Good Days Ahead (C, AIG, FRE, INTC)
4/14/08: Evidenced by WFC and GS first quarter reports, we truly believed the worse days are behind us. The government has done everything they can possibly do to help these companies. Shoot, the Feds are basically giving these banks money so they can stay a float and thrive. If they can't make money in this environment, these companies deserve to die a long slow death!
Today we decided to take a sizable position in FRE. Since the government won't let FRE fail, our view is it's a good risk to reward. We'll eith make a load here or lose our shirts. Hoping for the former, of course. This stock is not recommended for those that wish to sleep well at night.
Congrats on AIG and Citigroup (C). They performed well in the past few days (thanks to WFC and GS). Hopefully this Friday's Citigroup report will not dissapoint; they might even report a profit given they announced in February they were profitable.
We also like INTC as a long term investment and currently waiting to take a position. Their 1st quarter's number is not so bad. They did beat estimates. Problem is their guidance were cloudy and understandly so. The good news with INTC is, it's basically a monopoly. No other chip maker comes close. Long term wise, can't go wrong.
