joi, 25 august 2011

SEOmoz Daily SEO Blog

SEOmoz Daily SEO Blog


6 Keyword Research Mistakes You Might be Making

Posted: 24 Aug 2011 02:13 PM PDT

Posted by jamesagate

Keyword research is an all too often under-appreciated aspect of SEO.

I've written a few keyword research posts here on SEOmoz and that's because I believe it to be the blueprint of any successful SEO campaign.

Here are some of the more common mistakes that I see people make with their keyword research.

#1 – You're being Unrealistic

"It is better to have a bigger slice of a few smaller pies rather than not getting even a slither of a much bigger pie."

Keyword research appears to be a very straightforward task. You fire up your keyword research tool of choice and find the keywords that relate to your industry with the highest search volumes. Sadly, that's not the way to do it if you want to see real results.

To many businesses, high-competition keywords are simply out of reach – at least in the short and medium term. Part of good keyword research is about being realistic and selecting appropriate keywords for targeting that take into account the site's age, current authority and any future optimisation that will take place.

Targeting one word keywords is quite often unrealistic but it may also prove unprofitable – someone searching for 'Toshiba l670 laptop' is likely to be much further along in the purchasing process that someone who searches for 'laptops' – think about which searcher is likely to have their credit card out already.

There's nothing wrong with targeting generic keywords, I'm simply saying that if your campaign has limited budget and you need results in the short to medium term then targeting less trafficked, less competitive keywords is a much better way to utilise resources.

Lower traffic but lower competition keywords might not seem as exciting to target but if your website can dominate these areas fairly quickly then you are going to see far more traffic from the search engines than failing to effectively target a much more competitive term.

#2 – You're looking at broad match instead of exact match

A seemingly simple mistake but one which many people continue to make...

Search volume is of course a very important metric when it comes to keyword research but all too often people make the mistake of looking at broad search volumes rather than the exact match figure when using tools like Google's Keyword Tool.

There can be a huge difference between broad match and exact match search traffic for example:

There are 135,000 broad match searches each month in the UK for 'dog kennels' but only 14,800 exact match searches for the same keyword. Still, this wouldn't prove particularly problematic as this is obviously still a keyword worth targeting – it would knock traffic and ROI projections way off kilter if you do these kinds of things though.

The real problem comes when you choose to target a keyword like 'ladies leather handbags' which has a broad match search volume of 2,400 but an exact match search volume of only 260 – failing to base your research on exact match data might mean you think you are targeting a reasonably well-trafficked keyword when in actual fact, once you've factored in data inaccuracies, you could be looking at a very low search volume keyword indeed.

It is widely accepted that Google's Keyword Tool isn't entirely accurate when it comes to search volumes but using exact match gives you the best data available when assessing how viable a keyword is to target.

#3 – You're targeting plural instead of singular

It is very common to see a website targeting the plural version of a keyword but in most cases, it is the singular version of a keyword that people are searching for.

I see this most often on eCommerce websites where the site owner optimises category pages and because they sell more than one product, they naturally focus on the pluralised keywords for example "tablet PCs" which actually gets 91% less searches than "tablet PC".

I will readily admit that Google is much better at determining that a singular and plural version of a keyword are one and the same, but in many cases there are still differences in the search results. Failing to target the singular keyword can be the difference between your search listing being highlighted in the SERPs (=higher clickthrough) and it can also mean your website appears lower (even slightly) than marginally better targeted pages – that could be the difference between making a sale and not.

#4 – You're ignoring conversion

This one could easily turn into a rant for me because so often I come up against clients who want to rank for [insert trophy keyword] when in actual fact they'd do better (financially) targeting a different keyword or set of keywords. I try to explain that a keyword that brings in traffic is wasted bandwidth if that traffic doesn't convert. You don't hire my company to get traffic for traffic's sake...you presumably hire us to help you ultimately make more sales.

The online world is competitive and it's only going to get more competitive, therefore making the most of every penny being invested is vital.

This makes conversion and language analysis a vital part of keyword research. The human mind is the only software capable of performing a good quality 'conversion audit' of a keyword list because whilst there are programmes out there that can filter and sort keywords to make your life easier, there's no real substitute for industry experience and SEO knowledge.

