Tag Archives: stocks

>Text: Money to burn for insider trading suspects | Reuters


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Gotta love these jokers…

Bauer: “…I am sitting with over $20 million in the bank…. I am not worried about me going broke… If you need to pay for more lawyers, use everything you have

Bauer: “You know what, you know what, if you feel better, burn the money and I’ll give it back to you.”
Co-conspirator: “Burn it?”
Bauer: “I would burn it in a fire….”
Bauer: “We have to get the fingerprints off that money.”

– ON DISCUSSING WHAT TO DO WITH $175,000 IN CASH THAT HAD BAUER’S FINGERPRINTS ON IT

Federal prosecutors said Matthew Kluger, a former lawyer at Wilson Sonsini Goodrich & Rosati, regularly stole information about anticipated deals. He is accused of passing the tips to an unnamed co-conspirator, who then supplied them to trader Garrett Bauer with instructions on how to trade, according to the criminal complaint.

 Money to burn for insider trading suspects

3:37pm EDT

(Reuters) – A lawyer and a trader were charged on Wednesday with conspiring to trade on corporate merger secrets in one of the largest insider trading cases in the United States. Prosecutors said they stole confidential merger information from three prominent law firms.

Following are excerpts of telephone conversations quoted in the court complaint, secretly recorded after the FBI had searched the co-conspirator’s home and asked about suspicious trades:
BAUER AND CO-CONSPIRATOR DISCUSSING POSSIBLE ARRESTS:
Bauer: “Don’t worry about any money (name of co-conspirator). At some point in the future when this is cleared up, you will have whatever you need… I am sitting with over $20 million in the bank…. I am not worried about me going broke… If you need to pay for more lawyers, use everything you have.”
Co-conspirator: “OK, I will, I am glad you, I’m glad you mentioned that. And if I go to jail, would you … is there any chance you might help (co-conspirator’s spouse) out?”
Bauer: “Of course … You, your kids, everything, it will be set.”
DISCUSSING WHAT TO DO WITH $175,000 IN CASH THAT HAD
BAUER’S FINGERPRINTS ON IT:
Bauer: “You know what, you know what, if you feel better, burn the money and I’ll give it back to you.”
Co-conspirator: “Burn it?”
Bauer: “I would burn it in a fire….”
Co-conspirator: “You know something, that – that’s foolish.”
LATER CONVERSATION ABOUT THE $175,000:
Bauer: “We have to get the fingerprints off that money.”
Co-conspirator: “Yeah.”
Bauer: “Like you wearing gloves or something and wiping every bill down or something. But it has to be done. Or as, like, you giving it to me and me wiping every bill down or something.”
Co-conspirator: “You know something. Somebody did say, ‘Why don’t you just run it through a dish-, a washing machine?'”
Bauer: “Well, I, I don’t know. I mean, I’ve seen that in the movies but I don’t know.”
KLUGER ASKING WHAT CO-CONSPIRATOR’S ATTORNEY IS ADVISING:
Kluger: “So, what he’s telling you is that you should flip, right? That’s what, that’s what I mean all these guys do — that’s all they ever do.”
Co-conspirator: “Yeah, no.”
Kluger: “Unless you get one that used to work for the mob or something… That’s all these former prosecutors know.”
(Reporting by Dena Aubin; Editing by Tim Dobbyn)

© Thomson Reuters 2011

Text: Money to burn for insider trading suspects | Reuters

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>A Million HFT Algos Cry Out In Terror And Are Silenced in Citi 1 For 10 Stock Split


