Wednesday, March 29, 2006
Oil-ETF launch set for Monday, pending SEC approval - MarketWatch
Oil-ETF launch set for Monday, pending SEC approval - MarketWatch: "The ETF, called United States Oil Fund LP, is set to launch on Monday and trade under the symbol 'USO.' It will be managed by commodity-pool operator Victoria Bay Asset Management LLC, according to a bell-ringing ceremony invitation sent to journalists by the Amex. "
Tuesday, March 28, 2006
Bill Cara: A world without GM?, Mon., Mar. 27, 2006, 9:59 AM
Tobin’s Q valuation ratio, for example, is at 0.03. That means that the GM stock valuation (about $12 billion) is just about 3 pct of what it would cost to replace the existing assets. If the Tobin’s Q ratio is less than 1.0, there is an implication that the stock is undervalued.
But that’s based on a going concern, which in the case of GM is debatable. We all know GM is in financial trouble.
The best predictor of insolvency or even bankruptcy is an financial measurement called the Altman’s Financial Structure Z-Score Ratio. If the Z-Score is equal to or better than 3.0, then the Company is likely to be financially sound. Below 1.81, it’s in trouble or headed that way. GM’s financial trouble is confirmed by its present Z-Score of 1.08.
Altman's Z-Score and Tobin's Q-Ratio can be found at the ADVFN Financials service for all U.S. listed industrial companies. I refer to them often.
But that’s based on a going concern, which in the case of GM is debatable. We all know GM is in financial trouble.
The best predictor of insolvency or even bankruptcy is an financial measurement called the Altman’s Financial Structure Z-Score Ratio. If the Z-Score is equal to or better than 3.0, then the Company is likely to be financially sound. Below 1.81, it’s in trouble or headed that way. GM’s financial trouble is confirmed by its present Z-Score of 1.08.
Altman's Z-Score and Tobin's Q-Ratio can be found at the ADVFN Financials service for all U.S. listed industrial companies. I refer to them often.
Credit investors ponder GM-sized hole in universe - Yahoo! News
Credit investors ponder GM-sized hole in universe - Yahoo! News: "Should a strike be called, GM could be bankrupt by June, Boulanger said. After that any scenario might play out, but the status of GMAC will be crucial."
Monday, March 27, 2006
Transparency Becomes Opaquicy - Where's the Truthiness?
Bob's Gold Price Column: "Why don�t they want to be transparent with the most important statistic, the very measure of why they were established by a minority of Congress during a late night session back in 1913? Because they cannot wait to pump money to high heaven like some sort of fiat tower of Babel.
M-3 was increased by $28.3 billion last week, a 14.2 percent annualized rate of growth. Over the past 2 weeks, M-3 was boosted an amazing $81.9 billion, for an annualized rate of growth of 20.7 percent! Over the past 8 weeks, M-3 is up 129.6 billion, an 8.2 percent rate of growth, and is up a whopping $249.7 billion over the past 12 weeks, a 10.7 percent annualized rate of growth, a $1.0 trillion annual expansion.'"
M-3 was increased by $28.3 billion last week, a 14.2 percent annualized rate of growth. Over the past 2 weeks, M-3 was boosted an amazing $81.9 billion, for an annualized rate of growth of 20.7 percent! Over the past 8 weeks, M-3 is up 129.6 billion, an 8.2 percent rate of growth, and is up a whopping $249.7 billion over the past 12 weeks, a 10.7 percent annualized rate of growth, a $1.0 trillion annual expansion.'"
Big Mike's Bearish on GLD
Big Mike's Contrarian Investing Blog: Gold coins: bad investment: "Even the gold ETF is a bad investment in my opinion. It's just not leveraged enough. If the price of gold goes up by 50% from here, that's really not such a great return on investment. I like to buy things that will at least double. That's why I own shares of DRD Gold (NasdaqSC: DROOY), a gold mining company. DRD Gold is highly leveraged to the price of gold and will increase in value many times if gold ever takes off."
Saturday, March 25, 2006
GM vs. Ferrari - Surprised?
So I was reading an article about the best known luxury brands in China, and here's what I found.
Christie's was voted the best auctioneer,
Very low P/E @ 6.55, so-so div @ 2.28, low margin @ 7.45
Vacheron Constantin the best watch, (private, and the world's oldest Manufacture - a watch ETF would be interesting, it could convert watches into a currency)
Davidoff the best cigar, (Imperial Tobacco)
Giorgio Armani the best designer, (private?)
Hennessy, Chivas Regal, and Dom Perignon the best liquors, (private?)
Princess the best yacht, and (SCAS group - China distributor, private?)
Ferrari the best sports car.
I was in China last year and visited the markets in Beijing. The only things I didn't see counterfeit were Ferraris and Princess yachts, and that was probably because the tourists couldn't fit them in their luggage. Mont Blanc, Columbia, North Face, Gap, and fake Gucci and Samsonite luggage to haul it all away. It was a never-ending onslaught of fake goods. Apparently over 95% of the antiques in China are fake too, even though they would still have the largest collection of antiquities in the world.
But back to the stock - Ferrari looks like an interesting play, though it probably won't get as much attention in a bear market. Come to think of it, unless China's boom keeps on booming, most of these product sales should stay relatively flat, I would think.
GM seems to be coming back? What about all those big pension and health care costs?
Most popular message boards on Yahoo
Yahoo!
Can we track the popularity of a stock by the # of posts? Interestingly CISCO is miles ahead of the competition in terms of # of posts (4M vs 2M for Sirius radio)
AMD, MSFT and AMZN come 3rd - 5th.
Apple, Cisco, Microsoft & XM Radio have the top posts of the day. When it comes to message board, techies seem to like to talk about tech I guess.
Let's see if I can dig up a sentiment indicator somewhere...
Can we track the popularity of a stock by the # of posts? Interestingly CISCO is miles ahead of the competition in terms of # of posts (4M vs 2M for Sirius radio)
AMD, MSFT and AMZN come 3rd - 5th.
Apple, Cisco, Microsoft & XM Radio have the top posts of the day. When it comes to message board, techies seem to like to talk about tech I guess.
Let's see if I can dig up a sentiment indicator somewhere...