There are some very basic indicators for example prefixes such as 'buy' might be a clear indicator that the traffic from this keyword is going to convert.

A keyword conversion audit is more complex than that however since each situation and market is individual. I find existing data to be a very useful way to determine which keywords are likely to convert well. If you have goal tracking setup with Google Analytics, you can easily determine the highest converting keywords your site currently gets traffic from, try to identify patterns in your highest converting keywords and then translate and apply this knowledge to other areas of keyword research.

#5 – You're selecting keywords that are out of context

This is yet more rationale to further humanise the keyword research process because most keyword tools struggle to compute words and their meaning in the way a human would.

For example, a searcher looking for 'storage' could be looking for a self-storage centre, boxes and other storage furniture for the home or even professional storage solutions for a warehouse or office.

Opportunities for confused targeting are abundant which is why it is essential the keywords you decide to target are highly-relevant and laser-focused towards what your business offers.

A good way to do this is to search manually for the keywords in Google and see the kinds of results that come up, you will likely be able to get a feel for whether the keyword is applicable to the product or service you intended to target.

#6 – You're failing to conduct keyword reviews

It is accepted that SEO is an on-going process but rarely are target keywords reviewed and audited. If a marketplace is shifting over time then you would also expect customer search behaviour to develop and evolve over time too – this makes regular keyword reviews essential.

In most markets, I find an annual review is perfectly adequate. Any time period shorter than this and there is a risk that targeting becomes a bit chaotic with efforts focused on new keywords before results on old keywords have been achieved or evaluated.

That being said, in some competitive and very fast moving markets a more regular keyword review may be required.

The aim of a keyword review is to:

  • Weed out poor performing keywords
  • Identify opportunities and areas for growth
  • Shape your SEO strategy for the future

To do a strategic and actionable keyword review you can use this adapted version of the Boston Matrix that I like to use.

Large brands use the Boston Matrix to assess the health of their product portfolio and to identify where to concentrate their resources.

You can do the same thing for your keyword portfolio.

Sort your keywords into four categories in order to better shape your search strategy for the future.

  • Question marks – these are keywords in areas where growth is likely but at present you're not getting the performance you'd expect. These are very often untapped keyword opportunities and you should plan how you are going to improve performance on these kinds of keywords.
  • Stars – high-performance keywords and loads of room for growth – find ways to capitalise on growth. My advice is to focus your resources of gaining results in these areas for maximum ROI in a short period of time.
  • Dogs – the poor performing keywords with little or no chance of growth – bin these in favour of other keywords, reallocate any resources to other areas.
  • Cash cows – the high performing keywords that show little opportunity for growth – look for ways to enhance and maintain performance whilst identifying patterns and translating this learning to other areas or verticals.

What mistakes do you see happening in the keyword research process? Please share them in the comments section below...

By James Agate, founder of Skyrocket SEO and a regular SEO contributor to leading blogs and publications across the web.


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Seth's Blog : September 13 session in my office

September 13 session in my office

By request, I'm offering a small group session in my office on the 13th of September. Call it group coaching for lack of a better term... bring your marketing, business model, web or other challenges and we'll try to work through them. A few big ideas are likely to come of it for each attendee.

Apologies in advance if you can't get a ticket, but if it goes well, I'll probably do it again. Details and tickets.

 

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How Long Should Page Titles Be – The Social Media Factor Graywolf's SEO Blog

How Long Should Page Titles Be – The Social Media Factor Graywolf's SEO Blog


How Long Should Page Titles Be – The Social Media Factor

Posted: 25 Aug 2011 10:32 AM PDT

Post image for How Long Should Page Titles Be – The Social Media Factor

Ever since the early days of SEO, the ideal title length has been the subject of much debate. Back then, it was important to use keywords that search engines would use to rank your pages near the top of the SERPS. Then you made the title as click enticing as possible so, when it appeared in the SERPS, people would be more likely to click it before they clicked the other listings. Lastly you had to strive to be concise enough that search engines wouldn’t truncate your titles. However, there’s a new factor to consider when looking at your title length: the social media factor.