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 A Million HFT Algos Suddenly Cry Out In Terror And Are Suddenly Silenced As Citi Announces 1 For 10 Reverse Stock Split
Tyler Durden

zero hedge

March 21, 2011 13:19: CET


While the wacky desperation antics of America’s nationalized bank (that would be Citigroup for the cheap seats) enter the surreal zone, after the bank just announced a 1 for 10 reserve stock split (finally returning the stock price to Al Waleed’s cost basis, if not entrance market cap) and a 1 cent dividend (which effectively means the Fed can now exit the prop each failing bank game… but won’t), the bigger question is what happens to the momentum algos that traditionally traded 500 million shares of Citi stock, providing a supporting base for the market courtesy of massive momentum surges that provided a buying feedback loop mechanism driven out of pure churn volume. Those days are now over, as the volume will plunge pro rata from half a billion to a measly 50 million shares. Furthermore, with algos receiving liquidity rebates on a volume basis, it is conceivable that the biggest piggy bank to the 3 man Ph.D. HFT operations is about to break, as exchanges cut their rebate payouts by 90%. And with the stock market these days being far more a function of volume churn than technicals or, heaven forbid, fundamentals, what happens with the natural HFT support to the market is anyone’s guess. One simple assumption: the next time the S&P does a May 6, or a USDJPY flash crash, the liquidity providers will pull out that much faster, leading to a massive freefall without any of the foreplay.

Full release:
NEW YORK–(BUSINESS WIRE)– Citigroup Inc. today announced a 1-for-10 reverse stock split of Citigroup common stock. Citi also announced that it intends to reinstate a quarterly dividend of $0.01 per common share in the second quarter of 2011, following the effective date of the reverse stock split.
“Citi is a fundamentally different company than it was three years ago,” said Vikram Pandit, Chief Executive Officer of Citigroup. “The reverse stock split and intention to reinstate a dividend are important steps as we anticipate returning capital to shareholders starting next year.”
Citi anticipates the reverse stock split will be effective after the close of trading on May 6, 2011, and that Citi common stock will begin trading on a split adjusted basis on the New York Stock Exchange (NYSE) at the opening of trading on May 9, 2011. When the reverse stock split becomes effective, every ten shares of issued and outstanding Citigroup common stock will be automatically combined into one issued and outstanding share of common stock without any change in the par value per share. This will reduce the number of outstanding shares of Citigroup common stock from approximately 29 billion to approximately 2.9 billion. Citigroup common stock will continue trading on the NYSE under the symbol “C” but will trade under a new CUSIP number.
No fractional shares will be issued in connection with the reverse stock split. Following the completion of the reverse stock split, Citi’s transfer agent will aggregate all fractional shares that otherwise would have been issued as a result of the reverse stock split and those shares will be sold into the market. Stockholders who would otherwise hold a fractional share of Citigroup common stock will receive a cash payment from the proceeds of that sale in lieu of such fractional share. Additional information on the treatment of fractional shares and other effects of the reverse split can be found in Citi’s definitive proxy statement filed with the Securities and Exchange Commission on March 12, 2010.
Citi is executing its strategy of focusing on its core businesses in Citicorp to support economic growth including banking, providing loans to small businesses, making markets and providing capital, while continuing to wind down Citi Holdings in an economically rational manner. At the end of 2010, the U.S Treasury sold its remaining shares of common stock, earning in total a $12 billion profit for taxpayers on its investment in Citi. 2010 was Citi’s first year of four profitable quarters since 2006, with $10.6 billion of net income. Citi’s capital strength is among the best in the industry and the bank is focused on putting its unmatched global network to use for its clients to foster sustainable and responsible growth.