Seeking Alpha » Top Ten Industry Groups Year To Date
Seeking Alpha » Top Ten Industry Groups Year To Date: "Top Ten Industry Groups Year To Date
Eddy Elfenbein submits:
Steel……………………………………………….38.95%
Precious Metals……………………………….30.77%
Commercial Vehicles………………………..24.28%
Telecommunications…………………………17.12%
Heavy Construction…………………………..16.44%
Fixed-Line Telecommunications…………15.92%
Building Materials…………………………….15.28%
Industrial Supplies…………………………..14.78%
Gambling…………………………………………14.76%
Defense…………………………………………..14.56%"
Eddy Elfenbein submits:
Steel……………………………………………….38.95%
Precious Metals……………………………….30.77%
Commercial Vehicles………………………..24.28%
Telecommunications…………………………17.12%
Heavy Construction…………………………..16.44%
Fixed-Line Telecommunications…………15.92%
Building Materials…………………………….15.28%
Industrial Supplies…………………………..14.78%
Gambling…………………………………………14.76%
Defense…………………………………………..14.56%"
Friday, March 24, 2006
Realtime WIkipedia and Tim Horton's IPO
Tim Hortons - Wikipedia, the free encyclopedia: "Tim Hortons [1] is the largest coffee and doughnut chain in Canada holding approx. 75% of the coffee market. It is well-known for its coffee, doughnuts, Timbits, bagels, soups, and sandwiches. Some Canadians consider the chain a significant part of their national identity and culture.
Tim Hortons entered the TSX (Toronto Stock Exchange) on March 23, 2006 with an IPO of $27 per share, raising over $700 million in the first day of trading."
Tim Hortons entered the TSX (Toronto Stock Exchange) on March 23, 2006 with an IPO of $27 per share, raising over $700 million in the first day of trading."
Thursday, March 23, 2006
Fear and Greed in Coffee - Tims sold at $27 a share
globeandmail.com : Tims sold at $27 a share: "The bankers priced the IPO last night at the top end of a previously disclosed range of between $25 and $27 a share. That range was itself increased earlier this week from between $21 and $23."
Industry observers had expected the bulk of the offering would be handed to institutions, but the small amount set aside for regular investors — the people who line up for one of Tim Hortons' signature double-doubles each day — managed to surprise even some bankers working on the deal.
Something tells me this stock will be a GOOG Buy, I mean Good Buy.
"We had institutions saying to us, four months ago, that they would take as much of Tim Hortons as they could get. They hadn't even seen a prospectus, and they wanted it," marvelled a senior executive at one of the dealers.
Of course, this is coming from some sell-side PR agent that doesn't even know how to spell Jim Cramer's real name.
Noted U.S. financial pundits, like CNBC's Jim Kramer, have weighed in on the doughnut maker, counselling investors not to hold on to the stock too long because Tim Hortons lacks a solid platform for growth.
Boo-Ya. Flip a coin Jim.
Industry observers had expected the bulk of the offering would be handed to institutions, but the small amount set aside for regular investors — the people who line up for one of Tim Hortons' signature double-doubles each day — managed to surprise even some bankers working on the deal.
Something tells me this stock will be a GOOG Buy, I mean Good Buy.
"We had institutions saying to us, four months ago, that they would take as much of Tim Hortons as they could get. They hadn't even seen a prospectus, and they wanted it," marvelled a senior executive at one of the dealers.
Of course, this is coming from some sell-side PR agent that doesn't even know how to spell Jim Cramer's real name.
Noted U.S. financial pundits, like CNBC's Jim Kramer, have weighed in on the doughnut maker, counselling investors not to hold on to the stock too long because Tim Hortons lacks a solid platform for growth.
Boo-Ya. Flip a coin Jim.
How much is 411canada.com and 411canada.ca worth?
CNW Group: " REDCITY SEARCH COMPANY INC. ('RDC')
BULLETIN TYPE: Property-Asset Acquisition
BULLETIN DATE: March 22, 2006
TSX Venture Tier 2 Company
TSX Venture Exchange (the 'Exchange') has accepted for filing
documentation pertaining to an Asset Purchase Agreement, dated March 10, 2006,
between RedCity Search Company Inc. (the 'Company'), and Great Exposure Inc.
(the 'Vendor'), whereby the Company has agreed to purchase the domain
properties '411Canada.com' and '411Canada.ca'
The $100,000 aggregate purchase price will be satisfied by a cash payment
of $10,000, a $20,000 unsecured non-interest bearing promissory note maturing
on June 30, 2006, and the issuance of 280,000 common shares of the Company.
A finder's fee of $10,000 is payable to Michael Katz of Toronto, ON.
For further details, please refer to the Company's news release dated
February 10, 2006."
BULLETIN TYPE: Property-Asset Acquisition
BULLETIN DATE: March 22, 2006
TSX Venture Tier 2 Company
TSX Venture Exchange (the 'Exchange') has accepted for filing
documentation pertaining to an Asset Purchase Agreement, dated March 10, 2006,
between RedCity Search Company Inc. (the 'Company'), and Great Exposure Inc.
(the 'Vendor'), whereby the Company has agreed to purchase the domain
properties '411Canada.com' and '411Canada.ca'
The $100,000 aggregate purchase price will be satisfied by a cash payment
of $10,000, a $20,000 unsecured non-interest bearing promissory note maturing
on June 30, 2006, and the issuance of 280,000 common shares of the Company.
A finder's fee of $10,000 is payable to Michael Katz of Toronto, ON.
For further details, please refer to the Company's news release dated
February 10, 2006."
Wednesday, March 22, 2006
Philip Fisher - Wikipedia, the free encyclopedia
Philip Fisher - Wikipedia, the free encyclopedia: "Fisher suggested using 15 questions to evaluate a company:
1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
2. Does the management have a determination to continue to develop products or processes that will further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
3. How effective are the company's research and development efforts in relation to its size?
4. Does the company have an above-average sales organization?
5. Does the company have a worthwhile profit margin?
6. What is the company doing to maintain or improve profit margins?
7. Does the company have outstanding labor and personnel relations?
8. Does the company have outstanding executive relations?
9. Does the company have depth to its management?
10. How good are the company's cost analysis and accounting controls?
11. Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition?
12. Does the company have a short-range or long-range outlook in regard to profits?
13. In the foreseeable"
1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years?
2. Does the management have a determination to continue to develop products or processes that will further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited?
3. How effective are the company's research and development efforts in relation to its size?
4. Does the company have an above-average sales organization?
5. Does the company have a worthwhile profit margin?
6. What is the company doing to maintain or improve profit margins?
7. Does the company have outstanding labor and personnel relations?
8. Does the company have outstanding executive relations?
9. Does the company have depth to its management?
10. How good are the company's cost analysis and accounting controls?
11. Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition?
