Official Let's Make Some Money Off Stocks Thread
12-09-2008, 12:06 PM
#1783
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Originally Posted by stockae92,Dec 9 2008, 09:51 AM
i don't know what defines a bull market
but CMI said they are going to cut 500 jobs and their stocks goes up just over 10%
but CMI said they are going to cut 500 jobs and their stocks goes up just over 10%
Disclosure: I work for CMI indirectly...IE through a contracting agency.
12-09-2008, 08:21 PM
#1784
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As long as the government doesn't step in and do something unbelievably idiotic like this carbon limiting/'green' garbage when the economy is bleeding from the throat, the economy will work itself out.
For example, CMI has heavy exposure to steel prices last time I checked. With a strong balance sheet and a solid business model, your decreased revenue is accompanied by lowered costs for your fixed expenses, i.e. labor (higher unemployment), rent (lower property values), inputs (steel cut in 1/2 and 1/2 again) which aids a recovery. Firms that could survive with triple the current commodity prices with heavy exposure will benefit from this decline over the next 2-3 quarters.
For example, CMI has heavy exposure to steel prices last time I checked. With a strong balance sheet and a solid business model, your decreased revenue is accompanied by lowered costs for your fixed expenses, i.e. labor (higher unemployment), rent (lower property values), inputs (steel cut in 1/2 and 1/2 again) which aids a recovery. Firms that could survive with triple the current commodity prices with heavy exposure will benefit from this decline over the next 2-3 quarters.
12-12-2008, 06:25 AM
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Goldmand Sachs (remember them -- the guys that predicted $200/bbl crude?) have lowered their prediction yet again. As of this morning, they are predicting 2009 to average $45/bbl (their last prediction had been $75/bbl) and they are calling for a low during 1st quarter 2009 @ $30/bbl. They further predict refining margins to return to lows seen in 1998. Further predicting 2010 @ $70 (down from $100) and 2011 @ $90 (own from $120).