Read more…

>Has Potash lost its Momentum? | Resource Investing News


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Has Potash lost its Momentum?
March 9, 2011 @ 4:52 pm In Feature Articles
By Leia Michele Toovey-Exclusive to Potash Investing News [1]
[2]Financial services firm Citigroup [3] (NYSE:C [4]) believes that the recent rally in stock prices of Potash Corp. of Saskatchewan [5] (NYSE:POT [6]) and Mosaic [7] (NYSE:MOS [8]) is about to lose steam.
On Wednesday, Citi analyst P.J. Juvekar downgraded Potash Corp. and Mosaic to hold, from buy. Citigroup also advised investors to take profits on the fertilizer plays, noting that “much of the good news” in the sector has already been digested by the markets.
“Lacking well-defined near-term catalysts, we see growing risk that the stocks could trade sideways into the summer,” Juvekar wrote. Juvekar is still bullish on fertilizer fundamentals, but thinks that the momentum generated by improving farm commodity prices could slow. “When corn moved from $3.50/bushel to $7/bushel, there was ample incentive to invest in more fertilizers to improve yields. At current corn prices, growers are incentivized to apply all the fertilizer they need to boost yields. If corn prices rose from $7/bushel to $8/bushel, farmers may not apply even more fertilizer. The incremental dollar may be invested elsewhere, such as in new machinery or land.”
However, optimism still reigns over the potash market. Last night, in his Mad Money Lightning Round, Jim Cramer voiced his opinion in regards to the recent sell-off of Potash Corp. stock. “Everyone is selling everything, but it’s not the end of the world. People are still running out of food. Potash needs to be bought,” said Cramer.
Smartrend [9], a trend trading system, pinpointed three fertilizer stocks with high potential upside, including Citi’s downgraded Potash Corp. Smartrend claims Potash Corp. has a potential upside of 25.4% based on a current price of $58.29 and an average consensus analyst price target of $73.08. Smartrend also added CF Industries (NYSE:CF [10]) and Agrium to its stock picks with high upside potential. According to Smartrend, CF Industries has a potential upside of 23.5% based on a current price of $128.94 and an average consensus analyst price target of $159.27. Agrium (NYSE:AGU [11]) has a potential upside of 14.0% based on a current price of $92.84 and an average consensus analyst price target of $105.81.
Meanwhile, Europe’s biggest potash producer, K+S Ag (ETR:SDF [12]) lifted its potash price for the fifth time this week, citing agricultural inflation as the main reason. This upgrade followed a report from the United Nations Food & Agriculture Organization that said record food prices are likely to be sustained this year because of high oil costs and smaller harvests.
Company news
Global X, the New York City-based ETF issuer best known for its suite of emerging market ETFs, is continuing the expansion of its product lineup with a new filing with the SEC. Among these new offerings is a fund covering the Fertilizer/Potash Industry. The Fertilizer & Potash ETF which will seek to track the Solactive Global Fertilizers/Potash Index. This index follows the performance of the largest and most liquid listed companies globally that are active in some aspect of the fertilizer industry. The index is calculated as a total return index in USD and adjusted semi-annually. The stocks are screened for liquidity and weighted according to free-float market capitalization. Global X has cited skyrocketing interest in the fertilizer sector as the main reason for this new offering.
Allana Potash Corp [13]. (CVE:AAA [14]) has reported encouraging drill results from its Danakil Depression project in Ethiopia. Allana drilled to test the southern unexplored limits of its concessions. The drill hole intersected a 1 meter zone of 44.5% potassium chloride (KCI), the highest concentration of potash Allana has struck to date. While not particularly thick, the shallowness of the resource (at less than 120m deep) would be extremely suitable for open pit mining, which the company is considering pursuing and on which we have based our NAV,” said Dundee Capital Markets analyst Richard Kelertas. Kelertas also told his clients that these excellent results of drill hole #11 support the view that Allana is sitting on a potash resource far bigger than its current NI 43-101 resource estimate would suggest.

Article printed from Resource Investing News: http://resourceinvestingnews.com
URL to article: http://resourceinvestingnews.com/13796-has-potash-lost-its-momentum.html
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[1] Potash Investing News: http://potashinvestingnews.com
[5] Potash Corp. of Saskatchewan: http://potashcorp.com/
Copyright © 2010 Resource Investing News. All rights reserved.

Has Potash lost its Momentum? | Resource Investing News

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Facebook blow for Goldman US clients


Facebook blow for Goldman US clients

http://ftalphaville.ft.com/thecut/2011/01/18/461276/facebook-blow-for-goldman-us-clients/

Goldman Sachs has scrapped an offer to clients in the US to participate in a $1.5bn investment in Facebook, dealing a blow to one of the most closely watched private financings for a US company, reports the FT. The offer will still be open to investors elsewhere but the bank said publicity over the plan threatened to put it in breach of US securities laws against the promotion of private share sales. Demand for shares in Facebook, which is considering a full initial public offering in early 2012, has soared in private markets in recent months, making Goldman’s ability to offer favoured clients the stock a coup for the bank. DealBook notes that problems with the offering may fuel recent tensions between Goldman and Facebook, and could damage the firm’s prospects of leading Facebook’s long-awaited IPO. DealJournal posts Goldman’s “sorry about that” statement.