12. Does the company have a short-range or long-range outlook in regard to profits?
13. In the foreseeable"
Old Money
The Investing Philosophy of Philip A. Fisher: Common Stocks and Uncommon Profits by James K. Glassman -- Capitalism Magazine: "Philip Carret was born in 1896, the year the Dow Jones industrial average was launched. He died almost six years ago at 101."
Street Stories Guide - John Neff
Street Stories Guide - John Neff: "Trading/ Valuation Techniques Employed
* Only buys when a stock is too cheap and acting badly at that moment in the market. Infallibly sells when it is too expensive and acting strongly in the market.
* Tolerates portfolio concentration in industry groups.
* Average holding is 1/3 lower than market P/E, and with dividend yield 2% higher.
* ( Growth Rate + Dividend Yield ) / PER = 'What you get for what you pay'"
* Only buys when a stock is too cheap and acting badly at that moment in the market. Infallibly sells when it is too expensive and acting strongly in the market.
* Tolerates portfolio concentration in industry groups.
* Average holding is 1/3 lower than market P/E, and with dividend yield 2% higher.
* ( Growth Rate + Dividend Yield ) / PER = 'What you get for what you pay'"
Financial Weapons of Mass Destruction
Futures Industry Association | FI Magazine Home: "Futures and options on broadly defined underlying commodities or indexes cannot help but dominate futures or options on individual securities. Among the top 20 we find the Kospi 200 options hanging out in a world of their own. At 2.5 billion traded, it sounds a lot like McDonald's in an earlier age. Volume reached a high of 2.8 billion in 2003 and fell 11% in 2004. The downward trend appears to have ended in 2005 with a .54% uptick. "
Tuesday, March 21, 2006
Google Finance: Bandag, Incorporated
Google Finance: Bandag, Incorporated
Apparently Google is including blog postings on it's finance summary page - and mine is there for Bandag Tires.
Apparently Google is including blog postings on it's finance summary page - and mine is there for Bandag Tires.
Sunday, March 19, 2006
Kenneth Lay to be found guilty of AT LEAST 4 of the charges brought against him
TradeSports Trading & Betting Exchange, part of Trade Exchange Network.
Central Park NY to have ON or OVER 5 inches of snowfall by 31 Mar?
President Bush to sign a bill permitting oil drilling in ANWR on/before 31 Mar06?
Kofi Annan to announce his resignation ON/BEFORE 30JUN06?
Donald Rumsfeld to announce his resignation on/before 30June2006?
Dick Cheney to announce his resignation on/before 30June2006?
USA and/or Israel to execute an overt Air Strike against Iran by 30June06?
Bird flu (H5N1) to be confirmed in the USA ON/BEFORE 31st March 2006?
US law passed by 30JUN06 allowing taxpayers to divert SS taxes to managed private accounts?
These are some of the things you can bid on at Tradesports.com - and what are on the minds of traders today.
Central Park NY to have ON or OVER 5 inches of snowfall by 31 Mar?
President Bush to sign a bill permitting oil drilling in ANWR on/before 31 Mar06?
Kofi Annan to announce his resignation ON/BEFORE 30JUN06?
Donald Rumsfeld to announce his resignation on/before 30June2006?
Dick Cheney to announce his resignation on/before 30June2006?
USA and/or Israel to execute an overt Air Strike against Iran by 30June06?
Bird flu (H5N1) to be confirmed in the USA ON/BEFORE 31st March 2006?
US law passed by 30JUN06 allowing taxpayers to divert SS taxes to managed private accounts?
These are some of the things you can bid on at Tradesports.com - and what are on the minds of traders today.
Ford + GM = Canada + US
Financial Mathematics: Seminar
Check out the Credit Markets in 2005 Presentation. Ford & GM comprises around 1/3 of the bond market.
Also a good primer on Credit Default Swaps (CDS) - insurance if (when) the creditor defaults, the creditholder gets 40% on the dollar.
As you go down the indices (CDX1 - CDX5) you get into more risky trading. When CDX6-10 show up, my guess is that we are in deep trouble.
But wait.. instead of doing this they created X05 "to contain toxic fallen angels like FMCC and GMAC"
Wow. In order to trade these now, the creditor needs to front some cash for compensation in protection schemes.
One of the blames, notes the presenter, is Bush's failure to bailout the sector.
Bankruptcy and Chapter 11 are mentioned, with notes that C11 allows for nullification of union contracts, the ability to cut healthcare & pensions, and shut down factories.
The liquidity cycle: Asian countries peg their currencies and buy Treasuries _> US can maintain low interest rates -> US consumers borrow to buy cheap
made-in-China (or generally Asian) imports -> Asian economies grow -> Asian governments keep currency pegs -> Asian countries buy more Treasuries…
When those arrows reverse & buy turns to sell.. what happens?
Check out the Credit Markets in 2005 Presentation. Ford & GM comprises around 1/3 of the bond market.
Also a good primer on Credit Default Swaps (CDS) - insurance if (when) the creditor defaults, the creditholder gets 40% on the dollar.
As you go down the indices (CDX1 - CDX5) you get into more risky trading. When CDX6-10 show up, my guess is that we are in deep trouble.
But wait.. instead of doing this they created X05 "to contain toxic fallen angels like FMCC and GMAC"
Wow. In order to trade these now, the creditor needs to front some cash for compensation in protection schemes.
One of the blames, notes the presenter, is Bush's failure to bailout the sector.
Bankruptcy and Chapter 11 are mentioned, with notes that C11 allows for nullification of union contracts, the ability to cut healthcare & pensions, and shut down factories.
The liquidity cycle: Asian countries peg their currencies and buy Treasuries _> US can maintain low interest rates -> US consumers borrow to buy cheap
made-in-China (or generally Asian) imports -> Asian economies grow -> Asian governments keep currency pegs -> Asian countries buy more Treasuries…
When those arrows reverse & buy turns to sell.. what happens?
Saturday, March 18, 2006
People are buying wheat?
Winnipeg Commodity Exchange -: "Wednesday, February 01, 2006 - Winnipeg - Trade in futures and options contracts on Winnipeg Commodity Exchange Inc. ('WCE') on January 31, 2006 posted an all-time daily volume record with 33,381 contracts traded."
Learn Thai (THI) and Trade big wins
"The Toronto Stock Exchange has conditionally approved the listing of the common stock under the symbol 'THI.' Tim Hortons has applied to list the common stock under the same symbol on the New York Stock Exchange."
Thai, eh? I'm in!
Here's a list of stocks on Canada's newest market, the CNQ.
Rock? BEER? POKR, WOLF, HAWK, GOLD, SAGE, FORT, IQIT. Seems to be a lot of chest-thumping guy stocks on there. (Well, maybe not BIRD.U, or SMRT, or PERL.) I like OMGM - Oh my gawd Mineral. And XPEL.U. Sounds like a university for the underachiever.
