Intel’s plan to become the leader in self-driving seems a great idea on paper. No one doubts there is a bright future for self-driving cars and Intel wants to lead the pack. However, the acquisition doesn’t come without serious risks. For starters, Intel has made huge commitments in areas outside its traditional desktop and laptop chips arena. There was Intel TV which was supposed to put Intel on top of the television revolution. Then, we had the mobile program intended to give Intel a good shot at leading in smartphone chips. Well, all of those programs were crashed before the company could collect any meaningful rewards. Additionally, ...
I’ve been wrong about my timing of the silver and gold trade twice now. Once to my followers in Momentum Trader and another time in a much more public way, on Bloomberg the end of last year. My fundamental investment thesis surrounding gold hasn’t been wrong just my timing. And now, with gold prices bouncing off $1,200 and last week’s Bitcoin debacle I’m taking another stab at it. The Bitcoin debacle I’m referring to is last week’s decision by the SEC to reject the Winklevoss Twins’ proposal for a Bitcoin ETF. An ETF would have helped to legitimize the cryptocurrency and expose it to an entire new market of potential investors...
Intel Corporation (INTC) and Mobileye N.V. (MBLY) announced a definitive agreement under which Intel would acquire Mobileye, a global leader in the development of computer vision and machine learning, data analysis, localization and mapping for advanced driver assistance systems and autonomous driving. Pursuant to the agreement, a subsidiary of Intel will commence a tender offer to acquire all of the issued and outstanding ordinary shares of Mobileye for $63.54 per share in cash, representing an equity value of approximately $15.3 billion and an enterprise value of $14.7 billion. The combination is expected to accelerate innovation for the au...
Written by Matt Bell If you pay close attention to investment news, it’ll either make you laugh or it’ll drive you bonkers. Within the same hour, and on the same market news website, you will often see completely contradictory articles. One says the market is headed higher; the next says the market is about to tank. What’s a smart investor to do? Q: What’s a smart investor to do? A: Be very careful about your information diet. Less Information = Greater Success In the late 1980s, former Harvard psychologist Paul Andreassen conducted an experiment to see how the quantity of market information impacted investor behav...
Fiat Chrysler Automobiles N.V. (NYSE: FCAU) has recently seen a run-up for the past year. It has come from a merger with General Motors Inc. (NYSE: GM) and PSA Group (PEUP: PSA), with analysts pointing to a potential merger between FCAU and GM. Notably, FCAU has not seen much action since inception regarding price action and has recently seen an increase in interest from investors. Although the stock has already pushed higher, there is still plenty of room for significant returns. My reasoning is that FCAU is still considered to be an undervalued asset, and with a recent analysis of its financial statements, I can see subtle improvements i...
So as with all passive ETF posts, we have to put the word “dumb” in scare quotes. Why? Well, because it’s not entirely clear whether these flows are actually so “dumb” after all. Indeed, in a market that only goes up, this “dumb” money is the “smartest” money there is. In fact, as we wrote in “There’s No Diversification: When This Ship Sinks, We’re All Going Down With It,” hedge funds (and especially macro hedge funds YTD) have had a really, really tough time outperforming benchmarks that benefit from the “rising tide” that’s “lifted all boats” for the past 8+ years. However you want to characterize it, ...
Trading opportunities for the currency pair: Movement on the EUR/USD pair continues to correlate with that of 2005. According to historical patterns, a large downwards correction is due to take place after the 15th of April. Despite this, the rate may still deviate significantly upwards. After Friday’s payrolls, the price came out of the 1.0494 – 1.0626 range. As it breaks 1.0715, growth will accelerate to 1.0780. This is where the euro will stop growing and a symmetrical triangle will form. If a rebound doesn’t follow from this, and the rate breaks the 1.0829 support, we could see the price restore all the way to 1.1021. Should t...
The best sector in ADRs is financials. The top countries are Hong Kong & Canada. The average score across our ADR universe is 53.59. For perspective, the score has averaged 53.36 and 53.59 over the past four and eight weeks, respectively. The average ADR in our universe rallied 0.77% last week and is trading -14.86% below its 52 week high, 4.05% above its 200 dma, and has 3 days to cover held short. The best scoring sector is financials (BMO, CS, WBK, RY, NOAH, NABZY, GGAL, ANZBY). Services (CEA, CTRP, TV, CUK, ASR) and healthcare (GWPH, LUX, RHHBY, AVDL, AZN) also score above average. Technology scores in line. Utilities, industrial goo...
e.l.f. Beauty (NYSE: ELF) – Strong Sell or Short Recommendation The 180-day lockup period for the e.l.f. Beauty Inc. IPO is scheduled to expire on March 27, 2017. The lock-up period was originally set to expire on 3.21, but was extended due to earnings release. At this point, the company’s pre-IPO insiders will be able to sell their 36M shares for the first time since e.l.f Beauty went public. This represents 81.2% of the total shares outstanding (see below). (S-1/A Filing) e.l.f. Beauty is up 57% (pre-market session 3.8) since its IPO, and we predict investors will be motivated to sell their positions both to free up capital as ...
While much of the media and public attention has been understandably focused on Bitcoin in recent months, a far more dramatic move has taken place in Bitcoin’s less popular peer, Ethereum. To be sure, one month ago, when we noticed the first tangible move higher in ETH since last summer’s dramatic plunge following a highly public hacking scandal which involved a “forking” in the blockchain, we mused if China’s furious momentum chasers were turning their attention from bitcoin to ethereum. Did China shift from BTC to ETH — zerohedge (@zerohedge) February 14, 2017 While the jury is still out on whether Chinese tr...