John Paulson Buys – MOS, NWSA, SUG

 
John Paulson Buys JOHN PAULSON BUYSAs many of you already know, when John Paulson buys, investors tend to pay attention. Paulson made the 2011 list of the world’s wealthiest people and his net worth of $16 billion ranked him 39th.
 
Now according to some recent reports, Paulson’s hedge fund has had a bad August, which wiped away his previous gains for 2011. Just keep in mind that Paulson is bullish on the economy for the remainder of 2011.
 

Recent John Paulson buys


Mosaic (MOS:NYSE) We have commented on the Ag stocks for some time, and John Paulson Buys just established a new position of 2.25 million shares. Shares of MOS have declined since the announcement of the Cargill exit, and are currently up sharply on Monday.

News Corp. (NWSA.NYSE) Now this is a contrarian play, but many John Paulson buys have been in the small cap arena, so it’s obvious that he isn’t risk averse to large caps like NWSA. Shares of NWSA have seemed to bottom recently, but Mr. Murdoch always seems to attract bad press. The worst might not be over, but many feel this is a quality sum of parts play. Paulson picked up 10.4 million shares of this out of favor name as he established a new position.

Southern Union (SUG:NYSE) SUG is a domestic energy play for U.S. investors. and shares are approaching new highs. The dividend might not be attractive to some types, but SUG is a name that could really work if energy prices rise. John Paulson Buys stepped in recently and established a new position of 4.53 million shares.

Check back for more capsules on hedge fund activity. It never hurts to know what a pro like John Paulson buys.

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Below Tangible Book Value Stocks

 
Tangible Book Value Banks Trading Below Tangible Book ValueToday here at PSE, I am releasing an informative piece for traders on some banks that are trading below tangible book value. I realize that there is a difference of opinion on what the true book values of some bank’s actually are, so I will be using numbers off of a research piece from Barclays dated 8/23/11 merely as a guide.
 
On another note, I will not touch on the controversial book value of Bank of America (BAC:NYSE), mainly because of the vast differences in opinion on the street. Here are some names of other bank stocks that are currently trading below tangible book value:
 

FITB, KEY, FHN Below Tangible Book Value

 
Fifth Third (FITB:NASDAQ) The Ohio based super regional has a tangible book value of $10.55 and closed on 8/24/11 at $10.10.
 
KeyCorp (KEY:NYSE) KEY is another Ohio based bank on our list. Shares of KEY are trading below tangible book value of $8.90 and closed on 8/24/11 at $6.46.

First Horizon National (FHN:NYSE) This low priced Memphis based name has a tangible book value of $8.43 and closed on 8/24/11 at $6.79.

Synovus Financial (SNV:NYSE) This Georgia based mid-cap bank has the lowest share price on our list. SNV has a tangible book value of $2.06 and closed on 8/24/11 at $1.36.

Keep in mind that the TBV is a widely debated subject. So take these numbers with a grain of salt. But, if the market corrects again we will be adding more banks that are trading below tangible book value to our list of stocks to watch.

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Stock Buybacks Boost Earnings


stock buyback Stock BuybacksThe term stock buybacks seems to be popular right now. Since our recent decline, companies have been stepping in to the market to by shares of their own stock. Consequently, we are seeing cable news and the print media highlighting key stock buyback programs on a more frequent basis.

Just to give you an example, on Wednesday morning CVS Caremark (CVS:NYSE) authorized a $4 billion stock buybacks program. Now when a CVS long sees an announcement like this, he obviously get excited. Mainly because many view these programs as a vote of confidence from management. Not only does the stock often see a short term pop after repurchase programs, but the number of outstanding shares are also reduced, which helps the company’s earnings.

But here is why the stock buybacks skeptics come in. Some traders feel that these programs are used to dress up future weak earnings. For instance, just look how many times Research in Motion (RIMM:NYSE) has bought back shares in the past few years, and more importantly look how far it’s share price has dropped.

Stock Buybacks Have Skeptics Worried


Now despite of the favorable interest environment that we are in, you have to ask yourself another question. Why are CEO’s and BOD’s deciding to buyback stock instead of paying down debt, increasing or issuing dividends, or expanding business operations ?

While I don’t agree with some of these conspiracy theorists, many feel that management often announces these programs to give their stock a booster shot to benefit their personal stock options.

The moral of the story is not to buy shares in a company solely on the basis of a stock buybacks program, look at the big picture too.

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IPO In Kazakhstan Could Be Risky


Kazakhstan IPO Kazakhstan   IPOAn Kazakhstan – IPO is something that sounds foreign to the majority of investors. Oddly enough, some people relate Sacha Baron Cohen’s satirical Borat character to Kazakhstan instead of comparing the country to vast exports in uranium, oil and metal.

Back in the 1990′s we saw a wave of privatization in Europe, which spurred interest from U.S. investors, institutional and retail a like. Now we are seeing a potential trend starting in Central Asia.

Kazakhstan is planning to launch a “People’s IPO” to it’s tiny population of under 17 million. Multiple companies in Kazakhstan could be involved in the offering process. Now, even for hedge funds, an IPO in Kazakhstan could be risky, especially in their illiquid market. But could some of these potential jewels potentially trade in the U.S. markets ? Time will only tell, but if all goes well, a trend could be developing that could help commodity stocks across the board, all the way down from well known uranium stocks, to unknown mining penny stocks.

IPO Could Help Mining Stocks


Now this could be a political ploy, because there has been a wave of foreign investment in the Central Asian country, and only 5 to 15% of the shares are slated to be sold to locals at some point in 2012. Now remember, an IPO in Kazakhstan may not be front page news, but many experts frowned on Russian and Chinese offerings when they were in their capitalist infancies too.

So while we may not be able to offer insightful color on a specific IPO in Kazakhstan, we might see some sympathy plays develop in the penny stock arena based on this new foreign event.

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BAC, AAPL


BAC Breaking News   BAC and AAPL
Bank of America (BAC:NYSE) Buffet buys and lends confidence to the name, but BAC CEO Moynihan loses credibility at the same time. How weird is this ? Fast Money’s Cortes and Najarian were not very bullish for the short term, so the early AM move might signal nothing more than a short covering pop. Just remember, even though Buffet hit home runs with Goldman Sachs (GS:NYSE) and General Electric (GE:NYSE) during the Lehman Crisis, the Oracle of Omaha still receives better terms on his purchases than the Average Joe does. So take this booster shot with lightly if you have a short term perspective. Also watch for an upcoming piece from PSE on BAC Warrants.


aapl Breaking News   BAC and AAPLApple Computer (AAPL:NYSE) The Steve Jobs news has essentially been baked into the cake for some time. Weak hands seemed to be the cause of the $357.00 print earlier on Thursday, and shares of AAPL have consequently rebounded. In other words, this move somewhat was expected and bottom fishers stepped in and were rewarded handsomely. On a technical basis, the weekly chart shows that AAPL has tremendous support in the low $350′s range. Remember that even though skeptics will say AAPL is done, they still have $76 billion in cash reserves and products that stores can’t keep on the shelves.
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