not a good sign of their liquidity position. Maybe some will be happy that the deal may get canceled and bid the stock up. In that case I might sell half to recognize my losses and protect some capital.
when it rains it pours has never been more true -- so far at every turn the last month or so every thing has gone against them.
Interesting day in the market to say the least. I think we are near a short term bottom -- talk on real money today was about whether the right analogy is 1931. Also had lots of bears gloating about how they saw this coming and have warned about it forever and they see much more pain ahead. at the same time I could not access my schwab account for most of the trading day -- temporarily unavailable -- I presume due to heavy volume of trading. Also heard some high net worth managers talk about panic calls from clients worried about their money market assets and other stuff.
As far as stocks go, financials certainly got a bid (except for DFR of course) but a lot of other stocks were down even after the afternoon bounce.
I would urge you to go through your stocks and ask the following types of questions:
how strong is the balance sheet -- do they have any debt that may need to be refinanced? can they easily cover the interest expense?
are they a beneficiary of the growth in debt the last several years? this includes everyone from brokers to rating agencies to private equity related stocks to mortgage brokers, lenders, homebuilders, etc. -- the list could be long but anything on it could struggle to grow earnings in the future as the mortgage and housing industries shrink 40% or more vs. volumes from last year.
are they a supplier to anyone on the above list? I would include potentially FDS on the list because they sell to investment bankers and to hedge funds and those markets will struggle.
is their valuation reasonable using reasonable earnings assumptions?
do they have a growth strategy or is growth just cost cutting?
its late again -- will have to think of other options tomorrow.
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