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UniCredit Reports Massive €10.6 Billion Loss On Estimate Of €7.4 Million Profit; Will Raise €7.5 Billion In New Equity
And whoosh:
- UNICREDIT 3Q NET LOSS EU10.6 BLN; ANA EST EU7.4 MLN PROFIT
We haven't seen the press release, but we have a sinking suspicion the bank's "perfectly hedged' sovereign exposure, when all the accounting gimmicks are said and done, will be the culprit.
In other news:
- UNICREDIT SAYS WRITEDOWNS EU9.77 BLN NO IMPACT ON CASH, RATIOS
- UNICREDIT TO ACHIEVE POSITIVE NET INTER-BANK POSITION BY 2015
- UNICREDIT WON'T PAY DIVIDEND ON 2011 RESULTS
- UNICREDIT RIGHTS OFFER TO BE AS MUCH AS EU7.5 BILLION
- UNICREDIT 3Q LOAN LOSS PROVISIONS EU1.85 BLN
And the natural conclusion:
- UNICREDIT RIGHTS OFFER TO BE AS MUCH AS EU7.5 BILLION
- UNICREDIT FURTHER STRENGTHENING ITS LIQUIDITY POSITION - and further diluting its impoverished shareholders
This is just the start.
headlines: BBG
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awesome. just what I needed to perk me up this am.
How is my FAZ doing this morning? Probably better now.
Since I have 4000 shares of FAZ, I've been watching it fluctuated from 41 to 40 and then back up to 40.94 now. I don't know if I should sell it after 10AM before it drop again as usual around that time for the past few days.
You have to figure out the spread on the entry and exit as related to the Russell Financial index and identifing the NAV during the live movement in five minute chunks.
Don't measure X3's by time. They are made from unicorn meat, dragon's breath and hobbit wishes, vapourware basically. Treat them with respect and keep the stops in place.
Or if you are trading in 4000 sized blocks each penny is a 40 buck situation. Just don't hold longer than you have to. If you are in a profit position, take it and retrace the entry accounting for the leveraged decay built into it.
This is old but the math still holds up. It needs at least a month's worth of data to be useful and change RIFIN.X to end of day value for INDEXRUSSELL:R1RGSFS if using google docs to manage the inputs.
https://docs.google.com/spreadsheet/ccc?key=0AlcjUXwfgidwcHFtbnlFVFNzcHJ...
Save as an Open Doc format, not excel. Something buggy in the export feature in google docs.
I sold 1000 shares at 41.72. probably would sell more after 10Am. Thank you for the advise.
I've just gotten rid of another 2000 shares at 41.5. I'll hold the last 1000 in case it goes up further so I won't kick myself for missing the boat totally or give back what I had made.
No problem, been trading them since they came out. Very nice tools to make money with.
I wouldn't fear the idea of getting stuck in a trade with faz/fas right now with low volume. Only volume on the market right now is leverage ETFs and the only "honest" indexes are on the Russell. Gave up on S&P and DJIA long time ago.
Only thing I can't say with enough emphasis is a couple of things:
Break those rules and it's an invitation to lose money.
Might as well state that I've only met a single guy out of a hundred or so traders I've worked with online that's done well on the options end of things. Most of the times I watch people get prison raped if they wrap options around leveraged ETF's. BTW that one guy, he just got lucky, otherwise he thought he was out 270k.
So be very careful if thinking you can hedge these, don't, safer to sell in a regular equities exchange and take a loss than attempt to watch the clock until the third Friday.
Just rid of the last 1000 for 41.60. I understand the risk for holding FAZ overnight but it's hard to reap the big overnight gain since the market is rigged. I bought FAZ on Friday betting that the European bonds would have problem today. UniCredit is a gift.
I don't quite get the chart. Are you saying that it cost about 5% a day to hold FAZ? Once again, thank you for the advise.
Depending on the market swings, and corrections, the x 3 leverage creates something called leveraged decay and yes you can lose 5% a week, haven't seen the decay wipe out 5% in a day, but I have watched people panic and pound the sell button if they mistime the trade.
That is on Friday say the Russell Fin index closed at 640. Final spread of fas and faz was 40.00 and 45.00 respectively.
