Archive for June, 2010

1

Join King of all Trades For Free Technical Analysis Seminar Tonight

By
king1
– June 30, 2010
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By Relmor Demitrius

Please join King of all Trades tonight in our forums and chat room for a free live technical analysis seminar at 10 PM eastern time.  That is tonight, June 30th, 2010.   We will dicuss basic charting techniques everyone can learn quickly and easily.  Also KOAT will instruct you on how to use charting software so you can make your own charts whenever you need.  We hope everyone can join us to have fun and learn.  Always good to know what the guy on the other side of the trade is seeing, and believe me, there is always someone on the other side of the trade.  A good on to download and come ready to use is www.freestockcharts.com.   Please join us in our chat room and forums at these links: http://www.kingofalltrades.com/prochatrooms/    and   http://kingofalltrades.com/forum/viewtopic.php?f=17&t=647. 

For up to date financial news, fundamental and technical analysis, and forum discussions for all investments and trades, visit www.kingofalltrades.com

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3

Howard Stern Makes Comments on His Contract/Intentions with Sirius XM Radio

By
king1
– June 28, 2010
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howard_sternBy Relmor Demitrius

 

During his show last week Howard Stern, Sirius XM Radio’s (NASDAQ:SIRI) number one talent, was asked about his intentions going forward.  Howard made comments that may shed some light into his thought process.  Howard Stern’s contract expires on December 31st, 2010.  At that point in time he would be an unrestricted free agent, free to retire, re-sign with Sirius XM, or move on to another employer all together.

His first set of comments revolves around his start time in the morning.  To paraphrase, Howard said that he wants to begin starting the show at 7 am.  He said that Mel however, told him that he still would like him to do it at 6 am, since his fans are so used to him beginning at that time.  This kind of contradicts his next comments, which makes all these comments interesting and noteworthy.  Casual comments from Howard can be insight for investors into the mind of Stern and what he might do with his next contract decision.

Howard later in the week, when asked about his intentions, did have a few comments of note.  He said that he can work over the December 31st date without a contract.  Apparently month to month is an option.  This removes December 31st as a drop dead decision date.  I think this was more negotiating than reality, but I don’t think he would say that he can’t work past his contract date if it was not an option.  You can go month to month, or sign a temporary, status quo contract, to fill any gaps in his permanent contracts. 

Howard also said that yes, he is indeed now leaning one way or the other.  He wouldn’t say which way, but by the context and comments it sounds like the options are boiling down to retiring and coming back to Sirius XM.

Howard also said that currently, they are not negotiating a deal, and Mel Karmazin (CEO of Sirius XM Radio) has not made him an offer.  Here is where I see some inconsistencies in his comments.  If they weren’t already negotiating, how did his start time for the new contract come up?  And if he isn’t negotiating, why is Mel insisting on him keeping his 6 am start time?  Maybe they are just “talking” and there has been no official talks, but it appears things are starting to heat up. 

Keep your ear to the Howard grapevine to hear more on his intentions.  When Mel Karmazin said if you want to know what Howard is going to do listen to his show, he wasn’t kidding.

For up to date financial news, fundamental and technical analysis, and forum discussions on all investments and trades, visit www.kingofalltrades.com.

 

Disclosure:  Long SIRI

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9

Sirius XM Approaches Russell Rebalance With Momentum

By
king1
– June 23, 2010
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SatRadioBy Relmor Demitrius

 

One June 25th, this Friday, the Russell family of indexes will have its yearly reconstitution event.  This event adds and deletes companies on their Russell index’s and tracking funds. Sirius XM Radio (NASDAQ:SIRI) will be one such addition.  It is not 100% official, as the official list doesn’t come out until next Monday, but its about as sure a lock as you can get in this type of situation.  Sirius XM was listed as an addition on the first two lists released, one on June 11th and the other on June 18th.  This is good timing for a stock that has been in an uptrend now since 6/9/10.  The equity has been moving up into this planned buy. 

Russell reconstitution is usually a high volume event that can result in massive volatility of price movement on that day.  On Friday, over 200 million shares, maybe much more, must be purchased.  Last year the market dumped these Russell shares, now the company enjoys the benefit of the reverse of that scenario.  One of the best advantages of being added is these shares will now not trade anymore.  They are used for exposure, not to be traded around.  This is great news for Sirius XM investors as any reduction in the tradable float can help sustain price levels and reduce downside volatility.  I believe Sirius XM will be added to the Russell 1000, which is a list of the top 1000 companies, based mostly on market cap but not entirely, which would require even more stock to be purchased.  The more lists they are on, i.e. Russell 1000, Russell 3000, Global funds, mid cap funds, etc.. the more shares will need to become available.  It has been speculated as many as 500 million shares may be required.  But who’s going to sell them the shares?

