Book Value

How To Legally Steal $35,000 From Vladimir Putin

The Russian currency is still far below its historic average; aside from making the country dirt cheap for anyone with foreign currency, we discovered something very interesting today... Some of Russia’s coins are now worth less than their metal values.

Just 3 Things

Based on the fact that the P/S ratio has been steadily rising and has eclipsed prior peaks, we are left to select from one of two conclusions: that investors are extremely optimistic about the potential for revenue growth; or investors are once again caught in the grasp of bubble mentality and willing to pay huge premiums to avoid missing out on further gains. However, the means of magically boosting these asset prices are 'finite' in nature and eventually the "devil will be paid his due."

Despite "The Biggest F##king Bailout Ever" This Analyst Says S&P Will Drop 80%

"I can't tell you how long it's going to take but I'm anticipating an 80% drop or 70% drop, something in that neighborhood. Tobin's Q got down to 0.54 in 2009...The reason it didn't go lower is because we had the biggest fucking bailout ever orchestrated in the history of the banking system..."

Analyst Warns Deutsche Bank's Problems May Now Be "Insurmountable"

"The biggest problem is that DBK has too much leverage. On our measures, we believe DBK is still over 40x levered. DBK can either reduce assets or increase capital to rectify this. On the first path, the markets do not exist in the size nor pricing to enable it to follow this route. Going down the second path also seems impossible at the moment, as the profitability of the core business is under pressure. Seeking outside capital is also likely to be difficult as management would likely find it hard to offer any type of return on new capital invested."

The Bank Of Japan Begins Selling ¥1.3 Trillion In Stocks Acquired Over The Years

In a stark reminder, that what central banks buy they eventually have to sell, Japan's Nikkei writes that the Bank of Japan has begun selling equities it bought from commercial banks in the previous decade to ease anxiety over the financial sector. But before some interpret the move as a risk to Japan's stock "market" as the biggest equity backstopper now becomes a seller, concurrent with the BOJ's liquidations Kuroda will offset these divestments with extra purchases of exchange-traded funds, in effect netting out selling with even more stock buying.

With Jim Chanos Short, Is SolarCity The Next SunEdison? The Full Bear Case

One year ago, SunEdison was the darling of the hedge fund world. It is now bankrupt. Moments ago, Jim Chanos revealed that (in addition to Tesla) he is also short Elon Musk's SolarCity, sending the stock sliding.  But what is the bear case? Courtesy of Axiom's Gordon Johnson, here are some very specific reasons why Chanos may once again have a home run on his "short" hands.

A Currency War That Europe And Japan Can't Afford To Lose

After three years of the dollar being pretty much the only strong currency in the world, US corporate profits are falling (because it’s hard to sell things abroad when you price them in an expensive currency) and growth is slowing (because an economy can’t expand if corporate profits are falling). Presumably the plunging dollar will offer some relief on those fronts. But our relief comes at a high, potentially-catastrophic price for Japan and Europe...

Italy's Bank Bailout Fund Already One Third Empty After First Bank Rescue

Italy's bad bank bailouts fund, "Atlas", is about to become the proud new owner of around 90% of Italy's Popolare di Vicenza after investors only bought a fraction of the mid-tier bank's €1.5 billion cash call, Reuters reports.  Popolare di Vicenza, which was due to announce the outcome of the public share offer later on Friday, said earlier in the day that it had raised €4.25 billion, at the lower end of a 4-6 billion euro range it had initially targeted, from 67 mostly domestic financial institutions.

The High Yield Bond 'Emperor' Has No Clothes, BofA Warns 1 In 3 Firms Face Default Threat

The market reaction from last week’s dovish FOMC statement took many by surprise, including BofAML's HY Strategy team, but as they say the High-Yield Emperor has no clothes, warning that the underlying commentary provided by Chair Yellen shows the vulnerability for high yield issuers to longer-term growth trends. Couple the deteriorating fundamentals for HY issuers with downgrades outpacing upgrades by a ratio of 3.5:1 and a worsening of global growth potential, and they believe the recent rally, though boosted by strong inflows and cash generation, will ultimately fade.