The Apple (AAPL) iPhone looks so peaceful who’d believe the boardroom wars this hand size device has sparked. Marketed as the Swiss Army knife of cell phones it already had more uses than any other cell when they threw open the gates and gave the application software code up to any comers. The resulting application free for all has made no few garage startup companies enough money to at the very least rent some office space while large companies have either gotten on board or been left in the dust. Now eBay (EBAY) is hoping their purchase of the Internet phone service Skype will finally pay off in its new life as an iPhone application.
Companies Benefiting from Toxic-Asset Plan
The details of the toxic assets plan are still unfolding. At this point, all we know is that the U.S. Treasury, the Federal Reserve, the Federal Deposit Insurance Corporation [FDIC] and the private sector will partner to create a market for the toxic assets currently held by a number of banks.
Housing Starts Up – Time to Invest in Homebuilders?
The stock market surged in recent days with the surprising announcement that February housing starts were up 22% from January. The news has spurred some analysts to predict that we have finally landed at the bottom of the crippling housing slump with the euphoria of recovery soon to follow. Other experts insist that this outlook is overly optimistic and that the housing slump still has further to fall. With this division of opinion, it can be difficult for investors to determine whether or not now is the right time to invest in homebuilders.
Large Banks and the Bernanke Put Option?
On March 10th of this year, Federal Reserve Chairman Ben Bernanke made a bold statement when he declared that large banking institutions will not be allowed to fail. What this has essentially done is put a temporary bottom in the financial market, and gave investors a reason to starting buying shares of some of the large banks. Up until this time, there was a good deal of uncertainty regarding whether or not some of the large banks would be nationalized. The government had already taken a 35% stake in Citigroup (C), one of the largest financial institutions in the country with over 7,700 branches, and investors thought other banks may also fall victim to the same fate.
Is BestBuy a Buy? – Argument For
Competition is good. It drives innovation and rewards superior effort. In the current tough economy however, lack of competition is better. Best Buy (BBY), the electronics retailer, has skills honed by competition, and now it also has the advantage of watching its strongest competitor go out of business.
Is Best Buy a Buy? – Argument Against
Best Buy (BBY) is a specialty retailer of consumer electronics, home office products, home appliances, and entertainment products in the United States, Canada, and China. One of their competitors, Circuit City, recently declared for bankruptcy and is currently in the process of liquidating their inventory. Most investors expected this event to be a catalyst of Best Buy’s stock; however, the current recession has had a prominent effect on the retail sector causing retail sales to steadily decline. One of the hardest hit areas of the retail sector is the consumer discretionary area. Consumer discretionary items refer to products consumers do not need, but are products they want to buy when they have extra money. During a recession people have very little money that can be spent on discretionary items which is why these companies tend to struggle during recessions.
First Time Home Buyer Tax Credit 2008 vs 2009
One feature of the recent economic stimulus package, the American Recovery and Reinvestment Act of 2009, that has garnered a great deal of attention is the first time home buyer credit. This credit is actually a revision of a similar tax credit that was introduced in 2008. While there are many similarities between the two tax credits there are very significant differences as well.
Investing in Retail? – Consider Protection with Stock Options
The retail sector has seen some dramatic declines over the last six months. People are losing their jobs, their houses are being foreclosed, and wages have become stagnant. All of these factors spell doom for the retail sector. During a recession, people still spend money they just spend less and often spend it at discount retailers. Some of the best discount retailers include names like Wal-Mart (WMT), Big Lots Inc. (BIG), Family Dollar (FDO), and Ross Stores (ROST). These companies should survive just fine. With that said, 90% of the retail stores will not be fine and should see dramatic declines in key indicators such as their same-store-sales and sales-per-square-foot, which will lead to declines in their share prices. I am not advocating that investors put their money to work in the retail sector, but if you must, the discount retailers would be your best bet.
Options Investing With Obama’s Stimulus Package
The Congressional wrangling is over, the final House of Representatives and Senate votes tallied, the President’s signature affixed: $789 The American Recovery and Reinvestment Act of 2009 is now law. Among the major earmarks this broad economic stimulus package designed to revitalize flagging industries, the so-called “shovel ready” ones are well represented. $27 billion has been set-aside for highway construction alone, no doubt to the relief of Caterpillar (CAT) the financially struggling manufacturer of earthmoving, construction and material-handling machinery.
How to Protect Yourself from the Bernard Madoffs of the World: Ponzi Schemes Revealed p2/2
Still reeling from the effects dealt by the current economic crisis, the financial sector took another blow this time landing where it hurts most, close to its heart! This was bitter to no end as it points to one of its big boys in the community being the culprit of a fraudulent (Ponzi) styled scheme. The accused is former NASDAQ chairman Bernard Lawrence Madoff and until recently chairman of Bernard L. Madoff Investments Securities, the vehicle he used to siphoned $50 Billion from unsuspecting and clueless investors.