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Stock-Age: Stocks, Options and Dividends oh my!

Ovid

Member
International Business Machines Corp. has cut its intended takeover price for Sun Microsystems Inc. to between $9 and $10 a share, according to people familiar with the matter.

Sun has agreed to accept a lower price in return for stronger commitments from IBM that it will complete the deal even if it faces intense regulatory scrutiny, the people added.

The two sides continue to negotiate the precise terms of those assurances, however, and it remains unclear when the two sides will reach a deal, the people said. The companies were previously discussing a price in the $10- to $11-a-share range.

Sun is concerned regulators could hold up a deal for months and impose conditions on its completion as part of the government's antitrust review. Should that occur, Sun's board wants to limit IBM's ability to exit the deal.

Sun shares were trading at $8.15, up 15 cents, in afternoon trading on the Nasdaq Stock Market. The company currently has a market value of about $6 billion.

Sun is concerned regulators could hold up a deal for months and impose conditions on its completion as part of the government's antitrust review. Should that occur, Sun's board wants to limit IBM's ability to exit the deal.

Legal experts said any deal stands to face close antitrust scrutiny, especially in the market for server computers sold to big corporations and governments around the world.

After a deal, the combined companies would account for 42% of total server market revenue--65% of the market for servers based on the Unix operating system. The companies will also account for nearly half of all revenue from tape-storage systems.

A Sun spokeswoman declined to comment. A request for comment from IBM wasn't immediately returned.
I knew they would lower it to that range. So it looks like this deal will go through. Did anyone else buy on Monday or Tuesday when the price dipped below $7?
 

RSTEIN

Comics, serious business!
Nice selloff here at the close. I bought UPS, BDK, PPG, and more WFMI puts during the middle of the day. Up on all of them after this 1.5% pullback.
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
RSTEIN said:
Nice selloff here at the close. I bought UPS, BDK, PPG, and more WFMI puts during the middle of the day. Up on all of them after this 1.5% pullback.


I hate last 10 minute sell offs.

:mad:
 

Ether_Snake

安安安安安安安安安安安安安安安
onipex said:
Those shares of COOL are really starting to pay off now. Covered more than half the losses I had.

Up 14% in AH, nice:)

STP finished up 10%. Went from 9$ to 14$ in 5 days.

HON finished up 7%. BHI down 4% in AH for whatever.
 
I had some RIMM a few weeks ago and sold my shares because of some negative nancy analysts. I've got to start trusting my own research, I missed out big time.

So where do you guys think we are headed from here on out? Back down as the negative earnings reports start coming in? Or slowly up?
 
RIMM released earnings way above expectations.

Profit margins hovering around 42-43%, analysts expected <=40%.
Subcriptions 3.7M+, analysts expected 3M.
Raised 2009 Guidance, analysts expected to either continue or lower guidance

Plus a ton more.

Really a great earnings report for them.
 

Ovid

Member
April 2 (Bloomberg) -- International Business Machines Corp. is planning to announce its purchase of Sun Microsystems Inc. on April 6, a person familiar with the matter said.

IBM intends to pay between $9 and $10 a share for Sun, said the person, who declined to be named as the talks are still under way. At those prices, it would be the largest acquisition in IBM’s history.

The purchase would give IBM almost half of global server- computer sales and Sun’s software portfolio, including the Solaris operating system. A deal could spark more consolidation in the industry, said Shaw Wu, an analyst at Kaufman Bros.
http://www.bloomberg.com/apps/news?pid=20601204&sid=akNk_HK.8cUI&refer=industries

Good news
 

RSTEIN

Comics, serious business!
This pic made me :lol

timbp.jpg
 

kathode

Member
Futures are treading water right around even at the moment. Should be interesting, particularly heading toward close. I think a correction is inevitable soon, but maybe not today.
 

Meier

Member
Man, C is such a turd... I can't believe how much it has resited going over 3. Tempted to just cut my losses and run. I really need S to keep up the momentum and bust through 5 today -- that would be huge. COOL is nearing its 52 week high. Seems like a good time to short, no?
 

kathode

Member
Meier said:
Man, C is such a turd... I can't believe how much it has resited going over 3. Tempted to just cut my losses and run. I really need S to keep up the momentum and bust through 5 today -- that would be huge. COOL is nearing its 52 week high. Seems like a good time to short, no?

You would think so. There's a ton of stuff that reads as oversold out there, but this rally seems to have a lot of strength to it. If TXI is even or up today, I'll be increasing my puts.
 

