The Insider Report

” Pangs – WSJ.com

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I thought this article was interesting.  The drilling companies represent outstanding value and we are long HAL, BAS, SPN.  Good American know how at bargain basement prices.   Energy Shares Suffer ‘Gas’ Pangs Sector is S&P 500’s Cheapest Relative to P/E Ratio as Many Believe Natural-Gas Prices to Stay Low   By ALEXANDRA SCAGGS Despite rising oil prices, U.S. energy stocks are scraping the bottom of the barrel. The world price of crude has climbed 18% this year as rising political tension with Iran has stoked fears of a supply disruption. That is boosting profits at energy companies. Yet investors … Read more

China Dethrones iPhone, Samsung Sales Surge

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Apple’s market cap may rule the S&P, but it’s a different story in China.  The tech giant is struggling to efficiently capture a leading share of the country’s massive market, while Samsung is proving a substantial opponent.  With more than three times the market space over Apple (24.3% vs 7.5%), the South Korean company has a strong lead in subscribers which isn’t expected to be challenged any time soon.  According to Bloomberg, Samsung’s blanket strategy proved much more effective in gaining subscribers than Apple’s tactically narrow approach: “Apple’s partnerships with China’s second- and third-largest carriers give it access to about 34 … Read more

CHART OF THE DAY: How To Protect Your Money In A War With Iran, And An Oil Spike

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CHART OF THE DAY: How To Protect Your Money In A War With Iran, And An Oil Spike  by Joe Weisenthal One of the big fears for the market is obviously an oil spike, possibly caused by a war with Iran.Such an event would probably be bad for stocks if oil surged but given the market and economic momentum, people arent inclined to just bet against the market on the chance of this geopolitical event.So heres an idea from Barclays Sreekala Kochugovindan. via CHART OF THE DAY: How To Protect Your Money In A War With Iran, And An Oil … Read more

Greece A Result Of A Greedy Goldman? Nahhhh…

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Back in 2001, Greece had a problem.  The struggling country’s debt levels were simply too high to qualify for admittance to the European Union.  While these regulations were in place to protect the structure of the European economy, Goldman Sachs was more than willing to step in with a timely loan which provided the necessary liquidity to hide the nation’s accumulated debt load.  Essentially a perfect solution for both Greece and Goldman, here is the situation illustrated by Bloomberg: “The Goldman Sachs transaction swapped debt issued by Greece in dollars and yen for euros using an historical exchange rate, a mechanism … Read more

“‘d Be A Fool To Hold Anything But Cash Now”

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Interesting interview with David Stockman the other day.  The Ex-White House budget director expresses some extremely strong feelings about the direction this country is headed in the upcoming months.  Considering his prediction of an event of epic proportions, wouldn’t you rather be on the right side of the trade than out of the market entirely..? Now 65 and gray, but still wearing his trademark owlish glasses, Stockman took time from writing his book about the financial collapse, “The Triumph of Crony Capitalism,” to talk to The Associated Press at his book-lined home in Greenwich, Conn: Q: You sound as if … Read more

‘s Dallara Seems To Think So

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Greece has fallen out of the headlines in the past few days due to a supposed resolution of the debt deal, but large hurdles still exist.  Managing Director Dallara of the IFF is under the impression that the current plan will be proved a success next week with investors exchanging their current bonds for a 53.5% haircut.  However the success of this exchange requires a 90% participation rate which is a tall order for many of the hedge funds holding Greek debt.  If participation can be raised above 75% but under 90% then Greece will bring the issue to their … Read more

The Best Places for Second Homes – Barrons.com

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20 Best Places For Second Homes By STEVEN SEARS, MARK VEVERKA AND SANDRA WARD | MORE ARTICLES BY AUTHOR Last year was brutal for second homes in the nation’s most affluent areas. But the market is firming up again. Here’s our list, expanded to 20 sites, for those seeking top-tier refuges. For second homes in America’s most affluent locations, the past year was ugly. No way else to describe it. Median home prices were down 50% in North Lake Tahoe, and 44% on Martha’s Vineyard, to cite two examples. via The Best Places for Second Homes – Barrons.com.

Seeding the Next Fortunes – Barrons.com

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Seeding the Next FortunesBy KAREN HUBE | In this challenging period for investors, heres where Barrons finds top wealth managers are putting your money. In this tremulous age when a widely perceived “safe” investment can collapse in just a few screen blips, or a long-term laggard can suddenly break out, divvying up your assets has never required more thought. “You may choose the right asset class, but if youre in the wrong part of the church, youre going to miss the sermon,” says David Darst, chief investment strategist at Morgan Stanley. via Seeding the Next Fortunes – Barrons.com.

