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Goldman Conviction Buy List Candidate Textron Just Rated Top 20 Bankruptcy Candidate

Tyler Durden's picture




 

An amusing reminder of just how different opinions can be among (conflicted) finance professionals, was today's disclosure by risk evaluator Audit Integrity, which has put together a list of the twenty companies with a market cap over $1 billion most likely to file for bankruptcy. The full list is presented below:

  • Advanced Micro Devices, Inc.
  • Amkor Technology, Inc.
  • AMR Corporation
  • Apartment Investment and Management Co.
  • CBS Corporation
  • Continental Airlines, Inc.
  • Federal-Mogul Corporation
  • Hertz Global Holdings, Inc.
  • Interpublic Group of Companies, Inc.
  • Las Vegas Sands Corp.
  • Liberty Media Corporation (Capital)
  • Macy's, Inc.
  • Mylan Inc.
  • Oshkosh Corporation
  • Redwood Trust, Inc.
  • Rite Aid Corporation
  • Sirius XM Radio Inc.
  • Sprint Nextel Corporation
  • Textron Inc.
  • The Goodyear Tire & Rubber Company

Most notable in this list is the presence of recently promoted to Goldman's Conviction Buy list Cessna maker Textron, Inc. Thus while one Audit Integrity, which has not a single conflict of interest regarding Textron believes that the firm is among the 20 riskiest companies in America, Goldman, whose disclosure list has about 10 items in it, believes the stock is headed to the stratosphere.

This once again begs the question: is Goldman's analyst team actually working on behalf of Goldman's clients, and providing careful recommendations which have evaluated all possible downside risks, or is it blindly steamrolling ever higher with its barrage of upgrades, in a repeat of Wall Street's melt up actions from late 2006 and early 2007? And since actions speak louder than words, here are Goldman's several most recent report titles with dates.

  • 09-10-2009 Textron Inc. (OP): Business update reinforces improved liquidity; maintain Outperform
  • 07-28-2009 Textron Inc. (OP): 2Q liquidity solid; reiterate Outperform on TXT and TXT Financial
  • 04-29-2009 Textron Inc. (OP): Upgrading Textron and Textron Financial to Outperform
  • 02-05-2009 Textron Inc. (IL/U): Revolver drawdown highlights funding shortfall at finance business
  • 12-23-2008 Textron Inc. (IL/U): Textron’s finance unit to exit non-captive business
  • 11-25-2008 Machinery & Diversified Industrials: 2009 Outlook: Avoid cyclicals that have refinancing risk
  • 10-16-2008  Textron Inc. (IL/U): Finance business drags down 3Q and has funding needs ahead

Let's recap, in February the firm has a funding shortfall in Textron Financial. Specifically, in the report, analyst Brian Jacoby, CFA, highlighted that absent an estimated $500 million in asset sales at Textron Inc., (a divestiture process which, according to DebtWire, Goldman itself was in charge of in Q1, yet failed to obtain a buyer for any of Textron's assets), the Textron Financial subsidiary would likely have a ($500) million cash balance shortfall in 2010, as parent would not be able to satisfy the capital contribution needs to TXT-FIN.

Yet somehow, mysteriously, in less than two months, with a very credit constrained environment still prevalent, and Textron's liquidity situation not at all better (and if its allegedly fraudulent backlog misrepresentation is any indication, with a core business that is suffering even worse), Jacoby issues this: "04-29-2009 Textron Inc. (OP): Upgrading Textron and Textron Financial to Outperform." So what exactly changed?

Maybe this had something to do with it. Indeed, the day before the upgrade, Goldman was a book runner for a stock and convertible bond offering for Textron. Basically, Goldman priced 23.8 million TXT shares at $10.50 (a price that is roughly 50% below where the stock is trading today). One wonders, if, in addition to the shares that Goldman Prop parked in its account, whether Goldman had tipped off clients that immediately after the follow on, Goldman's analysts may suddenly become substantially bullish on the company. We would not be so naive to assume that Goldman respects any black out periods. After all, as we noted yesterday, Finra itself allowed firms to participate in just such a pump and dump, after it decided to get rid of any pretence of pursuing analyst integrity altogether.

