Subprime Meltdown Explained

I found a great article over at CNNMoney that gives a good explanation of the subprime collapse. Enjoy the read.

How to Read a Company Balance Sheet

Informative video here, courtesy of AOL Videos & TheStreet.com.

Update - 1 Jan 09 - fixed broken link

Top 10 High-Yield Dividend Stocks

A good summary of the top 10 dividend stocks to be holding. Courtesy of TheStreet.com.

More on the Blackstone IPO Saga...Tax Issue

With the recent news of Blackstone's teflon coating, here is a great summary, courtesy of Bloomberg.com;

Reading Fine Print
Tax experts say the strategy used by Blackstone is commonly employed and is fair because the founders of the firm are effectively being reimbursed for the decline in value of their intangible assets that results from the sale.
The fact that new shareholders are ultimately bearing the burden should have been reflected in Blackstone's initial purchase price, said Victor Fleischer, a University of Illinois law professor who is advising Congress on the tax treatment of hedge funds and buyout firms.
``In a fully efficient market, one would expect Blackstone investors to read the fine print of the prospectus and discount the pricing of the IPO shares and aftermarket shares accordingly,'' Fleischer said. ``Whether that actually happened, of course, is hard to say.''

With the onslaught of IPOs in these kinds of companies coming up (e.g. KKR, etc.), read the fine print, and figure the price you are willing to pay, based on sound financial information. It will save you some headaches when you look at popping with IPOs.

To Blackstone or Not to Blackstone...That's the Question

With all the hype around Blackstone's IPO, I had mentioned before the offering that it wasn't as good as a deal as it looked. The limited nature of the shares in the overall structure and expected returns, were not going to be there. Now with the potential looming increased tax rates, Blackstone will just become another stock that sucked the shareholders dry, not unlike what happened to the Vonage IPO...shareholders left holding the bag will wonder.


More reading here, courtesy of the Financial Times.


BX Chart since the IPO;