If the stock market reflects all information currently known, why are buyout deals nearly always done at a premium to market price? “Because, Quast, deals involve proprietary pricing models that account for synergies.” Sure. But I want you to think…
View pageAlgorithmic trading is Wall Street’s last best hope. So said the lead sentence in a story called Algo Wars in the May 30, 2005 edition of Investment Dealer’s Digest. That publication is gone and so is Lehman Brothers, co-leader of…
View pageWhy are stocks rising if earnings and revenues are falling? FactSet’s latest Earnings Insight with 70% of the S&P 500 reporting says earnings are down 2.2% versus the third quarter last year, revenues off 2.9%. Yardeni Reseach Inc. shows a…
View pageI debated high-frequency trader Remco Lenterman on market structure for two hours. Legendary financial writer Kate Welling (longtime Barron’s managing editor) moderated. Your executives should be reading Kate so propose to your CFO or CEO that you get a subscription…
View page“You’re giving the exchanges so much business, they should be paying you,” said Richard Keary of Global ETF Advisors in a June 2014 Financial Times article. He was talking about Exchange Traded Funds, which drive big volumes for markets listing…
View pageIn the television and cinematic series Star Trek, the Replicator creates stuff. Captain Jean-Luc Picard would instruct it to dispense “tea. Earl Grey. Hot.” This YouTube montage is homage. Speaking of creating stuff, stocks lately saw the longest 2015 rally…
View pageWhy are my shares down when my peers are up? The answer most times isn’t that you’ve done something poorly that your peers are doing well. That would be true if 100% of the money in the market was sorting…
View page“We’re 90% in natural gas and natural-gas liquids,” said the investor-relations officer for a NYSE-listed master-limited partnership at yesterday’s NIRI luncheon in Houston, where I spoke on ETFs. “Yet we’re tracking oil.” In Michael Lewis’s brilliant The Big Short, a…
View pageSuppose gas prices changed 3% daily. Pretty soon everyone would look for patterns in volatility and start rushing to fill tanks at low ebbs. Or maybe there’d be a Gasoline Closing Cross, where petrol consumers would cue and then all…
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