BAC Is Still Mired In Mortgage Quagmire

For years BAC has attempted to extricate itself from the quagmire of the US mortgage market.  Their efforts are still facing resistance at every front.  The stock remains stuck in a range that is not impressing too many investors.  With mounting legal woes and a moribund credit operation, what are the key factors that would still drive this stock upward?  With the American consumer remaining so beleaguered, it’s hard to imagine that a consumer rebound on credit will be happening any time soon enough to satisfy Wall Street.

The bigger question is: what do you think of BAC?  Is this a stock and company that have seen better days or do you think we may see a resurgence in this giant corporation?

Hype is a good thing for the original investors in Facebook.  It means they’ll be able to cash out with a huge profit just about as soon as the shares start trading publicly.  They won’t have to wait long to get their cash plus a big return back.

Is Facebook The Next GOOG?

Stock market analysts have not appeared to be particularly upbeat about the prospects for the Facebook IPO.  In fact, a number of articles have been circulating that sum of the feelings that a lot of potential Facebook investors already have.  One point is that other social media companies like LinkedIn haven’t fared that well after going public.  As many already know, sector strength plays a big role in how well a stock does.  With the sector fighting a downward spiral, it might be tough for Facebook stock to get moving.  Plus, there are a number of other obvious issues facing the company, which have been outlined extensively in the past few days.

Despite the negative commentary, it’s still easy to see how this IPO will likely rise initially, based on how much interest it is getting and how many people are aware of the company.

Do you plan on getting on the Facebook IPO?  I’d love to hear your comments.

Facebook Ready To Cash In On Your Personal Data

In a nutshell, Worden thinks that Facebook is going to be hugely overvalued at a rumored IPO value of $100 billion.  It will be the richest IPO in the history of tech, which has seen its share of stumbles among former glory-holders.  Facebook is extremely popular right now, but could go the way of MySpace goes the argument.

Wall Street Daily was not sold on the Facebook IPO either, outlining three reasons people should stay away.  As the point out, social media stocks are not setting the world on fire, with over 80% of the social media companies that did an IPO last year already trading for less than they did on their opening day! That’s definitely a troubling stat for anyone considering putting their cash into Facebook.

Still, no one can deny just how much excitement exists for a company like Facebook to go public.  With such a huge user-base, it seems likely lots of average investors will be piling into this one.  There will be a lot of interest so Facebook is going to be at center stage this year.  I’m sure there will be many positive reactions about the IPO in the next few days.

Do you plan on getting in on this IPO?

Google Is Ready To Take On A Public Facebook

According to Kara Swisher @ AllthingsD, the IPO has been confirmed by multiple sources for May. If the rumors are true, Facebook will have to file papers with the SEC within a month. After that, the IPO could happen.  This could be the type of news that Wall Street wants to hear, because public interest in a big IPO can help push money back into the market.

But the question remains: are YOU going to invest in Facebook?

Are You Ready To Invest In Facebook?

The average investor, if such a beast exists, could have a number of reservations about pumping investment dollars into Facebook.  Sure, the company has huge growth potential, but they also face stiff competition and increased public scrutiny.  Costs will be going up dramatically at the company after an IPO and they’ll have to continuously look for new revenues.  This is true of any Internet company, and especially true for Facebook.

Plus, there’s Google+, the new 900 pound Gorilla of social networking.  Google is pushing Google+ very hard now, with the direct aim of breaking the back of Facebook, according to critics.  Google is a lot bigger than Facebook right now, and is dug in for the fight.  Can Facebook fight back with a fresh stack of investor cash?

What’s your opinion?  Do you plan on investing Facebook?

The USA was not the only market where there was positive news from Ford and General Motors.  Both car companies said they had record years in China.  GM sold over 2.5 million cars in China, while Ford weighed in with sales of over 500,000.  GM gained 8% year over year while Ford went up 7%.

GM attributed a good portion of their success to having a varied product line.  They said they released 12 new models in China in 2011.  They also invested heavily in manufacturing capacity, to capitalize on increased demand.

