When DJIA is making new low in this bear market, Nasdaq is still going strong!! So freaking weird. I still want to buy put options on the still very and will probably be weak for a long time: Financials.
HartFord Financials (HIG) is having above average volumes around 28 Million as of now. The average is usually quite low. When it was around USD13-15 just before its quarter earning report, there were so many positive outlooks given to it by analysts. Too bad I cannot locate where are these reports are now. What I can remember is that it is reported that HIG has great potentials, low P/E and its investment are actually under-valued due to the turmoil,blah blah.
And it turns out that HIG now needs to sell part of the life insurance arm off to stay capitalized. To add salt to the bleeding wound, Standard & Poor downgraded their credit rating. Same thing happened to MET Life which is also suffering the same effect since both of them are in the insurance industry.
Looks like another 100 year old company will "killed" by the current financial turmoil. Prepare to go to sleep HIG.
Anime Pic: Bleach
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