Hedge Fund Performance Hard To Sell? Just Change The Numbers

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Most money managers don’t beat their benchmarks.  Now this is due to a number of reasons: heard mentality, fees, limitations by prospectus, it’s just plain difficult.  However benchmarks are just a frame of reference for performance in an effort to draw in potential investors.  So when a manager struggles to beat an index benchmark year after year, their sales team has their work cut out for them.  Or.. just change the data used to illustrate your performance in relation to the rest of the market.  In an effort to shed a little truth on the hedge fund world, (full article … Read more

Supposed Pipeline Explosion Drives Oil Above $110 A Barrel, Reported False After Market Close

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If a falsified report that a Saudi pipeline can drive oil over $110 a barrel, just imagine the repercussions of a full Iran-Israel conflict.  According to the report that was later confirmed “completely false” after US  markets had just closed, a natural gas pipeline in the city of Awamiyah exploded resulting in numerous injuries and deaths.  Thats right, natural gas drove up the price of crude simply on rumor.  That should give you an idea of how volatile the Iran situation is on the markets, despite stepping out of the headlines momentarily.  Considering we have close to two years supply … Read more

More Ads? Facebook and Twitter Stepping Up Mobile Coverage, And Revenue

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Enjoy the unusually ad-free browsing of Facebook and Twitter on your phone?  Not for long..  Both companies are adding an ad platform to mobile devices in the upcoming weeks (reaching 425 million Facebook users and 55 million Twitter users)  While this will fill major gaps in both social media companies revenue streams, it will result in the following changes: Twitter: Promoted (paid advertising) accounts will be recommended for you to follow, Tweets by promoted accounts will appear no matter if you follow them or not, and Tweets from brands you follow will move to the top of your newsfeed. Facebook: … Read more

Gambling Website Bodog Seized, Feds Indite Four Including Founder

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A definitive direction in the grey area of online gambling, Federal authorities have taken an aggressive stance on Canada based gambling company Bodog.  The website name was seized this past Monday and indictments were quick to follow in the state of Maryland.  The outcome of this case should set interesting precedence on a state level for upcoming online gaming companies such as Zygna. “Gamblers in Maryland and elsewhere were sent a least $100 million by wire and check from 2005 to 2012, the U.S. Attorney’s office said, adding Bodog conducted a $42 million advertising campaign between 2005 and 2008 to … Read more

Hedge Fund January 2012 Results

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The Dow Jones Credit Suisse Hedge Fund Indexes Performance data for Jan 2012 has been updated. Please visit our site at http://www.hedgeindex.com for further details.  Dow Jones Credit Suisse Core Index Performance Index / Sub Strategies Value** Jan 12 YTD 1 Year Annl* Std Dev* Sharpe* Dow Jones Credit Suisse Core Hedge Fund Index 94.69 2.26% 2.26% -5.57% 6.52% 6.74% 0.70     Convertible Arbitrage 95.54 3.47% 3.47% -5.74% 3.58% 11.43% 0.16     Emerging Markets 99.36 1.80% 1.80% -1.13% 9.56% 10.70% 0.73     Event Driven 90.01 2.90% 2.90% -10.37% 4.84% 8.29% 0.37     Fixed Income Arbitrage 99.66 0.93% 0.93% 0.65% 7.39% 8.63% 0.65 … Read more

Dominion Resources two monster volume days

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Dominion Resources (D), the giant Mid Atlantic electric utility, gas transmission, and energy marketing company has had persistent insider buying.  Now it’s got two back to back monster volume days.  I always say listen to the market, it’s got something to tell you.  In this case, it’s telling me Dominion is about to blow up.  There was an announcement of interest in long-term contracts for natural gas LNG export at its Point Cove facility.  Not sure why this is huge news.  It’s obviously easy to arbitrage natural gas out of this country as the price is many times higher overseas.  Besides El Paso,  … Read more

Apple Looking Up In Shanghai Trademark Case

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A local court denied a motion to surpress the sale of the iPad in Shanghai due to a similar ongoing case in the Guangdong Province, allowing Apple stores to continue selling the product until an outcome is decided.  Facing the unpredictability of Chinese courts, this is finally a glimmer of hope for the tech giant.  Although this has no bearing on how the Guangdong case will turn out, it shows that China is in support of Apple continuing with sales probably due to some political pressure. “Proview’s injunction request was rejected,” Carolyn Wu, the Apple spokeswoman, said in a telephone … Read more