Ford also announced they’re planning on investing in research in Silicon Valley.  They’re opening their first ever research lab in the area in order to find ways the valley’s famed technology can help their business grow in 2012 and beyond.

Ford, which does not wish to be done by General Motors, said they will introduce 15 new models to China this year.  Ford also said they’re adding to capacity, expecting to add a total of four new production plans in 2012.

Merckle, was born into a rich family and was educated as a lawyer, but he spent considerable amounts of time investing. Adolf Merckle’s holding company, VEM Vermoegensverwaltung, had vested interests in pharmaceutical companies, cement companies and auto manufacturing companies.

According to a statement released by his family, he could no longer take the pressures of his investment losses.

“Adolf Merckle lived and worked for his family and his firms. The distress to his firms caused by the financial crisis and the related uncertainties of recent weeks, along with the helplessness of no longer being able to act, broke the passionate family businessman, and he ended his life.”

According to Forbes, Adolf Merckle was estimated to be worth $9.2 billion dollars as of last year.

Investigators said foul play was not a factor in his death.

He’s survived by a wife and four children.

Of course one issue pushing higher inflation and consumer worries is the high cost of crude oil, which is expected to go past $150/barrel for the first time this week. Beleaguered motorists are already changing travel plans, curtailing unnecessary trips, and cutting back on purchases in order to make ends meet, but one has to wonder how much further they can bend before they break.

Gasoline prices are up a stunning 50% in 2008, which is further making the Fed’s job of trying to jumpstart the economy difficult. Investors this week will be looking for any signs of good economic news. Barring that, more money may go from the dollar into Oil, creating even higher energy costs. Depending on what Ben Bernanke does with interest rates, high inflation might just set in for the remainder of 2008.

People looking to invest in stocks this week will probably do best to look at companies who have at least some isolation from rapidly rising fixed and supply costs.

On Tuesday of this week the National Association of Realtors will be releasing data on new home sales. On Thursday you can expect to learn about the employment numbers when they Labor Department releases key job figures. Finally, on Friday, the University of Michigan will be releasing key consumer confidence numbers.

Investor sentiment moving forward will have a lot to do with the results of the data released in these reports this week.

The passel of worries that investors juggled Thursday added up to an increasingly troubled economy. Analysts’ negative comments on General Motors Corp. sent shares of the largest U.S. automaker to their lowest level in more than 30 years, while Citigroup Inc. fell sharply after an analyst placed a “sell” rating on the stock and warned investors to expect less from the brokerage sector in an uneasy economic climate. Disappointing outlooks from technology bellwethers Oracle Corp. and BlackBerry maker Research In Motion Ltd. further soured investors’ moods and made the tech sector one of the steepest decliners.

Also troubling were reports that oil prices would continue to climb, pushing worldwide inflation higher than ever.

The President of OPEC Chakib Khelil said he though that oil prices could go to between $150-$170 a barrel before a pull back.

Stimulus checks have not stimulated the economy as had been hoped, primarily because people are spending their checks on higher costing commodities, especially gas. Worse yet, global inflation is rising which will increase the costs of goods even more for American consumers. All in all, it was a tough day for the bulls today on Wall Street.

Continued write downs are putting downward pressure on the mortgage markets as banks have only begun to feel the pain. All this according to Christopher Low, chief economist for FTN Financial.

Companies are reluctant to raise prices for fear of sales declines

The real issue now is that companies are paying more for everything. Normally they would just pass those prices increases along to consumers. But clearly, unless all company executives are brain dead, they can see that consumers are themselves laboring under the specter of high prices.

Consumers with less money and higher fixed costs are just not good for most businesses. Investors are very careful these days about what sector they’re playing in, because the ones effected by tight credit and consumer’s lack of cash just can’t possibly grow enough for serious returns.

That doesn’t mean that all companies are hurting. Right now the Alternative energy sector is worth looking at, and many investors are looking at alternative investments of all sorts in order to make sure they weather the current U.S. economic news.

Everything appears to hinge on oil prices right now, especially in the realm of investor sentiment. A gloomy mood from speculators today never cheered up as everyone poured over the mostly negative information concerning price increases.

At this rate, oil prices should remain key for the remainder of the Summer.