Here is the Sedeca list of future failures. He is spot on as always.
Anyone smart enough to short these stocks can owe me one.
Quote:
Zions Bancorp (ZION)
Equity has traded down from 75 to 25.
Tried to issue a $200 million preferred stock offering at 9.5% but only was able to sell $47 million.
Their debt trades in the open market approximately 1,000 basis points above Treasuries, IF you can sell them, or 13-14%.
They are geograhically in Utah, but spread out to Florida, Nevada and Arizona at the top of housing to take advantage of great opportunities.
They say they need $200-300 million capital.
They maintained their common dividend.
KeyCorp (KEY)
Common Stock has traded down from 40 to 11.
Preferred Stock trades at 13%.
Debt trades in the market at 10-11% dvd.
Cut dividend in half in July, still yields 6.5% even while they lose money.
Fifth Third Bank (FITB)
Equity has traded down from 60 to 14.
There are no preferred issues outstanding.
Debt trades in 10-11% range if you can sell it.
Cut dividend by 75%.
Washington Mutual
Equity has traded from 40 to 3.
No preferred outstanding except convertible preferred.
Debt trades in the 20-25% range.
Cut the dividend to 1c per share in April.
Has admitted they will lose money for the next several years.
National City
Equity has traded from 40 to 5.
Preferred stock trades at 13-15%.
Sold a huge amount of shares at $5 per share in April.
Cut dividend to 1c per share in April.
Regions Financial
Equity down from 40 to 8.
Preferred Stock Trading at 10%.
Debt trades in the 10-11% range, if you can seel it.
Cut dividend by 75% in June.
Needs to raise $2 billion, according to Sanford Bernstein.
General Motor/GMAC (GM)
Equity has traded from 80 to 10.
Preferred stock trades in 18% area.
Short-term debt trades in 25-30% range.
Long-term debt trades in 17% range.
Eliminated common dividend in July.
Ford/Ford Motor Credit Co. (F)
Equity has traded from 60 to 4.
Preferred stock trades in 16-17% range.
Long term debt trades in the 18-20% range.
Eliminated common dividend in September.
Wachovia (WB)
Equity has traded from 60 to 14.
Issued a $3.5 billion ‘hybrid security’ in February that now trades at 11%.
S & P has stated they cannot issue any more hybrids.
Sold 92,000,000 shars of a preferred stock in December at 8% that now trades $18 or 11%.
Cut common dividend twice since February to .05 a share or 90%.
Debt trades at 9.5-10.5%.
CIT Group (CIT)
Equity has traded from 60 to 9.
Preferred Stock trades in 12% range.
Outstanding debt trades in 12-14% range.
Cut common dividend by 66%.
Sold 91,000,000 shares of common at $11 in April 2008.
|
Let me predict now that Americans will be shocked, SHOCKED, when these companies all go under.
Almost like some sort of
Shock Doctrine, isn't it? Literally.
Nothing like a stock market / banking collapse to create panic.