Call it the passing of time. Usual headlines on mega chips didnt seem attractive. The big short was always the play. Charlie Rose holding the iPad was just an hour long infomercial.
New tides have reached the desert sands. Coincidentally, the Maddoff proposition of low risk with low consistent returns is the new grail, and the infomercial is then another attempt to curve fit the news of tomorrow.
Thursday, January 26, 2012
Google lost a bit of steam, and a buy was suggested
Fears from the Motorola acquisition and a small disappointment in earnings for pricing and non-operating income made Goog catch a cold.
However, there is consensus on a buy. In the money: strike price of 540 is 28.49 with high volatility. With one month still out, it is a taker.
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Opening market next day: 27% gain plus or minus when you actually moved in or out of the position. Price strike of 540: +7.84 from 28.49.
However, there is consensus on a buy. In the money: strike price of 540 is 28.49 with high volatility. With one month still out, it is a taker.
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Opening market next day: 27% gain plus or minus when you actually moved in or out of the position. Price strike of 540: +7.84 from 28.49.
Chinese solar panel producers to suffer passing of evolution
From the 330 chinese manufacturers of solar panels, only 15 are expected to survive the next few years.
Meanwhile, the major players continue to post huge gains on a daily basis. There seems to be a correlation between good economic news and these stocks. They did hold while the markets hesitated to post gains.
On the other hand, Germany one of the largest markets, is planning to cut subsidies on its domestic solar panel market. This is probably helping the rebound expecting more supply from chinese manufacturers.
Without much new information, it is time to decide whether to get out on the next station or hold hoping that the spike in the volume traded with an increase in prices continues.
Meanwhile, the major players continue to post huge gains on a daily basis. There seems to be a correlation between good economic news and these stocks. They did hold while the markets hesitated to post gains.
On the other hand, Germany one of the largest markets, is planning to cut subsidies on its domestic solar panel market. This is probably helping the rebound expecting more supply from chinese manufacturers.
Without much new information, it is time to decide whether to get out on the next station or hold hoping that the spike in the volume traded with an increase in prices continues.
Saturday, January 21, 2012
Google bought Motorola. Ooops?
Google strategic decision to control the supply chain in the mobile market will backfire when it realizes it needs to behave like everyone else unless it pulls it off brilliantly.
Having Motorola's slow growth in their statements will make Google's numbers look less attractive. It seems they didn't consider this when announcing the buyout.
They said they will report Motorola separately. Isn't that a choice everyone would like to have?
Even when staying optimistic and positive, what is going to happen to the transactions out of the synergy? Even assuming there is no precendent on this, what happens when Motorola requires assistance that Google investors were not expecting?
On the other hand, what better way to go head to head with Apple by getting their hands into hardware. Sometimes when you are left with the hot potato, you just have to find a way to cool it.
Having Motorola's slow growth in their statements will make Google's numbers look less attractive. It seems they didn't consider this when announcing the buyout.
They said they will report Motorola separately. Isn't that a choice everyone would like to have?
Even when staying optimistic and positive, what is going to happen to the transactions out of the synergy? Even assuming there is no precendent on this, what happens when Motorola requires assistance that Google investors were not expecting?
On the other hand, what better way to go head to head with Apple by getting their hands into hardware. Sometimes when you are left with the hot potato, you just have to find a way to cool it.
Spread
When a company changes its symbol, should it be a positive or a negative sign of the randomness Gods? The ask is for 56% more than the bid. Is it lack of knowledge of the market or just a hussle. Meanwhile, the volume traded is almost zero. Someone is hoarding and waiting like one of those big fishes that camouflage themselves at the bottom of the sea with their jaws open.
Thursday, January 19, 2012
Market Data
Reuters is a great data provider with great API:
https://customers.reuters.com/Home/RMDS.aspx
There are also niche players focused on these type of testing. Technical Analysis Magazine lists and rates some of them.
Apple expecting to grow
More promises from AAPL. More sales of the iPad and now they seem to be able to run Microsoft Office. Bye bye mouse, keyboard, monitor, speakers, web-cam, and surge protector. Competition for leadership from the OS executive might have a longer lasting effect if chosen.
What about Now? By 5 o'clock, I am a dinosaur! Call Option expiring this week for a strike price of 435 (only 6 above today's closing is just $0.65.
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For a reason, there was consensus the stock was going to dip. It was priced right.
What about Now? By 5 o'clock, I am a dinosaur! Call Option expiring this week for a strike price of 435 (only 6 above today's closing is just $0.65.
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For a reason, there was consensus the stock was going to dip. It was priced right.
Wednesday, January 18, 2012
After deep decline, solar has seen a rebound
CSUND, the Chinese manufacturer and assembler of solar panels seems to have been chosen and completed an installation in India. Rose 13% in one day following a positive streak of positive momentum. Hoping it is not just someone unloading and cutting losses. 68% decline in shares sold short. Is the demand just to return the shares?
Meanwhile, it seems Germany is absorbing contracts from the leaders in the segment helping on a rebound. Either way, their hands are tied. Inventory is decreasing value as we speak. Materials are more expensive relative to the final product. There is a mini-deflation effect on the segment. Dollar per watt has emerged as the metric of choice instead of the complete deliverying of a product to the market. Rat race like the old Mhz per clock cycle. A breakthrough or a stable demand is needed.
Meanwhile, it seems Germany is absorbing contracts from the leaders in the segment helping on a rebound. Either way, their hands are tied. Inventory is decreasing value as we speak. Materials are more expensive relative to the final product. There is a mini-deflation effect on the segment. Dollar per watt has emerged as the metric of choice instead of the complete deliverying of a product to the market. Rat race like the old Mhz per clock cycle. A breakthrough or a stable demand is needed.
The inevitable and steep learning curve of the rails
China's bullet fast train crashed in a head on collision. The blame falls on official corruption, low quality (Chinese) signal equipment, and political pressure to meet deadlines.
Even though the promise was great, historically it was expected. There is nothing worse than the American fatal rail history. The US lived through such a bubble and disasters in railroad construction that hordes of railroad companies defaulted on their bonds. The US solution to the problem? The bankers became more involved in railroad operations to assure returns to foreign investors creating the Trust as the logical solution.
But it seems the biggest lesson for China is that their amazing economic minds are ignoring a basic principle of macro-economics: relative advantage. If they insist on building everything themselves, they will just have to take a number in the back of the line behind Latinoamerican countries after they fell in love with the notion of imports substitution.
Even though the promise was great, historically it was expected. There is nothing worse than the American fatal rail history. The US lived through such a bubble and disasters in railroad construction that hordes of railroad companies defaulted on their bonds. The US solution to the problem? The bankers became more involved in railroad operations to assure returns to foreign investors creating the Trust as the logical solution.
But it seems the biggest lesson for China is that their amazing economic minds are ignoring a basic principle of macro-economics: relative advantage. If they insist on building everything themselves, they will just have to take a number in the back of the line behind Latinoamerican countries after they fell in love with the notion of imports substitution.
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