Deku Tree

Member
Meier said:
Man, C is such a turd... I can't believe how much it has resited going over 3. Tempted to just cut my losses and run. I really need S to keep up the momentum and bust through 5 today -- that would be huge. COOL is nearing its 52 week high. Seems like a good time to short, no?

Wish I would have jumped in at $1.
 
I keep waiting for the market to go down, but maybe it'll only start happening once the new earning season starts next week and we get a reality check.

I can't for the life of me understand why DHI (which I shorted) keeps going up. I realize that new construction increased for the first time since July, but by god, we're still in a recession, this stock is way overpriced, and it keeps going up!
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
RSTEIN said:
well this sucks.


You were doing your last 10 minute sell off again weren't you? Looks like the market decided to go up in the last 5 minutes. :lol
 

kathode

Member
mckmas8808 said:
You were doing your last 10 minute sell off again weren't you? Looks like the market decided to go up in the last 5 minutes. :lol

A 1% gain at the end isn't much to write home about in the face of what's gone on the last couple of weeks. The main problem with today is that it was a bore, which is the bane of many a short-term trader :)
 

Tarazet

Member
I'll be buying an inflation-protected treasury note at auction on Tuesday. It's strange - because it's a "noncompetitive bid," it looks like I don't get to select the price I pay or even see what the yield will be until the auction day. I just say, I want one note, figure out the price for me.

I looked into the results of the last TIPS auction. All of the noncompetitive bids resulted in sales, but less than half of the competitive bids resulted in actual sales because the Treasury had a fixed budget for the issue, and they served the smaller, individual investors first.

It all feels kind of abnormal. But at least there's no commission charge.. and no management expenses like in mutual funds.
 
tyguy20204 said:
I keep waiting for the market to go down, but maybe it'll only start happening once the new earning season starts next week and we get a reality check.

I can't for the life of me understand why DHI (which I shorted) keeps going up. I realize that new construction increased for the first time since July, but by god, we're still in a recession, this stock is way overpriced, and it keeps going up!

Well, according to the chart, the DHI 15-day SMA crossed over both the 50-day & 200-day SMA.

It will likely keep going up but for how long, that is the question.

Yahoo Finance Chart for DHI
 

Ether_Snake

安安安安安安安安安安安安安安安
I'm down 5000$ total now, it feels good compared to how low I was recently. ATVI is my only green stock for now.

I'm still a bear though, cause like I said before I expect a false-recovery, but since the economy remains identical to what it was before, and since trade with China will continue along the same road it has before, growing the trade deficit, then I expect another collapse as job losses continue anyway, which will prevent prices to go up, while debt continues to grow too quickly due to credit cards and such. Basically the system hasn't changed, but getting into debt is now more likely due to lack of jobs (you don't need a job to max a credit card), and the only real difference is how much fewer people will have a purchasing power like they had before, which can only be a permanent negative on the economy.

LOTS of permanent jobs need to be created, and that can only happen if China stops being a protectionist nation, because currently trade with protectionist China is causing the US deficit to continue to grow non-stop. If this doesn't change, forget it, there is nowhere to go but down again.
 

Nicodimas

Banned
With the current admin and all the greenies...

Its all about SOLAR. Holy crap the last two week I doubled my money in this. In AZ it has tons of room to grow as a part of the system.

The bear market is there so make sure you cover the posistions as I fully expect the market to go like this (if the dollar doesn't default in which case this doesn't matter>

8000>>5500>>7000>4000>etc.

Play the market accordingly as we are only 30% into the housing crash...
 

Zyzyxxz

Member
Meier said:
Man, C is such a turd... I can't believe how much it has resited going over 3. Tempted to just cut my losses and run. I really need S to keep up the momentum and bust through 5 today -- that would be huge. COOL is nearing its 52 week high. Seems like a good time to short, no?

yeah I got back in last week but saw that it wasn't gonna move.

I don't think we'll see any big movements until April 17th.

Hopefully I can unload my AIG shares before then, I've got a bad feeling about it.
 

mckmas8808

Mckmaster uses MasterCard to buy Slave drives
Nicodimas said:
With the current admin and all the greenies...

Its all about SOLAR. Holy crap the last two week I doubled my money in this. In AZ it has tons of room to grow as a part of the system.

The bear market is there so make sure you cover the posistions as I fully expect the market to go like this (if the dollar doesn't default in which case this doesn't matter>

8000>>5500>>7000>4000>etc.

Play the market accordingly as we are only 30% into the housing crash...


I'd say we are 70% through the housing crash.
 

