Monthly Archives: June 2007

Subprime Credit, Illiquidity, Leverage, Contagion and Concentration

There are two popular views that I am seeing among those that are in the media limelight at present regarding subprime mortgages. There may be more, but I will point at James Cramer’s assertions that this is an illiquidity event, and not a credit event, and the assertions of Bill Gross that this event heralds […]

Another Win for the Broad Market Portfolio

Well, score one more for my portfolios, Komag is being bought by Western Digital for $32.25/share. This was a remarkably quick win, given the initial purchase back in late March, and a rebalancing buy in late May.Investments rarely work this quickly, but I am grateful when they do. In the last portfolio reshaping back in […]

Trailing E/P as a Function of Treasury Yields and Corporate Spreads

As part of my 2-part project on the Fed Model, I want to give you the results of my recent investigation. This is the simpler of the two projects. A little while ago, Bespoke Investment Group published two little pieces on the relationship between the yield curve and the absolute level of the S&P 500 […]

Portfolio Reshaping Mid-Year 2007, Part 2

Here are my current industry ratings.  Using my Bloomberg Terminal, I  ran a screen looking for cheap companies in those industries.  The result yielded eight tickers: ACO CONN GMRK HES NSIT PDE SMRT SSI I also added in the top 12 tickers from the last time that didn’t make it into my portfolio, and aren’t […]

Nine Notes on Speculation

Recently I have been clipping articles, and arranging them by category, so that I can comment on them as a group more easily.  Tonight’s topic is speculation again, but these articles are all of the odd bits that don’t follow any particular theme. Sometimes I think that the major financial press that covers Wall Street […]