Meredith Whitney was on CNBC this morning ( July 13, 2009 ) and gave her comments on the current financial crisis and why she upgraded Goldman Sachs Group Inc. (GS).
Earnings Season
It's all different...For Goldman Sachs, its a bearish call but a bullish call on the stock. The next few years GS will make a lot of money on debt market securities. They will report a monster quarter tomorrow and I upped the price target to $186 per share.
Things aren't improving for the banks but their net tangible book value is improving so you don't want to be shorting some of these banks going into earnings.
Bank of America Corporation ( BAC ) is the cheapest as far as the tangible book value is concerned. You could see a 15% move higher in value in these shares.
I think in some of these financials, you could see a 15% move, then a flat lined period followed by another leg down.
JPMorgan Chase & Co. (JPM) - JP Morgan will do well with investment banking, JPM earnings will be a great preview to Bank of America's earnings report.
Bank of America ( BAC ) - Will have a monster mortgage quarter. BAC is one the the cheapest banks out there.
Citigroup Inc (C:NYSE) - What matters with Citigroup is the dilation, not many people are focused on Citigroup stock this quarter.
Unemployment: Unemployment could be 13% by 2010-2011.....i'm not ready to go 14% just yet....this is what happens when we buy time but don't restructure the banks, economy. This is a scary situation!
Bank Stress Test: As for the bank stress test, it WAS NOT so stressful!
View all of Meredith Whitney's comments right here.
the latest updates on the stock market, visit, http://daytradingstockblog.blogspot.com/ or Subscribe for Free
Showing posts with label meredith whitney comments. Show all posts
Showing posts with label meredith whitney comments. Show all posts
Monday, July 13, 2009
Tuesday, March 10, 2009
Meredith Whitney CNBC 3/10/09 March 10, 2009
Meredith Whitney was on cnbc this afternoon( March 10, 2009 ) and gave her comments on the current financial crisis.
- Credit Cards will be the next credit crunch
- At least 2 trillion of credit card lines to be cut by 2010
- Bank credit card portfolios will not be profitable in 2009, might even lose money
Would you be buying the bank stocks right now?
- Goldman Sachs ( GS ) in the $70's yes, $100's no
- There is a trade here, but a trade alone...I think you could probably make money getting long some of these stocks. We will have to see what they do as far a mark to market in April.
Citigroup ( C ) - they don't make money in any of their businesses - you see Citi up 28% today but its only $0.28 cents. I am skeptical of these relief rallies.
Citi will be forced to sell their crown jewels
Mark to Market accounting
The damage is already done....if the market comes back, they don't get the benefit to write their assets back up. Mark to market doesn't really matter right now.
TALF - Is TALF going to be enough? They are trying to entice the private sector to come back into the market, private capital has to have sweet terms to get back into the stock market.
With these bank stocks - you could see them go up on earnings in the first quarter because of a head fake on the mortgage moratorium.
View all of Meredith Whitney's comments right here.
For the latest updates on the stock market, visit, http://daytradingstockblog.blogspot.com/ or Subscribe for Free
- Credit Cards will be the next credit crunch
- At least 2 trillion of credit card lines to be cut by 2010
- Bank credit card portfolios will not be profitable in 2009, might even lose money
Would you be buying the bank stocks right now?
- Goldman Sachs ( GS ) in the $70's yes, $100's no
- There is a trade here, but a trade alone...I think you could probably make money getting long some of these stocks. We will have to see what they do as far a mark to market in April.
Citigroup ( C ) - they don't make money in any of their businesses - you see Citi up 28% today but its only $0.28 cents. I am skeptical of these relief rallies.
Citi will be forced to sell their crown jewels
Mark to Market accounting
The damage is already done....if the market comes back, they don't get the benefit to write their assets back up. Mark to market doesn't really matter right now.
TALF - Is TALF going to be enough? They are trying to entice the private sector to come back into the market, private capital has to have sweet terms to get back into the stock market.
With these bank stocks - you could see them go up on earnings in the first quarter because of a head fake on the mortgage moratorium.
View all of Meredith Whitney's comments right here.
For the latest updates on the stock market, visit, http://daytradingstockblog.blogspot.com/ or Subscribe for Free
Wednesday, December 10, 2008
Meredith Whitney CNBC 12/10/08 - December 10
Meredith Whitney from Oppenheimer was on CNBC 12/10/08, and gave her comments on where she stands on the credit crisis and the housing market.
Meredith, what are your current fears? I fear the consumer has not been a part of what happened to wall street and the massive liquidity problem that has gone on with the banks. Consumers now risk losing their jobs, having liquidity withdrawn because of the problem. Banks will start to cut credit card lines and some consumers will be not be able to get credit cards and this will cut consumer spending in a big way. As you know, the consumer fuels our economy.
Financials ( BIG BANKS ) will be on life support for the next 18-36 months, they won't fail but they won't grow for the next two years. These banks are getting diluted and it doesn't help shareholders.
Asset prices continue to go lower, 5 banks are funding 2/3rds of mortgage market.
