CNBC Charlie Gasparino is reporting that Government money is now back on the table for a bailout of AIG. Nothing is official yet but this news has rallied AIG stock and the markets...the Dow was down 55 now up 77.
AIG could get bailed out now by Government.
Tuesday, September 16, 2008
ESLR Evergreen Solar & LEH Lehman Brothers - ESLR down because of loan to LEH 9/16/08
Over the past week, links to Lehman Brothers will surface and companies will be forced to take hits because of it. This is what happens when a well established investment firm goes down the tubes like Lehman Brothers ( LEH ). This time, its effecting Evergreen Solar ( ESLR ).
Lehman underwrote a deal for Evergreen in July pricing $325 million of 4 percent senior notes due 2013. As part of the transaction, Evergreen agreed to lend Lehman 30.9 million shares for hedging transactions for up to five years.
Investor doubts about the fate of the loan sent Evergreen shares down $1.74 to $4.56 in Monday trading. The stock is now down 64 percent since the start of 2008. ESLR is down another .60 cents in pre market today 9/16 to $3.96 per share.
Lehman underwrote a deal for Evergreen in July pricing $325 million of 4 percent senior notes due 2013. As part of the transaction, Evergreen agreed to lend Lehman 30.9 million shares for hedging transactions for up to five years.
Investor doubts about the fate of the loan sent Evergreen shares down $1.74 to $4.56 in Monday trading. The stock is now down 64 percent since the start of 2008. ESLR is down another .60 cents in pre market today 9/16 to $3.96 per share.
AIG Stock Down in Pre Market - CNBC 9/16/08
Governor Patterson was on CNBC this morning and he said " I think AIG has only a day." AIG hit a low in Pre Market this morning of $2.81 per share. It is now bouncing to around $3.45 as stock market futures improve a bit.
All eyes are on the Fed decision at 2:15pm this afternoon....and just as I right this, the FED has just injected 90 Billion of liquidity into the market.
AIG was scheduled to again have meetings at the New York Fed....so all eyes will be glued to this situation.
All eyes are on the Fed decision at 2:15pm this afternoon....and just as I right this, the FED has just injected 90 Billion of liquidity into the market.
AIG was scheduled to again have meetings at the New York Fed....so all eyes will be glued to this situation.
Monday, September 15, 2008
Fed Meeting 9/16/08 2:15pm EST - Federal Reserve Meeting
Tommorrow we have a big Federal Reserve meeting at 2:15 Eastern Time in which we will find out if Ben Bernanke will cut interest rates.
A rate cut would be fine.....but the Fed will have to provide capital if they want to stop this stock market slide. Personally, I'd like the Capital Markets to sort this out themselves, but with that everything get sucked down with it.
If JPM and GS don't provide AIG 70-75 Billion in lending.....AIG could go down Bankruptcy Road this week. That is a alot of money! Where will it come from?
How about the Internet Stocks today - Amazon.com and Google.com holding up well today! GOOG and AMZN showed major strength!
A rate cut would be fine.....but the Fed will have to provide capital if they want to stop this stock market slide. Personally, I'd like the Capital Markets to sort this out themselves, but with that everything get sucked down with it.
If JPM and GS don't provide AIG 70-75 Billion in lending.....AIG could go down Bankruptcy Road this week. That is a alot of money! Where will it come from?
How about the Internet Stocks today - Amazon.com and Google.com holding up well today! GOOG and AMZN showed major strength!
AIG - JPM and GS to the rescue! The Government asks Goldman Sachs and JPM Morgan for Help!
CNBC is reporting that the Goverment is out asking Goldman Sachs and JP Morgan to lead a lending facility of $70-$75 billion for AIG.
The Dow rallied 100 points on this news...but is now coming off that rally. AIG, GS, JPM have all bounced off their lows.
The Dow rallied 100 points on this news...but is now coming off that rally. AIG, GS, JPM have all bounced off their lows.