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Frontrunning: December 13


Frontrunning: December 13

Tyler Durden's picture

  • Must read: The eurozone is in bad need of an undertaker (Ambrose Evans-Pritchard)
  • If China Blows Up, So Will Every Other Market (Forbes)
  • China Risks `Rush’ to Tighten in 2011 After Inflation Surges (Bloomberg)
  • China Said to Plan for at Least $1.1 Trillion of New Lending (Bloomberg)
  • Spotlight On Banks’ Exposure in Europe (WSJ)
  • Backers and critics see passage of Obama tax deal (Reuters)
  • Irish Sovereign Debt Default Would Be Far From Armageddon (Bloomberg)
  • Paul Myners Op-Ed: Break up Britain’s uncompetitive big banks (FT)
  • No New Normal for 2011 in Forecasts for 11% S&P 500 Gain (Bloomberg)
  • Obama signals brighter vision of tax reform (FT)
  • Japan Said to Consider Extension of Tax Break on Dividends, Capital Gains (Bloomberg)
  • Push for shake-up of EU rescue facility (FT)
  • Banks Reduce Greek, Irish Holdings in Second Quarter, BIS Says (Bloomberg)
  • EU Should Pull Financial Support If Targets Missed, OECD Says (Bloomberg)
  • ECB’s Stark Says Greece Is on Track but Needs Structural Reform (WSJ)
  • U.S. to hold pivotal trade talks with China and then EU (Reuters)
  • The Ponzi Scheme That Changed My Life (NYT)
  • Krugman now opposes raising $850 billion in debt for short-term stimulus (NYT)

Economic Highlights:

  • UK Rightmove House Prices for December -3.0% m/m 0.4% y/y. Previous -3.2% m/m 1.3% y/y.
  • Switzerland Producer & Import Prices for November -0.2% m/m 0.1% y/y – lower than expected. Consensus 0.1% m/m 0.3% y/y. Previous -0.4% m/m 0.3% y/y.
  • Sweden AMV Unemployment Rate for November 4.3% – lower than expected. Consensus 4.4%. Previous 4.5%.
  • UK PPI Input NSA for November 0.9% m/m 9.0% y/y – higher than expected. Consensus 0.5% m/m 8.3% y/y. Previous 2.1% m/m 8.0% y/y.

FW: Frontrunning: December 7


Frontrunning: December 7

Tyler Durden's picture

  • Draconian Budget Set to Pass After Lowry Gives His Backing (Irish Times)
  • Euro Collapse ‘Possible’ Amid Deepening Divisions Over Bail-out (Telegraph)
  • China Outstrips Fed With Liquidity Risking 2011 Inflation Spike (Bloomberg)
  • Deal Struck on Tax Package (WSJ)
  • Dublin Woos MPs Ahead of Budget Vote (FT)
  • China Buys Most Korean Bonds in 6 Months as Won Falls (Bloomberg)
  • EU Rules Out Immediate Aid Boost, Banks on ECB to Fight Crisis (Bloomberg)
  • The theatrical farce continues: Obama Summons CEOs to White House for Talks Amid Change (Bloomberg)
  • U.S. Ends Citigroup Investment With $10.5 Billion Stake Sale (Bloomberg)
  • RBA Keeps Rate Unchanged, Sees Inflation Contained (Bloomberg)
  • China Hits Back at Criticism over North Korea (Reuters)
  • I Opt-out of California (New Geography)
  • Obamanomics: Only fat cats prosper (NYP)
  • Folding the Fed: Central bank isn’t equipped to save the economy (Washington Times)

