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Golden oldies
AG Barr --British Land -- Braemar Shipping -- Standard Chartered -- Reckitt Benckiser
Share Tips of the week:
Buy Invensys at 335p
Buy NCC at 400p
Buy Xcite Energy at 57p
Buy Investec Smaller Companies at £15.23
Sell Hays at 115p
Updates:
Buy GKN -- Eros -- Synergy Healthcare -- Segro -- Plant Health Care
Take profits at Chloride
Company results:
Buy Smiths News -- Imperial Tobacco -- Connaught -- Next Fifteen -- N Brown -- Hasgrove -- Character Group -- African Aura Mining --Providence Resources --Lidco -- Panther Securities
Sell Punch Taverns.
FINANCIAL TIMES
A chill wind is blowing in the US housing market
Morgan Stanley upgrades TalkTalk - target 160p
THE TIMES
Tempus Share Tips
AstraZeneca: at 2897p - hold if you own them, stand aside for a better point of entry if you don't
William Hill a buy for the brave at 203p
At 207p look to buy BBA Aviation lower down
Bet of the day: Carpetright
Tiddler to watch - Westminster Group
DAILY TELEGRAPH
Questor Share Tips
Buy Unilever
Buy BG Group
Santander savers need not worry
THE INDEPENDENT
Investment Stock Picks
Buy BG Group
Buy HMV Group
Sell Mecom
Outlook:
Mervyn King says this is an election to lose [Is that Gordon Brown's cunning plan ? - Ed.]
After the Goldman Sachs fraud bombshell on Friday and the cloud of ash over Europe and the cotinuing Greek crisis the markets sold off again today, but not by as much as may have been expected and some see the recent falls as buying opportunities.
The DOW has bounced back and forth across the unchanged line, the FTSE finished down 16 points after being down 50 points early in the day.
The fraud charges brought against Goldman Sachs by the SEC continue to cause concern but not many people expect to see a full-blown second crash. Thehealth sector has probably been the strongest sector with the Morgan Stanley Healthcare Payor Index currently up 3.5% after a notable move down over the past 2 weeks.
There is however significant weakness in semiconductors, computer hardware, and airline stocks. Gold stocks are also falling quite sharply.
The DOW is currently down 17 points at at 11,002.
Trading in Europe continues choppy as a result of the volcanic ash cloud that has shut Europe down. British Airways is losing around £15m to £20m a day.
Travel agent TUI says the cumulative cost to the group, is about £20m. Estimated daily costs now running at about £5m to £6m.
Thomas Cook said it estimates the daily impact of the disruption at around £7m.
Arriva has confirmed it is in advanced talks with German transport operator Deutsche Bahn about a recommended cash offer for the UK bus and train operator.
Arriva said the German company has indicated that it is willing to make a cash offer of 775p per share.
Gordon Brown has called on the FSA to investigate Goldman Sachs’s activities (anyboyd would think he had an election to try and win!) some people hope that Royal Bank of Scotland (RBS) may be able to get back some of hundreds of millions it paid Goldman Sachs in 2008 to unwind a position RBS inherited from its purchase of ABN Amro.
Well Gordon Brown has gone but we are still here - if you are a beginner to stock trading you may like to check out the basics of how to buy stocks online before risking any cash
FTSE 100 - Risers
Royal Bank of Scotland Group (RBS) +4.35%
Autonomy Corporation (AU.) +2.13%
Lloyds Banking Group (LLOY) +1.11%
British American Tobacco (BATS) +0.95%
Associated British Foods (ABF) +0.89%
ARM Holdings (ARM) +0.76%
Tesco (TSCO) +0.64%
Next (NXT) +0.62%
BAE Systems (BA.) +0.59%
Royal Dutch Shell 'A' (RDSA) +0.58%
FTSE 100 - Fallers
Aviva (AV.) -2.30%
Land Securities Group (LAND) -2.08%
Old Mutual (OML) -2.07%
Vedanta Resources (VED) -1.97%
Fresnillo (FRES) -1.96%
Antofagasta (ANTO) -1.70%
Thomas Cook Group (TCG) -1.61%
Kazakhmys (KAZ) -1.60%
BHP Billiton (BLT) -1.55%
British Land Co (BLND) -1.49%
Goldman Sachs and Fabrice Tourre have been charged with civil fraud by the SEC over its CDO (collaterized debt obligations) activities at the start of the financial crisis back in 2007, linked with the subprime mortgage market and the subsequent while can of financial worms that threw up.
