Filed under: International markets, Good news, Products and services, Consumer experience, Market matters, Mexico, Economic data, Housing

“It’s a time of hope,” claims Ana Laura Pulido, a real estate broker in Mexico. While its northern neighbor remains in the depths of a housing meltdown, the Mexican real estate market has been booming.

Mexico has long found its economy overly sensitive to the happenings in the United States, so to see the country’s real estate market thriving despite the turmoil in America is a very encouraging sign for our southern neighbor.

And don’t think that American investors haven’t started to notice this new trend.

According to Clark McKinley, the spokesman for the nation’s largest pension fund, the California Public Employees Retirement System, his fund sees greater returns for its money in Mexico and has already decided to pump over $300 million into Mexican real estate funds.

Continue reading Good time for Mexico’s real estate market

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Filed under: From the boards, Management, Citigroup Inc. (C), Housing

Former Citigroup (NYSE: C) Chief Executive Chuck Prince isn’t going to feel the pinch of the worst real estate market in a generation that he helped create.

Prince has put his place in Greenwich, Connecticut — a tony New York City suburb that is home to countless hedge funds and celebrities such as Tommy Hilfinger and Regis Philbin — up for sale at the asking price of $6.15 million, according to Bloomberg News. The Tudor-style manor house was sold in 1996 for $2.27 million, according to ZIllow.com. By my calculations, that would be a profit of 170%.

Too bad that most homeowners aren’t as fortunate as Mr. Prince. The National Association of Realtors is due to release its figures for December home sales later this week, and it isn’t going to be pretty. Economists surveyed by Bloomberg News expect sales to have fallen 1% to 4.95 million, the fewest since records began in 1999.

The former Wall Street hot-shot, though, doesn’t need to concern himself with the needs of ordinary folks anymore. He was pushed out the door at Citigroup with a retirement package worth about $60 million. “By retiring rather than being fired, he preserved the right to keep about 743,640 Citigroup shares with a market value of about $26.7 million, compensation consultant Brian Foley based in White Plains, New York, said at the time,” Bloomberg notes.

Prince’s realtor told Bloomberg that the Greenwich house, which includes an entrance hall with barrel-vaulted ceilings, an exercise room with a sauna and shower and a dining room that sits 12, “no longer meets his needs.” Prince also has a place on New York’s Park Avenue.

It must be nice to be able to live your life not having to face the consequences of your actions.

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Filed under: Bad news, Market matters, BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP)

Selling in Europe accelerated throughout the day. The fuel behind the drop appeared to be fear of a global slowdown and the impression that the Bush package to stimulate the economy would be too little, too late.

Watching the big markets in Europe left the impression of a simple and blind panic without a specific trigger. Investors simply wanted out, goaded by concerns that stocks have much further to fall. By the last hour of trading, the lemmings were running in force.

The German DAX was hit hardest, plunging 7.2% to 6,790. Shares in global mega-conglomerate Siemens (NYSE: SI) dropped 8.5%.

In the UK, the FTSE sold off 5.5% to 5,578. But there was real carnage among metal and mining companies. Both Rio Tinto (NYSE: RTP) and BHP Billiton (NYSE: BHP) dropped over 10%, killing over $25 billion in market cap. A recession would probably slow demand for commodities, driving the profits out of these companies. BHP has also talked about taking on tens of billions of dollars in debt to buy RTP. Such talk is not popular in times of tight credit.

The large banks in France, lead by BNP Paribas, fell through recent trading lows.

Hardly a single stock was spared.

Douglas A. McIntyre is an editor at 247wallst.com.

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Filed under: SEC filings, Press releases, Scandals

After we pointed out Bloomberg’s failure to mention that an analyst quoted in a piece had been paid by the firm he expressed bullishness on, Bloomberg corrected the piece, adding that “Beacon said in a statement distributed Jan. 10 by PR Newswire that it was compensated $15,000 and 100,000 restricted shares by a third party for enrollment of BioSolar in a research program, without giving more specific information. Earlier today, BloggingStocks.com reported the payment.”

