Musings.

Musings

The world, the economy, the markets, and our lives are dynamic. Events can have a large or small impact on us. They can create excitement, cause fears, raise questions, and spark insight.

Listed here are our most spontaneous, timely, and succinct comments on wealth, life, and more.





  • April 29, 2010 - Little surprise that Geithner and Company are trying to c

    Little surprise that Geithner and Company are trying to cede authority for financial intervention to the international community. The powder in our war chest is wet under the weight of unfunded pension commitments and governments are grabbing cash where ever they can find it. Global Bank Tax, WSJ



  • April 29, 2010 - Senate moves financial regulatory reform to floor debate.

    Senate moves financial regulatory reform to floor debate. Like much of the legislation advanced of late, this bill appears to do little to reduce risk and does much to amplify problems. One case in point, why does the legislation allow Fannie and Freddie to continue to operate unabated?



  • April 28, 2010 - The Fed decides to keep rates at 0%, affirming our expect

    The Fed decides to keep rates at 0%, affirming our expectations!



  • April 28, 2010 - Meanwhile, the IMF appears poised to increase its Greece

    Meanwhile, the IMF appears poised to increase its Greece backing by as much as 10 billion Euro. If total IMF support comes in at 25B and European neighbors follow through with additions to the coffers, will it be enough to keep Greece from crumbling? Perhaps Apollo's scorn has befallen on Greece as recompense for Achilles' slaying of Hector, son of Troy.



  • April 28, 2010 - IMF World Outlook released last week predicts sunshine an

    IMF World Outlook released last week predicts sunshine and smooth sailing. Forecast calls for global growth of 4.25%. China should see growth at 9%, and the US should see 3%. Euro will rise just 1%. So says the judgment of the IMF.



  • April 27, 2010 - Article 138

    So at center stage in today's three ring circus: Goldman goes before the Senate to defend why some investors lose and some investors win in the zero-sum game of derivatives. Step right up folks and see the show. It is a reliable source of entertainment to see how ill-informed our Congress is when it hosts a show panel.



  • April 27, 2010 - Article 137

    Financial Reform put on hold after yesterday's Senate vote to move the bill to the Senate floor fell a few counts shy of the 60 needed. Three cheers: (1) The Senate renewed its commitment to a 60 vote supermajority. (2) The counterproductive measures constraining derivatives, market liquidity, and consolidating risk may yet fail. (3) The conspicuously absent curtailments to Fannie and Freddie may rise anew.



  • April 26, 2010 - Business Wire reports that Novartis elects to exercise it

    Business Wire reports that Novartis elects to exercise its purchase rights on Alnylam, following terms to a September 2005 agreement. The Basel Switzerland based pharmaceutical expands its holdings in this leading company in RNAi therapeutics, a "breakthrough in understanding hos genes are turned on and off in cells."



  • April 23, 2010 - Durable goods orders "look great" according to the interp

    Durable goods orders "look great" according to the interpretation of Econoday. Airline orders dragged the headline number (-1.3%) into negative territory for March but otherwise activity "spiked" 2.8%. As of this Musing, the durables sector lags the overall US equity market on today's trading.



  • April 22, 2010 - Quanex made another jump upward. 8.08% today. This make

    Quanex made another jump upward. 8.08% today. This makes a new 52-week high for another Hawk100 holding.



  • April 21, 2010 - Ryder reported a bang out quarter with 24 cents diluted E

    Ryder reported a bang out quarter with 24 cents diluted EPS from continuing operations. The company further raised its full year EPS guidance to a range of $1.85-$1.95. That would bring its PE ratio to roughly 24. We will watch this hunt opportunity like a hawk.



  • April 21, 2010 - Follow The Money... When you pay your taxes to the IRS, w

    Follow The Money... When you pay your taxes to the IRS, where does the money go? In an upcoming HawkTalon, Hawk100 will investigate and report some surprising results. Stay tuned to our Insights page.



  • April 19, 2010 - While drafting financial regulatory reform legislation, p

    While drafting financial regulatory reform legislation, perhaps Senator Dodd should follow the investment analysis sage, David Dodd. The latter co-wrote the classic, "Security Analysis" with his Columbia University colleague, Benjamin Graham. They built the foundation for rigorous analysis that led to more informed decision making. Followers of their thoughtful approach include Warren Buffett. Senator Dodd, abandon political bias in favor of thoughtful analysis and informed decisions. We will be eternally grateful.



