DELL

Non-correlated returns

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As the market creeps higher and higher, the chances of sharp pullbacks increase.  At this time, I’m looking for non-correlated returns.  Risk arbitrage is one place where you may find them.  Take this excellent analysis from David Merkel author of the The Aleph Blog » Blog Archive » On Merger Arbitrage. ” Merger arbitrage is a lot like credit analysis.  Analyze why the deal might not go through.  Your upside is capped, but your downside is unlimited. Only work with binding commitments.  Do not speculate on “letters of intent.” Do not speculate on mergers that the media cooks up. Merger arbitrage … Read more

The odd genius of Michael Dell

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Dell is going down the tubes.  Everyone knows that.  Just look at the stock.  It’s empirical, blunt, and definitive.  Michael Dell has billions invested in the Company he founded.  In order to save his fortune, he decides to take it private with SilverLake, a tech private equity firm.  I guess the humiliation of watching your baby die in front of the world is greater than squandering a few extra $billion. Then out of nowhere, people are now fighting over your business.  Lenovo, even HP want to take a look.  My God does anyone believe that HP would have a clue … Read more

Insider Buying: 7 Stocks With CEO Buys of at Least $100,000 in the Past Week

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by: Steven Kiel Each week I highlight large insider purchases made by the CEO. These purchases must not be option grants or exercises. I prefer to track insider buying at the CEO and CFO level, rather than at the Board level, because management should have a better idea of what’s going on in the day-to-day operation of the company. An insider buys company shares because they have confidence in the company and the stock, and occasionally these purchases foreshadow a coming catalyst. At the same time, these insiders are humans and can get caught up in the market and may … Read more