Anything you can do to make less work for the person who is sharing your content, decrease their ability to screw it up, and increase its chance of spreading is a good thing… 
When someone reads your page and likes it enough to share on social bookmarking services like Reddit, Facebook, or Twitter, it’s important for those services to be able to parse your code and render your titles properly. The titles also should be enticing or interesting enough to make other people want to click and read them. They shouldn’t be stuffed with keywords or boring branding elements like your company name.

Since Twitter is the most restrictive of all the services as far as length, if it works there, it will work on most other services. There are a couple factors to keep in mind. If you are using your own URL shortener and have coded it properly, your URL will show (see How To Easily Create Your Own URL Shortener With WordPress). However, there isn’t a 100% guarantee that will persist. In some cases, people will be using clients like tweetdeck, hootsuite, bufferapp, zite or another service that will rewrite the URL. While tinyurl used to be the default shortener, it has been replaced by others like bit.ly or goog.gl. If you want to be absolutely sure and play it safe, use tiny URL or or your own shortener, whichever is longer.

You want to leave room for retweets as well so, if possible, leave another 12-20 characters free. I know that sounds like a lot. We’re planning for the worst case scenario. While it may not happen often, it’s not an entirely unlikely possibility. So, at the very least, take it into consideration instead of  discounting it completely.

In the past, there has been a lot of debate about putting the website name in the title. Some favor putting it at the front (I personally recommend against that). Most people favor putting it on the end after the page title, which is what I recommend in most cases. However, if you have a site title that is especially long or a post that was written for social media sharing or is highly likely to be shared, think about leaving the site name off completely. Having the site name auto populate on a site like reddit or in a tweet is a dangerous situation. If the submitter doesn’t edit it out, it can work against you and hinder your success. If it comes up in a tweet and isn’t edited out, it can look pretentious. Anything you can do to make less work for the person who is sharing your content, decrease their ability to screw it up, and increase its chance of spreading is a good thing

Lastly, I’d like to bring up the subject of bad characters in the title that make it not look like English. I mentioned this to them on Twitter months ago and, to be honest, it would only take 5 minutes of programming time to fix, so I don’t feel bad calling them out in public at this point. GotSaga, you have great content that I want to share, bookmark and retweet. But the hyphens and plus characters between words make my tweets look stupid if I don’t edit them out manually. I’m lazy. Stop making it a harder than it has to be to share your stuff

Avoid using strange characters in your page titles

So what are the takeaways from this post:

  • Consider title length. Make sure you are under the length of search truncation.
  • Consider URL shorteners. Find the worst case scenario of shorteners popular with your users.
  • Consider the retweet–give 12-20 characters to be completely safe.
  • Consider omitting the site name on pieces with a high probability of being shared socially.
  • Eliminate special characters or funny characters from your titles.
  • Make it as simple as possible for people to submit an optimal title if they share your piece on any social network. Make it harder for them to screw it up as well.
  • Choosing between click enticing and keyword focus is more art than science. It’s a balancing act. Don’t kill your chances for social success by focusing on keywords, and don’t sacrifice your keywords by being overly sensational or witty.

photo credit: Creative Commons LicenseNavin75

 

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Related posts:

  1. Optimizing WordPress Page Titles, Post Titles and Page Slugs While wordpress is one of my favorite CMS platforms, out...
  2. How to Add Singular and Plural Keywords to Your Page Titles This post is a short response to a question I received via...
  3. Excessive Length URL’s and Social Media Most CMS systems today are capable of generating clean URL’s....
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  5. Is There Really Such a Thing as a Social Media Expert One of the common themes I see recurring in blog/websites...

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How Long Should Page Titles Be – The Social Media Factor

Photo Gallery: Snapshots in Presidential History

The White House Your Daily Snapshot for
Thursday, August 25, 2011
 

Photo Gallery: Snapshots in Presidential History

One of the highlights for visitors taking the official tour of the White House is looking at the panels of photos that line the halls of the East Wing. Check out this gallery featuring Presidents going about some of their more noteworthy official duties, from honoring a future President with a Distinguished Service Medal to sending a telegraph to open the first ever World's Fair.

