Way of the Turtle by Curtis M. Faith is a great book that documents an experiment that started out as a bet between Richard Dennis and William Eckhardt. The bet was whether great traders are born great or where they made great….it is an excellent book and a must read. There are many read examples and techniques that are noted throughout this historical yet timely trading guide.
After coming under extreme pressure from billionaire investor Carl Icahn, Motorola has decided that the handset business will operate separately from another company that will encompass its home and networks business which sells TV set-top boxes and modems, and its enterprise mobility solutions, which sells computing and communications equipment to businesses. We will see what this change brings to Motorola…can it reinvent itself?
In a press release the Justice Department said, “After a careful and thorough review of the proposed transaction, [the department’s antitrust division] concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers.”
Cramer noted that the merger still requires approval by the Federal Communications Commission (FCC), an agency which Cramer lambasted as the “Federal Cartel Creators”.
According to Cramer, the FCC’s one-year, 35-day approval process is a travesty of justice and only denies consumers more choice and lower prices. He once again urged viewers to visit the FCC’s Website at www.fcc.gov to voice their support for the merger.
Cramer says Sirius will go to $5 if the merger gets final approval.
Reports from the NY Times today show that JP Morgan has officially raised it’s bid to $10 per share for Bear Stearns. According to the Times, under the new terms, JPMorgan would pay $10 a share in stock for Bear, up from its initial $2 a share — a figure that represented a mere one-fifteenth of Bear’s going market price. Does this appease the current shareholders?
Okay, financials may be bottoming (maybe?)….who cares…steer clear. What about other names that have good fundamentals and that have been beaten up (but have huge potential upside). What about names like: Foster Wheeler, EMC, Discovery Holdings, BP….what about these, anyone?
That is correct…$2 a share. Wow! There is not much more to say…what a stunning collapse for Bear Stearns. The deal is valued at $236.2 million and the Federal Reserve and the U.S. government swiftly approved the all-stock deal showing the urgency of completing the deal before world markets open tomorrow.
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