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  • QuickChat #275, November 3, 2014 [View instapost]
    There is some talk of EU buying gold as well.
    Nov 18 05:48 AM | 3 Likes Like |Link to Comment
  • Swine Flu, MERS, Ebola And Medical News Concentrator September October 18, 2014 To ???.  [View instapost]
    I advise taking a look at their 10-Q before investing in that one LT. Lots of red flags… :(
    Nov 18 05:14 AM | 6 Likes Like |Link to Comment
  • QuickChat #275, November 3, 2014 [View instapost]
    I started to wonder if that surprise deal between China and the US on environmental protection would result in EPA regulations getting more stringent in the US? If that was the case, than technology stocks associated with reducing pollution should increase in value.

    On the other hand, that surprise deal could just be a pre-emptive response designed to provide leverage against increased congressional (Republican) pressure to reduce EPA requirements. In that situation, technology stocks associated with reducing pollution would not receive an increase in valuation.

    On reflection, I don't see a clear path one way or the other here.
    Nov 13 10:41 AM | 5 Likes Like |Link to Comment
  • Swine Flu, MERS, Ebola And Medical News Concentrator September October 18, 2014 To ???.  [View instapost]
    The market is acting very strange WT…
    Nov 12 09:49 PM | 3 Likes Like |Link to Comment
  • Stability Of The European Union June 2, 2014 To ??? [View instapost]
    Rosetta comet mission is successful: Philae lands on the surface of Comet 67P
    Nov 12 01:58 PM | 4 Likes Like |Link to Comment
  • Axion Power Concentrator 379: Nov. 5, 2014 [View instapost]
    When is the make up of the investors that bought into the IPO made public? I think its going to be very important to know the ownership concentration of those B warrants.
    Nov 11 05:37 AM | 6 Likes Like |Link to Comment
  • Swine Flu, MERS, Ebola And Medical News Concentrator September October 18, 2014 To ???.  [View instapost]
    Best wish's LT. I will be sending get well prayers for you.
    Nov 10 12:36 PM | 4 Likes Like |Link to Comment
  • QuickChat #275, November 3, 2014 [View instapost]
    I was also here when the original QC was designed and was one of the original QC hosts. Totally agree that political discussion do NOT belong here.

    The original QC was not designed as a general chat room. It was designed to provide useful information on investments. Each of the early members pretty much concentrated on a particular investment area. Some of the more senior investors took in the entire investing spectrum, including bonds. My original specialty was medical and energy stocks.

    The current Wall Street Breakfast thread is SA's copy of the QC. It also suffers from endless politically oriented back and forth. I find it interesting that contributors that talk politics tend to dominate the discussions. It does not seem so easy to dominate discussions when you are speaking about useful investment topics. But political discussions are endless, hence the domination potential. One of the rules I use to define the concept of "room disruption" concerns the intent to dominate discussions away from the fundamental purpose of the thread as designed by it's host.

    Back in the early QC days, if a contributor felt election results or new legislation might have an influence on future behavior of a stock or sector pick, that was seen as a legitimate topic for discussion. In those situations, the contributor needed to make a clear case supporting their contention.

    However, discussions on the merits of different political philosophies, politicians, and politics in general were not allowed. The QC is supposed to be self policing on this issue. I suppose if the readers want the current QC to concentrate on investments, the host could step in and stop political discussions. But the best way to stop this is for individual contributors to not respond to political discussions, and if they see one, to suggest that the contributor take the discussion over to the political chat room.

    Hosts have enough to do dealing with deliberate room disruption than having to edit every post for appropriate content.
    Nov 10 01:30 AM | 8 Likes Like |Link to Comment
  • QuickChat #275, November 3, 2014 [View instapost]
    Excellent work QC !
    Nov 7 07:29 AM | 5 Likes Like |Link to Comment
  • Axion Power Concentrator 379: Nov. 5, 2014 [View instapost]
    Kilroy again. Nice change on the header.
    Nov 5 04:37 PM | 9 Likes Like |Link to Comment
  • QuickChat #275, November 3, 2014 [View instapost]
    How about something along these lines LT…
    We know the ECB is going to start a massive QE program. If they don't, well, lets say they have to or else. For example, right now, Greece's debt is hanging over the EU like a harbinger of doom.

