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World Stock Markets Trading Discussion - Greasy gloss


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Quant MOO Closing:

SELL 64 ALXN

SELL 60 CHTR

BUY 30  EL

BUY 43  ESS

BUY 263 LNT

BUY 10  NVDA

BUY 354 PPL

BUY 104 UNP

SELL 70 WHR

BUY 253 WRK

 

Opening: 

BUY 159  CAH

BUY 47   SHW

BUY 172  XRAY

SELL 30  PXD

SELL 165 TJX

SELL 454 BSX

SELL 110 CB

SELL 65  AMG

SELL 208 FTI

SELL 109 KSS
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w?s=%5EAORD&lang=en-AU&region=AU

 

 

All Ords was briefly green before rolling over and selling off into the close.  The index finished -0.5% with the only up sectors being Telecomms +0.8% and Utilities +0.4%.  REITS -1.5% was down the most followed by Energy -0.9%.

Over in Asia, China +0.4%, Hong Kong and Japan -0.8%, India currently +0.1%.

 

 

On to UK/Europe:

 

 

t?s=%5EFTSE&lang=en-AU&region=AU&width=3

 

t?s=%5EGDAXI&lang=en-AU&region=AU&width=

 

t?s=%5EFCHI&lang=en-AU&region=AU&width=3

https://au.finance.yahoo.com/

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M2M Quant opened: 

 

BUY 159   CAH  $5

BUY 47   SHW  $10

BUY 172   XRAY $33

SELL 30   PXD -$88

SELL 165 TJX  $91

SELL 454 BSX -$230

SELL 110 CB   $33

SELL 65   AMG -$42

SELL 208 FTI  $3

SELL 109 KSS  $60

 

Net: -$125

 

Think that's enough of that for now. 

 

Might re-jig it to trade baSSkets of futures.

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THE STRANGE CASE OF DAVID EINHORN AND GM

 

So after my post on GM David Einhorn jumps in and suggest two classes of stock.

 

Numbers suggest the two stocks will increase market cap by 38 Billion.

This will not happen.

Because while the dividend stock will be worth 20 the capital stock will adjust in value downward by a considerable amount.

My calculations suggest the capital pop of the two stocks together will be 20 Billion not 38 billion.

 

WHY

Because this looks like a tax minimisation exercise where the current non tax deductable "dividend" will now be a tax deductable interest payment by the company to the "shareholder/debtholders" of the dividend stock.

Value will be transferred from the taxpayers (tax saving by GM of $1 billion per annum) to the GM capital stock share holders.

The capitalised value of this value transfer is about $20 billlion.

 

Otherwise the idea holds no value to the shareholders.

 

Indeed this is very similar to the common/preference two class share structure that all the 19th century railroads had.

 

This is just a case of more capital structure arbitrage which I have posted on before. Substituting debt for capital to keep the stock pumped up.

 

Indeed GM has added vast amounts of debt over the past few years - now have 90 billion in debt.

 

 

 

 

 

 

 

.

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