  • April 16, 2010 - Goldman under scrutiny. Bank of America reports earnings

    Goldman under scrutiny. Bank of America reports earnings (although positive bottom line, some cracks showing). GE profits tumble. Google missed its earnings guidance. Stocks take a hit.



  • April 15, 2010 - Morningstar reports that TD Ameritrade will increase its

    Morningstar reports that TD Ameritrade will increase its "No Transaction Fee" platform listing to 40 basis points (0.40% of assets), up from 35 basis points, to become price competitive with Schwab and Fidelity. Such hidden costs, even within supposedly "No Transaction Fee" funds, are a major reason Hawk100 prefers to avoid mutual fund investing when all things are considered.



  • April 14, 2010 - NVR to acquire essentially all assets of Orleans Homebuil

    NVR to acquire essentially all assets of Orleans Homebuilders for $170MM. Under deal terms, NVR will act as a "stalking horse" bidder at a June 23 auction; the price is subject to working capital adjustments; NVR assumes certain liabilities including $53MM LOCs; NY state properties will be sold separately. The bankrupt Orleans last reported financials in 2008 when it showed tangible assets of $689MM. Deal terms look favorable for NVR.



  • April 13, 2010 - With the Dow clinging to 11000, it is interesting to watc

    With the Dow clinging to 11000, it is interesting to watch the S&P resist a move above 1200 and the NASDAQ 100 bump into a ceiling at 2000.



  • April 12, 2010 - Wall Street is alight with fete for the Dow Jones Industr

    Wall Street is alight with fete for the Dow Jones Industrial Average closed above 11000 for the first time since September 2008. Does this foretell strong earnings this spring, and has financial risk returned to pre-September 2008 levels?



  • April 12, 2010 - This widely followed organization was celebrated today fo

    This widely followed organization was celebrated today for having reported that it trimmed losses during the month of March. By losing only $2.11 billion every day during the month, the U.S. treasury budget released today actually shows remarkable improvement from recent periods. April is almost always the best month of the year for our tax collectors, so we will watch the next report with an eye for earth shaking results.



  • April 11, 2010 - Get outside and enjoy the sunshine and watch the flowers

    Get outside and enjoy the sunshine and watch the flowers bloom. Take a moment to reflect on your purpose, values, aspirations and goals. Is your wealth aligned with your life? Hawk100 can help.



  • April 09, 2010 - The recession is officially over! Sales at Constellation

    The recession is officially over! Sales at Constellation Brands fell 4% and the winemaker forecast weakness ahead. Beer, wine, and spirits typically have a place for counter-cyclical, defensive investing. Let's just say people tend to drown economic sorrow in a "soda" binge. So, if Constellation sales fall, there must be fewer counted among the economically depressed.



  • April 08, 2010 - Wi-LAN Inc. is suing numerous US technology companies for

    Wi-LAN Inc. is suing numerous US technology companies for patent infringement on its Bluetooth technology. The already popular technology should gain explosive growth while many states pass laws making it illegal to drive while texting or speaking on a handset.



  • April 06, 2010 - The FOMC released its minutes today from the March meetin

    The FOMC released its minutes today from the March meeting. "Ongoing decline in the implicit rental cost for owner-occupied housing" is muting inflation. Owner equivalent rent is the most subjective (and manipulated) area of CPI and raises questions about the efficacy of CPI generally. Interesting that the Fed chose to highlight it in its arguments that inflation is muted. Also noteworthy is the documentation following the dissenting view of at least one governor regarding the consensus view to remain dovish at the Fed. We obviously prefer Hawkish!



  • April 04, 2010 - The start of baseball season and the Easter holy day gree

    The start of baseball season and the Easter holy day greet us with fresh aspirations. Capture the essence of life like a sunbeam through the window.



  • April 03, 2010 - Instructed course at Ohio University, Master of Financial

    Instructed course at Ohio University, Master of Financial Economics program, covering financial statement analysis and security valuation.