Vacuum Cleaners Discussions

Early news reports in the USA are saying the London financial markets nosed dived today in the worse downturn ever.  This comes on the heels of a 4 percent drop in the Dow Jones Industrials last week alone.  Since today is a Federal Holiday in the US in observance of Dr. Martin Luther King the financial markets are closed.  Not sure what impact the London market fall will have on the US markets--have to wait to see.

What and how long will it take jaydee to realize that he needs to enter the low to middle price range vacuum market to stay competitive in the USA in the big box stores' venue?

Any news yet on the 2007 dyson sales? 

Carmine D.

Hello Venson:

The zeal over the aggressive Fed action to cut both the discount rate and Fed funds rate was short lived.  The 400 point Dow gain on Tuesday was given up yesterday.

Bear employees thought the $2 a share price was a typo.  Instead, thinking it was supposed to be $20.  They were shocked.  The 14,000 employees own 30 percent of the company stock.  They will fight and protest the buyout by JP Chase Morgan but to no avail.  US government will prevail and it is behind the bargain basement buyout price.  Just like the Japanese did in the early 1990's when the weak failing banks were gobbled up by the bigger banks to save the banking system.

Many Bear employees thought the bag pipe playing during the Monday St. Patrick's Day Parade was a funeral dirge for Bear Stearns. 

Carmine D.

CarmineD wrote:

Is that 75k per family with 2 working?   How many total per family.

Why is the decimal and two zeroes necessary?

Hello HARDSELL:

Good question.  It's household income.  It can be a single person in an apartment and/or a married couple with children and all living in a house.  It's the average annual income of all residents in the state. 

The decimal and zeroes is for full and complete disclosure.  $75K; $75,000; and/or $75,000 are all the same.  Don't really need the comma either after the $75, but it's more correct to include. 

Carmine D.

Venson:

I forgot to mention that a year ago, Bear stock was $160 per share, 3 weeks ago $85 per share and today $2. Unbelievable for a firm with 85 years of history, 5th largest in the industry, that weathered the Great Depression and many business cycles after.

Carmine D.

Anyone know the bonus money paid to themselves for the last few years of losing peoples financial futures?

Lucky1 wrote:

Hello Lucky:

The Wall Street Journal did a recnt article on just this issue.  I haven't had time to digest and post.  I will in the next few days.

Carmine D.

Lucky1 wrote:

Lucky1:

According to the WSJ which cites an Executive Compensation Consulting Firm, the 5 top paid execs for Bear between 2004 and 2006 earned $381 Million which is more than the $236 Million bargain basement price received from JP Chase Morgan.

This is the latest data available.  None of the execs will get severance pay and the values of their shares in Bear have dropped with the Chase takeover.

JP Chase Morgan was the clearinghouse for underwriting the Bear loans.  It was intimately familiar with the imminent Bear liquidity problems and was able to pounce on the deal [with the Feds in its corner].

Carmine D.

CNBC "Street Signs" w/ Erin Burnett will interview CEO's from Best Buy, General Mills and others.  2pm Eastern today.

Thanks DIB.  A competitor of BEST BUY, Circuit City, is struggling.  An investor group has the major holdings and forcing management shakeup. 

BEST BUY stock is down big time and not rebounding.  It's watching the CC developments very closely.

Carmine D.

Didn't catch the interview.  But..............a synopsis of the economy:  Worse stock market in 9 years.  Some are calling it the lost decade since the levels are the same.

New housing starts the worse in over 20 years.  New and existing housing sales the worse in 20 years.  Foreclosures are the highest since the 40's and the Great Depression.  And of course, oil and gas prices and food are at all time highs. 

The Consumer Confidence Index, long watched as a signal of recessions and depressions, is at levels commensurate with past recessions and depressions.

And of course, Bear Stearns the 5th largest investment bank going belly up: From $160 per share to $2.00 in less than 6 months.  And more such collapses anticipated.

BEST BUY stock is down about $10 plus per share off it's 52 week high.  Circuit City which as late as mid 2007 was trading for $20 plus a share, is now at $4. The nose dive in stock price allowed private investors to buy up the majority of the stock and force the management shakeup.  Don't think there are any bidders for it if it goes on the auction block.  It may fold in the months ahead.

Not alot of good news for the US economy ahead.  Most, even the most optimistic, are predicting a recovery, after a bottom, won't be seen until 2009, pushed back from mid 2008 earlier predictions. 

PS: Wal*Mart stock price is at $53 plus a share, a 52 week high.

Carmine D.