After Settling Fears About Liquidity, Sears Skyrockets

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Looks like a lot of shorts are feeling the burn of a squeeze this morning as SHLD is up over 20% intraday.  Reuters reported that Sears Holdings still has “substantial liquidity and strong assets” despite their obvious need to improve their operating performance and location strategy.  However the retail chain is expected to generate $270 million in assets from real estate deals and another $400 to $500 million from rights offerings. From Reuters: “The rights will entitle stockholders to purchase shares in the combined Sears Hometown and Outlet Stores businesses and certain hardware stores and will be transferred to holders … Read more

Must read piece on single family homes

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I borrow from Gary Shilling in our Investment Survival Seminars. He was by far and away the most accurate prognosticator for 2011.  Real estate investors would be wise to listen. Why Renters Rule U.S. Housing Market (Part 2): A. Gary Shilling   By A. Gary Shilling Feb 22, 2012 5:01 PM MT TIn making my case for continued housing weakness, I’ve emphasized the negative effect of excess inventories on house sales, prices, new construction and just about every other aspect of residential real estate. In housing, as in every goods-producing sector, excess inventories are the mortal enemy of prices. Lower … Read more

IAEA Gets Nowhere With Iran Nuclear Talks

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While Iran’s willingness to reopen talks with the International Atomic Energy Agency about their nuclear program was a surprise, it seems that the motion was mostly for show.    Several rounds of discussions yielded no access to a military site in Parchin which is suspected to be a weapons development facility.  There has been no agreement on further discussing the matter.  Light crude is hovering close to $106 a barrel today, so much for  Prince Alwaleed’s promise to keep oil under the $100 a barrel mark. From FT: “The International Atomic Energy Agency has reported that it held a “disappointing” … Read more

Drill baby drill will be the U.S. national anthem

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If oil is cut off from Iran, it could also impede supply in Iraq as Iran will use it’s influence to cause chaos wherever they can.  There is significant potential for an Israeli strike against Iran before the U.S. Presidential elections.  Israel would want to use its leverage before the outcome of the election is certain.  One thing looks clear to me.  If there is a major disruption of oil from the MidEast, “Drill Baby Drill” will be the U.S national anthem. Buy OIH, the ETF.  Buy HAL, SLB, BAS,WFT probably just about any driller for oil will work well.    

Four Questions for Ancestry.com Management

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I recently sent this email to the CEO of Ancestry.com, ACOM.  I’ll let you know when I hear the results. Let me preface this by saying ACOM has the largest addressable market place of any company I know of.  I know you agree with that.  Why not lower the price to the lowest possible model (even free) to create the largest installed base.  It didn’t hurt Facebook.  What’s your thoughts on this?I am sure you have tested many many permutations of pricing and subscription models.  When will you be in the largest and 2nd largest population countries, China and India? … Read more

The Decline in this Stock is all Google Needs – ACOM, GOOG – Foolish Blogging Network

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The Decline in this Stock is all Google Needs By Shawn Robinson – February 20, 2012 | Tickers: ACOM, GOOG | 0 Comments Shawn is a member of The Motley Fool Blog Network — entries represent the personal opinions of our bloggers and are not formally edited. Ancestry.com (NASDAQ: ACOM) reported fourth quarter earnings in line with analyst estimates but showed weakness in estimated 2012 profit driven by a less than expected 12% growth in subscribers. The negative outlook caused shares of the company to plunge almost 17% by the end of trading this past Thursday. This significant drop in … Read more

Ancestry.com Beats Up on Analysts Yet Again – DailyFinance

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Ancestry.com is on a tear lately after taking a huge hit over their Q4 numbers.  Analysts responded after the fact with downgrades and price target reductions, but we still see a huge opportunity in the company. From DailyFinance: The 10-second takeawayFor the quarter ended Dec. 31 (Q4), Ancestry.com met expectations on revenues and beat expectations on earnings per share. Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly. Gross margins shrank, operating margins increased, net margins grew. Revenue detailsAncestry.com reported revenue of $104.2 million. The seven analysts polled by S&P Capital IQ predicted net … Read more

Nothing much wants to make this market go down but I guarantee you this one will

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Obama nears his nuclear moment By Edward Luce At the start of Barack Obama’s term, few moments better crystallised America’s change of face than his “New Day” video address to the Iranian people. Ending with a salutation in Farsi, Mr Obama offered Iran a new era of “co-operation”. It followed from the promise in his inaugural address to “extend a hand if you are willing to unclench your fist”. via Obama nears his nuclear moment – FT.com.

