Can someone explain to me why this potential deal is being leaked to the media? Clearly, it’s not in the best interest of AVGO. I’m guessing someone at QCOM leaked the details in order to make the stock price rise, in order to prevent the deal from happening.
I’m hoping AVGO goes hostile and fucking kills everyone on the QCOM board.
Source: Bloomberg
Broadcom Ltd. is considering a bid of more than $100 billion for Qualcomm Inc., according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker.
Broadcom is speaking to advisers about the potential deal, said the people, who asked not to be identified because talks are private. The offer of about $70 a share would include cash and stock and is likely to be made in the coming days, the people said. A final decision on whether to proceed has not been made, they said.
Qualcomm shares rose as much as 19 percent in New York in their biggest intraday move since October 2008. They traded up 12 percent at 2:23 p.m., valuing the company at $91 billion. Broadcom rose 4.7 percent, for a market valuation of $111 billion.
Anti-trust anyone? No? Whatever happened to the idea that monopolies were bad for business, such as FUCKED FACES being able to idly charge $1,000 for one of their phones?
My emotionally charged trades underperformed for the week, alongside the majority of the market. The only quintile of stocks that did well this week were mega caps, higher by 0.42%. Everything else traded flat to down, especially small caps. The SPY, because it’s heavily skewed towards AAPL and other mega caps, was up 0.58%.
My quant portfolio was positioned in mega caps, selecting only the very best fundamentally graded names amongst them, crushed the SPY — higher by 1.1% for the week. I want you to let that sink in for a moment and understand that I’ve created a better way to invest. You can gain access to it, for a fraction of the cost it takes to hire an investment advisor.
Because mega caps outperformed again this week, my portfolio is the same, but with one small addition. I added TLT because it beat out the SPY. I used some of my cash reserves to complete the transaction.
The expected number was 310k, coming in light by 50k — which is boolish for an easier Fed. Last month the economy shed 33,000 jobs, so it’s clear to anyone with a fucking brain inside of their skull that the economy is doing well, but not too well.
The unemployment rate is a ridiculous 4.1%. Lots of burger flippers out there.
Restaurants added 88,500 jobs; offsetting September decline of 98,000 jobs.
Futures took a liking to this variety of failure, slightly unticking after it was released. Nasdaq futs are +35. Bond yields were slightly higher, but now they’re down.
TLT had a good week.
As an aside, here are some details on Trump’s tax cut plan.
Last night a rogue agent of Twitter purposely nuked Trump’s account. Earlier this week, it was revealed that they purposely buried the DNCleaks and Podesta emails from trending, something everyone suspected was happening at the time. There can be no question about it, given these actions and the innumerable bans of right of center personalities on the platform that it is an evil corporation. When I say ‘evil’, I mean in the sense that is believes in an extremist ideology so much, so fervently, that it opts to control and oppress people who disagree with them. This sort of behavior is maniacal and rooted in fascism. They must be stopped for the good of mankind.
Speaking of being stopped, 8 people from the House of Cards production said Spacey sexually harassed them. There is a deluge a rumors swirling about numerous Hollywood perverts. The fucking dam is about to break open and soon enough public hangings will be taking place.
Europe is flat this morning and Spain is off by 1.4%. Without viewing the news, I’m guessing the Catalonians made some statement or did something meaningless to jar markets. Literally nothing to worry about there.
Bitcoin is higher by another 4% to $7,300. There is nothing to discuss here. As far as I can tell, nothing can ever stop bitcoins from appreciating in value. Might as well sell the house and the valuables and simply put it all in the BTC.
Nasdaq futs are +20. Here are this morning’s poppers.
Sometimes I feel like we’re all caught up in a state of cognitive dissonance. True idiots, men who wouldn’t know the first thing about money management, are now stars in a market that simply refuses to trade lower. I am many things, one of which includes being a pseudo-intellectual in dozens of topics — competent enough to hold a conversation with just about anyone in subjects ranging from math to poetry. What I am, however, is an actual expert on money management, machine learning, and mean reversion.
I created Exodus back in 2008 so that I could have algorithms learn the market for me and produce actionable trades. Through mean reversion, I was able to discover a true edge, buying into dips that scared most people into cash. Typically we’d get one signal per month, maybe 10 per annum. But over the past two years, it has been slim pickings. Over the past year, even slimmer. The last systemwide OS signal was in March, before that June of 2016. Do you have any idea what that means? It means the plebs, the chaff of society, are swimming in riches — something that has been, at least from a historical perspective, rueful.
Because of this change in character, my assumption was that machine learning alpha, meaning trends, would be the single best way to invest in the market — aside from the static SPY purchase. But with just SPY, there is no active management and potential to hedge downside. I was of course correct, but most of you are still enamored by the glitz and glamor of position trading, like monkeys swinging from branch to branch in search of bananas. My quant trades, done each and every Friday, have beaten the SPY in 14 of the past 20 or 21 weeks. I need to keep better accounting.
My idea was to segue this development into my asset advisory business, which is still in its planning stages. I’ve taken the past two years off from active management to do other things, detox from the inertia of daily headaches and client bullshit.