But one incident does not make a pattern. Then how about two: The September 10th upgrade by Jacoby, claiming "Business update reinforces improved liquidity", was followed promptly by a Goldman underwritten issuance of $600 million in Textron bonds. Between the two offerings, Goldman has likely made over $10 million in corporate advisory fees. Yet what is the real status of the company, absent the repeated barrage of Goldman's rose-colored glasses tirade?

Not only is the Goldman Conviction Buy candidate a Top 20 bankruptcy candidate, but according to Audit Integrity, its Accounting and Governance risk is higher than 93% of companies.

Yet you would never find that reading a Goldman report. After all, as we have pointed out many times, the firm is a corporate finance Gold Mine for Goldman (no pun intended). And, as everyone knows, once Textron is bled dry, Goldman's own portfolio company Hawker Beechcraft will likely end up being the Stalking Horse bid in something reminiscent a Chrysler "National Interest" accelerated 363 sale. After all Hawker's parent is the world's biggest hedge fund whose balance sheet is the collective pocket of the entire US (if not global) population. As the 85 Broad firm knows all too well, when the shit really hits the fan, it will need every private jet in its disposal to get the hell out of Dodge, post haste.

 

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Wed, 09/16/2009 - 21:24 | 71863 Careless Whisper
Careless Whisper's picture

This is outrageous. Why doesn't Goldman have someone working over there at Audit Integrity? How did they slip through the cracks?

Wed, 09/16/2009 - 22:30 | 71929 Anonymous
Anonymous's picture

So much wisdom in so few words. Bravo!

Wed, 09/16/2009 - 21:25 | 71866 straightershooter
straightershooter's picture

Folks, remember, don't buy what Goldman is selling, unless you are on the preferential client list.

Just throw away the convinction buy list.

Wed, 09/16/2009 - 21:54 | 71895 SilverIsKing
SilverIsKing's picture

Better strategy may be to short the pop when they add a company to the conviction buy list.

Wed, 09/16/2009 - 22:03 | 71900 ZerOhead
ZerOhead's picture

The conviction buy is actually a conviction sell.

Once they sell they should be convicted.

Wed, 09/16/2009 - 21:29 | 71869 Anonymous
Anonymous's picture

Aircraft sales are a black whole at the mo, and combining two black wholes (Textron & Beechcraft) creates a BIG BANG.

Wed, 09/16/2009 - 21:32 | 71873 joebren
joebren's picture

Aircraft sales are a black whole at the mo, and combining two black wholes (Textron & Beechcraft) creates a BIG BANG.

Wed, 09/16/2009 - 21:41 | 71881 Gubbmint Cheese
Gubbmint Cheese's picture

aircraft sales aren't the only thing making a comeback....

http://www.huffingtonpost.com/2009/09/16/credit-swaps-are-back-en-_n_289...

Wed, 09/16/2009 - 21:45 | 71884 AN0NYM0US
AN0NYM0US's picture

an absolutely excellent post over at evil (traders blog)

Cake or Death?

http://evilspeculator.com/?p=10934

 

(sophisticated Wall Street Traders who frequent the 'Hedge' need not bother - but for the rest of us this is interesting / entertaining stuff)

 

 

Wed, 09/16/2009 - 21:45 | 71885 Anonymous
Anonymous's picture

Just makes you shake your head. Really frustrating. Total lawlessness. What do we pay our regulators to do anyway?

Wed, 09/16/2009 - 21:46 | 71887 Anonymous
Anonymous's picture

Textron is the largest US maker of golfcarts. The cart business is an extremely wasteful and credit intensive. How many fancy clubs will be able to continue to lease a brand new fleet of carts every year for the foreseeable future?

Thu, 09/17/2009 - 04:07 | 72090 Herne the Hunter
Herne the Hunter's picture

Hey, they could always get into the automotive industry and sell those carts as the "poor man's Prius"... should earn a couple $Bn in green tech subsidies?

