Cost Cuts Coming Fast and Furious at the Grey Lady
The market is snapping back fast and furious in some of the most crazed action we have seen over the past week. The activist investors rattling cages at the the New York Times (NYT-NYSE) are not participating today however, as the stock continues to mark time as Pinch works his magic, which consists mostly of wielding a guillotine:
From an investor's point of view, the New York Times might consider changing its slogan to All the Bad News That's Fit to Print. The Times Company posted a decline in quarterly profit -- dragged down by a year-ago gain -- which missed Wall Street's expectations.
"During the quarter, we saw the continued effect on our businesses of the U.S. economic slowdown and secular forces playing out across the media industry," said Janet Robinson, president and chief executive in a press release. "Print advertising continued to soften during the quarter, particularly in the classified areas."
The Times, like all of the companies in its sphere, continue to grapple with the major challenge of making big money online. MarketWatch
The activists cannot be cheered by the recent 52-week low in the stock or the tepid reaction to the earnings release. I have seen family controlled publicly-traded corporations run into the ground, purposely, by management who then stepped in to LBO the company when it was left for dead. Will that happen here?
Rumor Mill, Mother#%^@ing Shorts Debated on FBN
The investment community is completely polarized over the issue of rumors and whether manipulation has exacerbated the decline of many formerly blue chip financial institutions.
Good markets enable rumors to drive stocks higher; perhaps you traded JDS Uniphase back in the day, long. But there is no good news in the rumor mill, and suddenly short sellers are on the defensive.
I have been on the right and wrong side of many of these firefights through the years, at the moment the only reasonable response is to cut and run, if you are long, when the rumors begin.
It is a complicated topic, but Howard Lindzon is not mincing words:
If you believe as CNBC does today (mostly for ratings) that the shortsellers are to blame, you also believe in witches, fairies and goblins.
Fannie Mae imploded (finally) because management had the GOVERNMENT as a backstop. It lead to wreckless behavior because that was how you got a bonus. Volume, not quality mattered. If the government backed every hairbrain start-up idea I had, life would be grand.
The financial system is cracking because of the reward system and the value system that has been accepted in the financial markets.
Confidence is cooked for now in the financial sector. Shoot first, cover later.
With Twitter, Wordpress, Facebook, Instant Messenger at least the little guys can talk in the backchannels and make fun of the big guys ripping us off. We can also try and protect ourselves with trusted conversations. It’s hilarious that CNBC is now telling us who is to blame when it’s them that is most guilty of cheerleading and than panic and blame.
Sad days and no end in sight based on TODAY’s action. Howard Lindzon.com
No end in sight, although I think Howard would agree we could have used more facetime with the lovely ladies of Fox, and less of him on the screen.
Who is this woman? Somebody please make an introduction.
____________________________________________________________________
Deep Market Thoughts…MOTHER#%^#%*%#ing Financials AND Blame The Shortseller
Howard Lindzon
Fox Business Network
Homepage
Is It Time to Pull the Rug Out From Short-Sellers?
DealJournal
----------------------------------------------------------------------------------------------------------
The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.
Goodrich Petroleum Chairman Patrick Malloy on FBN’s Happy Hour
The shares of Goodrich Petroleum (GDP-NYSE) have been one of the best performing stocks on the Big Board as investors latch on to the natural gas deposits that make up the Haynesville Shale formation.
Patrick Malloy, Chairman of the Board, is certainly one of the legendary characters in corporate America. Shot down twice in Vietnam, he survived intact to later do battle with the Hunt Brothers as they attempted to corner the silver market nearly 30 years ago.
Malloy has had more ups than downs of late, investing with John Kanas in North Fork Bancorp, which was sold at the top of the market for financials, and eventually hit a gusher with his investment in Goodrich Petroleum, where he now serves as Chairman of the Board. His current holdings in the company are are worth in the neighborhood of $375 million, and he showed off Sag Harbor, which he has helped resurrect, and one of his toys to Eric Bolling today on Fox’s Happy Hour.
Intuition II
Patrick is a self made man, and has some crazy stories, along with strong opinions on the energy markets and commodity trading.
_________________________________________________________
Malloy’s Yacht Intuition II is currently docked at the Sag Harbor Yacht Club, which he also happens to own. Mr. Malloy is a war hero, and seems like an all around good guy, but diesel slurping yachts do not exactly capture the zeitgeist of the moment in America. Maybe I am in a dour mood, but a sailboat seems to have more appeal after a day, and year, like this.
His 193 foot yacht features 19 bedrooms and a wood burning fireplace, and fills up with something in the neighborhood of 83 tons of diesel fuel when it pits to fill up the tank..
_____________________________________________________________________
Patrick E. Malloy III
Chairman of the Board, Goodrich Petroleum
Mr. Malloy, III. became Chairman of the Board of Directors in February 2003. He has been President and Chief Executive Officer of Malloy Enterprises, Inc., a real estate and investment holding company, and Malloy Real Estate, Inc. since 1973. In addition, Mr. Malloy served as a director of North Fork Bancorp (NYSE) from 1998 to 2002 and was Chairman of the Board of New York Bancorp (NYSE) from 1991 to 1998. He joined the Company’s Board in May 2000.
_________________________________________________________________________
Patrick’s 5 million shares could probably buy a few sailboats.
----------------------------------------------------------------------------------------------------------
The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Positions
Morningstar’s Kinnel: Bill Miller was Bound to “Run Out of Steam”
Bill Miller's legend was cemented, in part, by the folks at Morningstar. In my mind the Morningstar and Miller were joined at the hip, and their glowing praise of Bill and his unique approach fueled a media frenzy that crowned Bill King of the BuySide.
Christine Benz made her fame, and career, following Miller and Legg Mason, humping the story at every available opportunity. Miller bought Amazon.com in the late 90's, something his "value" peers were loathe to do, given it was a growth stock, and he coasted to victory against his peers while the inflows tumbled into Baltimore. He was a "genius", according to the media.
In April 2008 Morningstar did a series of video interviews with Miller, a rare media appearance for a man who often cultivated a cult of mystery. Main Street did not know what he looked like as recently as 2005. The money was pouring in, and he did not need to go out of his way to market himself or the funds, until recently.
Morningstar's ranking system is a quantitative system that is completely objective, measuring funds against their peers. But Morningstar has been constructive in print, and in their subjective assessments; largely recommending investors ride it out with Miller. They thought the pitiful performance was just an aberration, and he would likely get back on track.
