Here’s a list of stocks to watch for a potential rebound tomorrow. Prepare yourself for swing trades. We will be trading these stocks which are testing new recent lows.

MCP

AVL

DANG

TSL

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Tax payers are still in the red from the bailout money the government issued. However out of the $256 billion returned the government earned $56 billion in profits. $123 billion is still unpaid from the TARP and $133 billion from GSEs. Eventually all the bailout money will be returned but the question is how will the government capitalize and will the tax payers get a cut or anything.

Take a look at this charts, showing where the money is and the returns on investments.

Sources:
Behind Administration Spin: Bailout Still $123 Billion in the Red
Paul Kiel
ProPublica

http://www.propublica.org/article/behind-administration-spin-bailout-still-123-billion-in-the-red

The State of the Bailout

http://projects.propublica.org/bailout/main/summary

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For all you up right now here’s a midnight infograph from social media graphic, showing Microsoft’s product releases, yearly revenue and major milestones. Whats not surprising is Microsoft’s stock price which can be consider more as a saving account rather than an investment. The stock price is stagnant, it just won’t break and hold the 30 level. However, whats in impressive is their yearly revenues and profits. Microsoft is sitting on a reported $53 billion in cash reserves. So for anyone interested in a safe investment with small growth, I suggest investing in Microsoft stock.

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American Airlines announced they will suspend their growth plans for 2011. Primary factor in this decision is the rising cost of oil in a volatile market and a recovering economy. Their plan is to fly less domestically resulting in higher ticket prices. The airline industry according to AMR spokesperson Tim Smith, have hiked fares 12 to 14 times.

AMR has been hammered for the year down close to 30%, currently at $6.56 -0.18 (-2.67%). American Airlines lost an estimated $50 million in revenue due to the cancellation of over 8,000 flights during storms across the U.S.

American plans to phase out their fleet of MD-80’s with the newer and larger Boeing 737-800’s that are 35% more fuel efficient. Luckily for American they were able to hedge 35% of their estimated fuel consumption for 2011 at $2.52 a gallon. Currently the cost of one gallon of fuel is $2.83, up almost 40% from 2010.

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Check out this infograph from Visual Economics.

The success stories of low budget films look tempting enough to invest in. However, don’t be fooled only a small fraction of low budget films make it big. I think we should see an infograph on the failure of low budget films, now I know that would be a never ending infograph haha.

Source: Visual Economics

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Citigroup reported 4^th quarter profits, with an income of $1.3 billion. However, their earnings were below analyst expectations, sending the stock down 6.34% to $4.80 a share. Compared to last years 4^th quarter loss of $7.6 billion, Citi has made an amazing turnaround, with revenue for this quarter at $18.4 billion vs $5.4 billion a year ago. For the year, out of $86.6 billion in revenue Citi earned $10.6 billion. This is Citi’s first year of full profits since the financial crisis of 2007. Expectations are high for Citi to continue strong growth.

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Over $36 billion will be added to the federal deficit with the Republican plan to extend the Bush tax cuts for the rich. The Democrats plan to extend the cuts only to families making less than $250,000 a year and individuals making less than $200,000 a year, that accounts for 98% of Americans.

America’s 315,000 millionaires won’t be to happy either way since under the Republican plan their tax rate would be 24.6% compared to the Democrats plan with a tax rate of 29.9%.

I wouldn’t mind joining their elite club

Source: Joint Committee on Taxation | The Washington Post – August 12, 2010

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Cisco Insider Trading:

csco is down 16% to $20.57 nearing its 52 week low of $19.82

Cisco insiders sold 6,620,750 shares and bought…. 0 shares during the last 6 months. Selling 60% of their holdings, why so much?

Source: yahoo finance

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Check out this info chart showing how high tech companies avoid U.S. & U.K. Taxes

Source: Focus

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Below are the top 10 Hedge Fund Mangers salaries. The top 25 earners were paid a collective $25.3 billion. The lowest was paid $350 million.

1.David Tepper, Appaloosa Management
Est. 2009 personal earnings: $4 billion

2. George Soros, Soros Fund Management
Est. 2009 personal earnings: $3.3 billion

3. James Simons, Renaissance Technologies
Est. 2009 personal earnings: $2.5 billion

4: John Paulson, Paulson & Company
Est. 2009 personal earnings: $2.3 billion

5: Steve Cohen, SAC Capital Advisors
Est. 2009 personal earnings: $1.4 billion

6. (tie): Carl Icahn, Icahn Capital
Est. 2009 personal earnings: $1.3 billion

6. (tie): Edward Lampert, ESL Investments
Est. 2009 personal earnings: $1.3 billion

8. (tie): Kenneth Griffin, Citadel Investment Group
Est. 2009 personal earnings: $900 million

8. (tie): John Arnold, Centaurus Advisors
Est. 2009 personal earnings: $900 million

10. Philip Falcone, Harbinger Capital Partners
Est. 2009 personal earnings: $825 million

Reference: Pay of Hedge Fund Managers Roared Back Last Year

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