March 14, 2007
Discredited Home Lenders
Ugly. The only nice thing I can say is that the selling wasn’t as bad as the mini-crash of Feb. 27. Here are some key charts to keep an eye on as things further unravel or stabilize (I expect things will calm down).
(The 15 Ideas portfolio fell a little over 2% today - about the same as the S&P 500 - with Washington Mutual a real drag. In case you were wondering, I’m still accepting donations. ;-) )
GS: -1.76%
LEND: -65.17%
WM: -5.03%
MCO: -6.30%
BSC: -6.64%
XLF: -2.98%
KBH: -5.39%
Cat: | Time: 8:51 am (utc+8)
March 14th, 2007 at 9:36 am
Chairman, what do you think about the subprimes as value plays at this point? If not NEW, then LEND, NFI, etc? I don’t know anything about fundamentals, but it seems like blood’s in the streets right now in that group.
March 14th, 2007 at 10:02 am
chud: I don’t know much about them either … who can weather a storm and who can’t, that’s the question. You’d need to talk to an unconflicted industry expert.
March 14th, 2007 at 9:05 pm
More brokers will be reporting soon, lehman just did, and even though GS had good earnings, it still tanked.
I think a good play on the subprime lenders is whoever is going to be buying that debt for cheap. Probably the brokers.
May 11th, 2007 at 9:18 am
[…] Selling from the start of the day which accelerated after 11 AM and turned into a cascade as the day progressed. I can think of just four other times in the past year and a half where the action was this bad — only the rout on March 13, 2007 was worse. Maybe this day will mark a significant reversal? Apple (AAPL) nevertheless remains on the new highs list. […]