THE BUCK STOPS HERE EDITION
19 MARCH 2009
Will the AIG Fiasco Ever End?
Obama Declares "The Buck Stops Here!"
Your lofty reporter has always been a huge fan of fiction. After all, she declares, there's no better way to wile away a beach holiday than with a short glass and a tall tale. Though she'd heard mention of strange truths that could rival even a master storyteller's best yarn, she cast them aside as mere fodder -- until news of the AIG exec bonuses broke. Could fiction have finally met its match?
Indeed, speaking of fiction, your reporter felt as if she had been momentarily thrust into the very folds of Clement Moore's Christmas tale. And what to her wondering eyes did appear? AIG bonuses to execs bailed out earlier this very year.
Finger-pointing abounded as President Obama noted that no one in his administration had been responsible for supervising AIG - but did declare that ultimately, the buck stops with him. We can only hope..
On to today's headlines...
GERLACH EMBARKS ON CROSS-COUNTRY TOUR
Investors Flock to Glean Guru's Insights
Who knows what goes on behind closed doors? Your inquisitive reporter, that's who. Deep inside the Harvard Square headquarters, ICLUBcentral President Douglas Gerlach has been faithfully following a rigorous workout regimen so as to amass the strength he'll need to keep the crowds under control during the stops on his upcoming cross-country tour:
- Texas, March 21
Sold Out!
- Florida, March 28
Dealing with dogs in your portfolio? Let ICLUBcentral President Doug Gerlach teach you how to set the hounds free in his presentations: Dealing with the Dogs of Your Portfolio and Secrets of Wall Street Analysts. Doug will also be available throughout the day in sunny Ft. Lauderdale to answer your questions about ICLUBcentral's software programs.
- Michigan, April 3-4
This just in... Early Bird registration has been extended to March 20! Don't miss the Featured Presentation -- "Let's Talk Stocks" -- which played to a standing-room-only crowd at the 2008 BI National Convention. Join us in Lansing and choose from more than 30 educational sessions, then drop in on live demonstrations of ICLUB's world-class investing software: Stock Analyst, Stock Prospector, Club Accounting 3 and Investor's Toolkit 5
- Minnesota, April 25
Come to Bloomington and learn how to ferret new stock ideas... in 30 minutes or less! Build a company profile in minutes with the mere click of your mouse. The StockCentral site has everything you need -- from analytical tools and research links to important data on the company, its competitors, and its industry -- even insights from analysts and fellow investors. This event is also your chance to win a copy of the Toolkit 6 software and a one-year StockCentral subscription or renewal. Don't miss out!
- California, May 9
Save the Date! By popular demand, Mssr. Gerlach will be stopping in Orange to tell you how to make more Green. More details forthcoming...
Here, There, and (Virtually) Everywhere
StockCentral Takes Cyberspace by Storm!
Your keenly observant reporter admits she did a double-take. Could there be more than one Mssr. Gerlach? Or, can a single Mssr. Gerlach be in two places at once? Though she emphasizes that little gets past her, this reporter thinks this time it might be entirely possible. She notes that not only is the investment guru combing the nation, but simultaneously, cyberspace as well. It seems Mssr. Gerlach espoused his commitment to the buy and hold philosophy at the March 12 Forbes Investor iConference: Finding Value in Uncertain Times. If you missed it, vow not to do it again, and view it on demand.
Lest it happen again, jot down the dates and be sure to register for StockCentral's upcoming free webinars:
This reporter is a big believer in second chances... not to mention thirds and fourths. If you missed any of the previous gems, be sure to view them online.
StockCentral Members Ponder...
Is AOB Stock a Value, or a Trap?
"Is anyone buying or considering AOB (American Oriental Bioengineering, Inc.) at these prices?" StockCentral Member Patrick Lander asks on the AOB forum. "The company is not covered by Value Line, which I rely on for help in making decisions. Are the shares undervalued at these prices, or is this a 'value trap'?"
"As anyone who has looked at the stock knows," he continues, "the company has had very strong and steady sales and earnings growth... The share price has gone down 53 percent from this time last year. In that same time, earnings have increased 25 percent."
"Section 4D shows the upside:downside ratio to be a whopping 15.5:1 and a compound annual return of 41.9 percent. Those numbers seem too high! Does anyone else have a current SSG on AOB? Can you compare your results with mine and tell me if I am missing something? (Are my growth rates too high?)"
Patrick vetted this reply from fellow SC member Armin Fields: "I'm always wary of stocks like AOB that are selling near or below $5.00/share and am especially guarded when they are selling close to their 52 week low in this recessionary market with no upturn in sight."
To check out the company's stats, view an SSG, or put in your own two cents, be sure to drop in on the AOB forum.
TODAY'S ENTIRELY RELEVANT QUOTATION
"Mistakes were made at AIG on a scale few
could have ever imagined possible."
-Edward Libby, AIG Chairman and CEO