Not only that, all of this existed when he was allegedly recommending the stock and those fine journalists at Barron's pick it up like it's gospel.
Sounds like an idiot to me. Stock drops 20% and then they downgrade? Maybe, just maybe these risks are priced in at this level and shouldn't this clown have been aware of these risks before today?
Just another short that will fuel the move higher when he has to cover. Frankly, I can't imagine why would he be short now if he thinks the next couple of quarters will be great.
Let's see ETP, PE 64, paying out more than twice earnings in dividend and will probably be raising the dividend every quarter. Learn about the business and DCF before posting this garbage.
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
Published: September 30, 1999
WASHINGTON, Sept. 29— In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
Aren't they in a queit period? Perfect time for a bear raid, quiet period, trading x-div. I expect some hedgie is preparing a bearish presentation at this delivering alpha conference this week
They should have enough cash flow in the next few years to buy back the entire company. Anybody that has booked a flight lately knows this competition #$%$ is way overstated
Apparently the DOJ didn't hear the barbs these guys were throwing at each other last month. Heaven forbid the airlines ever make a profit. Let's just let Amtrak run them.
Every commentator I've heard on the matter thinks this case is joke. I guess executives should go around saying "we're going to be undisciplined and add capacity willy nilly so we can then sell those tickets at a loss and go bankrupt again"
And maybe in 2 years there will be a nuclear holocaust, but in the mean time you and the other shorts here have been dead wrong not early. Clearly, the wide demographic they sell to suggests this is not a fad at all. Revenue growth is accelerating and the stock is still cheap relative to it's growth rate. It's good thing for you there was the port slowdown and retail in general has underperformed lately.
IATA seems to be at odds with these lemming analysts and big mouth Cramer. The rest of their forecast.
IATA raises its estimate for 2015 global airline profits to $29.3B from a prior forecast of $25B. Lower oil prices and a focus in the industry on efficiency are both cited by the association as positive factors. IATA says load factor is at a record high of 80.2%.