![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-jpy-small.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-gbp-small.gif)
Indices closed in the green, but today was weak with plenty of selling into every "rally". Do not turn your back on this market for a second! Priceline (PCLN) reported Q1 of $.76/share and revenue of $403M. And, to one of our readers (you know who you are): Do not ask me how PCLN did this if the consumer is in trouble! They are taking market share from competitors. Look at their competitors’ earnings. I like this company, just not their share price.
AIG (American International Group) reports earnings:
Q1 -$1.41 V -$0.76E, R $ V $31BE; TO RAISE ABOUT $12.5B IN CAPITAL
- Q1 net premiums written $12.1B flat with Q1 2007
- AIG also today announced a plan to raise approximately $12.5 billion in capital to fortify its balance sheet and provide increased financial flexibility. The capital is to be raised through a common stock offering and an equity-linked offering for an aggregate of approximately $7.5 billion. At a later date AIG also expects to issue high equity content fixed income securities. These offerings are designed to further strengthen AIG’s significant financial resources and will enhance its ability to grow while maintaining the strength to withstand potential short-term market volatility.
They are going to dilute their stock to raise this capital. So this next announcement has us really shaking our heads.
INCREASING CASH DIVIDEND 10% TO $0.22
- The dividend is payable on September 19, 2008 to shareholders of record on September 5, 2008.
What??!! Will they have the money by September? Are we just supposed to trust that they will? Ok, I admit we are simply sputtering at this point. We’ll have to think about this one. It isn’t trading at this time.
Update: S&P CUTS AIG’S RATING TO AA- FROM AA; RATING ON WATCH NEGATIVE
AEM (Agnico-Eagle Mining) reported, too. Q1 $0.20 V $0.24E, R $119M V $141ME Last quarter they reported $0.25 v $0.23e, R $114M v $121Me. So revenue was up, "per share" was down.
Entries (RSS)
May 8th, 2008 at 5:47 pm
Lisa -
AIG raising their dividend is a joke!! You have to be kidding me. I am with ya on that one….
Interesting that you mentioned PCLN had strong earnings and is screaming up to all-time highs after hours. I hadn’t noticed.
Didn’t there used to be some guy on this board that was pimping this stock around $100?? He had some lame idea that this stock would go higher because the consumer still had the desire and resources to buy airline tickets, hotels and rental cars. I am glad that he has stopped posting on this board.
Even if PCLN is taking business from competitors, it is nice to know that there is still robust activity net/net in this entire market area (travel and leisure).
I added a teensy QID position at the close today.
May 8th, 2008 at 5:53 pm
You’re the best, Dave.
May 8th, 2008 at 8:30 pm
If anyone believes house prices are near stabilizing, I suggest one goes to www.cme.com and clicks on Daily Bulletin. Go to Section 46 for Housing and Real Estate Futures based on the Case-Schiller Indices. You will find the futures markets expectations are for a 6-10% FURTHER decline from now to the NOV 08 contract. Then…there are expected additional declines forecast for the NOV 09 contract. Some markets show declines into 2010 and 2011. So, if one believes foreclosures are bad now, wait a few months.
If the consumer is King tied to 72% of the economy, then there will be a long and protracted economic decline.
Bob
Noel’s Brother