Stocks & Equities

Activist investor Victor Alboini has made a number of mistakes in his career. He has been on the wrong side of securities regulators and the investment industry’s regulatory body. But even his detractors on Bay Street should give the man some credit.

It was Mr. Alboini, the chief executive officer of Jaguar Financial Corp., who said in 2011 that BlackBerry Ltd. – then known as Research In Motion Ltd. – should put itself up for sale. He argued that the company would never shine brighter than when it was still promising to reinvent the smartphone, and that its prospects would likely fade once consumers and business users actually got to see its new devices. He was right. While the new BlackBerry 10 phones have received decent reviews in the specialized press, they have barely moved the needle for the Waterloo, Ont., company that bears its name.

Three busy open houses over Mother’s Day weekend and a steady stream of visitors with mid-week showings confirmed its popularity among buyers, four of which vied to produce the highest offer.

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….read more HERE

 

 

U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for the sixth time in eight days, as speculation increased that the Federal Reserve will scale back stimulus this year amid signs the global economy is strengthening.

Macy’s Inc. fell 4.2 percent as the department-store chain cut its profit forecast after weaker-than-estimated quarterly sales. Homebuilders and utility stocks slumped amid rising bond yields. Cree Inc. tumbled 19 percent after forecasting lower first-quarter profit than analysts had anticipated. Apple Inc. climbed above $500 for the first time since January, extending a rally after billionaire investor Carl Icahn said yesterday he’s an Apple shareholder.

“The market is scope-locked on Fed tapering in September,”Douglas Cote, chief market strategist at ING U.S. Investment Management in New York, said in a telephone interview. His firm oversees $190 billion. “Quantitative easing is creating some excess in the financial system. The last thing Bernanke wants when he finishes his term is to be responsible for the next bubble.”

….read more HERE

And pointed to very little inflationary pressure in the economy, which could add to worries at the U.S. Federal Reserve that inflation is running too low.

The Labor Department said on Wednesday a drop in natural gas and gasoline costs held back its seasonally adjusted producer price index. Analysts polled by Reuters had expected a 0.3 percent increase.

But it was the weakness in the index outside of volatile energy and food components that will likely garner more attention at the Fed, which has recently flagged the risks posed to the economy by low inflation.

These so-called “core” prices, which are seen as indicators of trends in inflation, rose 0.1 percent during the month, below the 0.2 percent gain expected by analysts in a Reuters poll.

The report helped push yields lower on long-term U.S. government debt, suggesting investors saw it as a sign the Fed might keep a major economic stimulus program in place for longer.

….read more HERE

 

 

Paulson raises offer to $40/shr from $38

Offer values company at $512 million

Shares rise to $40.41 in premarket trading

Steinway says merger agreement does not provide for go-shop period

Aug 14 (Reuters) – Steinway Musical Instruments Inc, best known for its grand pianos, said it would be taken private by Paulson & Co Inc after the hedge fund firm raised its offer to $40 per share, valuing the 160-year old company at about $512 million.

Steinway’s shares rose to $40.41 in premarket trade, suggesting some investors expect a higher offer.

The company said on Monday it had received a bid of $38 per share from an unidentified asset manager that topped an offer of $35 per share from Kohlberg & Co. A source identified the new bidder as John Paulson’s hedge fund firm.

….read more HERE

Carl iCahn Buy’s $1.5B Apple Stake

Posted by Wall Street Journal

on Wednesday, 14 August 2013 17:10

“This is a no-brainer to go buy stock in a company that can go borrow” at a low rate, Mr. Icahn said in an interview. “Buy the company here and even without earnings growth, we think it ought to be worth $625,” he said, referring to the stock price, which closed Tuesday at $489.57, having risen 5% on the news of Mr. Icahn’s investment.

much more at Wall Street Journal HERE

Apple’s Stockpile:

MK-CF538 APPLE NS 20130813183905Wa