    To inject more money into the economy, the ECB needs to buy debt from banks and bonds from companies. The ECB's buying bad debt from the banks transfers the debt from the balance sheets of the banks to the ECB's balance sheet. At that point, it's effectively transmuted into a higher inflation rate via witchcraft.

    I am using alchemy and witchcraft hand-waving words here because I don't understand what the central banks are doing and the actual mechanisms involved. All I know is that something dodgy is going on.

    The banks balance sheets end up being structurally transformed, and the banks get liquidity injections via coupon payments. Where is the ECB getting the capital? From the same place the Fed got its' capital for QE -- out of thin air by the push of a button. That is what creates inflation.

    I think the ECB is going this route because giving the banks full face value cash for their bad paper resulted in the banks buying more high risk paper. Going the bond route forces the structural reform.

    If correct, this may be a signal that some kind of restructuring will be applied on sovereign debt bonds. Given that kind of threat, the banks would be induced (via a cattle prod) to exchange their sovereign debt paper for AAA bonds.

    Greece may look stable, but its' actually a powder keg. If the current government is replaced, and current polls indicate that possibility, the issue of default will surface. If Greece defaults, major banks are going to fail, and the EU's structural stability will be affected.

    There is some serious conjecture going on here, and this is likely associated with your feeling that there is something bigger going on behind the scenes.
    Nov 4 05:19 AM | 3 Likes Like |Link to Comment
  • QuickChat #275, November 3, 2014 [View instapost]
    I am a long term holder of Apple and I have looked closely at their cash situation.

    Apple spent $94 billion on dividends and share repurchases out of a $130 billion program and it's expected they will spend the remaining $36 billion on more dividends and buybacks between now and the end of 2015. Meanwhile, Icahn, has urged the company to spend far more and to do so as soon as possible. So Apple may need more cash soon.

    Apple had $155 billion in cash on its balance sheet at the end of September but $137 billion of that is held by foreign subsidiaries. So the company can't actually use much of that cash without triggering repatriation taxes if it tries to bring it back to the U.S.

    They can likely get lower cost capital in Europe given the difference in underlying interest rates. For example, U.S. 10-year Treasury’s have a yield of 2.37 percent versus 0.85 percent for German 10-year bunds. So Euro-denominated bonds may make more financial sense than selling bonds in U.S. dollars.

    I was sniffing around, and one source said they would probably pay between a 1.5 and 2 percent coupon on a euro deal (Brian Reynolds, chief market strategist at Rosenblatt Securities). By comparison, Apple's existing 10-year dollar bond yields 3.08 percent. So Apple may be able to achieve a lower borrowing cost without taking a foreign exchange risk.

    Apple isn't the first to notice the attraction of Europe for raising cash. U.S. investment-grade corporate issuers have sold $31 billion in euro-denominated bonds so far this year, according to Dealogic. That's the highest level since 2008. By comparison, U.S. investment-grade issuers have sold $341 billion in dollar-denominated bonds so far in 2014.

    As many of you know, I follow the EU with the EU news concentrator. One of the reasons EU banks are in trouble is because their balance sheets contain a large proportion of high risk sovereign debt. That happened because EU banks are strongly entangled with EU governmental policy. But that's another story.

    For me the take-away is that EU banks balance sheets need shoring up with quality investments. Many US companies like Microsoft would be well served by following the Apple strategy because it's well know what happens to US companies doing business in Europe that don't pay the toll. If a company does not pay the toll, investigations are started, and draconian fines usually follow.
    Nov 4 03:35 AM | 3 Likes Like |Link to Comment
  • QuickChat #275, November 3, 2014 [View instapost]
    Saudi Arabia lowered their prices for oil to the US, raised them to the EU… I was thinking of moving into SCO when I saw that… 75 is coming.
    Nov 3 03:11 PM | 4 Likes Like |Link to Comment
  • QuickChat #274, October 9, 2014 [View instapost]
    Add me to that LT.
    Nov 2 09:22 PM | 2 Likes Like |Link to Comment
  • QuickChat #274, October 9, 2014 [View instapost]
    OH!!! I am so sorry to hear your news Freya.
    Nov 2 06:41 AM | 2 Likes Like |Link to Comment