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Someone rocked the boat hard yesterday for some cheapies!!!!
wow, do you have something? or is the light at the end of the tunnel...........the train?
Bank Results Show Strength Even Before Mark-to-Market
Topics:Investment Strategy | Stock Market
Companies:State Street Corp | JPMorgan Chase and Co | Citigroup Inc | General ElectricBy: Jeff Cox, CNBC.com | 17 Apr 2009 | 01:42 PM ET Text Size Accounting changes aimed at helping the balance sheets of banks with toxic assets appear to be providing little or no help so far with earnings reports.
The accounting rules, known as mark-to-market, were amended so that banks stuck with underperforming assets—particularly mortgage and other credit-related securities—could value them at their future projected worth and not at current value.
But the early earnings are showing that the rules probably won't be reflected until second-quarter results are reported. And that has some investors hoping that financial earnings, which have been better-than-expected so far, will do even better once market-to-market accounting takes effect.
"I hope we're going to see the financial system on an upward track," says former FDIC Chairman Bill Isaac, who helped draft the rule changes. "It's probably not going to be a straight line for all institutions. There will be some varied results. We are in a very favorable climate right now for banking institutions because they're cost of funding is so low."
Though the cost of lending for banks is near zero, a strong effort to reduce debt among financial firms and with the mark-to-market changes is providing an uncertain earnings environment.
"We have an accounting rule change and we're in the middle of the transition," David Kotok, chief investment officer at Cumberland Advisors, told CNBC. "We won't know the eventual impact of that until the June 30 quarter."
Indeed, General Electric in its earnings report said it had not applied the accounting changes toward its first-quarter results, but will show an impact for the second quarter. GE [GE 12.4406 0.1706 (+1.39%) ] is the parent corporation for CNBC.com.
Investors hope that the changes in accounting, plus aggressive cost-containment, will help improve the Dow component's balance sheet.
"We are aggressively managing our cost structure to respond to challenging global economic conditions," GE CEO Jeff Immelt said in a statement. "For 2009, we will reduce our costs by more than $5 billion. We've reduced headcount and are managing company operations more efficiently, leading to improved operating leverage in our infrastructure businesses."
But there was also some fear this week that even when the changes do take complete hold, they may not help as much as hoped.
State Street [STT 34.28 -0.01 (-0.03%) ] shares surged immediately after the Financial Accounting Services Board announced the rules changes on April 1, a day after public comment ended. But the stock has backed off a bit after earnings from JPMorgan were taken as a sign that the changes might not help as much as hoped.
"State Street was perceived to be a large beneficiary of the accounting rule changes, and now the market may be concluding that it overestimated that effect a little bit," Murali Gopal, analyst at Keefe, Bruyette & Woods, told Reuters.
Moreover, there's still some concern that the FASB changes didn't go far enough. The rules still provide that the bad assets be deducted from capital, though not from earnings.
Isaac said if that rule also isn't repealed it could mean more trouble for banks later because it puts a tax burden on banks getting hit by the losses.
"If we can get this mark-to-market stuff behind us, I believe this industry will recovery very quickly," he said. "I would hope we would stop charging mark-to-market losses against capital. We wouldn't be in this mess if we weren't making hundreds of billions in dollars on charges."
Earnings from GE and other financial-related companies, including Citigroup [GE 12.4406 0.1706 (+1.39%) ] and JPMorgan Chase [GE 12.4406 0.1706 (+1.39%) ], generally beat analyst estimates. That added to hopes that those companies would show better second-quarter results once mark-to-market changes took hold.
We get $1.25 We will run fast past $2!!!!!
No NEWS yet???
WTF..........
I'm at 30% as of now.............holding for 200%!!!!!
I will get it.
Sell half, and let the rest ride.............
WWWWWWWWWWWWWWWEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
GLTYA!
Nice Digs Nub....10% is AOK...
Your post makes me smile!!!!!!