 

In Case You Missed It

Here are some of the top stories from the White House blog.

Businesses Need to be Prepared for Hurricane Irene and Other Disasters
Flooding. Drought. Tornadoes. And now, the first major hurricane of the season. Americans have been hard-hit by natural disasters this year, and small businesses are no exception. If you’re in the path of Hurricane Irene, make sure to check out these resources

Call for Questions & Input: The President’s Council on Jobs Session in Portland, Oregon
The President’s Council on Jobs and Competitiveness holds the next in a series of Listening and Action Sessions to get input on how the public and private sectors can come together to create opportunity and job creation for startups and high growth businesses. You can join the conversation on LinkedIn.

Entrepreneur All-Stars Join the Startup America Partnership
To help increase the success of young companies, the White House-led Startup America initiative has rolled out new policies in tandem with the independent Startup America Partnership, which has been hard at work mobilizing the private sector to “raise the entrepreneurial game of the United States."

Today's Schedule

All times are Eastern Daylight Time (EDT).

9:30 PM: Vice President Biden delivers remarks to U.S. service members and their families stationed at Marine Corps Base, Hawaii, Kaneohe Bay

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Seth's Blog : A little empty

A little empty

I guess this is how a sports fan felt when Joe DiMaggio retired.

Business didn't used to be personal. Now it is.

Computers didn't used to make us smile. Now they do.

We didn't used to care about whether a CEO made one decision or another, or whether or not he was healthy. I do now.

Sure, there was baseball after joltin Joe stopped playing. But it was never quite the same.

Thank you, Steve, for giving us all something to talk about and a way to talk about it with beauty (and fonts). We owe you more than we can say.

2jobspoints

 

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miercuri, 24 august 2011

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


First Houses, Now Cars: "Please Take the Damn Thing"

Posted: 24 Aug 2011 02:03 PM PDT

We saw it with homes, especially condos, now we see refusal of lenders to take possession of cars and boats following bankruptcy.

Please consider My lender refuses to repossess my car
Dear Bankruptcy Adviser,
I was forced to file Chapter 7 bankruptcy. I agreed to surrender my vehicle. After my Chapter 7 was discharged, I naturally expected my car to be picked up by the lender. It has now been three months. Is there a required amount of time in which they have to pick it up? I have made many calls about this to my lender. Not one call has been returned. Isn't there something in the law that states they have a time limit to pick up the car, or else release the title to me?-- Jim
The "Bankruptcy Adviser" responded that he is seeing this action more frequently because resale value is "so low that the lender doesn't want to waste resources to repossess, refurbish and resell."

The BA presented three options.
  1. "Keep the vehicle and use it."
  2. "Park the vehicle in a secure, public location and send a copy of the keys via registered mail to the creditor"
  3. "Call the lender every 48 hours until you talk someone into picking up the vehicle."

In regards to option number 2, the BA failed to mention there is a risk the vehicle is towed and storage charges assessed. That risk is so high and the consequences so great that #2 is not a good option at all.

To be fair, the BA does say "The risk for you here is that you will need to confirm that the car eventually was picked up by the proper entity", but that warning is not emphatic enough.

My personal suggestion is keep the vehicle and use it, but please make sure it has legally required insurance.

If someone cannot afford the insurance or this was a second, now unneeded car, then option number 3 could be appealing.

I think that upon proper notification, a lender should lose rights to the property if the lender refuses possession.

In the case of cars and boats that would work. However, in the case of condos where homeowner fees, maintenance, insurance, and back taxes may easily total far more than the home is worth, such a law would still not entice banks to take possession.

By the way, are such loans written off as worthless on the balance sheets of banks? I suspect not.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Gold "The World's Currency"

Posted: 24 Aug 2011 09:45 AM PDT

Central bank and government actions around the globe increasingly prove that gold is the place to be.

Here is an interesting Bloomberg headline that shows what I mean: Central Banks to Retain Gold to Manage Debt in Crisis
Central banks, net buyers of gold for the first time in a generation, are likely to retain their holdings even if they need to raise cash to counter an escalating debt crisis, according to Morgan Stanley.