I'm buying TXT...

Thu, 09/17/2009 - 08:29 | 72154 E pluribus unum
E pluribus unum's picture

They already do. It's called a Smart car.

Wed, 09/16/2009 - 21:49 | 71890 Anonymous
Anonymous's picture

here's to another goldman gem. the huddle on under armour must have broken this past friday at 2:30 as the stock ripped $1.5 in the last hour plus of trading on "no news". Then magically, monday morning goldman's analyst on the stock puts out five pages of blah-blah, upgrading the stock from sell to nuetral. Among her compelling reasons, september has started out several degrees cooler than average. But who cares about content or quality of analysis, it's all about the headline and those lucky few who may have gotten the headline a day before the rest of us.

Wed, 09/16/2009 - 21:52 | 71893 Howard_Beale
Howard_Beale's picture

From a post I posted on another post from the department of redundancy department: Actual balance sheet analysis vs getting paid fees for underwriting more debt after upgrading the company to a buy. Bankruptcy call may be way too early--he also talked about AMD going that route. But Weiss called the GM bankruptcy in 2005 just based on it's balance sheet. Some things take time.

Wed, 09/16/2009 - 22:26 | 71921 Hephasteus
Hephasteus's picture

I don't know. I'm a tech geek and I'm also pretty good with eventually figuring out conciousnesses of things. I got a gut feeling that theres something about the "legitimate" face of the computer industry that is going to die. AMD and ATI are to heavily involved in the legitimate game/computer industry while Nvidia and Standford University have got kids wasting electricity folding for the cure when I'm starting to not even believe that protien folding has anything to do with anything other than a fools task to hide and monetize the nefairous uses of highly parallel GPGPU technology. I think AMD is going to get ripped to shreds just based on the how the powers that be do NOT like it being so honest and forthright. Microsoft gets the most rediculous junk patented on a whim, Intel gets it's mafia practices overlooked like it's protected by GOD. And me. Well i'm just about sick of it. There's not a single job in a single industry on this planet that I could fit into without me losing it.

Wed, 09/16/2009 - 23:51 | 72008 Anonymous
Anonymous's picture

I didn't understand a word -- but I felt your pain.

Wed, 09/16/2009 - 23:53 | 72011 Anonymous
Anonymous's picture

I didn't understand a word -- but I felt your pain.

Thu, 09/17/2009 - 00:30 | 72022 Howard_Beale
Howard_Beale's picture

It is indeed a sad state of affairs. I stated in late 1999 to many on the street that the law of diminishing returns was in force and that tech was due for a long hard fall. The tech market was topping in marketing terms of the product life cycle with hardware and software finally reaching a state of equilibrium. It holds true to this day in terms of hardware/software unless you can create a must have software that demands faster chips--which only holds true for video editing in terms of a real need --and ram is king for others that are impatient--and ram is a cheap commodity.

This is why Cisco, MSFT, Intel, and Oracle are no longer the 4 horseman as they were before the bubble burst.  Now it's Google (an advertiser), Apple (a bubble retailing folly IMHO), Amazon (another retailer), and RIMM (can you hear me now?) are the leaders of the once true tech indicator that was the Nasdaq. Every other tech company out there is surviving because they can squeeze margins and have learned to do so in a long term deflationary environment. Perhaps that is why I view the Nasdaq 100 as far more important as a gauge of the economy than the S&P. Additionally, these are the companies with massive amounts of cash. The healthiest around with the seemingly the least appetite for risk. Just look at Oracle--they buy Sun and are still trying to figure out where it fits. Meanwhile, back in bankland,  all is well:   Wachovia, Countrywide, Washington Mutual, the list is endless--and Bear Stearns, Merrill (oh I guess not) in terms of inhalation.

That said, I agree that AMD is doomed. They are a decent company with superior products but that matters little. eh?  I also believe that the monopolistic Microsoft is in the late stages of their product/market life cycle, but they have so much cash that they can survive for years to come before coming up with a truly original idea--which they never did in the first place. DOS was bought for $50,000 and Windows was a ripoff of the Apple OS. As I write this on my XP system (I do have a Vista puter but I use it for entertainment i.e. USB to my HD flat), there is no way that W7 means anything. They tried the one license for every puter with XP and that did nothing to boost their bottom line or equity price, did it?