But here’s where it gets confusing. In the January 9th press release, Beacon disclosed that:

“Beacon Equity Research has been compensated a total of fifteen thousand dollars and one hundred thousand restricted rule 144 shares from a non-controlling third party for enrollment of BSRC in this research program.” (emphasis added)

But in a press release dated January 3rd, Beacon disclosed that:

“Beacon Equity Research and its affiliates have been directly compensated a total of fifteen thousand dollars and one hundred thousand restricted rule 144 shs directly from the company for enrollment of BSRC in this research program and other marketing services.” (emphasis added)

Continue reading Who is paying Beacon for the BioSolar ‘research’ anyway?

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Filed under: Earnings reports, Microsoft (MSFT)

Microsoft Corp. (NASDAQ: MSFT) has had a neat recent history. It seems pundits keep wondering when the software giant’s sales will stagnate, and the company continues pumping out one impressive quarter after another. Thursday’s second quarter results for Ole’ Softie should be more of the same.

Analyst estimates are for earnings of 46 cents per share on revenue of $15.9 billion for the quarter ended Dec. 31. With Microsoft shares up about 10% since last October, they are poised to go a little higher if the software giant’s results are at or slightly above consensus estimates. The company raised its full-year guidance in October when it reported first-quarter results. There may be a few things at play here: sales of Windows Vista have continued to climb and the money-losing games division may have been helped by better-than-expected holiday sales of the Xbox 360.

Microsoft’s Windows and Office businesses continue to rake in almost all the company’s revenue. Bear Stearns analyst John DiFucci indicated that Microsoft’s efforts in curbing piracy were bearing more fruit in emerging markets as well, as the software maker was “paid in emerging markets” where software piracy has traditionally been rampant.

[Disclosure: The author holds a long position in Microsoft]

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Filed under: International markets, Bargain stocks

If you haven’t already gotten out of the market, it’s too late. Why lock in losses? Too many people panic when they see the type of news we’re seeing today about a worldwide stock market bloodbath. They get caught in the buy high, sell low trap, loose their shirt and stay out of the market until it looks safe. When will it likely look safe to these would-be investors? The next time the market is nearing its highs. Then they’ll get caught in the buy high, sell low trap again. It’s a vicious cycle for many uneducated investors.

For the savvy investors, tomorrow will likely be a buying opportunity. An opportunity to find the many jewels that will be out there. Companies will be beaten down, even though their fundamentals are strong, because they are caught up in the frenzy to get out at all costs. Do your homework today, review your watch lists and find what you think are the best bets and watch them tomorrow. If their stocks tank, buy them. Remember, all of us want to buy low and sell high in order to make money on the stock market.

Have we reached bottom? Probably not, but if you’re waiting to find the bottom you’ll likely miss out on the next big jump in the stock market. Few traders can actually hit bottom exactly at the right moment and when they do I suspect luck plays a big role in their picking right. You can read more about the failure of market timers in this excellent piece by James K. Glassman.

Good luck and good picking. Tomorrow may be a great day to find some good bargains.

Lita Epstein has written more than 20 books including “Trading for Dummies” and “Reading Financial Reports for Dummies.”

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Filed under: Forecasts, Other issues, S and P 500, DJIA

With Wall Street still digesting the latest round of sub-par economic data even as it braces for potentially more, economists and analysts said investors can look forward to one ‘certainty’ in the weeks ahead — market volatility, as the financial community gauges the U.S economy’s probable economic path for 2008.

Market bears will cite the housing sector’s recession, related mortgage and asset-backed defaults, slumping corporate earnings and consumer spending, high energy prices, and uncertain job growth as reasons the Dow and the broader markets are likely to continue to fall in the weeks ahead.

Market bulls will cite solid corporate earnings from companies in international markets, relatively low inflation, a declining trade deficit, the fair or undervalued price of some U.S. equities, and the U.S economy’s ability to adapt as reasons the markets may reverse their slide in early 2008 and head higher.

Continue reading GDP, employment data will set the tone in the weeks ahead

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Filed under: Before the bell, Earnings reports, Forecasts, Apple Inc (AAPL), Stocks to Buy

Apple Inc. (NASDAQ: AAPL) will report its December 2007 quarterly numbers after the close on Tuesday. Consensus estimates call for revenues of $9.3-9.4 billion and earnings per share of $1.55-1.60. Stories circulating on many trading desks suggest that Apple could have topped $10 billion and earnings could range between $1.80 and $1.85. In this environment, will it really matter how much Apple exceeds expectations? It depends.