Maybe the S&P 500 List has some more interesting names. YUM? RIG? BUD? XOM?
Hmm..
CNQ has a better chance of capturing the MTV generation...
Thai, eh? I'm in!
Here's a list of stocks on Canada's newest market, the CNQ.
Rock? BEER? POKR, WOLF, HAWK, GOLD, SAGE, FORT, IQIT. Seems to be a lot of chest-thumping guy stocks on there. (Well, maybe not BIRD.U, or SMRT, or PERL.) I like OMGM - Oh my gawd Mineral. And XPEL.U. Sounds like a university for the underachiever.
Maybe the S&P 500 List has some more interesting names. YUM? RIG? BUD? XOM?
Hmm..
CNQ has a better chance of capturing the MTV generation...
Going short?
PRXL: Summary for PAREXEL INTL CP - Yahoo! Finance: "Parexel International Corp. (PRXL)"
Thursday, March 16, 2006
Skynet is taking over...
The US Market Blog » Fed Liquidity Injections, Program Trading Behind Goldman’s Blowout Earnings (GS): "Nearly 60% of trading on the NYSE consists of program trading as opposed to 20% in 2000."
Your Money - Fed Reserve responsible for massive private-sector profits
The US Market Blog » Fed Liquidity Injections, Program Trading Behind Goldman’s Blowout Earnings (GS): "Remember Goldman Sachs is a primary dealer and benefits greatly from strategic liquidity injections from the Fed. What they do with those monies is to trade like hell."
The Gold Stock Blog » Trailing 12 Month P/E for Gold Companies
The Gold Stock Blog » Trailing 12 Month P/E for Gold Companies: "Trailing 12 Month P/E for Gold Companies"
CEF - Overbought but still a buy?
The Gold Stock Blog » Central Fund Canada Poised to Grow (CEF): "CEF (Central Fund Canada) has both a holding in silver and gold bullion so adding it to our gold holdings gives us an unleveraged addition of gold with silver."
iUnits - Step back from that man behind the curtain!
ETF Investor » Barclays Deceitful About iShares ETF P/E Ratios: "Barclays calculates the PE ratios of its ETFs by excluding companies that are not profitable.
The result is that they claim that their Russell 2000 ETF has a P/E ratio of 19.1. If negative profits are included, however, the PE ratios of the Russell 2000 is 41."
The result is that they claim that their Russell 2000 ETF has a P/E ratio of 19.1. If negative profits are included, however, the PE ratios of the Russell 2000 is 41."
Earth, Wind & Fire... and Water
ETF Investor » Investing in Water? A Deeper Look into the PowerShares Water Resources ETF (PHO): "Comment by Market Participant
2006-03-16 17:12:32
PHO is one of my core portfolio holdings (PHO, PID, and SDY), I think the macroeconomic arguments for investing in water are enourmous. As well because water service is a capital goods/natural resource industry it is fairly resisitant to inflation.
That said, the water secor as a whole has or will soon become somewhat “frothy”, witness PHO’s massive growth in market cap over the past few months. This is certainly the case for PBW (Clean energy ETF). However I think the macro element remains very compelling even if these funds don’t meet a strict value critera.
If I were to create a macro natural resources/Energy services portfolio I think I would go for a blend of IGE, PHO, PBW and XLU @ 25% each. This portfolio would have good expsure to macro-growth (IGE, PHO, PBW) and decent dividends (IGE,XLU).
PHO/PBW are also a good way to add small cap exposure to a portfolio, but beware that most of their stocks are classified as small cap growth."
2006-03-16 17:12:32
PHO is one of my core portfolio holdings (PHO, PID, and SDY), I think the macroeconomic arguments for investing in water are enourmous. As well because water service is a capital goods/natural resource industry it is fairly resisitant to inflation.
That said, the water secor as a whole has or will soon become somewhat “frothy”, witness PHO’s massive growth in market cap over the past few months. This is certainly the case for PBW (Clean energy ETF). However I think the macro element remains very compelling even if these funds don’t meet a strict value critera.
If I were to create a macro natural resources/Energy services portfolio I think I would go for a blend of IGE, PHO, PBW and XLU @ 25% each. This portfolio would have good expsure to macro-growth (IGE, PHO, PBW) and decent dividends (IGE,XLU).
PHO/PBW are also a good way to add small cap exposure to a portfolio, but beware that most of their stocks are classified as small cap growth."
Wednesday, March 15, 2006
Gold and Irrational Exuberance
Definition of Irrational Exuberance: "The term irrational exuberance became Greenspan's most famous quote, out of all the millions of words he has uttered publicly. The term 'irrational exuberance' is often used to describe a heightened state of speculative fervor. It is less strong than other colorful terms such as 'speculative mania' or 'speculative orgy' which discredit themselves as overstating the case. I chose this phrase as the title for my book because many people know instantly from this title what this book is about."
Get to know Irrational Exuberance, 'cause it's back!
Stock market picks � Garzarelli.com: "Here you can examine the system pioneered by stock market quantitative analyst Elaine Garzarelli. Using her sector analysis Recent Press:
Fearless Forecasters
Equity Strategists: Garzarelli Predicts 25% Gain in S&P 500
�additional articles �
methodology, she predicted the stock market crash of 1987, the upturn that followed, the 1990 bear market, and the bear market bottom in September 1990. She also predicted the 2000 bear market in May 2000. She warned of stock market overvaluation months before Greenspan's 'irrational exuberance' speech in 1996. Her newsletter is now available online.
More about Elaine Garzarelli "
Fearless Forecasters
Equity Strategists: Garzarelli Predicts 25% Gain in S&P 500
�additional articles �
methodology, she predicted the stock market crash of 1987, the upturn that followed, the 1990 bear market, and the bear market bottom in September 1990. She also predicted the 2000 bear market in May 2000. She warned of stock market overvaluation months before Greenspan's 'irrational exuberance' speech in 1996. Her newsletter is now available online.
More about Elaine Garzarelli "
CNQ - Canadian Trading & Quotation System Inc.
Canada has a new stock exchange, Canada's New Stock Exchange. CNQ.
Which currencies are managed by the Fed?
