Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

LEND- Overpriced low quality lender guiding down

Delinquencies should be dropping, because LEND has been increasing production so fast(many new loans added that nobody has had time to default on yet). Look at the spike up from q3 to q4. Delinquent loans were 1.5% at end of q3. They jumped to 1.7% at end of q4.

Lehman cuts small-cap financial sector By Tomi Kilgore
NEW YORK (MarketWatch) -- Lehman Brothers lowered its rating on the small capitalization financials sector to "neutral" from "overweight" due to valuations and concerns that a flattening bond yield curve -- long-term rates are declining relative to short-term rates -- will cut into earnings. Analyst Jim Furey said that since the Internet bubble burst, banks have been taking advantage of the steep yield curve but funding longer-term loans by borrowing at shorter-term rates. "Our downgrade of financials to 'neutral' acknowledges net margins may decline because carry trade investing is now a large risk whose best profits are behind for banks and thrifts, funding costs are going up for all financials, and low credit costs are discounted in financials," Furey said. "The next credit change investors react to will likely be a negative one."


i think that they had some of the sell
by: ucsbgaucho2000 (M/Santa Barbara, CA)
Long-Term Sentiment: Strong Sell 02/10/05 10:40 am
Msg: 9903 of 9905

side analyst give them questions beforehand because I swear they were reading answers off papers a couple of times.

Nothing like cherrypicking the calls and having them pitch you a lob.