I am Expecting home prices to fall another 20%, homeowner rates will get cut back to 65%.
Is there anything we can do? We have to have big banks to survive for a confidence point of view. We have to have money help the regional banks to get money flowing through the system. I don't think there is anything you can do for the mortgage market however. The housing market problem is to big to fix. This is not an apocalyptic situation however, because housing prices doubled since 2000 so a 40% correction has just put many people in a bad situation. It does affect new buyers because they don't want to buy a house if they fear it will be worth less in a few months.
View all of Meredith Whitney's comments right here.
For more stock market updates, visit, http://daytradingstockblog.blogspot.com/
Meredith, what are your current fears? I fear the consumer has not been a part of what happened to wall street and the massive liquidity problem that has gone on with the banks. Consumers now risk losing their jobs, having liquidity withdrawn because of the problem. Banks will start to cut credit card lines and some consumers will be not be able to get credit cards and this will cut consumer spending in a big way. As you know, the consumer fuels our economy.
Financials ( BIG BANKS ) will be on life support for the next 18-36 months, they won't fail but they won't grow for the next two years. These banks are getting diluted and it doesn't help shareholders.
Asset prices continue to go lower, 5 banks are funding 2/3rds of mortgage market.
I am Expecting home prices to fall another 20%, homeowner rates will get cut back to 65%.
Is there anything we can do? We have to have big banks to survive for a confidence point of view. We have to have money help the regional banks to get money flowing through the system. I don't think there is anything you can do for the mortgage market however. The housing market problem is to big to fix. This is not an apocalyptic situation however, because housing prices doubled since 2000 so a 40% correction has just put many people in a bad situation. It does affect new buyers because they don't want to buy a house if they fear it will be worth less in a few months.
View all of Meredith Whitney's comments right here.
For more stock market updates, visit, http://daytradingstockblog.blogspot.com/
Wednesday, November 26, 2008
Meredith Whitney Bloomberg 11/26/08 - Citigroup C
Meredith Whitney of Oppenheimer was on Bloomberg today, 11/26/08, and she had comments on Citigroup ( C ) and the current financial crisis. Meredith Whitney warned people in August before this whole downturn, so I always find what she has to say interesting. She called this financial crisis before anyone over a year ago and she has even received death threats, but she has been right! On November 5th, 2008 - Meredith boldly came on CNBC's closing bell and told viewers there were still major problems with Citi and other financial stocks, predicting C stock would fall into the single digits. Citigroup was trading at $13.50 at that point. Friday, Citi stock sunk under $4 per share.
Meredith Whitney Comments - November 26, 2008 - Bloomberg
Citigroup ( C ) Bailout
Have we seen the Bottom for Citigroup? Its hard to say if the Fed's move will stop the slide of Citigroup stock. The cost of Citi's debt capital has soared.....the issue with the monies is that it just goes to plug holes....they look great this week, but by the fourth quarter they will look worse.
Banks are hoarding cash, consumers are hoarding cash, capital demands are changing and increasing on a daily basis. Assets are going to get cheaper from here on out, people aren't ready to catch a falling knife yet.
TARP 3.0 - Terms of the Tarp 3.0 deal were so beneficial to Citi, every single financial company has toxic assets and are carrying them at big levels. Some banks are reluctant to admit they need more capital....most banks are carrying bad assets just like Citigroup. Nothing will improve as long as there is asset deflation. It may take as many as five years to turn financials around.
To blame Vikram Pandit and not blame the board of directors is a bad call....Vikram Pandit was dealt a very bad hand when he came to Citigroup.
Earnings Growth - The Capital the banks are raising right now is going to plug holes, we will look back in a year and say, wow, those balance sheets were worse then we thought.
For more stock market updates, visit, http://daytradingstockblog.blogspot.com/
Meredith Whitney Comments - November 26, 2008 - Bloomberg
Citigroup ( C ) Bailout
Have we seen the Bottom for Citigroup? Its hard to say if the Fed's move will stop the slide of Citigroup stock. The cost of Citi's debt capital has soared.....the issue with the monies is that it just goes to plug holes....they look great this week, but by the fourth quarter they will look worse.
Banks are hoarding cash, consumers are hoarding cash, capital demands are changing and increasing on a daily basis. Assets are going to get cheaper from here on out, people aren't ready to catch a falling knife yet.
TARP 3.0 - Terms of the Tarp 3.0 deal were so beneficial to Citi, every single financial company has toxic assets and are carrying them at big levels. Some banks are reluctant to admit they need more capital....most banks are carrying bad assets just like Citigroup. Nothing will improve as long as there is asset deflation. It may take as many as five years to turn financials around.
To blame Vikram Pandit and not blame the board of directors is a bad call....Vikram Pandit was dealt a very bad hand when he came to Citigroup.
Earnings Growth - The Capital the banks are raising right now is going to plug holes, we will look back in a year and say, wow, those balance sheets were worse then we thought.
For more stock market updates, visit, http://daytradingstockblog.blogspot.com/
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