Goldman Sachs Fraud Video from MSNBC
[UPDATE : Goldman Sachs has just said that the charges are unfounded in fact and in law and they will vigorously contest them]
Goldman Sachs stock price has slumped around 12%. According to the New York Times the charges are "the first time that regulators have taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market."
The SEC is basically asserting that Goldman Sachs and one of its chief officers misled investors by not disclosing that hedge fund manager John Pauson, (who made billions of dollars shorting the housing market), chose the assets that went into a complex security called "Abacus."
According to the SEC Paulson "paid Goldman Sachs to structure a transaction in which Paulson & Co. could take short positions against mortgage securities chosen by Paulson & Co. based on a belief that the securities would experience credit events."
Goldman Sachs, however, which allegedly received $15 million from Paulson, did not reveal these facts to investors who bought Abacus, according to the complaint.
For example, in an email in French and English sent by Goldmand Sachs employee Fabrice Tourre on January 23, 2007 stated : “More and more leverage in the system, The whole building is about to collapse anytime now…Only potential survivor, the fabulous Fab[rice Tourre]…standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implications of those monstruosities!!!” Similarly, an email on February 11, 2007 to Tourre from the head of the GS&Co structured product correlation trading desk stated in part, “the cdo biz is dead we don’t have a lot of time left.”
"Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO."
The SEC's release with regard to the Goldman Sachs alleged fraud is as follows
"Washington, D.C., April 16, 2010 -- The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter.
The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.
"The product was new and complex but the deception and conflicts are old and simple," said Robert Khuzami, Director of the Division of Enforcement. "Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party."
Kenneth Lench, Chief of the SEC's Structured and New Products Unit, added, "The SEC continues to investigate the practices of investment banks and others involved in the securitization of complex financial products tied to the U.S. housing market as it was beginning to show signs of distress."
The SEC alleges that Goldman Sachs Vice President Fabrice Tourre was principally responsible for ABACUS 2007-AC1. Tourre structured the transaction, prepared the marketing materials, and communicated directly with investors. Tourre allegedly knew of Paulson & Co.'s undisclosed short interest and role in the collateral selection process. In addition, he misled ACA into believing that Paulson & Co. invested approximately $200 million in the equity of ABACUS, indicating that Paulson & Co.'s interests in the collateral selection process were closely aligned with ACA's interests. In reality, however, their interests were sharply conflicting.
According to the SEC's complaint, the deal closed on April 26, 2007, and Paulson & Co. paid Goldman Sachs approximately $15 million for structuring and marketing ABACUS. By Oct. 24, 2007, 83 percent of the RMBS in the ABACUS portfolio had been downgraded and 17 percent were on negative watch. By Jan. 29, 2008, 99 percent of the portfolio had been downgraded.
Investors in the liabilities of ABACUS are alleged to have lost more than $1 billion.
The SEC's complaint charges Goldman Sachs and Tourre with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The Commission seeks injunctive relief, disgorgement of profits, prejudgment interest, and financial penalties."
In an e-mail Fabrice Tourre allegedly called himself the 'fabulously fab' and was stating that this was the time to be getting out of the subprime mortgage market (all allegedly of course).
Will there be any collateral damage - who else is affected ? "We continue to look" says the SEC
Another guy who saw it all coming is Andrew Lahde who famously got out and sold up before the crash then wrote his Letter to the Idiots - see Andrew Lahde
Begbies Traynor -- Datacash -- Connaught -- Findel -- Game Group -- Luminar -- HMV -- Paypoint -- Omega Insurance -- UK Coal
Sector report:
Buy GKN -- Torotrak -- Vertu
The Griller:
Buy Ideal Shopping; interview CEO Mike Hancox.
THE TIMES
Tempus Share Tips
There will be better times to buy Fresnillo
Buy Homeserve on weakness
Hold on to Alterian
Comment
More gold scrapped than mined in rush to sell used jewellery [NB.: The companies advertising on TV tend to give one-third of the prices you can get elsewhere - Ed.]
