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Bourbon & Bayonets is your one-stop shop for no nonsense “all-in-one” financial analysis. As you can probably tell from its name, Bourbon & Bayonets isn’t for the weak at heart. We aren’t going to pull chains and butter the fannies of the “powers that be.” That isn’t what we’re about and that isn’t what America was founded on.
Here at Oakshire Financial, we consider ourselves the cowboys of commerce. With greed and corruption running wild through the veins of Wall Street, we pride ourselves on cutting through the nonsense and bring our readers into the fold. Bourbon & Bayonets features financial and investing advice & analysis, insight, information, stock market commentary, and investment tips on all aspects of the financial and economic arena.
You name it, we talk about it. Our team has over 25 years of experience in the financial industry – from the dirty floors of Wall Street, to financial advisory, to investment banking. Our qualified and confident Oakshire Financial team helps you steer through the turbulent financial waters of today’s stock market. The best part of all? Bourbon & Bayonets is absolutely free to all – simply sign up for our newsletter in the top right corner of the website to receive your weekly issue via email.
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Mortgage applications down, Procter & Gamble (PG) beat expectations and Delta (DAL) rises despite bad weather
Markets were heading lower on Wednesday morning after applications for mortgages were down last week. The Mortgage Bankers Association reported that applications for new mortgages, which include refinancing and home purchases, fell 3.3% for the week ending on April 18. When broken down, applications for refinancing were down 3.7%, while requests for new mortgages were down 2.6%. Fixed 30-year mortgage rates inched up 2 basis points from 4.47% to 4.49%.
Shares of Procter & Gamble Co. (PG) were trading lower following news that the company’s quarterly results were up. The gain was partially attributed to a rise in sales of their home care products. Overall sales came in unchanged at $20.6 billion, while organic sales came in 3% higher. Organic sales take the effects of divestitures and acquisitions out of the sales total. Sales of Procter & Gamble’s home care product lines were up 6%. This portion of their business accounts for nearly a third of their sales. The companies most profitable business, the grooming section, was up 1%. The beauty portion of their company, which includes Head & Shoulders, Cover Girl and Olay, which they tend to have the most difficulty making profitable, was up 2%. Earnings came in at $2.61 billion, or $0.90 per share, during the first-quarter. This was up slightly from the $2.57 million, or $0.88 per share, from this time last year. Core earnings rose 5% to $1.04 per share. The company left their 2014 projections the same, with sales increasing 3% to 4% and core earnings rising 5% to 7%. A.G. Lefley, the companies CEO, said, “We’re making good progress on our productivity plans, with cost savings and enrollment reductions ahead of going-in targets for the year. We’re confident that the cumulative benefits from these innovations and productivity improvements will lead, over time, to improved value creation for consumers, customers and shareholders.”
Shares of Delta Air Lines Inc. (DAL) were trading up over 5.5% after the company reported earnings that beat out economists expectations. The airline reported net income that came in at $213 million, up a staggering $7 million from this time last year. The company earned 33 cents per share, beating out the 29 cents that analysts were expecting. Revenue was up 5% to $8.92 billion, which was on par with analysts projections. The company partially attributed the rise to a 4% increase in the amount of customers taking to the skies. This was surprising as the company had to cancel over 17,000 flights in the first two months of the year due to bad weather. The brutal winter storms cost the company $90 million in revenue. Ed Bastain, president of Delta, said, “We see continued revenue strength as we move through the year from corporate revenue gains, the benefits of the Virgin Atlantic joint venture and improved ancillary revenues.”
That’s all for today,
Jack Aubrey, Oakshire Financial…
U.S. leading indicators rise, Pacific Gas & Electric (PCG) receives felony charges and Netflix (NFLX) on the rise!
Markets closed higher on Monday after leading indicators for the health of the U.S. economy grew for the third month in a row. The Conference Board announced that their index for leading indicators rose 0.8% in March, which followed a 0.5% increase in February. This was the highest gain for the index since November of last year when there was a 0.9% rise. The announcement beat out economists expectations of a 0.7% gain. Many say the harsh winter weather played a large roll in the slowing economy during the first quarter of the year. As the weather continues to keep getting warmer, the economic data is keeping on a more positive track. Ken Goldstein, an economist at the Conference Board, said, “The economy is rebounding from widespread inclement weather and the strengthening in the labor market is beginning to have a positive impact on growth. Overall, this (leading index) is an optimistic report, but the focus will continue to be on whether improvements in the labor market can be sustained, fueling stronger economic performance over the next few months.”
Shares of Pacific Gas & Electric Co. (PCG) were trading lower after the company plead not guilty to over a dozen felony charges which stemmed from a 2010 deadly natural gas pipeline explosion. The attorney for the company plead not guilty on today in federal court on 12 felony charges. The U.S. Magistrate Judge Joseph Spero, said that prosecutors had requested an increase for the maximum fine to over $6 million if they are found to have benefited financially as a result of criminal misconduct. City officials are saying that they believe the company’s officials should be held accountable as well. Connie Jackson, San Bruno City Manager, said, “We look forward to PG&E being fined the maximum amount allowed by law to send a message not only to that corporation but to the industry. Individuals within the corporation certainly had responsibility for marking decisions… that led to the disaster in San Bruno.”