Economic Highlights

  • Norway Consumer Confidence for Q4 26.5-higher than expected. Consensus 23.6. Previous 22.7.
  • Switzerland Unemployment Rate 3.6%-in line with expectation. Consensus 3.6%. Previous 3.5%.
  • Australia Wholesale Price Index 0.8% m/m 7.7% y/y. Previous -0.2% m/m 7.0% y/y.
  • Denmark Industrial Production -4.8%m/m. Previous 2.4% m/m.
  • Denmark Industrial Orders 3.3% m/m.Previous -27.3% m/m.
  • Sweden Budget Balance SEK 13.7B. Previous -16.6B.
  • Norway Industrial Production 8.6% m/m -2.4% y/y. Previous 1.8% m/m -10.9% y/y.
  • Norway Industrial Production Manufacturing -0.3% m/m 4.0% y/y-lower than expected. Consensus 0.4% m/m 4.7% y/y. Previous 1.6% m/m 3.3% y/y.
  • UK Industrial Production -0.2% m/m 3.3% y/y-lower than expected. Consensus 0.3% m/m 3.9% y/y. Previous 0.4% m/m 3.8% y/y.
  • UK Manufacturing Production 0.6% m/m 5.8% y/y-higher than expected. Consensus 0.3% m/m 5.4% y/y. Previous 0.1% m/m 4.8% y/y.
  • Germany Manufacturing Orders 1.6% m/m 17.9% y/y-lower than expected. Consensus 1.9% m/m 18.6% y/y. Previous -4.0% m/m 14.0% y/y.
  • Irish parliament votes on 2011 budget.

MasterFeeds: Weekly Recap, And Upcoming Calendar


Weekly Recap, And Upcoming Calendar
– All Eyes On December 7 And The Irish Budget/European Bank Run – zerohedge.com
From Goldman Sachs
Week in Review

The European / IMF bail-out package for Ireland – announced one week ago – was somewhat smaller than expected at €85 bn and failed to calm market jitters spreading to other Euro zone periphery countries early in the week, most alarmingly to Spain and Italy. It was only with the ECB’s announcement that full allotment liquidity operations would continue through Q1 2011 and with a jump in ECB purchases of Portuguese government bonds on Thursday that stress in the Euro zone periphery abated somewhat.

United States labor market data were weaker than expected, with the unemployment rate jumping to 9.8%, even as the participation rate failed to rise from its very low level of 64.5%. The broadest measure of underemployment (U-6) remains stuck close to its peak level at 17.0%. After much market criticism of QE2, the weak state of the labor market in Friday’s data was seen as validating the Fed’s resumption of large scale asset purchases.

We published our global forecasts last week, as well as an initial batch of our top trades for 2011. The key feature of our forecast revisions is an upgrade to US growth to 2.7% in 2011 from 2.0% previously. This puts us slightly above consensus. On the back of this forecast revision, and with a view that the Fed will likely stay on hold through end-2012, our top trades have a decidedly pro-cyclical flavor. In FX, our top trade is short $/CNY via 2yr NDF.

Week Ahead

Central bank meetings Central banks will be meeting this week in Australia, Brazil, Canada, New Zealand, South Korea and the UK. We expect all of these meetings to keep policy rates on hold. Perhaps the most interesting meeting will be Brazil, where the central bank last week announced several measures to tighten domestic liquidity, perhaps indicating a shift to a more hawkish stance. We will be watching carefully for the minutes of the meeting, which will be published next week. In addition, it is also worth noting that this will be Governor Henrique Meirelles’ last Copom meeting, before his successor Alexandre Tombini takes over in January.

Euro zone crisis Following last week’s turbulence on the periphery, this week’s key event will be the Irish parliament vote on the 2011 budget, which is scheduled for Dec 7. A failure to pass the budget could quickly exacerbate tensions across the Euro zone periphery, by highlighting the political costs of needed budget cuts.

Monday 6th

Chile monthly indicator of economic activity (Oct) We expect this indicator to register growth of 6.0% yoy, above consensus of 5.8% yoy but down from 6.5% yoy in September.

