You can do research, study the market, plan carefully and still lose a fortune. This is a scary fact that many investors face when gambling in the stock market. There is now a financial instrument called “MITTS”, tailored by Merrill Lynch that allows a respectable return with zero chance of loss.
“MITTS” hedges the risk of options based investments with Zero Coupon Bonds to create an investment portfolio that is both secure and potentially highly profitable. An example of a “MITTS” investment would be as follows; 80% of your money could be invested in Zero Coupon Bonds and 20% could be invested in options. Under this type of scenario, an investment can be created that will return the full value of your investment through the Bonds portion of the investment. You can gamble with your options and make a fortune, or at the very least, break even if the options become worthless. The reason why is because the Zero Coupon Bonds are bought at a discount to “Par” value. If they are for sale at a price of $16 today and at some point they will mature and be worth $20, this part of the investment is a guaranteed return. If the options become worthless at the due date, you would still have your investment back.
In conclusion, MITTS trades like an ordinary stock on the NYSE and can be purchased through any broker. This type of investment is an excellent tool that can be used to eliminate the risk of loss while still seeing a nice return on one’s investment.
http://fintrend.com/ftf/Stock_Market/Mitts.asp
Sunday, April 6, 2008
MicroSoft Bid for Yahoo!!
Microsoft Corp has given Yahoo Inc. a three week deadline to accept a $31-a-share offer or it will take their bid directly to the shareholders. The Microsoft bid to buy Yahoo is valued at more than $40 billion and would mark the largest takeover in the high-tech industry.
Yahoo inc. had declined Microsoft's original offer, saying the bid undervalued it’s true worth. Microsoft argues the economy and the market for Internet stocks have declined and that Yahoo's share of Web search and advertising business has also declined and referred to industry market reports. In addition, a Yahoo investor said the deal with Microsoft involved regulatory risks that would reduce a merger's potential value.
The board of directors at Yahoo has adopted a strategy that would make a merger with Microsoft more costly. For example, Yahoo has provided a severance plan to all employees if the company was sold that is commonly known as a “golden parachute.”
In conclusion, the acquisition of Yahoo Inc. by Microsoft Corp is heightened by tensions of market risk and perceived value by both parties involved. The time sensitive acquisition proposal by Microsoft Corp for Yahoo Inc. is underlined by the declining value of the market for internet stocks. In addition, adopted strategies by the Yahoo board of directors have made the proposed acquisition a costly objective to achieve.
http://www.msnbc.msn.com/id/23958838/
http://www.bloomberg.com/apps/news?pid=20601103&sid=adbTBkawpo9I
Yahoo inc. had declined Microsoft's original offer, saying the bid undervalued it’s true worth. Microsoft argues the economy and the market for Internet stocks have declined and that Yahoo's share of Web search and advertising business has also declined and referred to industry market reports. In addition, a Yahoo investor said the deal with Microsoft involved regulatory risks that would reduce a merger's potential value.
The board of directors at Yahoo has adopted a strategy that would make a merger with Microsoft more costly. For example, Yahoo has provided a severance plan to all employees if the company was sold that is commonly known as a “golden parachute.”
In conclusion, the acquisition of Yahoo Inc. by Microsoft Corp is heightened by tensions of market risk and perceived value by both parties involved. The time sensitive acquisition proposal by Microsoft Corp for Yahoo Inc. is underlined by the declining value of the market for internet stocks. In addition, adopted strategies by the Yahoo board of directors have made the proposed acquisition a costly objective to achieve.
http://www.msnbc.msn.com/id/23958838/
http://www.bloomberg.com/apps/news?pid=20601103&sid=adbTBkawpo9I
Sunday, March 30, 2008
Global Light Out
I was glad to hear that 30 million people switched off their lights for one hour on Saturday night. It was in response to global temperature warming. Fortunately, people all over the world were participating in the campaign by turning off their lights or dimming lights at public facilities. Google.com switched their background color to black from white. The homepage is colored in black. The message is that it is time for you to turn off your lights.
Carbon emission is causing a climate change of 1.4 degree in Celsius. One hour of turning off lights is not going to make a significant change. We need to change our lifestyle in order to keep the climate stable. I think public facilities should turn off the lights after 12 a.m. Just leave the street lights on. More effectively, hallways should install sound control lights.
In the long-run, in order to protect our earth, we need to stop using fossil fuel. Renewable energy is the way to go.
