Closer to the RIM

24 01 2012

How long before we hear about a RIM takeover? Many are the technology giants currently being pointed out as possible bidders, including companies of the sort of Nokia, Amazon, Microsoft and Samsung. The BlackBerry manufacturer’s shares have dropped more than three-quarters of their value over the past 18 months due to the increasing competitive pressure within the smartphone market led by Apple’s iPhone and Google’s Android-based devices. RIM’s shares took their latest slash yesterday, as their newly appointed CEO, Thorsten Heins, was seen by investors as incapable of turning around the company’s failure to keep the pace of its competitors in one of the most attractive markets nowadays.





Euro carry trade

11 01 2012

Many experts are pointing out that the euro is likely to assume the main role in the fresh carry trade revival trend. Last year’s worst performing major currency might be replacing the yen as the currency of choice for executing the so called carry trade process (which basically consists in borrowing in currencies with low interests rates in order to invest in other currencies with higher interest rates and profit from the interest rate differential), boosted by its downward trend observed during last months and rumors indicating that the BCE’s benchmark interest rates could hit 0.5% by mid-year 2012.





The Devil’s Metal

13 05 2011

That’s one of the names given to silver due to the dramatic oscillations its price has experienced during the last 12 months. Among other names awarded by the metal are piece of s@#!, ball of c@#|* and son of a b!@#*. And it is completely reasonable to think likewise in case you are investing in commodities in order to flee troubled assets like sovereign debt and get higher returns than those offered by equity, given the price of silver has surged 175 per cent from last August to late April this year, peaking roughly $50 a troy ounce before plummeting almost 35 per cent during the following 2 weeks.

Source: Capital IQ

Apparently, this sharp swing in its price has been significantly influenced by the increasingly important role played by Chinese investors in the international exchange of the precious metal, with Shangai Gold Exchange reaching a peak of 70 million ounces on mid April this year.

The issue becomes even more important when you consider the effect that silver prices have on other commodities, which could destabilize the economic recovery at a global scale. High prices on raw materials, though historically have been a good sign of industrial activity recovery, could do no good to troubled economies, especially those from the eurozone’s peripheral area -highly indebted, with huge deficits, no growth and a rising inflation-. Whether it is a bubble on the brink of bursting or not, it remains to be seen; for now, you should only worry if you laid big hopes on companies like First Majestic Silver AG… not suitable for people with a heart condition.





Busted!

12 05 2011

The former head of the famous hedge fund Galleon Group has been found guilty of insider trading, pocketing roughly 63 million dollars by trading on inside data about earnings and corporate takeovers. Raj Rajaratnam, who’s now facing up to 19 and a half years in prison, seems to have spent half that money in high-calorie food, judging by his recent picture.

They say there will be more trials to come soon, signaling what looks like the begining of an agressive move from the US government in order to strike down corruption on Wall Street. Hopefully they’ll have enough food for Raj and his friends in jail!