With valuations stretched beyond rational belief, these two stocks have little room to run up but plenty to crash down. These are two stocks your portfolio would be better off avoiding in 2016. I have long thought avoiding stocks that might implode is just as important for portfolio performance as finding attractive equities to put…
‘Days of Infamy’ – should be in the forefront of our thoughts as we honor what for every American is the knowledge of what deceit and surprise attack can do to our Nation, and how it can fortify our spirits to rise-up and challenge any and all vermin that murder our citizens, military or civilian. Yes,…
If the junk bond bubble was this week’s most visible inducement toward illiquidity, there have been more than enough indications that might corroborate and explain. With a few more days trading, the huge jump in BofAML’s CCC junk index rate has been confirmed – with another albeit smaller surge again yesterday. At now 16.74%, that is significantly…
On the clean energy front, team Obama keeps plugging away with failure after failure. This go around involves a clean energy company in Spain that increasingly appears as if it will become the largest bankruptcy in Spanish history. Sudden Insolvency Please consider Abengoa: Another Story Of Sudden Insolvency. Throughout this current year, 99 companies across the…
This “Jobs Friday” ritual is getting truly absurd. So it can’t be repeated often enough: These artifacts of the BLS’ seasonally maladjusted, trend-cycle modeled, heavily imputed, endlessly crafted and five times revised “jobs” numbers have precious little to do with the real health of the main street economy. Indeed, the six-year run of job gains since early 2010…
At this point of the credit cycle, a lot of securities look cheap. But the question is whether they really are cheap or whether they are cheap for a good reason. One class of investment is looking exceptionally cheap right now – trading at 82.7% of their net asset value and kicking off very high…
Atlassian (Nasdaq: TEAM) is planning to price their IPO next week. It’s a hot deal, being led by the dream team of Goldman Sachs and Morgan Stanley with seven other banks on the cover. As far as stories and positioning is concerned the company is about as close to “perfect” as one will see. (Of course…
Deals and Financings 3SBio (HK: 1530) of Shenyang expanded its biosimilar business by raising its stake in Shanghai CP Guojian Pharma to 54% (see story). 3SBio, which acquired 7% of Guojian last year, paid $213 million for 47% of Guojian’s outstanding shares. Guojian has two biosimilar products on the market: Yisaipu, a biosimilar to Amgen’s (NSDQ: AMGN)…
There doesn’t seem to be much mystery to Friday’s trading action. The much promoted interest rate increase coming on December 15th was “cemented” (media term) as the Employment Report was “headline” positive. There isn’t a time I can remember when raising interest rates was a bullish and positive event. Let’s just conclude there hasn’t been a…
There were 48.86 tonnes of gold withdrawn from the Shanghai Gold Exchange for the week ending 27 November. Year to date, there have been a record 2,362 tonnes of gold withdrawn, far in excess of any other year at this time. What is the reason for this? Why is there such a strong movement in…
