Stocks to Watch – Boeing

Interesting artcle at cnn.money.com regarding Boeing stock. With the added input of two analysts.

NEW YORK (Fortune) — Boeing stock has plunged as air travel swoons globally. This year is expected to be only the third time air traffic has declined in its 50-year history.

Boeing Shares have dropped 60% since their peak in October of 2007, and earnings have sunk 50% in the first quarter as airlines delay or cancel orders, Boeing begins to cut production, and investors worry about Pentagon spending cuts.
Continue reading “Stocks to Watch – Boeing”

Dow Touches 11,000

The Dow Jones Industrial Average briefly edged above 11,000 Friday, but finished just below the mark, as promising economic data and waning Greece debt fears helped power the assent, while investors began looking to company earnings next week.

The Dow, which finished the day after adding 70 points, or 0.6%, to 10,997, crossed the 11,000-point threshold near the closing bell for the first time since September 2008. The S&P 500 improved 8 points, or 0.7%, to 1194, while the Nasdaq went ahead by 17 points, or 0.7%, at 2454.

The tech-heavy Nasdaq also led the other major averages for the week, adding 2.1%. The S&P gained 1.4% since last Thursday’s close, while the Dow picked up 0.6%.

Colonial BancGroup Inc. – biggest bank failure for 2009

Colonial BancGroup Inc. has become the largest bank failure this year as the 2009 toll of financial institutions approaches 80. The Federal Deposit Insurance Corporation seized the struggling Alabama-based lender Friday and sold it to BB&T Corp. Late Friday, the FDIC announced four other banks had been closed: Community Bank of Nevada and its Arizona subsidiary, Community Bank of Arizona; Union Bank, Gilbert, Ariz; and Dwelling House Savings and Loan Association, Pittsburgh. The Colonial BancGroup deal will knock roughly $2.8 billion off a pool of money, known as the Deposit Insurance Fund, which the FDIC maintains to guarantee bank customer deposits.

Berkshire Hathaway Shareholder’s Weekend Notes

Here are some note/bulletpoints from the Berkshire Hathaway shareholder’s weekend

  • Buffett is in favor of buying Wells Fargo
  • Warren Buffett says Berkshire Hathaway is not interested in buying newspapers in the United States “at any price.” He says the changing media environment now means newspapers “have the possibility of unending losses” and he does not “see anything on the horizon that causes that erosion to end.
  • Warren Buffett revealed the company had “got a chance to buy some corporate bonds very, very cheaply a few months back.”
  • Warren Buffett says there are no plans for a buyback of Berkshire Hathaway stock right now. Continue reading “Berkshire Hathaway Shareholder’s Weekend Notes”

Investing in Tech – Microsoft (MSFT)

Microsoft may not be recession-proof but it turned in a strong performance in a year most companies would like to forget.

Profits jumped 25.7% to $17.7 billion on revenues of $60.4 billion as the software giant offset declining sales of its Windows operating system with increased revenues from its server and tools software products.

Fannie Mae posts stock loss

Fannie Mae FNM  0.79, +0.05, +6.76%) posted a loss for the second quarter of $14.8 billion, or $2.67 a share, compared with a loss of $2.3 billion, or $2.54 a share in the same period last year.

Net revenues were $5.6 billion and fair value gains were $823 million, Fannie Mae said in a regulatory filing.

The mortgage entity said the $12.5 billion increase in net loss in the period was driven by a $13.4 billion increase in credit-related expenses, which “more than offset a $1.7 billion increase in net interest income.”

The results were “adversely affected by the ongoing deterioration in the housing and mortgage markets, the economic recession and rising unemployment,” Fannie Mae said.

Fannie Mae said its request submitted Thursday for an additional $10.7 billion in aid follows a $19 billion infusion from Treasury in June, and a $15.2 billion infusion in March.

3 Quick Tips for a better portfolio

1. Better mix of investments. Try to raise that bond stake for safety, and boost foreign-equity exposure for growth.

2. Simplify. Reduce holdings to 10 funds and roll over old 401(k)s from prior jobs into a Roth IRA to make portfolio easier to manage.

3. Invest in index funds. Sell actively managed funds in their taxable account, harvest tax losses, and move to low-cost exchange-traded funds.