"Once they've sold, that's it, and buying back would be extremely expensive," said Peter Richardson, chief metals economist at Morgan Stanley Australia Ltd., who's studied metals markets for 20 years. "They would rather have the backing of a rising asset within their reserve portfolios than use it to reduce debt."

Gold rallied to a record this week as rising government debt burdens and weakening currencies boosted demand for a haven. Central banks are the biggest gold holders, and Thailand, South Korea, Kazakhstan, Mexico and Russia have added to reserves this year. The precious metal is the "currency of the world" amid the debt crisis, economist Dennis Gartman wrote Aug. 19.

"Under conditions of austerity we're going to see a further deterioration of debt," Richardson said in an interview yesterday. "Rising risk argues in favor of holding on to their gold reserves rather than selling them because they've only got one shot at selling."

Currency Credibility

"The European central banks won't sell their gold because while it may be a means to raise cash, it definitely won't be enough to settle their debts," said Duan Shihua, head of corporate services at Haitong Futures Co., China's largest brokerage by registered capital. "Besides, none of the central banks believe in the currencies of other countries."
Central Bank Actions Speak Louder Than Fiat

Check that last comment out: "none of the central banks believe in the currencies of other countries".

Clearly that is an opinion, but I believe a accurate one.

Gold, Unlike all other Commodities, is a Currency

It's not often, but occasionally Alan Greenspan says something that make sense. For example yesterday Greenspan said Euro 'Breaking Down'.

It wasn't just the headline that caught my eye, it was this pair of statements:
"The euro is breaking down and the process of its breaking down is creating very considerable difficulties in the European banking system."

"Gold, unlike all other commodities, is a currency. And the major thrust in the demand for gold is not for jewelry. It's not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating."
Gold as Collateral for Loans

Also note that the German Labour Minister Wants Gold Collateral for additional loans to Greece.

Why not? Why shouldn't there be collateral for loans? And what makes more sense than gold as collateral?

Why Governments Buy US Treasuries

So why do governments buy US treasuries? Because they need to, as a simple mathematical balance-of-trade fact as I have pointed out on numerous occasions.

China and Japan (and the world in general) want to keep their export engines alive. They do not want rising currencies. Japan and Switzerland have recently intervened in the Forex markets to suppress their currencies. China does so on an ongoing basis with a peg.

As a simple mathematical necessity of trade imbalances and currency suppression, central banks accumulate US dollar denominated reserves (while bitching about it the entire time).

Gold's Honest Discipline

Speaking of trade, the way to solve trade imbalances is clear. For details, please see Hugo Salinas Price and Michael Pettis on the Trade Imbalance Dilemma; Gold's Honest Discipline Revisited.

Gold is Money

I made the case before and I repeat it now Gold is Money.

Central bank and government actions speak louder than Fiat, regardless of what crap governments force citizens to accept by decree.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


German Labour Minister Wants Gold Collateral

Posted: 24 Aug 2011 08:51 AM PDT

The battle over Greek collateral took another interesting turn as the German Labour Minister hopped into the fray asking for gold as collateral.

The Irish Times reports Merkel faces fight to restore order after intervention on collateral
BACKGROUND : Minister's remarks rapidly sent German officials into full damage limitation mode

URSULA VON der Leyen picked her moment well.

Hours before a crucial meeting of Germany's ruling Christian Democrats (CDU) yesterday, as a summer storm rolled through the German capital, the labour minister suggested Germany should follow Finland's lead on Greece.

Rather than simply hand over further loans to Athens, money many Germans believe they will never see again, Dr von der Leyen suggested Berlin should ask for collateral. Gold, preferably.

As thunder rolled overhead, the suggestion hit home like a political thunderbolt.

One month after euro zone leaders agreed a bailout reform package, and a month before the package goes to vote before national parliaments, a senior German minister appeared to be calling for a renegotiation.

On an aircraft back from Belgrade, a thin-lipped chancellor Angela Merkel reportedly told advisers: "I'm going to have to have a word with Ursula."

"This is sub-optimal," groaned a senior government source. "No one is amused."

European Commission officials in Brussels are less optimistic the collateral row is over.