Hang in there Hephasteus--there's an AP for that! Seriously, the consciousness of all that is tech is not a pleasant world but deflation is at least something the giants have learned to deal with. And you have it nailed....squash or inhale the weak.

Thu, 09/17/2009 - 08:36 | 72158 Green Sharts
Green Sharts's picture

A big reason the large tech companies have so much cash is because they issued stock options like candy in the 1990's.  It was like a perpetual secondary stock offering.  They received cash on the employee exercises plus a cash tax benefit for the writeoff on the difference between the option strike price and the price of the stock at exercise.

Thu, 09/17/2009 - 08:57 | 72175 Anonymous
Anonymous's picture

AMD's product line is not superior... it's superior in a price to performance analysis... but not outright superior in performance...

The only way AMD sells chips is to market them at bargain basement prices... it's a tough business model to muster. I just built my own AM3 system because of the price (switching from an intel P4), but the product is not superior to Intel's available offerings. Enthusiasts love AMD, myself included, but I don't think that's going to tide them over given required profit margin.

I hope they survive as they provide a necessary foil to Intel... but they're burning a lot of die with the size of their chips as compared to intel.

Thu, 09/17/2009 - 01:43 | 72057 defender
defender's picture

I agree about Intel.  I heard that they were breaking into their employee's houses a few years back to try to find evidence of selling trade secrets.  Never bothered to call the cops, just busted the door down.  Then the authorities wouldn't look into the breaking and entering.

As to the tech fall, you can buy a netbook for the cost of a washer, stove, or furnace now.  Being on the same level as any other appliance ( or piece of furniture for that matter) means that people are only looking for "good enough" in the tech world, instead of the investment in the future that a computer used to be considered.  This is already showing up in the pattern of sales for computers, even among us geeks.  If it will surf the net fine, then why spend $20 more?

I hear you on the job front.  After having worked many a sucky job, it was the small businesses that were best.  Less bureaucracy and better people.  The corperations are only there to suck the life out of you.  After all, it isn't the doing that you hate, but the posturing and power plays.

Thu, 09/17/2009 - 03:41 | 72085 Hephasteus
Hephasteus's picture

I've got to disagree with a few things you all said. First I do not see AMD as doomed without something to fill it's place. It seems that world wants to create the perfect illusion of choice. It always wants 1 big company, one almost ran, and one hopless competitor. That seems to be the universal model of it all. Think about it. It's nearly everywhere. Right now Democrat-monopoly, Republican-monopoly illusion buster, 3rd party-hopeless underdog. Intel monopoly, AMD illusion monopoly buster, Via-hopeless underdog. Microsoft-monopoly, Apple- monopoly illusion underdog, Linux hopeless underdog.

It's pervasive. Run it through every segment of society from fast food to politics to you name it. It works off fanboyism and fanaticism and orders and arranges a religious caste. Microsoft appeals to the most insecure people the true herd. The people who don't want competition and uncomfortable with anything but complete domination. Apple-the underdog religious zealots who fight ferociously touting the superiority of thier godlike massive corporate entity who showers them with more and more blessings as they gain converts and increase the collection plate returns. They will be rewarded on the next product cycle the cargo is no longer some abstract intangible reward in heaven. It has become the new shiny thing.

It's all one big illusion. One never ending fractioning of the "groups" into various false identities cheering something "bigger" than they are capable of doing things they can't do by themselves. etc etc. The sheep all nicely tucked into the shepards fences if you wish to profit from the sheep you must buy of the Apples products and purchase of the apples developement tools and then assert ownership of the "apps" right to exist alone and without competition within the fold. If the fold accepts your iphone farting app as the supreme offering to the shepard and the sheep though art rewarded of the sheeps goods.

