President NObama keeps talking about how the economy may be on an uptick but that we are not there yet. Obviously he is trying to keep expectations and the markets down so that he can control big business in the US and keep them under his thumb for as long as possible. Lets see if he lets banks repay TARP. Who cares about the little banks that have returned around $300MM? NObama only cares about the big banks that he can control and really "adjust" the markets the way he wants.
No real changes on my options that are expiring this Saturday. All 4 positions that expire this week are trading for less than $.06 so even if they move a little, its not going to make a huge difference in my portfolio.
What hurts? Check out After Hours (AH) news for RJF. Son of a b!^@$. Not looking good although I have a sneaky conspiracy theory.. Big Tom James, the CEO of RJF has a huge position in his company...obviously. Well the dividend is payable tomorrow after the close. So what does BIG TJ do? He tells the market that he is taking a huge loan loss reserve loss on the bank loans which sends the stock down over $3 in AH. He uses his dividend reinvestment plan to buy the stock tomorrow for $3 less than he otherwise would be able to and then next quarter these "loan loss reserves" get reversed with an "OOOPS, I guess our loans were not as bad as we thought." Then the stock soars we big TJ at a lower cost basis per share and more shares.. BRILLIANT!!!!
I have great faith in the company and I don't mind buying it with my dividend tomorrow for $3 less. Thank you TJ! RJF better be a $30 stock by next quarter though BOY.
per WSJ: Total charge-offs will be $40 million, including $10 million reserved for in prior quarters and an unexpected charge of $28 million for a loan to a commercial real estate finance company.
ReplyDelete$40M in charge offs is not terrible, definitively not equivalent to a drop of $2 per share; however it lays down the first step to path of commercial loan chargoffs everyone expects. But how does RJF not know about a +$28M loan going bad. If it’s a real estate dean, that means the loan went bad and they sold it in the 1st quarter. To be able to move that quickly on a bad loan, it shows that they address the problem extremely quick.
Double down on RJF.