Shares of Netflix, Inc. (NFLX) were trading higher after the company reported profits that beat out analysts expectations and noted the streaming portion of their business had grown substantially during the first quarter. Net income was up $53 million from $3 million at this time last year. Earnings per share were 86 cents, beating out the 83 cents per share analysts had projected. During the first quarter the company reported 48.4 million U.S. streaming subscribers, a rise of 2.25 million. Their international base was up 12.7 million, a rise of 1.8 million over last quarter. They also predict that in the next quarter they will add an additional 1.46 million. Netflix also announced that they have plans to raise subscription fees in all of the countries they operate in. Shelby Seyrafi, an analyst with FBN Securities, said that they have “room to raise prices” because “they’re still seeing a lot of demand” for services.
That’s all for today.
Jack Aubrey, Oakshire Financial …
Choose Life! (MO, XOM, FB)
It’s not a comfortable topic to discuss at the best of times, and certainly not in polite company. But it’s become topical of late and because it has relevance to the world of finance and markets in general we feel it’s worthy of a word here.
The subject is suicide.
Yes, friends, suicide. And it’s no joke.
There have been a rash of bankers and other high-ranking financial types (among others) who’ve taken their lives as of late and our feeling is this is anything but coincidence.
Blame it on growing work demands in a world of tightrope performance pressures. Blame it an increasingly alienated citizenry, whose social time is now spent with virtual friends instead of the real, flesh and blood variety. Blame it on the material culture that we inhabit, that focuses exclusively on one’s cash hoard, social standing or notoriety at the expense of matters of the heart and spirit – and you have reasons aplenty to figure why people opt for the most desperate act of all.
A New Financial Reality?
- January 25th – Tim Dickenson, communications director at Swiss Re AG.
- January 26th – William Broeksmit, 58, senior executive at Deutsche Bank AG.
- January 27th – Karl Slym, 51, managing director of Indian carmaker Tata Motors.
- January 27th – Gabriel Magee, 39, of JP Morgan, London.
- January 30th - Mike Dueker, 50, chief economist, Russell Investments.
- February 6th - Richard Talley, 57, Founder, American Title Services.
- February 12th – Ryan Henry Crane, 37, JP Morgan.
- February 18th - Li Junjie, 33, JP Morgan, Hong Kong.
- February 19th – James Stuart Jr, National Bank of Commerce, CEO.
- March 12th – Edmund Reilly, 47, trader at Vertical Group.
- March 17th – Kenneth Bellando, 28, Levy Capital Partners.
- April 5th – Peter Schmittmann, CEO of ABN Amro (and his wife and daughter).
- April 6th – Juergen Frick, 48, CEO of Bank Frick & Co. AG (murdered).
We’re genuinely sorry for the families and friends of these individuals, who certainly must be distraught but we also have to warn that we believe this phenomenon will not be passing in nature. In short, it’s going to get worse – and potentially a lot worse.
It’s a function of our current reality. One of the primary themes of the times in which we live is suicide. Whether it’s financiers, or a nation’s finances or the very nation itself, the drive to self-incinerate seems to be growing and it’s reaching into corners we never imagined could be associated with such a trend.
Quit blowing smoke!
Without getting too far off base, let’s just make a few general statements by way of introduction and flesh them out further in the weeks ahead.
Our purpose here is to focus on investing and money.
- The tendency toward suicide is a phenomenon small investors will experience most palpably with their finances. That is, the will to lose everything, to blow up financially, to bet it all on a single horse, or to go to Vegas or binge for a fortnight, is a drive that will overtake even the sanest of individuals – particularly when other aspects of their lives are temporarily out of sorts.
Bourbon & Bayonets Recent Articles
- 04/16/14 Rise in housing starts, Yahoo! (YHOO) preps for new IPO and China’s economy misses expectations
- 04/14/14 Retail Sales jump, Citigroup (C) posts unexpected profit and General Motors (GM) saga continues…
- 04/11/14 Consumer Sentiment levels up, JPMorgan Chase (JPM) tanks and BMW joins the recent recall list…
- 04/10/14 Playing Energy against Itself (UNG, USO)
- 04/09/14 Fed hints at rate hike, Alcoa (AL) revenue down and General Motors (GM) fined…
- 04/07/14 Sears (SHLD) finalizes spinoff, Procter & Gamble (PG) raises dividends and a new Pharma giant
- 04/04/14 McDonald’s (MCD) closing stores, jobs numbers positive and the GM saga continues.
- 04/03/14 3 Trades to Clean House With (TSLA, XOM, FB)
- 04/02/14 BlackBerry (BBRY) calls it quits with T-Mobile (TMUS), Factory Orders on the rise…
- 03/31/14 Johnson and Johnson Higher, while Markets Await Yellen’s Word