Crazy Days at TheStreet.com
Friday, March 13, 2009
The Jon Stewart vs. Cramer episode is over, and perhaps Cramer can spend his time productively returning TheStreet.com to its glory days. The rise of blogs and the implosion in the advertising market have taken a toll on the organization, and the resignation of the CEO today is the first step in trying to find a working model for the company.
The company's balance sheet is in good shape - although apparently the majority of cash, which resulted from an investment by a "crossover" VC fund, would return to the investors in a "change of control". Check that angle out (do your own due dilly) before you assume the stock is trading as a "net-net" but some believe the company might be sold. Still, it will be a bumpy road until they can better monetize the huge traffic, and newsletters are probably not going to drive a surge in earnings at the company.
James Altucher mentions Cramer's good calls in the video below - which were conveniently left out on the Daily Show.
Bernanke Grants “60 Minutes” Rare Sit-Down this Sunday
Thursday, March 12, 2009
Ben Bernanke's 60 Minutes appearance Sunday night might keep the Bears on their heels tomorrow - when was this scheduled? It is news to me, and would have been a good reason to go leveraged long into the day.
Mark to Market accounting changes are the main event on Wall Street, and while I earned a accounting minor in my undergrad studies (which is not meant to impress) I am familiar with the endless debates that can arise over accounting theory. But if I need an expert I turn to The Accounting Onion:
The problem that we really want to resolve is how to restore the banks to a sound financial footing. Even granting that financial reporting to investors could play a role (and I don't), tweaking accounting rules that cover a surprisingly small percentage of assets that banks mark-to-market is hardly the job of Congress. Any solution must radically restructure bank regulation. Throw away any notion of capital adequacy based on capitalization ratios. Stress testing of future cash inflows and outflows is where it's at, and that has nothing to do with financial reporting. In an world without derivatives, a strong correlation between a static capitalization ratio (based on some set of accounting rules) and the probability of future insolvency might be obtainable; but in a world of derivatives, we have learned through hard experience that Congress should acknowledge, that it is now nothing more than wishful thinking. The Accounting Onion
Tom Selling goes on to add....
Biggs Rally, and Geithner Tonight in Must See TV
Tuesday, March 10, 2009
Barton Biggs is a Wall Street Dinosaur - and apparently proud of it, given his choice in neckwear. Is that a Brontosaurus print, Barton?
His Charlie Rose appearance was classic old school - Barton is like many in the equity culture on the BuySide - blaming "bear gangs" and CDS for exacerbating our current ills, at least on the margin. But he is in the camp pointing to sentiment as carrying the day, given the pervasive bearishness. His interview last night on Charlie Rose is worth a half hour when you can spare it.
I will continue to ponder the reasons for today's rally - although it might be a waste of time. Did the regulators language of a "contingency plan" for Citigroup cause Vikram to issue a memo to the troops? While the uptick rule is debatable, laying out a framework for regulation is a good step and the guys in Washington are at least getting something done. Tim Geithner is Charlie's Guest tonight - must see TV for sure.
Don't get too excited about the rally - ISI's technical analyst Jeff DeGraaf (and uber Spartan) says we are now approximately half way thru this shitshow, in terms of time. We should be good until Roubini's next TV appearance, in any case. Bulls will have to continue to dodge bad news, and it remains a traders market. Perhaps Chuck Prince is dancing, somewhere, trading the spoos.
“House of Cards” Author Cohan Makes the Rounds
Thursday, March 05, 2009
William Cohan's last book, The Last Tycoons, The Secret History of Lazard Freres, was a keeper, and he is making the rounds ahead of his latest release, House of Cards: A Tale of Hubris and Wrecthed Excess on Wall Street which chronicles the implosion of Bear Stearns.
He sat down with Andy Serwer for a chat, and will no doubt be in our face for weeks promoting the book. As an aside, Felix Rohatyn had a interesting chat with Charlie Rose last night, and I will post the video when it becomes available. Felix has an incredible amount of common sense, something we have been lacking on Wall Street over the past few years.