FRB: FOMC Minutes--January 31, 2006: "To purchase and sell the following foreign currencies in the form of cable transfers through spot or forward transactions on the open market at home and abroad, including transactions with the U.S. Treasury, with the U.S. Exchange Stabilization Fund established by Section 10 of the Gold Reserve Act of 1934, with foreign monetary authorities, with the Bank for International Settlements, and with other international financial institutions:
Canadian dollars
Danish kroner
Euro
Pounds sterling
Japanese yen
Mexican pesos
Norwegian kroner
Swedish kronor
Swiss francs"
Canadian dollars
Danish kroner
Euro
Pounds sterling
Japanese yen
Mexican pesos
Norwegian kroner
Swedish kronor
Swiss francs"
Monday, March 13, 2006
PPT isn't just a Powerpoint document - it's a license to print money
The Fed prints up billions of dollars and slips them into an offshore bank account for say XYZ Investment Corp (which is established as a front for the PPT). JP Morgan and Goldman Sachs are then designated as the brokers for XYZ Corp to act as the funnels to bring the "new money" into the economy via the PPT's "market stabilization activities." Thus, there are unlimited funds for use to short gold, buy dollars, and buy S&P futures whenever the markets look to be in jeopardy. Whenever the offshore account runs low, the Fed merely prints up more money for a PPT operative to deposit into the account.
Sunday, March 12, 2006
Printing money to keep afloat
A Zimbabwean Businessman, His Firms Seized, Takes On Mugabe: "'For a long time we have been expecting the Zimbabwean economy to implode,' said Todd Moss , a research fellow at the Washington-based Center for Global Development. 'It has been a mystery to us how the ruling party has been coming up with money to pay off some of its debts. The point is that it finances itself through a series of front companies. In the last 10 years the economy has gone backwards, so that the average income is what it was in 1953,' he said."
Mawere claims President Robert Mugabe has been printing money to keep his government afloat and that the money seized from Mawere's and other businesses is part of the money being paid to the IMF, which is supposed to be a champion of private property rights. Mugabe, 82, announced in 2004 that his government would demand half the shares in all the country's privately owned mines. "We cannot recognize absolute ownership of our resources. No!" he was quoted as saying.
Mawere claims President Robert Mugabe has been printing money to keep his government afloat and that the money seized from Mawere's and other businesses is part of the money being paid to the IMF, which is supposed to be a champion of private property rights. Mugabe, 82, announced in 2004 that his government would demand half the shares in all the country's privately owned mines. "We cannot recognize absolute ownership of our resources. No!" he was quoted as saying.
Barely feed your family on $9 million a month?
Inflation in Zimbabwe Soars to 782 Pct. - Yahoo! News: "In a broadcast Saturday, state radio said prices rose 27.5 percent during the month of February alone, with an average family of five needing Zimbabwean $9 million, or $90 at the official exchange rate, just to meet basic food needs."
Thursday, March 09, 2006
BOJ ends unique super-loose monetary policy: Financial News - Yahoo! Finance
BOJ ends unique super-loose monetary policy: Financial News - Yahoo! Finance: "Japan's central bank scrapped its super-loose monetary policy on Thursday but -- reflecting concerns about fallout for world markets and the domestic economy -- said it will keep short-term interest rates around zero for now."
Tuesday, March 07, 2006
Silver ETF approval speculation nears fever pitch - MarketWatch
Silver ETF approval speculation nears fever pitch - MarketWatch: "'I believe the proposed silver ETF can be the biggest thing for silver since the Hunt brothers,' said Peter Grandich, editor of the Grandich Letter, referring to the duo that tried to corner the silver market and pushed silver to $50 an ounce around 1980. "
When I was your age... inflation calculator
This article has some good benchmarks on what the price of gold is.
Use the link to the Bank Of Canada's Inflation Calculator, we can get the present value of gold if it was purchased in a given year and only matched inflation.
If you bought gold in:
1933 @ 20.67 it would be worth $309.57 today.
1947 @ 35.00 would be worth $392. (That's up over 1000%, not as much as if you bought Gold Corp last year.)
1971 @ $41.17 would be worth $218.22.
Doing some backtesting, gold in 1933 would be worth $58.40 in 1971. Gold in 1947 would be $73.96 in 1971.
By my rough math, looking at $15-$20 increases over 20-40 years, we should be around... $100 today. Yes I'm just making that up. But why did I buy GLD at a high a few days ago anyway?
My theory as to why gold is going down over the last couple of days is because the gold bugs are all in Toronto at ...
Maybe when they get back to work, things will resume being bully.
Rather than investing in gold, maybe it makes more sense to invest in a gold-related job. There are 204 job postings at PDAC jobs, most of them in Ontario.
Well I been workin’ in a coal mine
Goin’ down down
Workin’ in a coal mine
Whew about to slip down
Five o’clock in the mornin’
I’m up before the sun
When my work day is over
I’m too tired for havin’ fun
Lord I am so tired
How long can this go on
I been workin’ goin’ workin’
Whew about to slip down
I recently received this email (to my surprise, since I'm not signed up with JobShark) that offered an amazing opportunity.
ACCENTURE CONSULTING LTD, pursuant to the service contract with
Shell Nigeria Exploration and Production Company (SNEPCO) in their
Bonga Field Development Project (BFDP), intends to Invite experienced
and reputable persons having prime experience and capable of providing
IT technical support services (as individuals or in a team).
Now Nigeria and email in the same sentence would usually raise some red flags for me, since I get 2-3 Dear. Mr. So And So your long lost uncle Dr. Whozawhat has your $20,000,000 emails per day from these guys. But this one was different.
It talked about some things I do at my current job:
Preparation of Business Impact Analysis, Stakeholder Analysis,
Organizational Risk Assessment/ systems audit, review across
infrastructure and platforms of the project, Communication Plan,
Sponsorship Plan and Education Requirements.
Liaising with IT and project teams in respect of the approval and
risk assessment on implementation and systems projects.
Advice on IT projects, risks and security matters.
And some things I don't currently do but could do:
1·Computer hardware installation and installation of selected
software.
2.Application development/maintenance for duration of contract.
3.System Engineering.
4.IT strategy and planning.
5.Comprehensive networking throughout pertinent project facilities
Especially if you look at the next paragraph.
Salary indication (individual) - (US$20 000.00 monthly).
Well then, where do I sign up?
This programme would be carried out within the Shell Nigeria Exploration
and Production Company (SNEPCO);
One of the people I work with is from Nigeria - when I told him about this he laughed and said I would last about 6 hours in Laos. Apparently the police aren't authorized to work at night....
It took over a week, but Jobshark caught on and finally sent a warning for this. I wonder how many people tried to apply so far?
