With oil prices plunging to 5-year lows, perhaps it is time to consider the cheapness of betting on the other oil black swan… Via BofA’s Jake Greenberg, In my base case, I remain structurally bearish oil. The world is making huge productivity and efficiency gains (lighter vehicles, new technology, etc.), and we are starting to…
Precious metals investors have plenty of good options when it comes to choosing a precious metals dealer. So putting up with dealers who either can’t tell you when they expect to deliver, or make commitments they don’t keep, isn’t necessary. In fact, it can be downright dangerous. Just ask the jilted customers of Tulving Company,…
Shares of Cubist Pharmaceuticals (CBST) rose as much as 35% after Merck (MRK) announced that it would acquire the company for approximately $9.5 billion. This translates to Merck paying $102 per share for Cubist while also covering $1.1B in debt, and will allow Merck to acquire a new set of antibacterial drugs. The deal makes…
Symmetry Medical Inc. (until recently SMA) recently completed the divestiture of its OEM solutions business unit to Tecomet Inc. The deal, announced in Aug 2014, was valued at $450 million in cash after fees and elimination of outstanding debt. Symmetry Medical also completed the transfer of the remaining surgical business to a new company called…
Highlights of the Prior Week Macro The monthly non farms jobs report hit on Friday and was a monster. The report showed 321,000 new jobs with the headline (U3) unemployment rate holding steady at 5.8% while the broader U6 moved down one tick to 11.4%. Oddly the labor force participation rate remained at a 36…
Crude oil has collapsed under $65 to a new five-year low on predictions that oversupply would keep building until 2015. Indeed, we are preparing a special report on Energy. Some people have assumed this is a covert manipulation to bankrupt Russia. This is not true. We are in the last throes of the collapse in…
There has been another redemption of bullion from the Sprott Physical Gold Trust. Someone has redeemed units in the Trust to obtain 36,915 ounces of gold bullion. Physical gold is not plentiful in the West at these prices. The premium on the Sprott Physical Silver Trust has moderated significantly from its recent levels. Given the…
With large cap U.S. indices hitting record highs on a daily basis, it is becoming easier to spot the areas of the market that aren’t participating. The one that stands out the most in my view is Social Media. A high-growth, high-profile industry that had huge outperformance in 2013, one would expect it to be…
Things just went a little bit turbo in the world financial markets. WTI crude continues its crash… and precious metals are surging today High yield bond prices are now below the Bullard lows of mid-October and spreads back at their widest since Oct20th. Stocks are tracking USDJPY lower tick for tick despite a…
