President Caps Pay
Investment Research for Online Investors

by John Dalt

02/04/09

Today started out with a small quite bear market rally. The market was continuing to overcome bad earnings and wait on the government for the latest rescue package for banks or stimulus plan for the economy. The financials seem to want to start their accent, but are tentative, like a colt walking for the first time. The market wanted to go higher. OH! Bama and his administration hammered the banks on TV until they turned around and headed lower to close out the day. We now have the government telling banks that executive salaries are capped at $500,000. When you take money from the government, the wolf is in the door. Who is next?   

If you are looking around for a resource stock, Petrohawk (HK) is one we are watching in the Swing Traders service, and may deserve your attention as a long-term play.  We have not taken a position yet, they are growing reserves through drilling in the Haynesville shale.  These wells are expensive, but the payout is excellent.  They had a 98% success rate on their wells drilled last year!  You can read their 4th quarter report here. 

Judea Pearl the father of Daniel Pearl, who was beheaded by Al Qaeda terrorists seven years ago, had a great article about the shortness of our memory.  His indictment of the press and political elites is a must read on how they help the terrorists.  You can read it here. 

Harry Markopolos testified before the house financial services subcommittee this morning. He beat on the SEC like a rented mule. Markopolos is a former fund manager. When asked how long it took him to realize something was fishy with Madoff’s funds, Markopolos said “about four hours”. He had been repeatedly warning the SEC about Madoff since May of 2000. He told the committee that the SEC had too many lawyers that did not understand securities. At one point Markopolos said, the regulators seated in Fenway Park in Boston would have trouble finding first base. It was great theatre. Makopolos said he would turn over information to the SEC tomorrow about another undiscovered $1 billion ponzi scheme. 

The senate is working on a $905,000,000,000.00 stimulus bill.  This will be added onto the national debt we now have of approximately $10,250,000,000,000.00  I am reminded of the popular saying during the Presidential campaign, “We are buying oil from people who don’t like us very much.”  So I guess it is ok to borrow more money from the Chinese? 

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.

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