Citi Makes Money!
Research for Online Investors

by John Dalt

3/10/09

Citi bank leaked a memo from Chairman Vikram Pandit that the bank turned a profit in January AND February! This plus Bernanke on television at the Council of Foreign Relations seemed to kick-start the market today. Bernanke did not offer any clarity on ‘mark to market’ rules, except that it was under study. Barney Frank announced that the ‘uptick rule’ could be instituted within a month. Buyers were anxious to find a reason to re-enter the market.

An article this weekend in the Washington Post revealed companies are re-writing options for executives. It seems they are underwater and do not feel it is fair that they will not get a bonus based on increased share prices. WELCOME TO THE CLUB! When you get proxies this year, if the board of directors has done this, vote against them all. I hate heads I win, tails you lose. Options are supposed to align executives with shareholders, if stock prices fall, executives can also feel our pain. Why should the shareholders stand for companies changing the rules to favor the insiders? 

I have written many times about the importance a revision or suspension of ‘mark to market’ would have on the financial sector.  It would “launch” the bank stocks.  I found a good article on Accounting Standard 157, you can read it here. 

I talked with a friend last night that worked in Foreign Relations for 18 years. She is embarrassed by the mistakes made by Clinton and OH! Bama. Diplomatic courtesy and professionalism are not Democratic or Republican ideals; they convey the importance we place on a relationship. When ignorance and clumsiness are so rampant, we all get a black eye. The President presenting Gordon Brown with a basket of DVD’s was breathtakingly stupid. Clinton misspelling the inscription on a ‘token’ to Russia was awkward. It is hard to have confidence with such ineptness.

Oh! Bama can give out Lifesavers at the G7 in April

The President told the New York Times that he “hopes U.S. troops can identify moderate elements of the Taliban and move them toward reconciliation.”  The Asia Times has an interesting article on the ability of this initiative to be successful.

I visited with a friend this weekend that manages a substantial portfolio for customers. We talked about the market, and where it is headed. He told me he never gives his opinion on the direction of the market to customers. He felt it would lead to questions and loss of faith in him if he were to give a wrong opinion.

This surprised me, as I view my job to give you my best daily ‘feeling’ of the market. I try to give you pertinent news and opinion. Today we had a nice rebound bounce. I think it will continue until it stops! Financials are leading the market higher with confidence that some accounting or trading rules will be changed. Use this rally to sell some of your losers to make some money! Hopefully, some of your positions will come back and let you get out with a profit.

Friday may have been the low when the SP500 closed at 666.  That does not mean we are going to go straight up from here.  The next two months could be spent up and down while we wait on earnings reports.  Earnings coming out better than expected for the first quarter would set us on a path for a rising market.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

HOME

Back to Top