Fast forward one week later. Russell Fin index closes at 640 again. Final spread of fas and faz is 39.50 and 44.50 respectively.
Doesn't take much. The decay happens faster with tight trading ranges btw. Anycase look at the math, steal whatever you'd like from the spreadsheet, I have another toolset I made that requires less of my attention to trade these handy annoyances. Don't buy them like an HFT does, just tells me when I need to step away and put the market on ignore.
Take notice of the splits they do. Crazy fucking splits. I watched a lot of people get fiscally killed by that as well. Although more so on TZA/TNA than FAZ/FAS.
Otherwise if you get the timing right you can swing 30% a "month-ish" on whatever capital you are trading. I've been fucking around with 3k since the beginning of the year on this. 11 clean trades out of 12 so far this year, up to 58k. Part of a race to a million bet I have going.
Start the year with 3k and trade to a million by Dec 31st. Haven't done it yet, the million that is. Best so far was last year. Finished with 90k. The options guys did a lot better than I did. :-\ But 17 years of trading, I've found options are wickedly shitty vehicles, far too much risk for my tastes. Easier to find high volume equities with a shit tonne of morons chasing them.
I started trading FAZ about 3 months ago. I was lucky at the biggining and made about 38G but lost most of it 3 weeks ago. I usually don't hold it for more than a day or two, but I made the mistake of holding it for almost 4 days, from Tuesday, a day before the scam summit, to Friday when I finally gave in. I wish I had come across you earlier. Once again, thank you and good luck.
You've made out better than the 99.9% if you came out alive with a profit, even if it's a small one. I watched people lose their homes on this stuff when they first came out and people were trading them like stocks. Worst I heard of one guy was in the hole for around 12 million with his option writing strategy. It covered all the bases except the Fed reserve printing 8 trillion dollars and dumping it into the market. Not sure where they went, they kind of faded away after that, probably blew their brains out doing an all or nothing play.
Getting stopped out ten times on x3 trades is perfectly normal btw. Use the stop loss, always.
Once you start dreaming of fortunes made it's time to sell. Getting greedy on a day trade is so dangerous in large blocks.
It does the spreads for both FAS and FAZ btw.
Only way to trade the x3's. Probability combined with decay.
Just don't hold too long, the leverged decay will eat your holdings alive if you do.
UniCredit...why I keep reading about that bank here at this blog (for some time now).
edit: this is just getting stupid now
Maybe Warren will have another tub scene with Becky and throw more money at a bank......
at about 6:30am EST he said the developments in Italy and Greece were positive. He also claims that IBM only found out about his 5.5% stake he made in the company this morning along with us the viewers.
nationalize
'This is just the start.'
Uh-huh. Sarkozy just shit himself.
3 billion? Chump change. That's the FEDs walkin' around money...
FED members dont walk around anywhere, theyre surrounded by mercenary bodyguards.
Noboay said it so I'm saying it:
Aaaaand it's gone !
jjjjuuuuuust a bit outside
UniCredit drone in suit #1: Aaaaaaaand ... it's gone!
UniCredit drone in suit #2: You dumbass, that's only supposed to happen to our customers!
Flotsam ......Just proves that shit continues to float!!
Oops!
Is that bigger loss than Dexia?
Fuckin bullish
Commence Printing!
Super Mario Bros. at your service. FULL STEAM AHEAAAAD!!!!
Market should move higher from here. Unicredit to buy Italian bonds next!
Massive losses reported and the Party's just gettin started...
aaaaaaand no impact on US stock futures.
Will Raise €7.5 Billion In New Equity
From who?
Iran?
Belarus is going to bail out Unicredit and the world. Top secret, 100% info.
Just what I was wondering. The printing press?
Super Mario!!!
first domino. but be real: write-downs in Ukraine and Kazachstan!!!
Can't short financials. Can't hedge sovereign exposure. The genuises have made it almost impossible to do anything but dump exposure.
The mark this POS is going to leave when it reopens in 5 mins will be epic.
our decendants.
Unicredit, soon to be offering equity in their junior class B tranche, known as Bicredit, not to be confused with later issues of Tri and QuadCredit. Quintcredit is somebody else.
Let's see them spin that.