One thing is for certain, this detente, this uninterrupted zeal of chance, is unsustainable. This isn’t a missive about the end of days, crying chicken little, or the virtues of being careful. I, for one, have not been a careful investor and anyone who read my book knows that I was a wild maniac in the boardroom. But something must be said about record low VIX and the uninterrupted rallies, 55 record Dow levels year to date, barreling into a new Fed Chairman who isn’t an economist.
Just like in the robber baron days of the 19th century, our present wealth creation is wholly concentrated amongst the very top. Look at the YTD returns of our largest capped stocks — unbelievably absurd.
On the issue of part 2 of my book. I finished the rough draft and will leave it alone for a week and then begin to edit and curate it. My guess, it’ll be ready in about a month or two.
Here’s a snippet, from part two of my story on Wall Street, tentatively titled ‘Journey into Fear.’
Is there a more exposed legacy business than Starbucks? Seriously, and maybe this is the coffee snob in me speaking, but who in their right mind prefers Starbucks over their local coffee shoppe?
Revenues and same store sales came in light.
Adjusted EPS: 55 cents vs. 55 cents expected according to Thomson Reuters
Revenue: $5.7 billion compared to $5.80 billion projected, according to Thomson Reuters
Same-store sales: Up 2% vs 3.3% growth projected, according to StreetAccount
On top of that, the company announced they were divesting their very successful tea brand, Tazo, in order to focus on their failed brand Teavana.
The company announced an agreement for Unilever to acquire the assets of the Tazo brand including its signature recipes, intellectual property and inventory for $384 million. In turn, Starbucks will drive a single tea brand strategy and focus with its super premium tea brand, Teavana.
I finished part two of my story, which was a dreadfully harrowing experience — being forced to remember the dot com collapse. I was so god damned stupid — but I didn’t know any better. Like a handicapped person trying to climb a mountain, it wasn’t my fault, per se, when I slipped and fell off the mountain and broke my neck.
The handicap people of today are the Bitcoiners — oblivious spoiled brats who only know sunshine. They do not know what it is to feel defeated, totally and absolutely routed from the field of battle. It’s fine to lose — it’s a whole different thing when you’re wiped out.
Case in point, shareholders of KEM were feeling rather invincible with their nonsensical rally, up until today. One bad earnings report and BAM — off with your head.
There are others on the menu today, such as W, OSUR, NVTR, NTLA, MYGN and DWCH.
Boy were they good hot stocks up until today. I bet the shareholders of those stocks felt absolutely invincible over the past weekend, not knowing what Mother Market had in store. As sure as I am sitting here, the same will happen to ALL hot stocks at some point along this narrative we’re weaving — the endless rallies that were once described as byproducts of QE and are now just “there” because, well, stocks have only one way to go. After all, where else will you place your money — bitcoin?
If you own bitcoin, where else are you gonna put your money? Ethereum, Ripple, Gold? Don’t be silly. No one buys gold.
The moment you opted away from safety of principle and wanted to make money off of your money is when you opened the door for a KEM to surprise sex you and crash your hopes across the rocks of reality.
Bitcoin is trading north of $7,100 this morning, higher by 6%, all but shitting on all of those who’ve been stating the great crypto-currency was an absolute boondoggle of a fraud.
Nasdaq futs are -8.
For a moment, breathe that is an take in the fact that equities are moribund bores when compared to the wondrous world of bitcoin. I mean, really, this is now drivel tier rhetoric, discussing stocks and bonds with an asset class like bitcoin making all that is good and decent look evil and invective.
Nevertheless, here I am at 7am doing God’s work.
Alibaba reported an earnings beat, the only thing interesting this morning.
Alibaba beats by $0.26, beats on revs
It’s worth noting, ETH and the rest of the blockchain is taking a backseat to bitcoin now — which must be driving you cryptofags absolutely crazy.
The ‘future of finance’, the internet of money, is steaming full speed into $7,000, now higher by 8% for the day. Bitcoin cash is higher by 17% and mostly all non-bitcoin ICOs are sharply lower. This isn’t an Ethereum party, but one rooted in Bitcoin.
According to CoinmarketCap.com, the total market cap of BTC and the other 1,248 currencies that make up the crypto-market, the total market cap is now $188 billion — a new record high.
It looks like President Trump will select Jay Powell to be next Fed chair.
This is his face.
He has the visage of a checkered pants wearing accountant. While being a marked improvement over Grandma Yellen, Powell doesn’t hold a candle to the great bearded clam, Dr. Benjamin Bernanke.
Who the hell is he and what is his endgame?
Born in the swamp in 1953, Powell is the product of a DC lawyer (Dad) and a mathematician for the Army Map service (mom). His grandfather was dean at Columbia School of Law. It’s worth noting, Mom graduated valedictorian of Trinity College and later worked for the RNC. Like Bernanke, Powell graduated Princeton and then went on to get a juris doctorate degree at Georgetown.
From 1984-1990, Powell worked for Dillon, Read & Co where he focused on mergers and acquisitions. He then moved around from the US Treasury to becoming a partner at globalist private equity firm The Carlyle Group, from 1997-2005. After shilling for Carlyle, he wet off on his own and started his own private equity firm — later dabbling in venture capital and a DC think tank.
In 2011, he was nominated by President Obama to become a Fed head — the first time ever a President had nominated a member of the opposite party. Considered a dove and DC elite, Powell has a net worth of roughly $50 million — a piker in this day and age of excess. He also contributed $30,800 to McCain’s 2008 Presidential run.
