Thursday, December 6, 2007

Who Keeps The Penny?

Suppose your kid told you he would get an F in Algebra, but on report card day proudly produced a D. Well you'd go out and buy him a new bicycle right? After all he did better than expected right? Sure. So be aware that during earnings season the Wall Street Pravda spin the same phrase "XYZ corporation beat the street by a penny". Which translated means clean out you accounts, get rid of your house and sell your algebra flunking kid into slavery, then dump all the proceeds into XYZ. Oh and by the way we think your STUPID. This is an age old scam. The analysts cozy up to the CEOs and CFOs and come up with a number, the analyst hit the print and airways with the number minus a penny in the weeks before the report date. Then everyone is blown away when they beat the street by a penny. Yippee! Now somewhere there's a lose penny rolling down Wall Street and I want to know where it goes. Who keeps the penny? I mean if I'm supposed to give it all up to these guy's I have a right to know don't I? No, I have no rights and neither do you. If the Street gets it's way you will have the last cent extracted from your brittle bones before they toss you into the gutter to die. Let's see how Forbes helps the cause on this one.

First that title is precious. Slams a lid on it huh and so the liability just disappears, poof? Wait I get it, they have confessed that the ship is sinking so all aboard. From the article,

"Until now it has been very difficult for investors and analysts to gauge the value of RBS's assets because the state of the underlying collateral--things like subprime mortgages--has been unclear. " On purpose!

Finally the Royal Bank of Scotland gets up off it's royal arse and fesses up. Why did they just decide to come clean? Because they had to!

They want to suck investors into the stock as they will be getting out. More from the rag,

"Fortunately, though, investors are now far more sanguine about the damage British banks have taken on than they were about two months ago, thanks to the reassuring reports from Barclay's and HSBC. "

Barclay's are you kidding me they're broke. I dumped their gold and silver ETF's IAU and SLV respectively not because I thing gold and silver are not headed higher(ha ha), but for fear of an overnight Barclay's bankruptcy. When that happens share holders are left holding the bag. These financial elites are wicked and remorseless. Hard working people are supposed to go out and buy Royal Bank of Scotland because it's not as bad as they thought it was? I'm gonna be sick.

If any of you fall for this scam and go out and drop your last cent into any stock because they "beat the street by a penny" could you please do me one last favor! If before you croak you catch a glimpse of some of that lose change rolling down Wall Street could please with your last dieing breath whisper in my ear, who keeps the penny.

2 comments:

Anonymous said...

I believe by "your STUPID" you meant "you're STUPID."

C.Tony said...

Well they think we are all stupid