It depends on the most important statement the company can make: guidance for the first two or three quarters of 2008. In a normal growth-investing environment, if December results did top $10 billion and EPS around $1.80, the stock would be off to the races. But in this cautionary environment, the investor sentiment is only about guidance. What’s the outlook? Does Apple see a slowdown? In the United States? In the rest of the world? What about inventory levels? Component pricing? You get the picture.

Portfolio managers and hedge funds I speak with love the name going forward, no question, and Apple has distinguished itself with cutting edge products and incredible margins. As one manager put it to me, “I loved the stock at $195, I still love it here at $161. What’s changed? Nothing, just investor sentiment.” He is right. Growth stories that are executing on their key fundamentals are not getting the “current credit” for these feats. The investing community has turned to defensive investing and is not hesitating to take profits where they exist.

Continue reading Will Apple’s numbers matter?

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Filed under: Google (GOOG), Yahoo! (YHOO), Coca-Cola (KO), China, Johnson and Johnson (JNJ), Money and Finance Today, Bank of America (BAC), Whole Foods Market (WFMI), Sears Holdings (SHLD), duPont(E.I.)deNemours (DD), Wachovia Corp (WB), Genentech Inc (DNA), Japan

Keep Panic Out of Your Portfolio
This January has been the worst on record for the stock market. Is it time to buy?
Keeping Panic Out of Your Portfolio (Common Sense) | SmartMoney.com

Coke Is It
The beverage maker’s massive size and strong overseas sales make it a recession-resistant company in a weakening economy. Is this the one company to own in today’s volatile market?
Coke Is It - Kiplinger.com

Understanding Your Tax Bracket
While it’s true that the Internal Revenue Service usually taxes every last cent we make, not every penny is taxed the same.
Understanding your tax bracket -Bankrate.com

The Death of Mass Luxury
Is the “mass luxury movement” dead? It certainly looks that way. Formerly free-spending shoppers who were “trading up” to high-end goods are now less likely to treat themselves to that Gucci bag.
The Death of Mass Luxury - BusinessWeek
Also: Consumers Are Tapped Out

Owning a Small Piece of Big Luxury
Fractional ownership can let you live the lifestyle of the rich and famous without necessarily being either.
Ownership of a fraction of luxury -Bankrate.com

100 Best Companies to Work For
Fortune’s annual list surveyed nearly 100,000 employees from 446 different companies and asked them to evaluate their employers. These firms ranked the highest. Topping the list again this year is Google, followed by Quicken Loans, Wegman’s, Edward Jones and Genentech.
Top 50 employers - FORTUNE Full List

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Filed under: Earnings reports, Ford Motor (F)

When Ford Motor Co. (NYSE: F) reports its fourth quarter earnings this Thursday, the U.S. automaker is widely expected to post yet another huge loss. Although Ford may have been called a leading manufacturing expert in the past, the slow pace of its turnaround will continue hurting it for at least all of 2008. CEO Alan Mulally’s Way Forward plan is making progress, but people are buying less cars due to a slowing economy — and Ford has just as much competition now as it ever had.

Ford investors are well aware of this as shares in the automaker are already sitting at 16-year lows. This week’s earnings results won’t change it for the better, as analysts expect a loss of $0.20 per share on sales of $38.3 billion. It’s not just Ford that will suffer soon. Analyst David Silver said, “November and December were just horrible months for auto sales in the U.S.” Encouraging words? Well, maybe not.

Although Asia and Central America sales may be a sweet spot for Ford this Thursday, its domestic sales may continue the slide they saw in the Q3 period, when Ford lost a billion greenbacks in the U.S. market. It was 2007 and Ford still considered trucks and SUVs to be the heart of its product lineup. Trouble is, consumers are running away screaming from those product lines due to shabby fuel economy figures. A bright spot continues to be the Ford Edge, an SUV crossover (or, CUV) that is selling very well for Ford. It has car-like handling, SUV-like storage and car-like gas mileage. Go figure — customers are swallowing them up. It still can’t rescue Ford from many more quarters of lackluster performance.

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