Technology has allowed us to produce energy from wind, water and solar. All of the renewable energy is environmentally safe without pollution. Statistics shows that 40 minutes of the sun’s light can produce enough energy to supply the earth for one year. Renewable energy can also be liquidized into fuel. It is expensive to invest in renewable energy. However, it is practical and profitable in the long run.
http://news.yahoo.com/s/nm/climate_lights_dc
http://www.greenpeace.org/china/en/campaigns/stop-climate-change/solutions
Carbon emission is causing a climate change of 1.4 degree in Celsius. One hour of turning off lights is not going to make a significant change. We need to change our lifestyle in order to keep the climate stable. I think public facilities should turn off the lights after 12 a.m. Just leave the street lights on. More effectively, hallways should install sound control lights.
In the long-run, in order to protect our earth, we need to stop using fossil fuel. Renewable energy is the way to go.
Technology has allowed us to produce energy from wind, water and solar. All of the renewable energy is environmentally safe without pollution. Statistics shows that 40 minutes of the sun’s light can produce enough energy to supply the earth for one year. Renewable energy can also be liquidized into fuel. It is expensive to invest in renewable energy. However, it is practical and profitable in the long run.
http://news.yahoo.com/s/nm/climate_lights_dc
http://www.greenpeace.org/china/en/campaigns/stop-climate-change/solutions
Comments on Brian’s “Olympic Terrorism”
Brian’s journal caught my attention today. The article said that the Chinese government has arrested many terrorists who plan to attack the Olympics. Personally, I think the Chinese government is capable of maintaining a safe environment for the Olympics.
The Chinese government is a one party totalitarian government. If needed, military forces will be carried out to its full capacity to ensure a safe environment. What I am worried about, is the safety of food and drinks. China doesn’t have a FIC to monitor the food quality. There is no way to ensure the food and drinks are safe. China's Minister of Health, Chen Zhu, said on Monday the government will ensure public health safety during the Beijing Olympic Games by strengthening disease monitoring, emergency response and medical treatment.
Olympics are a great opportunity for China. The Chinese government is doing everything they can to create a safe environment for athletes and tourists. The Olympics will bring so many new innovative ideas and business into China.
The Chinese government is a one party totalitarian government. If needed, military forces will be carried out to its full capacity to ensure a safe environment. What I am worried about, is the safety of food and drinks. China doesn’t have a FIC to monitor the food quality. There is no way to ensure the food and drinks are safe. China's Minister of Health, Chen Zhu, said on Monday the government will ensure public health safety during the Beijing Olympic Games by strengthening disease monitoring, emergency response and medical treatment.
Olympics are a great opportunity for China. The Chinese government is doing everything they can to create a safe environment for athletes and tourists. The Olympics will bring so many new innovative ideas and business into China.
Are you on FaceBook.com?
Have you signed up for facebook.com? I did yesterday. It was all because a few friends that I know pushed me to sign up, so I could view their profile on facebook.com. While I was signing up, I was surprised to see how many young people are on this network.
U2 and facebook.com is not the way I am accustomed to communicate. When I was trying to sign up, there were a series of questions you have to fill out. They wanted to know my birthday, home phone number, education, work experience and many more personal questions. I didn’t give out my personal information. However, everyone that is on facebook.com has all their personal information posted. It is a website that stores your personal information and is shared by the public. Personally, I think it is not a good idea to post all your private information. A computer hacker may use your personal information to harm you.
Facebook.com is a great way of communication. Just like blogs, people in your network can comment on it. People talk about all the interesting things in their lives and exchange their opinions. Police can actually use facebook.com to collect information that they might not otherwise have. Facebook.com has its good side and bad side. It depends on what information you put out there.
www.facebook.com
U2 and facebook.com is not the way I am accustomed to communicate. When I was trying to sign up, there were a series of questions you have to fill out. They wanted to know my birthday, home phone number, education, work experience and many more personal questions. I didn’t give out my personal information. However, everyone that is on facebook.com has all their personal information posted. It is a website that stores your personal information and is shared by the public. Personally, I think it is not a good idea to post all your private information. A computer hacker may use your personal information to harm you.
Facebook.com is a great way of communication. Just like blogs, people in your network can comment on it. People talk about all the interesting things in their lives and exchange their opinions. Police can actually use facebook.com to collect information that they might not otherwise have. Facebook.com has its good side and bad side. It depends on what information you put out there.
www.facebook.com
Sunday, March 23, 2008
Tibet Issue in China
Tibet’s government and the Chinese government have been dealing with political issues ever since the beginning of the independence of the Republic of China. Tibet, a province of China, tried to claim its independence a few times. It all comes down to religion. Tibet, where many of the monks live, doesn’t get along with the rest of the mainland.
