Likely Gaseseses

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  • Apple: Why Not All Stock Splits Are Created Equal  [View article]
    " not a factor for institutional investors which own 64% of the shares. In fact, a split will actually increase the costs for these institutional investors because they must now buy more shares to invest the same amount of money."

    But how much of the price movement is due to institutions trading? Although we sometimes hear of some big name increasing or decreasing her/his/its holdings, I bet much of that 64% is in mutual funds, ETFs etc and pretty much just sits there.

    The effect on trading costs would be negligible for institutions that provide some stability for the price and if it costs more for big traders, good. Maybe they'll slow down.

    More retail investors in the stock or options or even shorting would probably make the pricing more, not less, rational. It's one thing to split a $100 stock 2 for 1 and a different matter if a $700 (hopefully) stock is split 10 for 1.
    Feb 27, 2013. 04:14 AM | Likes Like |Link to Comment
  • Goldman slashes its 2013 gold price target to $1,600 from $1,810 citing ... recent price declines. What wonderful value-added. Searching for a better reason to justify its fancy pay, the team notes a small increase in U.S. real interest rates as well as the perceived hawkish FOMC minutes (refuted by a half dozen Fed speakers over the past few days). GLD -0.3% premarket.  [View news story]
    Transcript from GS meeting:

    Let's upgrade gold!
    No wait, the price just dropped.
    Downgrade. I meant downgrade gold.
    Hold on. There's been a late rally in gold.
    Which is why we're reiterating our upgrade.
    Sorry. My mistake. That was GLW. A rally in GLW.
    Sell. Sell. Sell.
    China's central bank is buying.
    And so are we. Go Gold. Go Gold ...
    Feb 26, 2013. 08:29 AM | 1 Like Like |Link to Comment
  • The Sandstorm Gold Plunge: Warning Or Opportunity?  [View article]
    Oops. I just realized you meant the puts.
    Feb 25, 2013. 04:10 AM | Likes Like |Link to Comment
  • The Sandstorm Gold Plunge: Warning Or Opportunity?  [View article]
    "Just sold leaps (jan 2014) on SLW, with strike @$25 for $1.33."

    This has me confused.
    SLW140118C00025000 is going for more than $8. on Feb 22nd
    Feb 25, 2013. 03:31 AM | Likes Like |Link to Comment
  • Nice. Gold is downgraded at Credit Suisse, which cuts its price target to $1,600. One month ago, the bank saw gold at $1,750 in the short-term and $1,800 over the new year. GLD +0.6% premarket.  [View news story]
    And not coincidentally Credit Suisse just inaugurated an ETN, GLDI.

    "... By issuing GLDI notes, the bank’s functionally long GLD puts -- a decidedly bearish position, though one with limited risk in the event of an upward spike in gold. That’s telling.

    The interests of Credit Suisse, to be sure, conflict with that of GLDI investors. That’s no secret. The bank’s disclosure documents explicitly warns [sic] buyers: “[T]he the [sic] economic interests of the calculation agent, index sponsor, and other affiliates of ours are potentially adverse to your interests as an investor in the GLDI ETNs.”
    Feb 21, 2013. 07:41 AM | Likes Like |Link to Comment
  • 6 Companies More Profitable Than You Think And A New Way To Think Of ROA  [View article]
    Yes, but when a company like Apple is sitting on an unproductive boatload of cash, it should be considered as an idle asset from which they are apparently producing very little return.

    At least Berkshire has a history of eventually using some of its cash hoard to buy railroads and catsup producers etc but, as Einhorn has illustrated, hanging onto shareholder cash with no apparent motive other than to feel comfy about their balance sheet means that some very important shareholder assets aren't being used profitably.

    I am long AAPL and hold out hope that one way or another I'll see a more meaningful return generated in part by that cash, but using your approach I would consider the current situation a negative in terms of use of assets.
    Feb 21, 2013. 05:07 AM | 1 Like Like |Link to Comment
  • How To Prepare Your Portfolio For Fed QE Exit  [View article]
    '"All nice things eventually come to end." So goes the old adage for everyday life.'