The warning was clear: opening a political can of worms could spook markets and throw everything into question, including Ireland's own future loan terms.

Were yesterday's remarks a summer storm in a teacup, a strategic show of independence by an ambitious minister – or more?

That depends on whether Dr Merkel and her officials can cut dead the collateral discussion in Berlin. That will be difficult if the proposal finds favour among CDU backbenchers and the tabloid press.
For a look at other nations demanding collateral, please see Moody's Warns Against Collateral Proposal; In Response, Finnish PM Warns Finland will Not Sign Second Greek Bailout Without Collateral; Merkel Madness

So, not only might Finland, Austria, Slovakia, and the Netherlands tell the EU, the ECB, and the IMF to "go to hell", a revolt in Germany shows the matter is unsettled as well.

As icing on the collateral cake, a constitutional ruling in Germany on bailouts, (I believe a correct one that requires collateral) might end the discussion once and for all.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Hello Richard Bove, Repeating Nonsense Does Not Make It True; Bank of America Will Not Survive in One Piece

Posted: 24 Aug 2011 12:49 AM PDT

Richard Bove says Bank of America Has 'No Reason' to Raise Capital
Bank of America Corp. (BAC), the U.S. lender that lost half its market value this year, has sufficient capital to weather mounting costs tied to souring loans, said Richard Bove, an analyst at Rochdale Securities.

"Bank of America has so much cash on its balance sheet that it could pay back all of its short-term debt and a big chunk of its long-term debt," Bove said in an interview today on Bloomberg Television's "InBusiness With Margaret Brennan." "There's no reason for the bank to have to go out and raise capital whatsoever."

The firm fell as much as 6.4 percent in New York trading today and the cost to protect its debt from default surged to a record before retreating. Henry Blodget, the former Internet stock analyst turned blogger, wrote today on Business Insider that charges and loan costs may force the bank to raise as much as $200 billion.

"Mr. Blodget is making 'exaggerated and unwarranted claims,' which is what the Securities and Exchange Commission stated publicly when he was permanently banned from the securities industry in 2003," the Charlotte, North Carolina- based bank said today in an e-mailed statement.

Blodget, a former Merrill Lynch & Co. analyst, was banned for life from the securities industry after regulatory inquiries into how analysts touted stocks during the Internet boom. He was hit with $4 million in fines and repayments after watchdogs including the SEC faulted his reports on companies including go2.com. Merrill was acquired by Bank of America in 2009.
Fairest of the Fair Weather Fans

I am the fairest of the fair weather fans, in sports and in stock analysts. I like sports teams and stock analysts when they make the right plays and calls, and I criticize them when they don't.

When it comes to analysts, I do not care so much for the call itself as opposed to the reasoning behind it.

It takes time to rebuild teams and reputations. In my opinion, Henry Blodget has done just that. However, my opinion can change tomorrow because I appreciate common sense more than platitudes.

In this case, I side with Blodget and common sense. Reasonable opinions are by definition reasonable. Words and actions of 11 years ago must be discounted.

Bove attacks Blodget for things he said 11 years ago. I attack Bove for pathetic analysis today.

Which is more important?

Bank of America Tier One Capital Ratio 6 Percent

While pondering the above question, let's continue reading Bloomberg.
Bank of America had a Tier One capital ratio of about 6 percent as of June 2011 under the new rules recommended by the Basel Committee on Banking Supervision, according to an Aug. 9 note from Jonathan Glionna of Barclays Plc. The bank probably has until 2019 to reach 9.5 percent, the level required of the world's largest banks. That's enough time to bolster capital by selling assets deemed risky, Moynihan has said.
Lovely.

Bank of America is undercapitalized by huge amount by its own admission. It just wants until 2019 to straighten things out.

Moreover, Bank-of-America is counting on delays after delays after delays in rules requiring assets be marked-to-market.

Flashback March 29 2009: Mark-to-Market Lobby Buoys Bank Profits 20% as FASB May Say Yes
Four days after U.S. lawmakers berated Financial Accounting Standards Board Chairman Robert Herz and threatened to take rulemaking out of his hands, FASB proposed an overhaul of fair-value accounting that may improve profits at banks such as Citigroup Inc. by more than 20 percent.

