Tuesday, October 6, 2009

Mike Mayo gets pasted

Remember uber bank analyst Mike Mayo? Back on April 6, he had a piece entitled the Seven Deadly Sins of Banking. You can read most of it here.

He had this chart:
And these words:

"The seven deadly sins of banking include greedy loan growth, gluttony of real estate, lust for high yields, sloth-like risk management, pride of low capital, envy of exotic fees, and anger of regulators."

Even though it couldn't make you a dime, the bears lapped it up. At that time, it was heralded by the street. It, however, was panned here on this blog.

Today, Mike Mayo put a buy on Goldman Sachs, and a target of $234.

Luckily, being late to the party isn't the eighth deadly sin!

But it was, if you used his research to short those names he panned!

But that's Wall Street research.

Because after all, anything goes with mayonnaise!

And when you need to put it on thick, use the big mouth jar!


Anonymous said...

GCI is weak today. Do you think it will be higher or lower at expiration next week?

Still holding Oct 10s, was hoping for another short squeeze, not working out at the moment.

Anonymous said...

yea, why was there a huge sell after after a nice 4-5% pop with the market?

Palmoni said...

That's the market manipulators making you want to think that real sellers linger.

It's just shorts attacking again, and each time, they get cut again and again.

It's the death by a thousand cuts. And the market that tests the mettle of every bull.

And it always takes you longer to get paid than it should!!

Palmoni said...

I was hoping for 4 on the same calls--or maybe 3.70ish