Bring on the $10!!
GLTY.
Do we have news coming? Strange 100-200 share trades from 1.0399-1.04 back to 1.03......tic toc tic toc.....WTF
Great time to buy! What a joke......Moody must need to cover aswell!
The fact that we went sub $1 in AH. Bounced off that, back to $105....says lots.
$108 in pre
GLTYA
If it involves this going to $10.....I want to know what your talking about....LOL
GLTY.
Did you get your fill at $2.59 yet????
LOL......
GGGGGGGGGGGGOOOOOO ABK!!!!
Heading back up after all the flipping is done!!!!
Lets see a good strong close......1.20 will do...
Not sure if I would want to be out of this over the long weekend, or not??????
big chunks at $1 now!!!
Why not try something else????
You like it at Mickeydees.................
Kinda like Cheers?.......everybody knows your name???
GLTY twoblind2c!
GGOOOO CAGI BBBBOOOOOOOMMMM!!!!!!
Nub did you buy ABK????
I was hoping you knew?????
HELP............I don't get it!!!
Busy with other fish!..............CAGI is still GOLDEN don't worry!
I'm lovin Bank stuff at the moment!!!
Go ABK...............WWWWWWWWEEEEEEEEEEEEEEEEEEEEEEEEE
Hey it is a canadien company you dont have to say anymore
LOL because so many companies in the USA are making so many awesome decisions at this time!!!!!
Maybe your banks will learn something at that little meeting coming up............from our Canadian banks!!!
Remember.........you bought what you now own......that would make this you fault!!!!!!! Dipchit....
This stock is making me drink!!!!..............More!
Something is brewing for sure!!! Too much BS going on....
WTF some Interseting moves happening into close!
A little shake for some reason than boom back up........
Like some news was a comin or something??
I still think we see $2 very soon.
GLTY W09!
I think you will be changing your name to WINNER09 soon enough!
maybe our 2o%+ gain???????? Look at it as a buying opp?
I agree!....Did we go green for a sec before lunch?
I think this dip is a great buying opp for many.......we should run green into close. I think some profit taking after a day like yester is normal.....we have a nice base to runoff of now.
GLTY.
Green before lunch?????
I think we are holding up very well......
Everything is starting to bounce.....IMHO.
GLTYA
Wow, a massive 500 shares in pre to make us red! Someone need more shares before we bust a dollar??????
This will never go to $3.25!!!
Who's LOL now?
I feel we should see a steady rise to $2.20+this week, based on the charts and markets reaction to the preceived bottom having been reached!
The Bulls are out and off ABK goes.
See you at the bar Bdog!!!!!!!!!!!!
Nice to see another 3%+ in extended hours trade!!!!!!!
Tomorrow should be great......we open over $1 dollar and a bunch of new big buyers will rush in......IMHO.
GLTA.
Strange.....look again, I got it aswell!
GLTY.
$3.50 would be nice to see, Im holding for $5+.
Such a great play at this level, over say.....AGO??????
Same with ABK!!!! What up?
BTW Dogballs2002, I hope selling all my RIMM today to buy as much ABK as I could, was a good play!!!!
I would like to double my position in RIMM pre earnings please.
GLTYA!
These be crazy times!
How did Gold do today????
I forgot about CAGI today, too busy selling RIMM and buyin ABK!!!!
Only to back the truck up to CAGI for a top up AGAIN!!!!!
WWWWWWWWWWWWWWWWWWWEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
In this market, can anyone predict what will happen???????
Big board /pink's/Las Vegas...........What's your dream?
Again, sound like something your wife said last night!!!
Not even a calm before the storm comment?????
I can't Deny the fact that news is coming.
Don't let the door hit ya in the ass!!!!!!!
Bo fukn wHo!!!
What happened to all the God Bless BS,....nice guy, positive chit from you??????
Satan Rocks!!!!!
GLTY.
I wonder who was buying???