The changes proposed on March 16 to fair-value, also known as mark-to-market accounting, would allow companies to use "significant judgment" in valuing assets and reduce the amount of writedowns they must take on so-called impaired investments, including mortgage-backed securities. A final vote on the resolutions, which would apply to first-quarter financial statements, is scheduled for April 2.

FASB's acquiescence followed lobbying efforts by the U.S. Chamber of Commerce, the American Bankers Association and companies ranging from Bank of New York Mellon Corp., the world's largest custodian of financial assets, to community lender Brentwood Bank in Pennsylvania. Former regulators and accounting analysts say the new rules would hurt investors who need more transparency, not less, in financial statements.

Officials at Norwalk, Connecticut-based FASB were under "tremendous pressure" and "more or less eviscerated mark-to- market accounting," said Robert Willens, a former managing director at Lehman Brothers Holdings Inc. who runs his own tax and accounting advisory firm in New York. "I'd say there was a pretty close cause and effect."
Mark-to-market rules were supposed to go into effect in 2007. Those rules were twice suspended. Now it seems they have been postponed indefinitely, if not scrapped altogether for the benefit of Citigroup and Bank-of-America.

Where's There's Smoke There's Fire

Forget all that. It is irrelevant. Share price alone says bank of America is is deep s***.




Bank stocks do not plunge 58% in six months for nothing. They just don't. You are delusional if you think otherwise.

That chart says there is smoke somewhere, and fire underneath.

Bove Says Share Price Irrelevant

In a bloomberg interview Bove says ...
"There is no impact whatsoever on Bank of America's balance sheet, based upon the price of its stock in the open market. If the price of the stock goes to a penny a share, it has no impact on the balance sheet of Bank of America. Bank of America sells the stock to the public, it takes in the money, and that is the end of the transaction as far as Bank of America is concerned. If you're going to break a bank, you're going to have a run on its deposits. That's not happening. Exactly the opposite is happening…Deposits are pouring into Bank of America."
Technically that is an accurate assessment. Fundamentally it is nonsense. Deposits are flowing in everywhere because of what I call a "mad dash for cash".

I commented on that phenomenon in Bank of New York Mellon to Slap Fees on Big Deposits Following "Global Dash For Cash"; When was Hyperinflation Supposed to Start?

To equate deposits, which are actually a balance sheet liability, to fiscal strength is sheer incompetence, at best.

Moreover, I stand by my statement that bank stocks do not plunge 58% in six months for no reason. Thus Bove is in FantasyLand.

Will Bank of America Survive?

I said in 2007 that Citigroup would not survive in one piece, that dividends would be sliced (well before Meredith Whitney), and that it may not survive at all. It did survive but only because of a massive rescue effort by the Fed and taxpayers.

The same applies to Bank of America today. It will not survive in one piece, and that is not just my opinion, that is what the market implies.

I am willing to take a contrary position for a while as I have done many times regarding the stock market and treasuries. However, a 58% decline in share price of a bank stock is well beyond any reasonable contrary opinion.

Sadly Richard Bove attacks the messenger instead of paying attention to the message.

Richard Bove Calls

As long as Dick Bove is willing to dig into the distant past of Blodget, let's dig into the more recent analysis of Dick Bove.


In a perverse sense, Dick Bove was correct. Citigroup wildly exceeded his $12 price prediction. Sadly, I must point out that it did so after a 10:1 reverse split.

Split adjusted, on June 19, 2009, Bove predicted a share price of $120. On May 5, 2011 Bove called for Citigroup to triple. Let's take a look at how he did.

C - Citigroup Weekly Chart



click on chart for sharper image

Bear in mind, I am just investigating nonsense by Bove on Citigroup. Time does not permit investigation of other Bove fantasy predictions.

To be fair, I fully understand how difficult predictions are. However, Bove's Citigroup predictions are both wildly and consistently wrong in terms of both magnitude and direction.

Regardless of what you think about year 2000 calls, the far more important present shows that Richard Bove is a "bullshill" selling "bullsheet". Bove's credibility is zero.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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