Ovid

Member
sonarrat said:
I'll be buying an inflation-protected treasury note at auction on Tuesday. It's strange - because it's a "noncompetitive bid," it looks like I don't get to select the price I pay or even see what the yield will be until the auction day. I just say, I want one note, figure out the price for me.

I looked into the results of the last TIPS auction. All of the noncompetitive bids resulted in sales, but less than half of the competitive bids resulted in actual sales because the Treasury had a fixed budget for the issue, and they served the smaller, individual investors first.

It all feels kind of abnormal. But at least there's no commission charge.. and no management expenses like in mutual funds.
Yeah, I was looking into buying TIPS for a couple of months now. I decided to wait a few more months until I purchase them because we all know what will happen if the Federal Reserve doesn't increase interests rates when the economy starts to rebound.
 

Ovid

Member
So with financial earnings reports coming out in two weeks, is anyone going to play this sector. I have feeling BAC will have a "good" quarter. I don't know about C though.
 

Javaman

Member
I was talking to someone at work the other day and he told me he moved his entire $200,000 401k out of stocks and into bonds and money markets in the first week of March. Ouch. :eek:O
 
Javaman said:
I was talking to someone at work the other day and he told me he moved his entire $200,000 401k out of stocks and into bonds and money markets in the first week of March. Ouch. :eek:O

Your co-worker missed out on one of the greatest increases in the stock market, 21% in four weeks. Hasn't happened since May 1933.
 

Ovid

Member
Talks between International Business Machines Corp. and Sun Microsystems Inc. were on the brink of collapse Sunday, threatening to undermine a potential $7 billion acquisition that would have placed one of Silicon Valley's iconic companies under the Big Blue umbrella.

People familiar with the situation say that Sun's board rejected a formal acquisition offer by IBM on Saturday. They say the board felt IBM's offering price -- believed to be $9.40 or below -- was too low. Sun also feared that the offer gave too much "optionality" in purchasing Sun, said one person familiar with the talks, meaning that IBM would have too much leeway to walk away from the deal.

Late-stage deal negotiations are often full of brinksmanship, and it's possible the two sides are hardening their positions only to strike a full deal in the near future. But for now the stance is confrontational.

A person familiar with the situation said that Sun has sent a notice terminating IBM's agreement for exclusive negotiations, effectively breaking off the talks. In return IBM has withdrawn its offer to buy Sun, said a person informed about he situation.

When word of the talks first leaked people had expected Sun to fetch $10 to $11 a share, but the price apparently came down as Sun demanded assurances that IBM would proceed with the deal in the face of anticipated challenges by antitrust regulators.

It isn't clear whether Sun expects interest by other companies. According to people familiar with the situation, its investment bankers approached most large information-technology firms during the winter after IBM expressed interest in an acquisition, and all of them passed.

It isn't clear whether Sun would be open to resuming the talks if IBM sweetened its offer. Ever since word of the possible deal broke last month in the Wall Street Journal, the two sides declined public comment. IBM spokesman Michael Fay didn't return calls for comment.

People familiar with the situation say that IBM's lawyers had conducted extensive due diligence and satisfied themselves that there weren't any impediments to a merger lurking in Sun's licensing and contracts.

http://online.wsj.com/article/SB123896664697090681.html

Oh shit.....looks like I might get burned by another tech company. This stock is gonna drop 50% tomorrow (imagine if you shorted it on Friday). I will now be forced to hold my shares of this company and buy more shares at a lower price to recoup some of my losses. I hope Sun gets a deal with IBM or another company like Cisco at a later date.
 

Zyzyxxz

Member
tarius1210 said:
http://online.wsj.com/article/SB123896664697090681.html

Oh shit.....looks like I might get burned by another tech company. This stock is gonna drop 50% tomorrow (imagine if you shorted it on Friday). I will now forced to hold my shares of this company and buy more shares at a lower price to recoup some of my losses. I hope Sun gets a deal with IBM or another company like Cisco at a later date.

oh shit, if Sun is looking for other people to buy them out, this could be interesting?

Also does this means shares are gonna plummet on monday?

Javaman said:
So with financial earnings reports coming out in two weeks, is anyone going to play this sector. I have feeling BAC will have a "good" quarter. I don't know about C though.

Yeah I'm hoping AIG will rise enough so I can get out of it and cover my shorts just in case.

I'm not expecting good things out of C also, as well as AIG, BAC for me is up in the air but with the recent bad tidings about the Meryll Lynch purchase I don't see their balance sheets looking so hot.
 