I'm not saying I want to work in the corporate world. I'm simply saying that mankind, god the universe, the entire world. It's all the most rediculous stupid fucktard of a silly thing. It's like jumping into a relationship with a super hot girl. You spend a few weeks with her and watch her, study her a bit talk with her and you wake up one morning and realize that not only can she not satisfy you for your entire life. She doesn't even have what it takes to satisfy you for one more freaking week.

I mean what do you SAY to that kind of realization. Sure I could labor endlessly to try to change you or evolve you to make you more satisfying. Sure I could labor to reach the top or try to live with the middle or the bottom. But damn. The top of stupid is still stupid. The middle of crazy is still crazy. The bottom of an endless fuck up is still an endless fuck up. I think I'm just going to sit in the corner and wait for this whole thing to run out of the stupid juice that it works off of. I mean where do you want to go for lunch. McDonalds, Burger King or Wendys. Where do you want to shop for stuff, Walmart K-mart or Cosco. Who do you want to kick in the nuts, the father the son or the holy ghost. Hey let's import and export our triplicities. You want a Ford, a GM, or chrysler. Or would you like a Toyota, a honda or a nissan.

http://xkcd.com/613/

Thu, 09/17/2009 - 07:36 | 72133 Anonymous
Anonymous's picture

Jeebus Hephasteus needs reprogramming quickly. Can someone get him his swine flu shot asap?

Wed, 09/16/2009 - 21:53 | 71894 joebren
joebren's picture
Experts forecast long recovery for private jet industry Written by Private Jet Daily Staff   

Some experts forecast a long recovery period for the private jet industry. Tight credit, poor public relations, and a glut of used aircrafts will continue to hamper the industry for years to come.

“We don't see the number of deliveries even hitting 2008's level in the next 10 years,” commented aviation consultant Brian Foley.

According to the General Aviation Manufacturers Association, deliveries of business jets dropped by more than a third during the first quarter of the year. And experts say that private jet manufacturers are in danger of receiving more cancellations from micro business companies as well as individual buyers.

 

But not to worry, just BUY Textron and HOPE.

Wed, 09/16/2009 - 22:47 | 71944 Anonymous
Anonymous's picture

"just BUY Textron and HOPE", and eventually you'll get back a pocket full of "CHANGE".

Wed, 09/16/2009 - 22:08 | 71906 Anonymous
Anonymous's picture

A new Goldman report out tomorrow; "Auditors who lack Integrity" .... Released b4 the ramp to 1085 of course.

Wed, 09/16/2009 - 22:25 | 71912 wheaties
wheaties's picture

Mylan is on that list?  They're profitable and can sell their branded business in this go-go environment.  This company also you've linked also states that DDR has Average Acounting and Governance risk.  Average!?  Eh, then again what do I know.  Time to buy Textron and every REIT BoA and GS have underwritten in the past few months.

Wed, 09/16/2009 - 22:29 | 71927 KeyserSöze
KeyserSöze's picture

It is only a matter of time before Obama puts a stop to this type of "hate blogging Tyler"...like Tom BrokeJaw mentioned ....

GOLDMAN SACHS OFFICIALLY A WORTHLESS COMPANY.  Time to hire more PR Blankfiend...

Enjoy your worthless billions as you continue to fuck the American people....I hope you can't unload your equity or your worthless bonds on Textron.  Even as a market maker....you deserve every bit of it...scum.

Wed, 09/16/2009 - 22:44 | 71940 McLuvin
McLuvin's picture

In related news, Morgan Stanley said there was a full house buy signal for Tim Geithner's house.

Wed, 09/16/2009 - 22:48 | 71945 Anonymous
Anonymous's picture

"Goldman, whose disclosure list has about 10 items in it, believes the stock is headed to the stratosphere.

Of course TD doesn't mention that TXT has doubled since it was placed on the Conviction Buy list, your bias against Goldman is really astounding. Almost everyone of the companies on this list was a likely BK candidate earlier this year, but most of them have addressed the near term concerns. Maybe 3 years down the road they'll run into trouble again, but that doesn't mean you can't make money being long these names in the next 3 to 6 months.

