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BofA Looking At Alcoa And Not Liking What It Sees, Cuts EPS, Keeps Sell Rating
For what it's worth, here is the take of BofA's Kuni Chen on Alcoa, with a very surprising bearish read through: "We reduce 2010E EPS from $0.50/sh to $0.31/sh. Lower EPS outlook is driven by seq lower metal prices and seasonal demand. We are using avg 3Q aluminum price of $0.88/lb in our model. Our low-end estimate for 2011 is based on a $0.95/lb metal price. We lower our PO to $11/sh as lower 2H EPS impacts year end net debt position. The implications of Alcoa’s quarter may be a negative for Century Aluminum and Noranda Aluminum as the Street revises down estimates on lower metal prices." Not surprisingly, it is AA, KALU and NOR that are surging as the HFTs are once again being drawn to some Lorenz Attractor with the firm push of the PDs and the FED. Of course, BofA's most recent cut simply means that when AA posts 2010 EPS of $0.310000001, the stock will promptly hit infinity.
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Yes, but the expectation was for $0.30 / share. A 'beat'. Let's move on.
This is unAmerican.
And will not stand!
How long until the algos read this headline and flip the pointer from '+' to '-'? oh, wait....its already started!!
typical sell side analyst. He is "bearish", and yet he has an $11 price target, which means your upside on his call is 0.0%.
If he is really bearish and thinks that AA is a "sell", then his price target ought be at least 25% lower than present market prices
Even if AA closes negative, by noon the bulls will have moved on to the oh-so-positive earnings report upcoming for INTC, a stock that hasn't moved since 1997, where lots of people bought lots o'higher. And AAPL giving up the ghost - no problem. Nothing to see here people, we can move on...
One thing is for certain, shorts are getting slaughtered today, and the charts seem to resemble june-july 2009 price action. Do not be surprised if we will see DOW 12.000, on low volume in a couple of months.
Sure looks that way. The Fraud will continue... until one day it can't.
And is ever that day - and many to follow - going to suck out loud.
the moves up were a little bigger last year, but I see the same stuff
The second time I read "Lorenz Attractor" on ZH today!! My physics degree is actually worth something!
Old but interesting.
"I have known more people whose lives have been ruined by getting a Ph.D. in physics than by drugs."
http://wuphys.wustl.edu/~katz/scientist.html?dupe=with_honor
well, thank god I don't have a PhD!
Ph D........
Poor horny desperate
pretty hard dick
player hater degree
permanent head damage
Yep, I experienced them all.
just graduated with a B.S. in physics a year ago. Everyone is calling me an idiot not going to grad school. Thanks, now I don't feel so bad. Interesting take by him.
But the shills over at Clusterstock say posco upping its forecast. What they left out is that the company missed estimates, that iron ore spot down 15th day and China's Baoshan (and China Steel) cutting prices another 4% for 2nd month. One wonders whether keeping some pump monkeys on the staff over there is part of his arrangement
This is all you need to know!!!
In April, the The Wall Street Journal examined data from the Federal Reserve bank of New York and found 18 banks including Goldman Sachs Group Inc. (NYSE: GS - News), Morgan Stanley (NYSE: MS - News) and J.P. Morgan Chase & Co. (NYSE: JPM - News) masked debt levels in the five quarters ending in March.
The Journal found the banks "understated the debt levels used to fund securities trades by lowering them an average of 42% at the end of each of the past five quarterly periods, the data showed. The banks, which publicly release debt data each quarter, then boosted the debt levels in the middle of successive quarters."
Of course, like many Wall Street practices in the era of deregulation, all of the trades were perfectly legal, just as the "repo" accounting used by Lehman Brothers to hide its leverage exposure was legal — at least in the opinion of the U.K. attorneys they could get to approve the deals.
Lehman was hardly alone. Before, during and after the financial crisis, banks used countless accounting tricks, including off-balance sheet entities called special purpose vehicles, short-term repurchase agreements, securities that banks label "available for sale," and all varieties of "intent-based accounting."
The broad indices rise more than AA, the stock that supposedly caused the market surge. "Something is rotten in the state of Denmark."
That smell is the entire EU.
I guess we just have to understand that when expectations are set at zero - everything is a beat.
nothing matters
nothing matters
nothing matters
Now that Europe is out of the news, except for here on ZH.
Will Gold follow Aluminum?
From what I can see, for this week Gold has recoupled with the USD.
So is Gold now just another commodity? What event will move it back into the spot light?
Mark Beck
Good Short entry on MKts. A gift.
As warned about earlier, DOW/SP500 remains bullish for now ...
http://stockmarket618.wordpress.com
actually he was analysing his own bank and this was his way of saying "don't buy BofA."
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