Also interesting Taiwan CPI inflation for Nov, given our focus on food price inflation in EM

Tuesday 7th

Australia central bank meeting We expect the RBA to stay on hold at 4.75%, in line with consensus. Bank bill futures are pricing essentially a zero probability of a rate hike as well. We think the RBA will be confident about tightening monetary policy again from March next year, as the data flow should improve from what we see as a mid-cycle slowdown going into 2011.

UK industrial production (Oct) We expect IP to expand 0.3% mom, in line with consensus, after an expansion of 0.4% mom in September.

Irish parliament votes on 2011 budget

Chile CPI (Nov) We expect CPI inflation of 2.5% yoy, in line with consensus and up from 2.0% yoy in October. Consensus expects CPI excluding perishables and fuel to be flat mom, after a -0.1% mom drop in October.

Chile trade balance (Nov) We expect a trade surplus of $980 mn, below consensus which is looking for a surplus of $1,311 mn. Either way, there will be a big jump from October’s surplus of $215 mn.

Canada central bank meeting In line with consensus we think the Bank of Canada will remain on hold. Indeed, even though we upgraded our Canada growth forecast this week, we continue to believe that the Bank of Canada will remain on hold throughout 2011, as it looks over its shoulder at the Fed’s QE2.

Also interesting Philippines CPI for Nov, given our focus on food price inflation in EM

Wednesday 8th

Germany industrial production (Oct) We expect a strong print of 1.2% mom, slightly above consensus of 1.0% mom after a relatively weak reading of -0.8% mom in September.

Turkey industrial production (Oct) We expect a reading of 7.0% yoy, above consensus of 6.4% yoy, but down from 10.4% yoy in September.

Brazil IPCA inflation (Nov) Following the elevated reading for the IPCA-15, we expect IPCA inflation in November to be 0.92% mom, which is above consensus of 0.86% mom.

Brazil central bank meeting We expect the Copom to remain on hold at this meeting, in line with consensus. Last week’s reserve requirement hike and other measures could be seen as a shift to a more hawkish stance by the central bank, but whether or not this raises the probability of a hike this week depends on whether one sees this as a substitute or complement to a hike. Our economists think the latter and believe the probability of a rate hike has gone from something like 25% before last week’s measures to 45% now.

Thursday 9th

Australia employment report (Nov) We expect the unemployment rate to drop to 5.2% from 5.4% in October, in line with consensus, as we think the participation rate drops back from its higher level after last month’s jump. We think the strong trend of employment growth will continue. We are looking for +25k employment change, above consensus of +20k.

New Zealand central bank meeting In line with consensus, we expect the RBNZ to remain on hold this week.

South Korea central bank meeting We maintain our view of no rate hikes in the December and January Monetary Policy Committee meetings. We expect the next rate hike, 25 bps, to be in February 2011.

UK central bank meeting We expect the Bank of England to keep rates unchanged.

Brazil GDP (Q3) We are looking for growth of 0.5% qoq, above consensus of 0.4% qoq but below the strong pace of 1.2% qoq in Q2.

United States initial claims (Dec 4) Consensus expects initial claims of 425k, following 436k last week.

Friday 10th

China trade balance (Nov) We expect November export growth to accelerate to 27.0% on a yoy basis, from 22.9% yoy in October. Meanwhile, we believe import growth will rise to 26.0% yoy, from 25.3% yoy in October. This implies net exports will likely stay at a high level of around US$25.0 bn, slightly lower than US$27.1 bn in October. Our estimate for the trade balance is thus above consensus ($21 bn).

Turkey GDP (Q3) Consensus expects growth of 6.5% yoy, down from 10.3% yoy in Q2.

United States trade balance (Oct) We expect the trade deficit to narrow to -$40.5 bn, against consensus which expects the trade deficit to remain unchanged from the September reading at -$44.0 bn.

United States U. of Michigan consumer confidence (Dec) Consensus expects this preliminary reading to be 72.5, up from 71.6 for the November reading.


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