Tarazet

Member
tarius1210 said:
Yeah, I was looking into buying TIPS for a couple of months now. I decided to wait a few more months until I purchase them because we all know what will happen if the Federal Reserve doesn't increase interests rates when the economy starts to rebound.

Inflation?
 

Ovid

Member
Zyzyxxz said:
Oh shit, if Sun is looking for other people to buy them out, this could be interesting?

Sun has been shopping themselves around since last summer. Maybe they have a better offer on the table from another potential buyer, who knows. The quote from the following sentence has me thinking:
Talks were in their final stages in recent days, but IBM took its offer off the table after Sun terminated IBM's status as its exclusive negotiating partner
http://finance.yahoo.com/news/AP-sources-Sun-deal-cloudy-apf-14853478.html

Why would they do that if the deal was on its way to being completed? Very strange.

Also does this means shares are gonna plummet on monday?

The stock price will plummet tomorrow, how much it falls is anyone's guess. I think there will be panic selling early. This really sucks balls because everyone has been saying that the deal would be announced on Monday. For some strange reason I have a feeling that the stock price will reach its current level again within the next few months. Maybe I'm just crazy.

sonarrat said:
Inflation?
You got it
 

Nicodimas

Banned

Sacramento: 80 percent of the subprime resets are through, here come the option ARMs…
March 25th, 2009 Categories: Graphs and Charts, Mortgage and Loans, Pre Foreclosures, Real Estate News, Real Estate Trends, Sacramento Home Buyers, Sacramento Real Estate

Leslie Appleton-Young, chief economist of the California Association of Realtors, said a couple weeks ago that the subprime loans that triggered the housing slump and global economic downturn has largely run its course in the Sacramento region.

But now, the next round of problem mortgages; the Pay Option ARM, Alt-A, Neg-Am, are imploding, and they are the big ones! Most of these were very expensive, big jumbo houses.

Thousands of those loans are going to cause problems for Sacramento-area borrowers, experts say. $750 billion of option ARMs were originated from 2004 to 2007 with most of them in California and Florida.





These loans are blowing up just like the subprimes. As of December of 2008, an amazing 28% of option ARMs were late or in foreclosure.The problem is that option ARMs were “prime” products because they were made to people with with higher credit scores. Never mind the fact they made no where near enough money to afford the home they were buying! Once the loan resets, the game is over!

The average increase in payment is over $1000 per month! And almost 60% of these homes are under water, or are not worth the underlying debt!





As you can see, the longer the lock on the original payment, the higher the reset…

We could see this problem around until 2015 or so.
 

Ovid

Member
Nicodimas said:
You may say all you want, but only 30% have actually reset. The one bought at the height in 2005 and 2006 reset in 10 and 11. This is about 40% with the last 20 reseting all the way out to 2016. The ones bought in 05-06 were at the height of the prices too.

Alt A'optionss are up and coming.

http://www.calculatedriskblog.com/2007/10/imf-mortgage-reset-chart.html

I mentioned this a few months ago in this thread (I even posted a chart of the resets). Starting this month the defaults will accelerate.
 

Zyzyxxz

Member
tarius1210 said:
Why would they do that if the deal was on its way to being completed? Very strange.

The stock price will plummet tomorrow, how much it falls is anyone's guess. I think there will be panic selling early. This really sucks balls because everyone has been saying that the deal would be announced on Monday. For some strange reason I have a feeling that the stock price will reach its current level again within the next few months. Maybe I'm just crazy.

Damn I could use some more money, maybe I'll unload some of my Ford shares to get into Sun tomorrow.

I think there will be a selloff too but Sun is too good of a company not buy out. If they broke off talks maybe they had a similar offer worth as much and had trouble picking a new daddy.

I'll be in to sweep in a few shares if the selloff is bad enough.
 

kathode

Member
TXI taking a dive. Unfortunately I often forget how much simple volume figures into option equations. Just can't get much price movement because volume is literally zero.
 

RSTEIN

Comics, serious business!
Today is a good day.

kathode said:
TXI taking a dive. Unfortunately I often forget how much simple volume figures into option equations. Just can't get much price movement because volume is literally zero
Sorry, I don't follow.
 

kathode

Member
RSTEIN said:
Today is a good day.


Sorry, I don't follow.

I phrased it badly/incorrectly. The basic issue seems to be "no one gives a shit about this stock so I can't find anyone to buy my contracts" :lol I think the real problem is I bought too far OTM (July $20 put). I can't remember my rationale for this, but that's what I got. The price has declined nearly 6% so far, but the bid has only moved up once by 5 cents, to my break even price. I'm just impatient ;) If we have a down week, I could see some decent profit on this one.
 
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