Archive - Jan 27, 2009

We have written extensively on the subject (here and here), and we feel it is about time mainstream media paid a little more attention to this very troubling issue.

Uh Oh... Splinters forming among the rating agency community (link)

****UPDATE****

GE immediately issues following statement (no, they definitely did not see this coming)

Statement from GE Regarding Moody’s Review

Business Wire

In his annual letter to investors, Ray Dalio, whose $80 billion Bridgewater fund is doing phenomenally well, returning almost 9% in 2008, had some advice and warnings to investors.

Charlie Gasparino just broke the news that most recent ponzmaster Nick Cosmo of the $370 million Agape World ponzi, had extensive mob connections.

Wexford Capital, a $6 billion hedge fund run by distressed investor Charles Davidson, went activist on Energy Partners Ltd, sending out one of the only activist letters we have seen in months. Wexford, which states it has a large position in EPL's common stock (although not as large as it did last time around, its holdings have dropped from 9.5% to 8.4%) as well as the 9.75% Senior Notes due 2014 and FRNs due 2013, has presented a list of demands.

This bloomberg article has left us a little speechless...

Paul Kedrosky has a link to a Nouriel Roubini (we think of him not so much as Dr. Doom but as Dr. Realism) Bloomberg video interview in which the latter presumes there will be 6 million layoffs this year. He also expects further unemployment increases in 2010. Definitely worth watching.

S&P Yesterday had some bad things to say about Whiting Petroleum and cut its outlook on the name. Well, hopefully you are not a manager who buys and sell based on what those rockets scientists have to say (i.e. a mutual fund): today the company announced it is issuing 8 million shares of stock, which incidentally sent the stock plunging by 10%, in order to pay back a portion of its $620 million total in outstanding debt.

Jan. 27 (Bloomberg) -- Florida hedge-fund adviser Arthur Nadel was arrested in Florida by the Federal Bureau of Investigation and has been charged with securities fraud.

Nothing too exciting in the Jan 27 roundup. Not surprisingly, of 11 markets, 9 are offers and the two lonely bids are for a paltry $500k in Horseman Global, and for a more impressive $10 MM in Allan Teh's Kamunting Street. On the ask-side, there is $58 million of selling interest, split among Linden, Aristea, Polygon, Whitebox, Harbinger, Indus and Impala (the last one people can't seem to sell enough of).

After Vikram's Falcongate incident, and of course the CEOs of the Detroit aka Default-3 companies making quite a PR splash in D.C. begging for bailout money after a cushy two hour flight in ultraluxury, the entire private jet industry will likely be under massive scrutiny with the resulting fallout likely to result in many new companies inducted into our Death Watch list.

Citigroup spokesman Stephen Cohen has confirmed in an interview today that Citigroup "has no intent to take delivery of any new aircraft," and promptly declined to comment beyond the statement.

Citigroup spokesman Stephen Cohen has confirmed in an interview today that Citigroup "has no intent to take delivery of any new aircraft," and promptly declined to comment beyond the statement.