysts are still declining, both in number and in coverage, and there is no reason to believe that they will be saved. The term “bailout” isn’t used when referring to these analysts, and it appears to us that this is due to the changing requirements for research. Goldman Sachs just let 13 more analysts go, and from what we can see, it appears this trend will continue until anaysts can reconcile the “why” with the “when”.
More on: Analysts and Research Still Evolving
Ockham Research Staff @ November 13, 2008 # No Comment Yet
American Express is the latest company to have become a bank holding company in order to receive special “bail out” money from the Fed. While this does make the odds of failure much less, does this make the company a suitable investment?
More on: American Express: Worth the Risk?
Ockham Research Staff @ October 17, 2008 # 3 Comments
We are posting an Op-Ed from today’s NYT from Warren Buffett. He, like us, believes that conventional wisdom is an oxymoron.
More on: Our Favorite Leading Indicator: Warren Buffett
Ockham Research Staff @ September 24, 2008 # 2 Comments
Warren Buffett has thrown his chips in and he is betting on the Goldman Sachs to reemerge as a leader in the financial sector. With assistance from the government’s rescue plan, Buffett hopes that Goldman’s proven management can once again restore the confidence that is so lacking in financials right now.
More on: Buffett: The Pied Piper of Financials