The Olympics are coming in about 4 months. All the Chinese government wants is peace and quite and positive publicity. Unfortunately, the Chinese government has been sending troops to Lhasa, Tibet to crack down on the protesters. The secret forces were also sent to SiChuan, YunNan and GanSu provinces to arrest the protestors there. Some rioters have been wounded and shot by the police according to the Chinese news agencies. The Chinese government has forced out all the foreign journalists in Tibet around the middle of March of 2008.
The U.S. government has asked China to use restraint against the protestors. Secretary of State Condoleezza Rice urged the Chinese party to talk to the spiritual leader Dalai Lama. The Chinese President agreed to talk to Dalai Lama under the condition that he not support Tibet’s independence. The phone call is still being scheduled.
This is a challenging subject for the Chinese government to handle, especially at this moment when the entire world is watching. Hopefully, there will be a welcoming environment before the Olympics start.
http://voanews.com/english/2008-03-20-voa79.cfm
http://voanews.com/english/2008-03-20-voa67.cfm
The Olympics are coming in about 4 months. All the Chinese government wants is peace and quite and positive publicity. Unfortunately, the Chinese government has been sending troops to Lhasa, Tibet to crack down on the protesters. The secret forces were also sent to SiChuan, YunNan and GanSu provinces to arrest the protestors there. Some rioters have been wounded and shot by the police according to the Chinese news agencies. The Chinese government has forced out all the foreign journalists in Tibet around the middle of March of 2008.
The U.S. government has asked China to use restraint against the protestors. Secretary of State Condoleezza Rice urged the Chinese party to talk to the spiritual leader Dalai Lama. The Chinese President agreed to talk to Dalai Lama under the condition that he not support Tibet’s independence. The phone call is still being scheduled.
This is a challenging subject for the Chinese government to handle, especially at this moment when the entire world is watching. Hopefully, there will be a welcoming environment before the Olympics start.
http://voanews.com/english/2008-03-20-voa79.cfm
http://voanews.com/english/2008-03-20-voa67.cfm
Morgan Stanley reported $1.53 billion in profit
Morgan Stanley, one of the biggest investment banks has its first quarter profit of $1.53 billion after dividend. It was better than Wall Street projected. Morgan Stanley did much better than other investment banks for the past three months.
Many investment banks have suffered because of the credit crisis. Last Sunday, Bear Stern Cos agreed to sell to JPMorgan Chase at a bargain price. Morgan Stanley has better managed its liquidity problems. Morgan Stanley hasn’t bought any stock back this fiscal year. Its share price raises $3.57 after Tuesday’s rally. Its security business including investment banking and trading had revenue of $6.2 billion.
Overall, Morgan Stanley is doing better than expected. However, there are a few signs that show its vulnerability. First of all, $1.53 billion profit was much lower compared to profit this quarter last year. Last year, it had a profit of $2.66 billion. Secondly, Morgan Stanley had reported a write-down of $2.3 billion-including $1.2 billion from mortgage-backed securities and $1.1 billion from loans.
Experts say that we will still have some more challenging times ahead. How long, we don’t know yet. The market will be volatile for the near future. However, for now, investors can take a short break since major investment banks have shown its capability of managing its funds during a depressed market condition. Consumers’ confidence toward the economy is still low. The future is going to be very interesting for all of us.
http://www.myfoxatlanta.com/myfox/pages/Business/Detail?contentId=6075397&version=1&locale=EN-US&layoutCode=TSTY&pageId=4.1.1
http://biz.yahoo.com/ap/080319/earns_morgan_stanley.html
Many investment banks have suffered because of the credit crisis. Last Sunday, Bear Stern Cos agreed to sell to JPMorgan Chase at a bargain price. Morgan Stanley has better managed its liquidity problems. Morgan Stanley hasn’t bought any stock back this fiscal year. Its share price raises $3.57 after Tuesday’s rally. Its security business including investment banking and trading had revenue of $6.2 billion.
Overall, Morgan Stanley is doing better than expected. However, there are a few signs that show its vulnerability. First of all, $1.53 billion profit was much lower compared to profit this quarter last year. Last year, it had a profit of $2.66 billion. Secondly, Morgan Stanley had reported a write-down of $2.3 billion-including $1.2 billion from mortgage-backed securities and $1.1 billion from loans.
Experts say that we will still have some more challenging times ahead. How long, we don’t know yet. The market will be volatile for the near future. However, for now, investors can take a short break since major investment banks have shown its capability of managing its funds during a depressed market condition. Consumers’ confidence toward the economy is still low. The future is going to be very interesting for all of us.
http://www.myfoxatlanta.com/myfox/pages/Business/Detail?contentId=6075397&version=1&locale=EN-US&layoutCode=TSTY&pageId=4.1.1
http://biz.yahoo.com/ap/080319/earns_morgan_stanley.html
Subscribe to:
Posts (Atom)