1) On ordinary capital
2) Shares of which UniCredit S.p.A. holds the right of usufruct: 967,564,061 Ordinary Shares; 5.020% owned.
So did the new Libyan gov't get a heads up that their shares would be worthless? Or maybe that was the promise from NATO, "here you go to war with us, we get your oil and you get shares of our banks?"
I think Gaddafi got a heads-up! He for sure left just in time...
is it even possible to be that far off ????????
From Reuters: The rights issue will likely take place in the first quarter of 2012 -- possibly as early as January -- in the hope market conditions improve, three sources said.
Improve?????? LMAO!!!!!!!!!
Gee and I thought the market conditions were certified 'never better'!
How should it be nationalized? By a broke government? They are only lucky that maybe the Germany will place money as UC sub HVB is one of the bigger ones in Germany. But say good-bye to the london branch...
http://batman.wikia.com/wiki/Batman_%281960s_series%29#Battle_Sound_Effects
All i can say about all this is buy EURO here and the market.....dont be fooled by all thse bad comments
best comment ever!!! ha
i remember when RBS did this in the UK and offered a massive rights issue @ 220p and then went to 180p before the rights issue was in play before eventually droping below 10p... now around 20p. the people who take up the offer will be existing share holders doubling down. time to sell and crystalise the loss.
What does ZeroHedge suggest will follow these writedown related losses? What is this the haircut equivalent of? Is these are writedowns on Italian bonds, one could almost say they are being proactive as they are still trading in the 80's range. Is there more to come? Will the banks have trouble raising the new capital? Will EFSF/ECB/IMF partake in future equity issues?
I'm sure they were "voluntary and transitory" loses.
and another one bites, another one bites, another one bites
THE DUST!
EURO WINNING :)
http://www.leap2020.eu/GEAB-N-58-is-available-Global-systemic-crisis-Fir...
Global systemic crisis – First half of 2012: Decimation of the Western banksBesides, it’s this very unhealthy financial environment that will cause the "decimation (1) of Western banks" in the first half of 2012: with their profitability in freefall, balance sheets in disarray, with the disappearance of trillions of USD assets, with states increasingly pushing for strict regulation of their activities (2), even placing them under public supervision and increasingly hostile public opinion, now the scaffold has been erected and at least 10% of Western banks (3) will have to pass that way in the coming quarters.
(...)
In fact, it will be a triple decimation (5) culminating in the disappearance of 10% to 20% of Western banks over the next year:
. a decimation of their staff
. a decimation of their profits
. and lastly, a decimation of the number of banks.
(...)
The decimation of the Western banks that begins and will continue in the coming quarters, an event of historic proportions, cannot therefore be understood without first of all measuring and analyzing the role of Wall Street and London in this financial debacle. Greece and the Euro will undoubtedly play a role here as we have discussed in previous GEAB issues, but these are triggers: Greek debt is yesterday’s banking venality that is exploding in the public arena today; the Euro is the arrow of the future that is piercing the current financial balloon. These are the two fingers that highlight the problem, but they aren’t the problem.
(...)
Of course this creates an opportunity for nationalization at low cost to the taxpayer from 2012 because it’s the choice that will be imposed on States, in the United States as in Europe or Japan. Whether it be, for example, Bank of America (23), CitiGroup or Morgan Stanley (24) in the United States, RBS (25) or Lloyds in the United Kingdom (26), Société Générale in France, Deutsche Bank (27) in Germany, or UBS (28) in Switzerland (29), some very large institutions "too big to fail" will fail. They will be accompanied by a whole swathe of medium or small banks such as Max Bank which has just filed for bankruptcy in Denmark (30).
Faced with this "decimation", States’ resources will be quickly overrun, especially in these times of austerity, low tax revenues and the political unpopularity of the bank bailout (31). Political leaders will, therefore, have to focus on protecting the interests of savers (32) and employees (two areas full of electoral promise) instead of safeguarding the interests of bank executives and shareholders (two areas full of electoral pitfalls, whose precedent in 2008 demonstrated its economic futility (33)).
UniCredit SpA is an Italy-based, pan-European banking organization, with aprox 40 million customers and operations in 22 countries.
Pan-European...such a nice ring to it. I imagine that people with real wealth will be clamoring to put their money into this bank.