CHK Chesapeake Energy 9/15/08 Technical Analysis
Technical Analysis for Chesapeake Energy ( CHK ) - Support and Resistance Levels
CHK has been a stock that has gotten hammered with lower energy prices. Chesapeake appears to have made a new low last week at $38.10. This low is support for now and it appears as though a reverse head and shoulders pattern is forming with $38.10 being the top of the head. This formation signifies a bear trend bottom and when the last shoulder is formed, the stock forms a bullish breakout and starts a new uptrend.
It is a bit early to tell this but the ingredients are coming together as the winter heating season is upon us. I am looking to get long on a close over $42.50 in which you could easily see a run back to the $48-$50 level.
Chesapeake Energy ( CHK ) has great fundamentals and at below $40 per share, you are getting the biggest shale play, The Haynesville Shale, for free!
CHK has been a stock that has gotten hammered with lower energy prices. Chesapeake appears to have made a new low last week at $38.10. This low is support for now and it appears as though a reverse head and shoulders pattern is forming with $38.10 being the top of the head. This formation signifies a bear trend bottom and when the last shoulder is formed, the stock forms a bullish breakout and starts a new uptrend.
It is a bit early to tell this but the ingredients are coming together as the winter heating season is upon us. I am looking to get long on a close over $42.50 in which you could easily see a run back to the $48-$50 level.
Chesapeake Energy ( CHK ) has great fundamentals and at below $40 per share, you are getting the biggest shale play, The Haynesville Shale, for free!
RIMM Technical Analysis 9/15/08, 9/16/08 Research in Motion
RIMM Technical Analysis - Support and Resistance Levels for Research in Motion
RIMM has been getting hammered over the past several weeks but appears to have found short term support at $97.72 last week, went up to test the 10 day moving average at $110, and then failed. This would give RIMM strong resistance at $110. When RIMM closes back over $110 I think you can get long and ride it for a retest of the 200 day moving average at $115. Right above the 200 day is the 50 day at $118. These areas will be lined with sellers so be cautious up there. If $97.72 fails, you could be looking at RIMM going to $90 per share.
RIMM has been getting hammered over the past several weeks but appears to have found short term support at $97.72 last week, went up to test the 10 day moving average at $110, and then failed. This would give RIMM strong resistance at $110. When RIMM closes back over $110 I think you can get long and ride it for a retest of the 200 day moving average at $115. Right above the 200 day is the 50 day at $118. These areas will be lined with sellers so be cautious up there. If $97.72 fails, you could be looking at RIMM going to $90 per share.
USO Technical Analysis 9/15/08
On the day of the Lehman bankruptcy, the USO has crashed below previous support of the low $79's and hit $77.13 today 9/15/08. Looking at the USO Chart, we have some nice support around $75-$79. This is a big range but if the USO holds $75 and then shoots back up to close over $80....$75 could be your bottom. I would personally wait for the USO to close over the 10 day moving average as it has not done this since mid August. USO closed over $93 and then shot to $98.54....so using the 10 day moving average could result in a nice upside trade.
USO Opinion - Oil Stocks 9/15/08
The USO, which is the United States Oil Fund, is getting crushed today as Oil nears $95 dollars a barrel. The current price of the USO is at $76.50. Having strong support around the $75-$77 level....this could be a great opportunity to step into the oil trade and buy some USO. The Fed looks like they will cut interest rates tomorrow as well.
Just something to think about.....
Just something to think about.....
Lehman ( LEH ) Bankruptcy Chapter 11 - Merrill Lynch Sold to Bank of America
Barclays and Bank of America dropped out yesterday in the effort to save Lehman Brothers ( LEH ). This led to only one thing. A Chapter 11 Bankruptcy Filing. Lehman Brothers ( LEH ) now will be wiped out on the equity side but is still trading in pre market at .46 cents per share.
AIG is very week this morning and they appear to need Capital or they could be next. AIG is trading at 7.03 down 42%.
MER Merrill Lynch is up 20% in pre market on the buyout news.
Who could be next? AIG, Washington Mutual ( WM ) all trading very low from a week ago.
AIG is very week this morning and they appear to need Capital or they could be next. AIG is trading at 7.03 down 42%.
MER Merrill Lynch is up 20% in pre market on the buyout news.
Who could be next? AIG, Washington Mutual ( WM ) all trading very low from a week ago.
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