Bet of the day: AB Foods
Tiddler to watch - Nyota Minerals
DAILY TELEGRAPH
Questor Share Tips
Buy Royal Dutch Shell B for the yield
Buy JP Morgan Indian Investment Trust
Jeremy Warner: Gordon Brown's ruinous method for policing the banks
THE INDEPENDENT
Investment Share Tips
Buy JD Sports Fashion
Hold International Personal Finance -- Buy ATH Resources
[Apple rations Ipads ! How will we survive ? I predict a strong black market - Ed.]
First improvement in dividend momentum since the credit crisis began
Briefing: Chloride Group
Sharewatch: Mouchel
SUNDAY TELEGRAPH
Questor Share Tips
Buy Hilton Food Group at 232.5p - The shares are up 45% since recommendation on April 12 2009, compared with a market up 43%. Shares are still a buy.
Sell Mothercare at 590p
Comment
FSA inquiry focuses on day traders
THE OBSERVER
Why we need to cut banks down to size to stop them terrorising society
BP shareholders at loggerheads over tar sands strategy vote
Whitewash fears over Equitable Life compensation
Foreign retailers getting ready to conquer Britain's high streets
MAIL ON SUNDAY
Midas share tips
Buy CPP at 256p
Hold HMV
Andy Brough: More nice work coming Carillion's way
SUNDAY EXPRESS
Lovefilm doubles profits to £9 million
Mothercare Direct goes international
Bradford & Bingley investors ready to sue government
INDEPENDENT ON SUNDAY
UK Treasury lukewarm on plan for Iceland to pay debt in energy
SATURDAY
DAILY MAIL
Investment Extra:
Xcite Energy a speculative buy
Comment
Up to 1 million Equitable Life scandal victims will be compensated if Tories win election
DAILY EXPRESS
Householders may face a £50 increase in council tax after a secret Treasury charge to force people to recycle more
UBS say takeovers 'set to rise' as shares surge; favourites Carphone Warehouse, Go-Ahead Group, TalkTalk, and Pennon.
The FTSE finished up 65 at 5744 as the DOW moved ahead too, but after London markets closed the DOW started to tumble but then recovered to finish up 69 points at 10,926.
Miners and resource stocks drove the London markets higher as manufacturing picked up in China. The FTSE is now up by more than 6% since Jan 1 and by 45% in the past 12 months.
Xstrata, Rio Tinto, Vedanta Resources and Randgold Resources were the best performers in the mining sector.
Petrofac led the risers after being upgraded to 'add' from 'neutral' by broker Evolution Securities based on expected strong growth from their exploration and construction business.
Tullow Oil (TKW) announced that the Likonde-1 well encountered thick sands and is being plugged and abandoned.
Gartmore recovered further after indicating it suspended fund manager Guillaume Rambourg for breaching internal rules by ordering trading desks to use over a dozen favored brokers for share trades.
Ryanair took off after raising its profit forecast for year to March to not less than €310m from €275m.
Cash and carry group Booker saw sales rise in the quarter to March 26 as customers stocked up on supplies. Sales were up by 3.8% year on year.
How Does the Stock Market Work ? Download 0.99 cents
Laura Ashley says customer confidence is returning but there is a degree of caution posting a 3% rise in full year group sales to £268.4m for the 52 weeks to 30 January up from £260.5m the same time last year.
USA Markets NB : Maria Bartiromo has written a book - The Ten Laws of Enduring Success - which you can check out here .... The markets went up 100, then down to flat then back up again - finishing up 69.
Foot Locker (FL) is higher after an upgrade from FBR Capital Markets from Perform to Outperform.
Millicom (MICC) is rising after an upgrade by JP Morgan Chase from Neutral to Overweight.
Intermec (IN) is under pressure after being downgraded by Robert W. Baird from Outperform to Neutral.
Broker tips
BSS
Citigroup thinks BSS’s financial position remains strong. Citi says the shares are a ‘buy’ with a price target of 330p.
Hold Compass Group
Hold Chesnara
Buy Valiant Petroleum on weakness
Comment
Bet of the day: Source Bioscience
DAILY TELEGRAPH
Questor Share Tips
Buy Compass Group
Hold Tate & Lyle
Comment:
Government must welcome the private sector for the health of the nation -- Ofcom's Sky ruling may be an own goal -- EMI's US discussions end on a sour note
Jeremy Warner: BSkyB: Robber baron or national treasure
THE INDEPENDENT
Investment Stock Picks
Hold Topps Tiles
Hold Carluccio's
Buy Entertainment One
