Home / 2012 / July (page 6)

Monthly Archives: July 2012

Study: High-Speed Trading Hurts Long-Term Investors

WASHINGTON—Some of the most heavily traded U.S. stocks might also be among the most expensive to trade, costing investors as much as $2.5 billion a year, according to a New York trading and research firm.

Stocks such as Bank of America Corp., Microsoft Corp., Cisco Systems Inc., and Ford Motor Co. are so popular with high-frequency trading firms that long-term investors often have trouble quickly buying and selling the stocks, according to a report by Pragma Securities LLC.

Read the rest here.

Comments »

This Is Why Everyone Is Skeptical That Draghi Will Save The World

“A promise by European Central Bank President Mario Draghi to “do whatever it takes to preserve the euro” remains the hot topic of investor debate this morning.

Analysts immediately interpreted Draghi’s statements as a commitment to do something big, in particular either return to purchasing Italian and Spanish bonds (known as the SMP program) or offer new, even more potent long-term refinancing operations that would pump new liquidity into the system. Draghi had qualified that he would have to work within the confines of the ECB’s mandate, and such measures have been among the bank’s most potent actions so far.

Nonetheless, there is good reason to doubt that even these measures are forthcoming, or that they would be truly significant if implemented:

  • Yesterday, officials at the ECB played down the importance of Draghi’s comments, arguing that he has said similar things before.”

Full article

Comments »

Q4 2011 GDP Revised Upward to 4.1%?

Via ZeroHedge:

Of note 2010 GDP was revised from 3.0% to 2.4%, while Q3 2011 GDP was revised from 3.0% to 4.1%, indicating that the slowdown we are experiencing is in fact far worse than previously expected. It also shows that HFT trigger buying or selling on GDP data is completely meaningless as today’s data will be revised violently higher or lower in a year, making it completely irrelevant.

Read the rest and see the graphs here.

Comments »

Facebook: Is Stock Research Rigged?

ZeroHedge.com shows that stock analysts–including analysts whose firms made handsome fees for participating in Facebook’s May 17th IPO–had recent average price targets of $37.74 for Facebook. This is just below the IPO price. Only one of 38 analysts had a sell recommendation on Facebook.

Read the rest here.

Comments »

Lap Dances Galore Expected in Tampa for G.O.P. Convention

via NYTimes.com

TAMPA, Fla. — Over at the back door of the 2001 Odyssey, a limo-size tent with flaps — especially designed for discretion and camera-shy guests — is ready to go up. Déjà Vu is welcoming extra “talent” from around the country in its V.I.P. rooms.

And Thee DollHouse is all Americana: women plan to slip out of red, white and blue corsets and offer red, white and blue vodka. The headliner that week is expected to bear an uncanny resemblance to a certain ex-governor from a wilderness state, known for her strong jaw and devotion to guns and God.

“She’s a dead ringer for her,” said Warren Colazzo, co-owner of Thee DollHouse. “It’s just a really good gimmick to get publicity.”

As Tampa gears up for the Republican National Convention, the biggest party it has ever held, the city and its businesses are primping and polishing for the August arrival of tens of thousands of visitors. Like it or not — mostly not, for city officials — Tampa’s well-known strip clubs have joined the welcome wagon.

Club owners here say they have schmoozed with their counterparts in former host cities, like Denver, and have been told that revenue pours in during conventions, sometimes quadrupling earnings from a Super Bowl week. As for party affiliation, this is one place where the country’s caustic partisan differences fall away, owners say.

Angelina Spencer, the executive director of the Association of Club Executives, which serves as a trade association for strip clubs, said an informal survey of convention business in New York and Denver had determined that Republicans dropped more money at clubs, by far.

“Hands down, it was Republicans,” she said. “The average was $150 for Republicans and $50 for Democrats.”

Comments »

A Closer Look at GDP in Q2

“U.S. economic growth pulled back further during the second quarter of the year as consumer spending slowed–a reading that suggests domestic fiscal worries may becoming a more significant drag.”

Full article

Comments »

Gapping Up and Down This Morning

Gapping up 

BCOR +21.6%, MERU +18.3%, DECK +14.4%, SIMO +11.2%, EXPE +10.9%,

PWER +10.7%, TORM +10.3%, QLIK +7.6%, N +6.8%, INFA +4.4%,

AMGN +3.7%, BCS +3.2%, GILD +3.1%, ASGN +3%, ESV +2.7%, S +2%

STEM +29.2%, UTSI +12.1%,  OVRL +28.1%,

Gapping down 

NTGR -17.1%, CSTR -14.9%, GDOT -14.2%, APKT -13.5%, HZNP -12.3%,

SBUX -11.1%, WOOF -10.3%, CERN -9.7%, FB -9.5%, QLGC -8.7%, VPRT -6.3%,

CBOU -4.8%, KLAC -3.3%, GMCR -3%, VECO -2.9%, SPF -2.1%, ABAX -1.7%,

UL -1.1%,  JOY -1.7%

Comments »

The Bundesbank Rears its Ugly Face

“Germany’s powerful Bundesbank pushed back on Friday against European Central Bank President Mario Draghi’s pledge to do whatever is necessary to protect the euro zone from collapse, but markets rallied on a report of imminent policy action.”

Full article

Comments »

Do the Markets Have it Right ? Is Spain Saved ?

“Spain has been fighting with Greece to take center stage at the heart of the euro crisis right now, with borrowing costs hitting record highs.

10-year yields wavering above the important benchmark of 7 percent at which other European countries have requested a bailout, and its economy is falling deeper into recession.”

Full article

Comments »

Apple Buys Mobile Security Company AuthenTec For $356 Million

“Apple Inc. just bought a mobile security firm called AuthenTec for $356 million.


AuthenTec has filed an 8K announcing the news (.PDF).

In the filing it says “AuthenTec cannot comment on Apple’s intentions.”

AuthenTec most recently made news when it signed a big contract with Apple rival Samsung.

Full article

Comments »

Senate Passes Cuts for All but Richest Americans

“WASHINGTON (AP) — The Senate has debated, sniped and voted on the politically fraught issue of tax cuts, and next week the House is likely to do it all over again. Still, Americans won’t know until after the November elections how much more of their paychecks will go to the government next year.

House Speaker John Boehner said Thursday that his Republican-led chamber is “more than willing” to make Democrats vote on thePresident Barack Obama’s plan to extend former president George W. Bush’s tax cuts for all but the wealthiest Americans. He also is bringing up the GOP’s proposal to extend the tax cuts for everyone.

The outcome is almost certainly stalemated until the November elections, so leaders of both houses of Congress are turning the House and Senate into campaign stages on one of the defining issues of the presidential and congressional races.”

Full article

Comments »

$FB Off 14% Pre-Market on a Poor Growth Outlook

Fuckbook reported earnings yesterday, which failed to dazzle investors. While revenues grew 32% it is the slowest pace for the company thus far. Margins also fell 10% to 43%.

The company issued no growth forecast leaving the street to wonder what will happen going forward.

Full article

Comments »