Jobshark regrets that it may have sent you an "IT SYSTEM ADMINISTRATOR"
opportunity from an organization called Accenture Consulting
(unrelated to Accenture Ltd). We have discovered that this
organization is fraudulent and its business practice is illegal. Please
do not apply to this position. The position has been removed from our
web site. Please do not submit any requested personal identification
information or funds for any reason.
We appologize for any inconvenience this have caused you. Please free to
contact us with any further questions or concerns.
Those 4-1-9 scammers are getting really creative. Next they will be advertising on iTunes or Google.
Use the link to the Bank Of Canada's Inflation Calculator, we can get the present value of gold if it was purchased in a given year and only matched inflation.
If you bought gold in:
1933 @ 20.67 it would be worth $309.57 today.
1947 @ 35.00 would be worth $392. (That's up over 1000%, not as much as if you bought Gold Corp last year.)
1971 @ $41.17 would be worth $218.22.
Doing some backtesting, gold in 1933 would be worth $58.40 in 1971. Gold in 1947 would be $73.96 in 1971.
By my rough math, looking at $15-$20 increases over 20-40 years, we should be around... $100 today. Yes I'm just making that up. But why did I buy GLD at a high a few days ago anyway?
My theory as to why gold is going down over the last couple of days is because the gold bugs are all in Toronto at ...
Maybe when they get back to work, things will resume being bully.
Rather than investing in gold, maybe it makes more sense to invest in a gold-related job. There are 204 job postings at PDAC jobs, most of them in Ontario.
Well I been workin’ in a coal mine
Goin’ down down
Workin’ in a coal mine
Whew about to slip down
Five o’clock in the mornin’
I’m up before the sun
When my work day is over
I’m too tired for havin’ fun
Lord I am so tired
How long can this go on
I been workin’ goin’ workin’
Whew about to slip down
I recently received this email (to my surprise, since I'm not signed up with JobShark) that offered an amazing opportunity.
ACCENTURE CONSULTING LTD, pursuant to the service contract with
Shell Nigeria Exploration and Production Company (SNEPCO) in their
Bonga Field Development Project (BFDP), intends to Invite experienced
and reputable persons having prime experience and capable of providing
IT technical support services (as individuals or in a team).
Now Nigeria and email in the same sentence would usually raise some red flags for me, since I get 2-3 Dear. Mr. So And So your long lost uncle Dr. Whozawhat has your $20,000,000 emails per day from these guys. But this one was different.
It talked about some things I do at my current job:
Preparation of Business Impact Analysis, Stakeholder Analysis,
Organizational Risk Assessment/ systems audit, review across
infrastructure and platforms of the project, Communication Plan,
Sponsorship Plan and Education Requirements.
Liaising with IT and project teams in respect of the approval and
risk assessment on implementation and systems projects.
Advice on IT projects, risks and security matters.
And some things I don't currently do but could do:
1·Computer hardware installation and installation of selected
software.
2.Application development/maintenance for duration of contract.
3.System Engineering.
4.IT strategy and planning.
5.Comprehensive networking throughout pertinent project facilities
Especially if you look at the next paragraph.
Salary indication (individual) - (US$20 000.00 monthly).
Well then, where do I sign up?
This programme would be carried out within the Shell Nigeria Exploration
and Production Company (SNEPCO);
One of the people I work with is from Nigeria - when I told him about this he laughed and said I would last about 6 hours in Laos. Apparently the police aren't authorized to work at night....
It took over a week, but Jobshark caught on and finally sent a warning for this. I wonder how many people tried to apply so far?
Jobshark regrets that it may have sent you an "IT SYSTEM ADMINISTRATOR"
opportunity from an organization called Accenture Consulting
(unrelated to Accenture Ltd). We have discovered that this
organization is fraudulent and its business practice is illegal. Please
do not apply to this position. The position has been removed from our
web site. Please do not submit any requested personal identification
information or funds for any reason.
We appologize for any inconvenience this have caused you. Please free to
contact us with any further questions or concerns.
Those 4-1-9 scammers are getting really creative. Next they will be advertising on iTunes or Google.
Xerox - Factbook
Xerox - Factbook: "Board of directors authorizes repurchase of $1 billion in Xerox common stock."
Xerox is down 5% over the year.
Xerox is down 5% over the year.
Monday, March 06, 2006
Google Interview Questions - GameDev.Net Discussion Forums
Google Interview Questions - GameDev.Net Discussion Forums: "
Q: 'How many gas stations would you say there are in the United States?'
(my answer): A business doesn't stick around for long unless it makes a profit. Let's assume that all gas stations in the US are making at least some profit over the long run. Assume that the number of people who own more than one car is negligibly small relative to the total American population. Figure that 20% of people are too young to drive a car, another 10% can't drive because of disability or old age, 5% of people use public transportation or carpool, another 5% choose not to drive, and another 5% of the cars are inventory sitting in lots or warehouses that a dealership owns but which no one drives.
There's about 280 million people in the US; subtracting 50%, that means there's about 140 million automobiles and 140 million drivers for them. The busiest city or interstate gas stations probably get a customer pulling in about twice a minute, or about 120 customers per hour; a slower gas station out in an agrarian area probably sees a customer once every 10 or 15 minutes, or about 4 customers per hour. Let's take a weighted average and suppose there's about one customer every 90 seconds, or about 40 customers an hour. Figuring a fourteen-hour business day (staying open from 7 AM to 9 PM), that's about"
Q: 'How many gas stations would you say there are in the United States?'
(my answer): A business doesn't stick around for long unless it makes a profit. Let's assume that all gas stations in the US are making at least some profit over the long run. Assume that the number of people who own more than one car is negligibly small relative to the total American population. Figure that 20% of people are too young to drive a car, another 10% can't drive because of disability or old age, 5% of people use public transportation or carpool, another 5% choose not to drive, and another 5% of the cars are inventory sitting in lots or warehouses that a dealership owns but which no one drives.
There's about 280 million people in the US; subtracting 50%, that means there's about 140 million automobiles and 140 million drivers for them. The busiest city or interstate gas stations probably get a customer pulling in about twice a minute, or about 120 customers per hour; a slower gas station out in an agrarian area probably sees a customer once every 10 or 15 minutes, or about 4 customers per hour. Let's take a weighted average and suppose there's about one customer every 90 seconds, or about 40 customers an hour. Figuring a fourteen-hour business day (staying open from 7 AM to 9 PM), that's about"
Warren's tidbits
BERKSHIRE HATHAWAY INC.
