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Stocks

CROX, retailer report and credit market

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Morgan Stanley Logo

CROX is halved from its pre-earning high of $75.00, and now it sells at around $37.00, about the same price as Mindray (NYSE:MR). I know I am comparing apple to orange.

On the news, sub-prime mess among big banks, $100 a barrel oil and today weak retailer report did not help. But more importantly, it appears to me the short sellers of CROX, are taking this oppertunity to make a killing.

But all these are short term issues. For instance, the sub-prime loan loss for big banks. Morgan Stanley said it’s going to lose $3.7 billion from this. Although the number could be bigger later on, I would think Morgan Stanley would recover from this, and continue doing their IB business? Similar things can be said for Citibank? I’m not saying go buy those financial stocks now, as I am no expert on financials. But I would think the financial institutions, as the foundation of US and global economy, will not all go bankrupt?

Categories
Stocks

Subprime 101 in picture

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The following picture is from Sina.

subprime loan pic chinese

For the full size picture, here is the link.

Of course, Sina usually has a nice collection of hot topics. Here is the link to its special topic regarding “subprime”. Job well done, Sina!