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  • Legg Mason: Quintessential Bear Market Value Play
    Hidden in the financials' bear market is that the business model of mutual fund companies is severely under pressure - even if the stock bull returned tomorrow. Chances are, that you buy into a sinking ship that is beyond repair. reputation is the most valuable asset for an asset manager. Bill Miller earned a lot of it and that was a major reason for LM's rise. Now that everybody has discovered that Miler was just plain lucky and otherwise is as bnad a fund manager and money manager and risk manager as it gets, that reputation works in reverse. LM will for years be associated with the most breathtaking negative reversal of a fund manager's firunes of the past 5 decades. As najdorf correctly püointed out: why should anyone buy a LM- fund?
    They will not go completely out of business anytime soon, granted. But profits will not rise to their prior levels anytime soon. chances are, they never will again. buyers beware
    Jul 30 03:56 am |Rating: 0 0 |Link to Comment |View article
  • Sell Boardwalk, Buy Waterworks
    'Sell Boardwalk, Buy Waterworks' - that's the title.
    But no mentioning of either stock in the whole article. But then again, I might not have read carefully enough between the lines?
    useless article and a waste of time
    Jul 30 03:49 am |Rating: 0 0 |Link to Comment |View article
  • Mechel Should Bounce on Russian Deputy P.M.'s Comments
    you must be long that you interpret the deputy pm that way. read again:
    'I consider this a most unlikely scenario. Under probability theory we can't exclude anything, but if I had the option, I would rule it out. The most likely scenario is that the company will co-operate with the state authorities'

    In short, the guy said that Mechel either does what Putin wants or it goes the yukos way. he made it clear that he cannot rule out a yukos-like scenario, because he is not the one deciding about it, ultimately.
    now, what does putin want? hard to say but to me the most likely scenario is that he will strip mechel off its coal assets and give those to gazprom. the timing of the move was superb - right before the planned private placement of preferred shares. imho, mechel will be forced to give away the coal assets essentially for nothing. or else, they will get yukosed.
    Jul 29 12:13 pm |Rating: 0 0 |Link to Comment |View article
  • The Failure of John Thain
    Great article. Spot on. And Thain got 10 million ro so just for signing the employment contract - in addition to wages and bonuses. WTF
    never ever be a shareholder of a wallstreet house. you may have some good years but ultimately you will pay heavily for it.
    these deals by meríll look so desperate you cannot but aks yourself whether this was the last desperate effort to keep the ship from sinking further. to me, mer looks more likely to be the next bear stearns than any other wallstreet house
    Jul 29 11:59 am |Rating: 0 0 |Link to Comment |View artic