Always fearful of derivatives, Warren's comments:
Remember that the rationale for establishing this unit in 1990 was Gen Re’s wish to meet the
needs of insurance clients. Yet one of the contracts we liquidated in 2005 had a term of 100 years! It’s
difficult to imagine what “need” such a contract could fulfill except, perhaps, the need of a compensation-conscious trader to have a long-dated contract on his books. Long contracts, or alternatively those with multiple variables, are the most difficult to mark to market (the standard procedure used in accounting for derivatives) and provide the most opportunity for “imagination” when traders are estimating their value.
Small wonder that traders promote them.
A business in which huge amounts of compensation flow from assumed numbers is obviously
fraught with danger. When two traders execute a transaction that has several, sometimes esoteric, variables
and a far-off settlement date, their respective firms must subsequently value these contracts whenever they
calculate their earnings. A given contract may be valued at one price by Firm A and at another by Firm B. You can bet that the valuation differences – and I’m personally familiar with several that were huge – tend to be tilted in a direction favoring higher earnings at each firm.
It’s a strange world in which two parties can carry out a paper transaction that each can promptly report as profitable.
So calculating options is an art, not a science, where two people trade paintings that are both more valuable than the other, as long as their worth is finally settled years into the future.
Warren almost apologizes to us shareholders in his letter for 2005.
I dwell on our experience in derivatives each year for two reasons. One is personal and
unpleasant. The hard fact is that I have cost you a lot of money by not moving immediately to close down Gen Re’s trading operation.
...
When we finally wind up Gen Re Securities, my feelings about its departure will be akin to those
expressed in a country song, “My wife ran away with my best friend, and I sure miss him a lot.”
Warren also admits failure with a few of his predictions:
Operating results at NetJets were a different story. I said last year that this business would earn
money in 2005 – and I was dead wrong.
He goes on happily about Europe making more money for NetJets, but comes back down to earth at the abysmal showing of the US market:
Despite a large increase in customers, however, our U.S. operation dipped far into the red. Its
efficiency fell, and costs soared.
On his major equity positions:
As a group, they may double in value in ten years.
Bill Cara disagress with Warren on this point, related to Gillette's CEO:
It’s hard to overemphasize the importance of who is CEO of a company.
On CEO compensation, coming from a man who pays himself just $100k per year (not like money really means anything to him anymore):
For his accomplishments, Jim was paid very well – but he earned every penny. (This is no academic evaluation: As a 9.7% owner of Gillette, Berkshire in effect paid that proportion of his compensation.) Indeed, it’s difficult to overpay the truly extraordinary CEO of a giant enterprise. But this species is rare.
This is an interesting note for all those companies repurchasing their stock:
Take, for instance, ten year, fixed-price options (and who wouldn’t?). If Fred Futile, CEO of
Stagnant, Inc., receives a bundle of these – let’s say enough to give him an option on 1% of the company –
his self-interest is clear: He should skip dividends entirely and instead use all of the company’s earnings to
repurchase stock.
...
Simply by withholding earnings from owners, Fred gets very rich, making a cool $158 million, despite the business itself improving not at all.
Here is a good metric on whether a dividend is Buffett-approved.
A “normal” dividend policy, of course – one-third of earnings paid out, for example – produces
less extreme results but still can provide lush rewards for managers who achieve nothing.
He spins together another wording for his buy and hold mantra:
Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole,
returns decrease as motion increases.
And quite possibly the biggest reason why the Dow has been tanking lately...
Here’s the answer to the question posed at the beginning of this section: To get very specific, the
the Dow increased from 65.73 to 11,497.12 in the 20 century, and that amounts to a gain of 5.3%
compounded annually. (Investors would also have received dividends, of course.) To achieve an equal rate of gain in the 21st century, the Dow will have to rise by December 31, 2099 to – brace yourself – precisely
2,011,011.23. But I’m willing to settle for 2,000,000; six years into this century, the Dow has gained not at
all.
Warren is a financial math genius. His most important point deals with risk:
Over the years, a number of very smart people have learned the hard way that a long string of impressive numbers multiplied by a single zero always equals zero.
Always fearful of derivatives, Warren's comments:
Remember that the rationale for establishing this unit in 1990 was Gen Re’s wish to meet the
needs of insurance clients. Yet one of the contracts we liquidated in 2005 had a term of 100 years! It’s
difficult to imagine what “need” such a contract could fulfill except, perhaps, the need of a compensation-conscious trader to have a long-dated contract on his books. Long contracts, or alternatively those with multiple variables, are the most difficult to mark to market (the standard procedure used in accounting for derivatives) and provide the most opportunity for “imagination” when traders are estimating their value.
Small wonder that traders promote them.
A business in which huge amounts of compensation flow from assumed numbers is obviously
fraught with danger. When two traders execute a transaction that has several, sometimes esoteric, variables
and a far-off settlement date, their respective firms must subsequently value these contracts whenever they
calculate their earnings. A given contract may be valued at one price by Firm A and at another by Firm B. You can bet that the valuation differences – and I’m personally familiar with several that were huge – tend to be tilted in a direction favoring higher earnings at each firm.
It’s a strange world in which two parties can carry out a paper transaction that each can promptly report as profitable.
So calculating options is an art, not a science, where two people trade paintings that are both more valuable than the other, as long as their worth is finally settled years into the future.
Warren almost apologizes to us shareholders in his letter for 2005.
I dwell on our experience in derivatives each year for two reasons. One is personal and
unpleasant. The hard fact is that I have cost you a lot of money by not moving immediately to close down Gen Re’s trading operation.
...
When we finally wind up Gen Re Securities, my feelings about its departure will be akin to those
expressed in a country song, “My wife ran away with my best friend, and I sure miss him a lot.”
Warren also admits failure with a few of his predictions:
Operating results at NetJets were a different story. I said last year that this business would earn
money in 2005 – and I was dead wrong.
He goes on happily about Europe making more money for NetJets, but comes back down to earth at the abysmal showing of the US market:
Despite a large increase in customers, however, our U.S. operation dipped far into the red. Its
efficiency fell, and costs soared.
On his major equity positions:
As a group, they may double in value in ten years.
Bill Cara disagress with Warren on this point, related to Gillette's CEO:
It’s hard to overemphasize the importance of who is CEO of a company.
On CEO compensation, coming from a man who pays himself just $100k per year (not like money really means anything to him anymore):
For his accomplishments, Jim was paid very well – but he earned every penny. (This is no academic evaluation: As a 9.7% owner of Gillette, Berkshire in effect paid that proportion of his compensation.) Indeed, it’s difficult to overpay the truly extraordinary CEO of a giant enterprise. But this species is rare.
