Monday, May 05, 2008

MSFT/YHOO or BAC/CFC, Maybe Not???

Top Line: Stock market action on Monday was dominated primarily by the MSFT/YHOO temporary split up. GOOG was the primary beneficiary as YHOO is now free to mate with that company. Still, YHOO did drop a bit on the news awaiting further interplay with GOOG. Our position remains bearish with the market probably topping back on Friday in sync with the jobs' report.

One other little tidbit was about Countrywide Financial's relationship with Bank of America. In the not so difficult to believe category, BAC seems to be struggling with their decision last summer to acquire CFC. We think it's sort of like homeowners who, after buying their house, realize that the price has dropped and really don't want to make those payments they promised to make so they walk away. Ironic, isn't it? Back in August, BAC was proud of their purchase, proud indeed. See our posts from August entitled "B of A, Superman?" and "Bill, Bill, Bill" for more information.

Monday's market gave us very little in the way of concrete information so we again will hold off on any further analysis until tomorrow. We apologize for the brief posts in the past few weeks...the real job is taking up too much time. We hope to see that abate in the next week or so. Thanks for your patience.

FSI: 96.01 (new relative high with RIMM leading the pack)

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