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The ObamaMama Bear Market? The Survivors Citigroup Inc. (C) January 1, 2003 to March 16, 2009 60 50 40 30 20 10 0 Jan-03 Nov-03 Sep-04 Jul-05 May-06 Mar-07 Jan-08 Nov-08 2.52 Bank of America Corp. (BAC) January 1, 2003 to March 16, 2009 60 50 40 30 20 10 0 Jan-03 Nov-03 Sep-04 Jul-05 May-06 Mar-07 Jan-08 Nov-08 6.73 UBS AG (UBS) January 1, 2003 to March 16, 2009 60 50 40 30 20 10 9.80 0 Jan-03 Nov-03 Sep-04 Jul-05 May-06 Mar-07 Jan-08 Nov-08 14 March THE COXE STRATEGY JOURNAL
American International Group, Inc. (AIG) January 1, 2003 to March 16, 2009 80 70 60 50 40 30 20 10 0 Jan-03 Nov-03 Sep-04 Jul-05 May-06 Mar-07 Jan-08 Nov-08 0.92 Citigroup...now trades at what might be termed the “CEO/PE “ of 76 times. The Royal Bank of Scotland Group PLC (RBS) October 1, 2007 to March 16, 2009 250 200 150 100 50 0 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 6.56 These are among the survivors of the worst collapse of financial stocks since the Depression. They would, until quite recently, have been considered blue chips appropriate for “widows and orphans.” Their market capitalizations have plummeted, despite receiving hundreds of billions in bailouts. According to reports in The New York Times, Vikram Pandit received $216 million to become Citicorp’s CEO. If that number remains accurate, then Citigroup, after its impressive bounce to $2.75 from its low of $1 now trades at what might be termed the “CEO/PE” of 76 times—and roughly 108 times what Robert Rubin was paid in the past few years for advisory services, including his sought-after advice to the Board to increase the bank’s exposure to CDOs near the peak of the mania. March 15
Page 1 and 2: Basic Points The ObamaMama Bear Mar
Page 3 and 4: Don Coxe THE COXE STRATEGY JOURNAL
Page 5 and 6: The ObamaMama Bear Market? OVERVIEW
Page 7 and 8: The ObamaMama Bear Market? “Lord
Page 9 and 10: (In Feb. 2003, Donald Rumsfeld spok
Page 11 and 12: The top 16 Treasury positions requi
Page 13 and 14: When the overwhelming majority of f
Page 15 and 16: The answer is yes, for those immigr
Page 17: This bear market was primarily caus
Page 21 and 22: Greenspan was merely egotistical an
Page 23 and 24: Bank of America could prove the exc
Page 25 and 26: counterparty risks that subsequentl
Page 27 and 28: Nasdaq 100 Index January 1, 1997 to
Page 29 and 30: If we were in fact experiencing som
Page 31 and 32: One of the base-case arguments for
Page 33 and 34: Outside the Tropics, the world was
Page 35 and 36: Our take on all this is that the gl
Page 37 and 38: The ObamaMama Bear Market? INVESTME
Page 39 and 40: Potash Corp. of Saskatchewan Inc. (
Page 41 and 42: BHP Billiton (BHP) Relative to S&P
Page 43 and 44: The ObamaMama Bear Market? RECOMMEN
Page 45 and 46: The ObamaMama Bear Market? INVESTME
Page 47: THE COXE STRATEGY JOURNAL © Coxe A

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