This is an interesting note for all those companies repurchasing their stock:
Take, for instance, ten year, fixed-price options (and who wouldn’t?). If Fred Futile, CEO of
Stagnant, Inc., receives a bundle of these – let’s say enough to give him an option on 1% of the company –
his self-interest is clear: He should skip dividends entirely and instead use all of the company’s earnings to
repurchase stock.
...
Simply by withholding earnings from owners, Fred gets very rich, making a cool $158 million, despite the business itself improving not at all.
Here is a good metric on whether a dividend is Buffett-approved.
A “normal” dividend policy, of course – one-third of earnings paid out, for example – produces
less extreme results but still can provide lush rewards for managers who achieve nothing.
He spins together another wording for his buy and hold mantra:
Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole,
returns decrease as motion increases.
And quite possibly the biggest reason why the Dow has been tanking lately...
Here’s the answer to the question posed at the beginning of this section: To get very specific, the
the Dow increased from 65.73 to 11,497.12 in the 20 century, and that amounts to a gain of 5.3%
compounded annually. (Investors would also have received dividends, of course.) To achieve an equal rate of gain in the 21st century, the Dow will have to rise by December 31, 2099 to – brace yourself – precisely
2,011,011.23. But I’m willing to settle for 2,000,000; six years into this century, the Dow has gained not at
all.
Warren is a financial math genius. His most important point deals with risk:
Over the years, a number of very smart people have learned the hard way that a long string of impressive numbers multiplied by a single zero always equals zero.
Bill Cara: Judicial activism, or fraud?, Sun., Mar. 5, 2006, 7:25 AM
Bill Cara: Judicial activism, or fraud?, Sun., Mar. 5, 2006, 7:25 AM: "Under the Farley Rules, a going concern is now really a bankrupt if one’s debts are greater than book value.
Well, if that’s the case, there are presently millions of legal bankrupts masquerading as legitimate businesses. If you happen to be one, beware; Farley’s Gang is on the way, and they intend to steal your assets.
So I advise everybody in this position to sell those Canadian assets today – before they get taken from you."
Well, if that’s the case, there are presently millions of legal bankrupts masquerading as legitimate businesses. If you happen to be one, beware; Farley’s Gang is on the way, and they intend to steal your assets.
So I advise everybody in this position to sell those Canadian assets today – before they get taken from you."
USGL.OB: Key Statistics for U S GOLD CORP - Yahoo! Finance
USGL.OB: Key Statistics for U S GOLD CORP - Yahoo! Finance: "1633.33%" - 52 week change.
Wow. Give that $117,000 CFO a raise.
Wow. Give that $117,000 CFO a raise.
Saturday, March 04, 2006
GlobeAdvisor.com
GlobeAdvisor.com: "You might recall that the 2005 federal budget announced that gold and silver legal tender bullion coins, gold and silver bullion bars, ingots, wafers, or certificates representing claims to these things, purchased on or after Feb. 23, 2005, became eligible investments for your RRSP and other registered plans."
How cool is this? Much better than paying some fund manager 4% in management per year... just buy a good safe, and toss some RRSP gold bars in there.
Don't plan on keeping your gold or silver at home in a shoebox or safe. The Canada Revenue Agency expects a custodial trustee to hold those assets as evidence that your plan truly owns the assets.
Well, maybe you could put it in a safety box and then just look at it once and awhile?
The gold or silver must be acquired by your plan directly from the Royal Canadian Mint (for coins), the metal refiner that produced it (for bullion bars, ingots and wafers), or from an eligible Canadian financial institution. So, it seems that a gift in-kind of gold or silver you already own is not going to cut it.
Still worth a try...
How cool is this? Much better than paying some fund manager 4% in management per year... just buy a good safe, and toss some RRSP gold bars in there.
Don't plan on keeping your gold or silver at home in a shoebox or safe. The Canada Revenue Agency expects a custodial trustee to hold those assets as evidence that your plan truly owns the assets.
Well, maybe you could put it in a safety box and then just look at it once and awhile?
The gold or silver must be acquired by your plan directly from the Royal Canadian Mint (for coins), the metal refiner that produced it (for bullion bars, ingots and wafers), or from an eligible Canadian financial institution. So, it seems that a gift in-kind of gold or silver you already own is not going to cut it.
Still worth a try...
Wednesday, March 01, 2006
Price Range $2000 or more
Scripophily, or the practice of collecting stock and bond certificates, is an interesting hobby.
When you buy a stock, you usually aren't really buying into a fraction of the company any more, but a piece of paper that says you can trade it's price. Most of the time you never see that piece of paper, since it costs over $50 to get from your brokerage.
Maybe one way a stock could be valued is by the quality and collectibility of the share certificate? If we consider stocks as a piece of art rather than a company, how do we value that stock?
Google a Monet?
Apple a Picasso?
Microsoft a Pollock?
When you buy a stock, you usually aren't really buying into a fraction of the company any more, but a piece of paper that says you can trade it's price. Most of the time you never see that piece of paper, since it costs over $50 to get from your brokerage.
Maybe one way a stock could be valued is by the quality and collectibility of the share certificate? If we consider stocks as a piece of art rather than a company, how do we value that stock?
Google a Monet?
Apple a Picasso?
Microsoft a Pollock?
A Pox on Sox
Sox First: No Sox For Directors: "'The cost of 404 in the aggregate, from every single public company, is probably one ten-millionth of the cost of executive compensation. I don't hear anybody saying we should get rid of executive compensation.'"
Sox could very well destroy what is left of the Amazon rainforest, with all of its auditing and paperwork.
The reforms initiated by SOX will pay off in terms of the focus of the section 404 compliance effort will prompt executives to evaluate overall operations, not just design of controls, and thus derive new business value from the data captured during the compliance process.
Sometimes the left hand should not know what the right hand is doing. Just trying to figure it out may cause them to clamp together, stopping them from doing work. This appears to be what Sox is doing to companies.
Senator Sarbanes bio.
Congressman Oxley's bio.
And of course, Ballmer shops for his own XBox 360, all because these two guys are giving him a hard time.
Sox could very well destroy what is left of the Amazon rainforest, with all of its auditing and paperwork.
The reforms initiated by SOX will pay off in terms of the focus of the section 404 compliance effort will prompt executives to evaluate overall operations, not just design of controls, and thus derive new business value from the data captured during the compliance process.
Sometimes the left hand should not know what the right hand is doing. Just trying to figure it out may cause them to clamp together, stopping them from doing work. This appears to be what Sox is doing to companies.
Senator Sarbanes bio.
Congressman Oxley's bio.
And of course, Ballmer shops for his own XBox 360, all because these two guys are giving him a hard time.
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