‘s Privacy Policy: Strike One

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Not nine days after Google releases their new-and-improved privacy policy, we have some first hand results of its intrusiveness.   Jonathan Mayer, a graduate student from Stanford University, discloses some rather disappointing findings.  In his comprehensive article (found here) he identifies four ad-based companies that place trackable cookies in Safari’s browser, and code in two of the four show an intentional circumnavigation of Safari’s privacy feature.  I’ll give you a hint: one starts with a G and ends in oogle.  Now almost every browser has some type of privacy feature in place: “Every popular web browser, save Opera Mini and … Read more

Thought Pre-Release Lines for Apple Are Absurd? Try China, Bring Eggs..

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Beijing, China:  Several weeks ago, crowds of people amassed in front of Apple’s flagship store in the pre-dawn hours.  Eagerly awaiting the anticipated release of the new iPhone 4s, customers and scalpers alike grew restless as the chants of “Open the door!!” grow louder and louder.  At 7:15, already past the time when doors were supposed to open, a man steps outside with a bullhorn and announces to the crowd, “Please go back home! No iPhone 4s!!”  Anger spreads through the masses, fights break out between angry scalpers and frantic customers, and eggs start flying…. Read the complete account and … Read more

Kellogg Rockets On Announced Purchase Of Pringles

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Kellogg (K) shot up over 5% on news that the food manufacturer would take over Diamond Food’s (DMND) failed deal with the chip company.  Kellogg will pay P&G almost 2.7 billion for  ownership of Pringles. “In April, Procter & Gamble signed a deal with Diamond Foods, which agreed to buy Pringles for roughly $2.4 billion, mainly in stock. Diamond, which had previously bought Pop Secret and Kettle brand potato chips, heralded the purchase and played up Pringle’s global presence and influence in grocery stores. But the deal got delayed, as Diamond was ensnared by an accounting scandal after short-sellers started … Read more

Second City in China Halts Sales of Apple iPads – NYTimes.com

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According to the NY Times, yet another city in China has halted the sale of the iPad over the trademark dispute with Proview Technology.  About 45 units have already been confiscated from stores and most have been removed from displays, although the devices are still reported to be available under the table. “Proview has also made a filing with the General Administration of Customs in China, he said, putting Apple on notice that the company could seek to block the export of iPads, should Proview’s ownership claims be upheld.  The seizures follow a ruling in December in which a court … Read more

Rackspace Reaches All Time Highs on Solid Q4

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Rackspace Hosting Inc. powered to a lifetime high today as shares rose over 11% and continue to surge forward on last quarter’s earnings. According to Benchmark Capital: “Rackspace reported strong fourth-quarter results while indicating trends should drive similar performance in 2012. We raise our estimates to reflect sustained high growth and solid margins.” At least one brokerage upgraded the stock while three others raised their price targets on it and shares of the company jumped 11 percent to $54.80 in early trade on the New York Stock Exchange. They were later trading at $54.71. Analysts from other brokerage houses were quick … Read more

”s Day Love From Iran: Escorted Through Hormuz

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As the Carrier Abraham Lincoln left the gulf Tuesday, it’s battle group contingent was on high alert.  According to the AP: The passage ended a Gulf mission that displayed Western naval power amid heightened tensions with Tehran, which has threatened to choke off vital oil shipping lanes.The Lincoln was the centerpiece of a flotilla that entered the Gulf last month along with British and French warships in a display of Western unity against Iranian threats. There was no immediate comment by Iran about the Lincoln’s departure.  Iran’s Revolutionary Guard has said it plans its own naval exercises near the strait, … Read more

‘s Purchase of Motorola Cleared by EU

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Looks like one more hurdle is out of the way for Google to challenge Apple in the wireless world.  The European Union allowed the deal to pass, but warned against excessive fees charged for licensing technology.  The addition of Motorola’s portfolio of patents would provide the search engine giant a strong defense against infringement claims on its Android operating system. From WSJ: “The European Union on Monday approved Google Inc.’s $12.5 billion acquisition of smartphone and tablet developer Motorola Mobility Holdings Inc., setting the stage for U.S. antitrust clearance expected this week.  The deal will give Google a powerful arsenal … Read more