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15

B P Global Energy (NYSE: BP) Down But Not Out

By
king1
– June 22, 2010
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By Andrew Montero

Shares of the former British Petroleum, now known only by its initials (NYSE: BP) continued to struggle this week as the U.S. government further enflamed an already tense situation.  Certainly the continuing flow of oil in the Gulf is a major problem.  The death of many forms of marine life and plant life due to poisoning and suffocation from the oil is a horrible situation as well.  Everyone already knows the tragic situation unfolding in the Gulf of Mexico, not to mention the loss of 11 workers who died trying to make a better life for themselves and their families. The government, however, has gone out of its way to throw gas on a already burning hot fire.  Among the culprits, one Ken Salazar, who audaciously made the assertion that BP should have to pay for all oil workers jobs in the Gulf that are lost due to the disaster and the coming moronic halt of drilling in the Gulf by the U.S. government, which can only be described as the ultimate in micro-mismanagement and nearsightedness.  This is a typical government responses, a knee jerk reaction to a serious problem, but one that makes little sense once you look at the situation.

Obviously BP needs to not only stop the oil from spilling into the Gulf, but they also need to compensate people whose incomes have been affected or destroyed by the situation and show some remorse, not make commercials to try and sway opinion.   The PR firm hired by BP has only caused further harm to their reputation.  Will companies never learn.  You can’t appear like you are trying to be concerned, you simply just really have to be concerned, and your actions speak for themselves in these situations.  Of course, our own US government and the President himself have been just as out of touch with reality on the ground in Louisiana.  Micro-management does not, has not, and will not work.

Why has the President not met with BP CEO Tony Heyward, nor spoken to him?  Why is Halliburton, which performed the cementing work on the well hours before the explosion, and other companies involved with the situation being avoided in discussions regarding compensation to fishermen and repair of the damage to the environment?  Why is the US government attempting to decide whether a non U.S. company pays its shareholders a dividend? These are just a few of the questions that need to be

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0

China Agrees To Allow Movement on the Yuan

By
king1
– June 21, 2010
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yuanBy Relmor Demitrius

 

On Saturday it was announced that China had finally agreed to allow a revaluing of the Yuan, which is pegged to the dollar, to allow for greater appreciation of the currency.  This has been long sought after by the world economies who have complained for years China enjoys an artificially depreciated currency compared to the major global currencies such as the Yen, the U.S. Dollar, and the Euro.

China uses their currency trade surplus to buy foreign currencies, hence artificially making that currency stronger.  China enjoys a trade surplus, which is a foreign term to American investors who have long dealt with the term trade deficit here.  Basically China makes more on what they export than on what they buy as imports.  This is slowly changing however, but for now remains true.  China is now a net importer of oil, a sign this dynamic of China may be slowly changing.

Since China has extra money, they use it to buy other currencies keeping those currencies stronger compared to the Yuan.  This keeps Chinese exports cheap in comparison to other economies.

Since the Yuan is pegged to the dollar, any depreciation in the U.S. currency would cause the Yuan to stay in a relative “always cheap” balance, as the ratio now is around 6 to 1, meaning 6 Yuan per dollar.  Basically no matter what we do to deprecate our currency, the Yuan will always be cheap.  This new measure for the Chinese banking system will now allow for the possibility of that ratio to come down, hence making our products cheaper in China, and theirs more expensive here.  This will be an advantage to our economy.  Futures markets, the dollar index, and oil are responding to these moves in early morning trading.  Short term the effect will be hard to guess, but long term this move is beneficial.  Ironically Chinese purchasing of our treasuries allows us to keep being able to purchase Chinese goods, as their economy is 30% reliant on sales to the United States.  So not only does China buy our debt, they buy our currency as well.  This complex and bizarre cyclical relationship with China will continue for years to come, and looks like China might finally be bowing to world pressure.  When your the fastest growing large economy in the world, and the world needs to buy your products in order for your country to survive, its best not to cause your customers to go broke.

 

For up to date financial news, fundamental and technical analysis, and forum discussions on all equity and trades, visit www.kingoftrades.com.

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