    Not really.

    "ALL GOOD THINGS MUST COME TO AN END - There is an end to everything, to good things as well. The proverb dates back to about 1374 (Chaucer). The word 'good' was added much later. 'Everything has an end' and 'Everything comes to an end' are variants of the proverb."

    "eventually imminent" ...sort of immediately at some future date kind of thing, eh?

    English will soon join Latin as a dead language.
    Feb 21, 2013. 03:46 AM | 5 Likes Like |Link to Comment
  • VirnetX Begins Cornering Apple In Patent Fight  [View article]
    “…VirnetX council argues …”
    “…in a recent petition by VirnetX council …”

    The word is “counsel,” not council.
    Feb 20, 2013. 06:36 AM | Likes Like |Link to Comment
  • Apple Is Not Worth $460  [View article]
    Nice article from an interesting perspective. Well done!
    Feb 20, 2013. 06:25 AM | 15 Likes Like |Link to Comment
  • Apple's Massive Cash Vault Guaranteed To Come Unlocked  [View article]
    "...the company expects to hit over the coarse [sic] of the upcoming quarter. "

    Coarse?? Really?? Another hacker attack on the English language.
    Feb 20, 2013. 06:11 AM | 1 Like Like |Link to Comment
  • GLD: 155 Target Hit; Are We Ready For Over $2000 In Gold?  [View article]
    Avi, I know you're primarily talking about the pricing for gold and/or silver rather than comparing one investment vehicle to another, but any thoughts on GLD compared to PHYS or CEF or the recently offered Credit Suisse call-writing GLDI ? Or using SLV as opposed to PSLV or again CEF or SLW?

    I'm always amazed when Gartman appears on Fast Money and he's called the commodity king or whatever. It's hard to tell if Melissa Lee is being subtly sarcastic. Dennis certainly comes across as an eccentric buffoon rather than the guru he fancies himself.
    Feb 17, 2013. 10:15 AM | 1 Like Like |Link to Comment
  • American Capital: Surging NAV With More Upside Potential  [View article]
    "The question remains why investors allow the stock to trade at the dramatic discount to the assets of the company."

    Because Malon assured all his investors that they had an all-weather investment strategy and, as the debacle of 2007-2008 unfolded, he kept reassuring that the dividend was safe. It was then touted as an income investment. He lied on both counts.

    At the time, those of us owning ACAS said the same thing that the posters above are saying now and then we watched Malon protect himself & his cronies, ditch the dividend and screw investors.

    Once bitten, twice shy: look at the lovely chart;c=
    Feb 17, 2013. 02:10 AM | 1 Like Like |Link to Comment
  • G20 Sparks Gold's Ugly Sell-Off  [View article]
    "For a nation with our demographics, all you have to do is look at Japan to see our future."

    While there may or may not be some validity to your expectation that we're going the way of Japan ... what do the demographics of the US have to do with Japan? At least in those terms we are about as different from Japan as we could be.

    As far as blaming Obama for what he is doing, that's like a arsonist blaming the fire department for causing water damage.
    Feb 16, 2013. 10:26 AM | 4 Likes Like |Link to Comment
  • G20 Sparks Gold's Ugly Sell-Off  [View article]
    "All the rest of your rant is egotistical twaddle. "

    Feb 16, 2013. 10:20 AM | Likes Like |Link to Comment
  • G20 Sparks Gold's Ugly Sell-Off  [View article]
    "How do you spell M-A-N-I-P-U-L-A-T-I-O-N?"

    Yes, the markets are being manipulated ... by people & institutions & governments buying and selling. If that confounds you, keep your money in a piggy bank.

    If you bought/sold something and the price went the way you wanted, you'd be telling everyone how clever you were.
    Feb 16, 2013. 10:12 AM | 6 Likes Like |Link to Comment