Two Longs, Two Different Types of Overhangs
A few years ago, I spoke here and had Carl Icahn speaking after me, and that didn’t go too well. And then last year, I’m told that I had the worst choices in the whole thing. And so I wondered if I should come back this year, and I realized that the conference gets bigger every year. They’ve expanded the speaker list. So it’s going to be harder for me to have the worst ideas this year.
The title today is Two Longs, Two Different Types of Overhangs. And this is the disclaimer. I’m going
Tagged david einhorn, delta lloyd, ira sohn conference, microsoft, steve ballmer
Is this call just a publicity stunt, pure craziness? Is it only Altucher trying to get some attention? Perhaps, what's more though, Altucher is actually worried there will be too much of a boom in the coming years. He's worried there will be another quantitative easing, a QE3, when QE2 hasn't even started to take effect. He says companies are sitting on piles of cash and will just buy their stocks if they go any lower.
Why exactly does he think Dow is going to 20,000 in less than two years? Check out the video from CNBC's Fast Money. Altucher
Tagged cnbc, dow 20000 by 2012, fast money, james altucher
Winnie Jiau, who used to work at Taiwan Semiconductor and Nvidia, gave insider stock tips to a SAC Capital Advisors trader, Noah Freeman, she was paid $120,000 a year for the tips. Additionally, she received some nice gifts for the information, including iPhones, lobsters, and gift certificates - a $300 gift certificate from the Cheesecake factory for example. Pooh likes to eat. She gave excellent insider advice but was tough to work with, Freeman told the NY Times
“I remember this because it was an unusual time to serve lobsters,” said Mr. Freeman, who mentioned that he had a
Tagged insider trading, poohster, winnie jiau
Six companies have cash stock piles
that entire countries could never fathom having in their bank vaults. Sometimes these cash piles can be a bad influence on companies though, as they make rash purchases of other companies they don't really need, chasing growth. Then, for some companies, a lot of this cash is stuck overseas, as they don't want to bring it back into the United States, otherwise they'll have to pay taxes on it.
However, this much cash is never a bad thing, obviously. What interesting is five of these companies are technology companies, where the
Jim Cramer joining the consensus and saying the stock market could go flat for the year before it finds a bottom. No jobs and no insight from the government into how to get the job market going again has left the caffeinated Cramer with no other choice. Maybe Cramer should call Jon Stewart and let him know he's not so mad all the time.
Cramer's final thoughts in the piece were these:
"Nevertheless, it is important to be realistic so as not to lead people astray, and to accept that it is possible that the market goes flat for the year
Tagged consensus, jim cramer, stock market
This is a strange one, but in a way, finally Goldman Sachs did something good for the world. Whether intentional or not, one of their investments for the Libyan Investment Authority, trades in currencies and other investments, lost over $1 billion dollars in 2008. This loss of money is of course not good for the people of Libya though. Then again, neither is Muammar Gaddafi.
Goldman Sachs then went so far as to offer Libyan leader Gaddafi a stake in their company as a way to offset or makeup for these losses. These were desperate times back in 2008-2009,
Tagged crushed, Donald Trump, Goldman Sachs, Muammar Gaddafi
The Pit: one of the most primitive, yet highly ritualized arenas of the financial world, The New York Board of Trade floor. Amidst the shouting and hand signals, the Pit is also a chaotic masterpiece of eye-to-eye trading. Through relationships built during her time as an NYBOT clerk, director Johanna Lee was given unprecedented access to the Pit, where she captured intense competition for survival, personal dramas and trading tickets.
However, the Pit has quickly become a casualty in the technology race, as electronic trading has come to dominate the market. As Lee follows the lives of several traders who were
Tagged movies, New York Board of Trade, the pit
Quants are the math wizards and computer programmers in the engine room of our global financial system who designed the financial products that almost crashed Wall Street. The credit crunch showed how the global financial system has become increasingly dependent on mathematical models trying to quantify human (economic) behavior. Now the quants
are at the heart of yet another technological revolution in finance: trading at the speed of light.
What are the risks of treating the economy and its markets as a complex machine? Will we be able to keep control of this model-based financial system,
Tagged Quants: The Alchemists of Wall Street
Good piece from 60 Minutes: Steve Kroft gets a rare look inside the secretive world "high-frequency trading
," a controversial technique the SEC is scrutinizing in which computers can make thousands of stock trades in less than a second.
An amazing stat: 70% of all the trades in the United States are done by high-frequency trades. These are traders who don't care about the companies balance sheet or what they do. They're using statistics and probabilities to make small profits on millions of trades. The valuation of a company is irrelevant.
What's more, the May 6th flash crash
Tagged 60 minutes, electronic trading, high-frequency trading
Talk about getting crushed, Sino-Forest's stock was chopped down after a report released by Muddy Waters LLC - who are shorting the stock and doing quite while so far. The stock went from $18 to around $5 in a few days, down over 63% give or take. Just wow.
What did the Muddy Waters report say, it called Sino-Forest a Ponzi scheme. The full report is here.
Sino-Forest is a Chinese lumber and forest plantation company, basically they buy and sell forests in China. Buying Chinese stocks has always been a risky business, as too much is unknown and their rules
Tagged chinese stocks, crushed, john paulson, sino-forest