Wed, 09/16/2009 - 23:02 | 71961 Careless Whisper
Careless Whisper's picture

It's a Conviction Buy For 3 Months Then Dump It list. Not to be confused with their Pump and Dump list.

 

Wed, 09/16/2009 - 23:00 | 71957 Anonymous
Anonymous's picture

amkor, cbs, macy's, ipg and liberty are just not that leveraged. they just aren't. fact. check where the credits trade in the cash and cds markets. this is a hoax list. I have never heard of audit integrity. HOAX list.

Wed, 09/16/2009 - 23:19 | 71980 Anonymous
Anonymous's picture

Nice job, SEC should just use this and say, I rest my case your honor.

Don't hold your breath, right.

Wed, 09/16/2009 - 23:25 | 71985 curbyourrisk
curbyourrisk's picture

I know it is smaller than $1 billion, but besides Hertz...add DollarThirfty Auto Group!

Wed, 09/16/2009 - 23:40 | 71998 Hephasteus
Hephasteus's picture

Does anyone know what this is about?

http://milwaukee.bizjournals.com/milwaukee/stories/2009/09/14/daily29.html

How does a bank use a holding company that goes bust without affecting the bank and I always think crime when I hear holding company.

Thu, 09/17/2009 - 00:26 | 72034 barnvette
barnvette's picture

This article needs a little Gary North Psalms 23.

http://www.lewrockwell.com/north/north756.html

The FED is my shepherd; I shall not want.

It maketh me to lie down in green shootsdom: it leadeth me beside the still Lehman.

It restoreth my credit: it leadeth me down the paths of leverage for its name's sake.

Yea, though I walk through the valley of the shadow of debt, I will fear no evil: for thou art with me; thy TARP and thy TALF they comfort me.

Thou preparest a table before me in the presence of mine enemies: thou anointest my balance sheet with digits; my bonuses runneth over.

Surely profits and influence shall follow me all the days of my life: and I will dwell in the house of the FED for ever.

September 17, 2009

Thu, 09/17/2009 - 11:53 | 72394 Hephasteus
Hephasteus's picture

LOL

Thu, 09/17/2009 - 01:05 | 72050 Anonymous
Anonymous's picture

omfg how corrupt can u get?????

Thu, 09/17/2009 - 05:19 | 72103 JonML
JonML's picture

I remember Moody's putting out a most likely to default list in February of March. It included Chrysler, GM, Idearc, Readers Digest amongst others.

 

The list was long but I would guess that Textron was also on it...http://online.wsj.com/public/resources/documents/st_moodysratings_030920...

Thu, 09/17/2009 - 06:09 | 72113 Anonymous
Anonymous's picture

I know first hand Audit Integrity is a joke. They try to cram in lots of numbers and factors in their governance and financial models to come up with something of value and it produces non-sense. And the swings in their ratings on no real change at a company is bizarre. Like a broken clock, I am sure they will occasionally get something right since they look at thousands of companies, but their batting average is pathetic (and unsubstantiated). They're bad.

Thu, 09/17/2009 - 07:04 | 72118 Anonymous
Anonymous's picture

tip off the preferred clients and let them know that they should be shorting TXT. Then arrange for a cover at 50% below market price with an offering. The game is rigged and the SEC does not care.

These IB should have been brought to their knees. Instead, they are kept alive by politicians who are inept and only out for themselves. America is doomed until the house is cleaned one and for all. Unfortunately main street will pay the ultimate price.

Thu, 09/17/2009 - 11:22 | 72352 Anonymous
Anonymous's picture

Plus One on this post as I thought the exact same thing...Buy Textron and you will receive change you can believe in.

tip off the preferred clients and let them know that they should be shorting TXT. Then arrange for a cover at 50% below market price with an offering. The game is rigged and the SEC does not care.

These IB should have been brought to their knees. Instead, they are kept alive by politicians who are inept and only out for themselves. America is doomed until the house is cleaned one and for all. Unfortunately main street will pay the ultimate price.

