Corporate profits are up. They are up a lot. This is both a problem and an opportunity. It is also a reflection on its unique position within the current economic climate. No other part of the economy as much a rosy picture as corporate executives and shareholders. The government is broke. Too high a percentage of consumers are either broke or not far from broke. This is not a fair balance.
The questions that will be covered in the following posts are 'How did this disparity happen?' and "What are the changes needing to be made so that the economy rises as whole while corporations are still making profits?'.
Showing posts with label profits. Show all posts
Showing posts with label profits. Show all posts
Friday, October 7, 2011
Saturday, October 16, 2010
Profit at wikicallselling!
Hey
The account over at Wikicallselling just reported a profit of over 21% in its most recent trade. The trade lasted a total of seven months. It used the strategy of buying shares and then selling calls against those shares. The stock used for the trade was Exact Sciences Incorporated.
The account over at Wikicallselling just reported a profit of over 21% in its most recent trade. The trade lasted a total of seven months. It used the strategy of buying shares and then selling calls against those shares. The stock used for the trade was Exact Sciences Incorporated.
Wednesday, August 11, 2010
Banks will be lending soon
It looks like the retail banks will begin lending more in the near future. There are a few reasons for this idea. The banks' last quarter's earnings showed a lessening of loan losses. The banks' trading gains have also come back to earth now, eliminating that outlier. Companies also will be looking to expand their business as their balance sheets are cleaned up and their efficiencies are almost at an all time high.
The banks loan loss totals are getting smaller. This is obviously a positive for the banks in a couple of ways. Primarily, the banks can lessen the amount of money they hold back in order to cover loan losses. Last quarter, the banks used this money to pad earnings. But this is a bad long term strategy and can not be used for very long. The banks also have to replenish the amount of actual loans that were dramatically lessened in the last three to four years to their balance sheet. Consumer credit is increasing, allowing banks to feel more comfortable lending. Businesses have straightened out there balance sheets and set up their businesses to grow.
The ridiculous trading profits that were provided by the government funding through TARP is basically over. The market will not increase 50% like it did in the last two years. This will force the banks to find other forms of revenue in order to keep their shareholders happy. Lending is something that the banks are rumored to do from time to time.
Companies will have to expand their business in order to grow their profits. The ability to cut more is almost over. Production is quite high right now. Their balance sheets are set up to handle loans. They will be looking to the banks in order to provide loans to expand their business.
The banks loan loss totals are getting smaller. This is obviously a positive for the banks in a couple of ways. Primarily, the banks can lessen the amount of money they hold back in order to cover loan losses. Last quarter, the banks used this money to pad earnings. But this is a bad long term strategy and can not be used for very long. The banks also have to replenish the amount of actual loans that were dramatically lessened in the last three to four years to their balance sheet. Consumer credit is increasing, allowing banks to feel more comfortable lending. Businesses have straightened out there balance sheets and set up their businesses to grow.
The ridiculous trading profits that were provided by the government funding through TARP is basically over. The market will not increase 50% like it did in the last two years. This will force the banks to find other forms of revenue in order to keep their shareholders happy. Lending is something that the banks are rumored to do from time to time.
Companies will have to expand their business in order to grow their profits. The ability to cut more is almost over. Production is quite high right now. Their balance sheets are set up to handle loans. They will be looking to the banks in order to provide loans to expand their business.
Subscribe to:
Posts (Atom)
