Goldman helped arrange the $7 billion in financing for Washington Mutual announced last week by a consortium led by TPG. Yet, Goldman’s research group predicts another $23 billion in losses (revising upward the projected per share loss for last year from $1.00 to $3.30), and is recommending a short sale of the stock (we [...]
Archive for April, 2008
Goldman helps arrange financing for WaMu, Recommends Short Sale
Posted in CMBS, Foreclosure, Herd Mentality, Interest Rates, Liquidity, Real Estate, Recession, Subprime, U.S. on April 13, 2008 | Leave a Comment »
4th airline in two weeks goes bust
Posted in Bankruptcy, Herd Mentality, Oil, Peak Energy on April 10, 2008 | Leave a Comment »
Oasis Hong Kong Airlines is the 4th airline to file bankruptcy in the last week and a half. Read the full story at the International Herald Tribune here.
Airlines just starting to take a beating
Posted in Bankruptcy, Energy, U.S. on April 6, 2008 | Leave a Comment »
Early in 2007, we bought long-term puts on Southwest Airlines (Ticker: LUV). See previous articles by searching under Southwest. Our rationale:
LUV was trading at nearly $17.00 a share, with a market cap of $12 billion and the highest PE ratio in the sector of 20x
The sector was riding on good times back in early 2007, [...]