Thu, 09/17/2009 - 08:24 | 72149 blindfaith
blindfaith's picture

As George Bush said: " you can fool some of the people some of the time and those are the one you need to consentrate on".

I told someone I know who OWNS this stock about this, and I got a firm 'what you YOU know"!  Totally indifferent to any warning to be prudent.  This IS the making of a second wave of investor losses across the board as a result of reinflating this shell-of-a-stock market being sold to the greedy and desperate.  I do not know ANYONE who is preserving their remaining capital and THAT is scary.

Thu, 09/17/2009 - 09:04 | 72178 Anonymous
Anonymous's picture

Allow me to play devil's advocate for a second here.

Goldman Sachs is bearish on the name because they will have a $500mm funding shortfall, which they may not be able to raise. THey subsequently raise $600mm of converts and $217mm of equity, allaying immediate funding concerns. Fast-forward 5 months, and they raise an additional $600mm through new 5.5 and 10 year notes.

Bear in mind that I didn't read the report and don't really follow Textron that closely, I am just responding to the alleged liquidity concerns, which were, in fact, addressed. This has been the same story with a lot of companies that 'should' have defaulted by now had the high yield bond market not opened for business again and issued over $100 billion of new issues, including to some pretty borderline companies. As you have stated, this is largely a junk-fueled rally, and here you have a junk name given a second chance at life through various capital raises.

Maybe the analyst new about the latest bond issue before it hit the tape, but with the first report coming out AFTER the announcement of the convert/equity issue, I don't see the problem?

Thu, 09/17/2009 - 11:27 | 72360 Anonymous
Anonymous's picture

Plus one on the post below by another reader...Buy Textron and receive Change you can believe in from Goldman.

tip off the preferred clients and let them know that they should be shorting TXT. Then arrange for a cover at 50% below market price with an offering. The game is rigged and the SEC does not care.

These IB should have been brought to their knees. Instead, they are kept alive by politicians who are inept and only out for themselves. America is doomed until the house is cleaned one and for all. Unfortunately main street will pay the ultimate price.

Thu, 09/17/2009 - 13:20 | 72498 Anonymous
Anonymous's picture

The AMR cash raise is extremely suspect. Both C and GE pony up is another government hoax as these companies are both living off the US taxpayer. I suspect they each have way more to lose with an AMR bankruptcy than they are disclosing to the SEC. CDO's????????? Floating another insolvent is all they are doing, socialists.

Thu, 09/17/2009 - 21:41 | 73002 1centaur
1centaur's picture

I know a lot of those credits and many were never serious bankruptcy candidates. Post recent capital structure moves, even fewer are. There is no credible reason to criticize Goldman over having any of these names on a conviction buy list.

Fri, 09/18/2009 - 09:24 | 73249 Anonymous
Anonymous's picture

On AMD, I don't think it's doomed. Their only issue is debt, I smell stock for debt exchange. Also people that say that MSFT colluding with INTC is not quiet right. Remember that MSFT picked AMD's instruction set which forced INTC to play catch-up. Having said that, INTC really did catch up and ran up ahead, i7 was pretty good implementation of where amd should have been 2 years ago. New innovation will come from AMD though, they are building an integrated graphics + cpu chip and it's not just 2 chips stuck together, but rather a system that has some number of cores and they can switch be allocated to either cpu task or gpu task. Intel has nothing on that. This takes power management and efficiency to a whole new level.

On Textron. I saw a headline today that Boeing expects demand to increase (who doesn't) and Bombardier (Canada) got an order for 22 regional liners. So don't discount anything just yet. So far GS has been more right than a lot of folks here crying the top is here and manipulation manipulation manipulation to justify market moves

Mon, 05/03/2010 - 16:01 | 329567 thegreatsatan
thegreatsatan's picture

Out of curiosity I bought a single share of each stock listed in this "top 20 bankruptcy list" at the time the list was released.

 

As of today, 5/2/2010 that portfolio is up 32.7% with only 3 of those stocks in the red.

Not sure if I would put any stock in anything that Audit Integrity releases.

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