Thursday (01/19/12) Pre-Market Morning Update: Hedge Funds May Sue Greece

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Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.

Today’s Top Stories:

  • Citi Global Strategy: “Asked equity strategists around the world for 10 contrarian and 10 momentum investment ideas for 2012.  Contrarians underweight defensives, overweight financials; momentum ideas are more mixed: US Underweight Autos, while Japan Overweight Information and Communication” (Citi)
  • David Einhorn’s New Position: He disclosed that he added two new positions in Q4, which include DELL and Xerox
  • BAC Earnings: BAC reported 4Q11 EPS of $0.15. The most recent consensus was $0.16. Operating revenues declined 8% on both a y-o-y and sequential quarter basis. Relative to our expectations, fee income and net interest income (smaller balance sheet) were below our forecast
  • Marathon Asset Adds AM: Marathon Asset Management disclosed a 15.98% stake in the outstanding common stock of American Greetings Corporation (NYSE:AM)
  • Credit Suisse Global Strategy: “We raise our year-end target for the S&P 500 to 1,400 (8% above current levels) from 1,340 – and see a significant likelihood of an overshoot near term, on the back of the following factors: 1) The ECB’s 3-year LTRO is a potential game changer: it is printing money; could be exceptionally large; could drive the euro to levels required to stop the recession (c€/$1.10); is driving the three-year bond yield to levels consistent with temporary debt sustainability in Italy and Spain; and, critically, it is a form of debt mutualisation (as the haircuts applied to collateral are too low) that is less emotive for the German public than QE or the SMP” (CS)
  • Goldman 4Q IB Results: Net revenues in Investment Banking were $857 million for the fourth quarter of 2011, 43% lower than the fourth quarter of 2010 and 10% higher than the third quarter of 2011
  • Hedge Funds May Sue Greece: edge funds have been known to use hardball tactics to make money. Now they have come up with a new one: suing Greece in a human rights court to make good on its bond payments
  • JPM Center of MF Global Failure: n late October, as MF Global Holdings Ltd teetered toward bankruptcy, Jon Corzine phoned his close-knit circle of Wall Street friends for help
  • One million homeowners getting mortgage help: About one million American homeowners would get writedowns in the size of their mortgages under a proposed deal with banks over shady foreclosure practices, U.S. Housing and Urban Development Secretary Shaun Donovan said on Wednesday

M&A Watch:

  • Weekly M&A Trends: M&A volumes increased 44% while equity and debt underwriting rose substantially
Disclosure: I do not have a position in any stocks mentioned in this article, do not have a plan to initiate a position within the next 72 hours.
Disclaimer:  The information, opinions, material, and any other content provided in this article is for informational purposes only and is not to be used or considered an offer or solicitation to buy or sell securities, investment products, financial instruments, or to participate in any particular investment strategy. The information, opinions, material, and any other content provided in this article does not constitute as a recommendation or as advice to buy or sell securities, investment products,  financial instruments, or to participate in any particular investment strategy.

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