Abbott has endured a strong rally that took out $35 level, leaving the stock set to benefit from the momentum that is being built up following the positive Q1 results. The overall sector is becoming more popular in the screens of traders as Life Technologies Corp. it is set to Read more…
Gold’s fall coupled with worrying macroeconomic data ignited a risk-off sentiment this week, turning investors far more pessimistic. If we add the UK downgrade, usual May sell-in and the weak momentum across markets of last week, we can imagine a bearish scenario for the coming days. In particular, we believe Read more…
After having come very close to the 100 peak, this week the USD lost some ground to the JPY trading close to the 98 level. We believe that the next target is obviously the breaking out of the 100 line. On the one hand we have updates from BOJ governor Read more…
How big is Cyprus’ economy? GDP of €18.0bn as of 2011 (latest official figure) Why does Cyprus need a bailout? Did Cyprus have an irresponsible/spendthrift Government? No, it is its banks that are the problem. Cyprus’ Debt/GDP ratio stood at 49% in 2008 and rose to 71% by 2011 Read more…
TNK-BP Energy Group Inc. Enterprise Value: $55.7 bn Rosneft Market Cap (as of 22/03/13) : $81.60bn British Petroleum Market Cap (as of 22/03/13) : $133.37bn Deal type: Acquisition increase from 50% to 100% all-cash Rosneft, the Russian state oil giant completed on the 21st of March the acquisition of the Read more…
We believe that in case of a strong distress the Nikkei index can suffer the most. Why not European equities? We believe that European equities have already suffered from the recent turmoil while the Japanese index has been heavily unaffected and has recently rallied dramatically, completely diverging from fundamentals whose Read more…
We believe that the strong fundamentals of the US economy will further push the USD that recently has underperformed its counterparties. However we believe that in the long run the currency will appreciate. We suggest two ways to take advantage of this outlook: First by selling put options on the Read more…
The EU financial transaction tax (EU FTT, aka the “Tobin Tax”) The tax that divides Europe. “Any US or Asian institutions trading securities issued in France, Germany, Italy or Spain would also be taxed”. Aims: Raise new revenues for the EU, thus plugging gaps in national budget deficitsand Read more…
We are writing a short follow up on Dell’s LBO, which we covered on February the 16th. Following his opposition to the offer of Michael Dell and Silver Lake to take Dell private, Carl Icahn, the former corporate raider turned activist investor (who is also involved in the Herbalife situation Read more…
Kohlberg, Kravis and Roberts & Co LP market cap (as of 15/03/2013): $13.27 bn Gardner Denver Inc. market cap (as of 15/03/2013): $ 3.69 bn Deal Type: LBO 100% On the 8th of March it has been reported that Gardner Denver and KKR have signed a definitive agreement in which Read more…
Trade idea: take advantage of the low-volatility environment with a butterfly strategy After breaking several all-time highs the US indices are now poised to move higher with less and less volatility. Good news coming from the job market and retail sales is welcome with a sudden decrease in implied volatility Read more…
Herbalife LTD. is a small cap company, by every measure. It sells weight management, nutritional supplement, energy, sports & fitness products and personal care products. It was founded in 1980 by Mark Hughes, who is still the president. It has a market capitalization of $4.27bn and some growing net sales. Read more…
HSBC Holdings, Plc Market Cap (as of 8/03/13): $203.55bn Newcastle Investment Corporation Market Cap (as of 8/03/13): $2.83bn On March the 5th HSBC Finance Corporation, a wholly owned subsidiary of HSBC Holdings Plc, agreed to sell a portfolio of unsecured and homeowner loans to Newcastle Investment Corporation and SpringLeaf Finance, Read more…
Manchester Airport Group PLC – Market Cap: N/A (private company) Heathrow Airport Holdings LTD – Market Cap: N/A (private company) Deal type: 100% Acquisition Size: £1.5 bn Heathrow Airport Holdings LTD announced on 28th February that it has completed the sale of its 100% interest in Stansted Airport LTD to Read more…
Trade idea: exploit the autocorrelation of all-time highs The US is growing, unemployment is back to 2008 level and confidence has increased. Stocks followed through and set an all-time high. The situation we are in puts many investors out of their comfort zone. Many seek to get back into stocks, Read more…