Five Things You Need to Know for Thursday
What you need to know (and what it means).
Five things you need to know to stay ahead of the pack on Wall Street.
1. Whiskey in the Jar, Google on the Shelf
Yesterday after the close, Google (GOOG) announced a shelf registration of up to 5.3 million shares of stock, according to a regulatory filing.
- What is a shelf registration?
- Under a shelf registration, a company may sell securities in one or more offerings with the size, price and terms to be determined at the time of the sale.
- Why would Google file a shelf registration?
- The "official" explanation is that the company wants to offset the impact of its inclusion into the S&P 500.
- The company has also noted that "the offering will be used to fund "general corporate purposes," which might include acquisitions."
- Meanwhile, the company has an estimated cash pile of $6 billion already.
- Another way to look at it is the company is selling stock into demand created by the S&P 500 inclusion, meanwhile diluting the float by as much as 2.7% if all 5.3 million shares are issued.
- Index funds tracking the S&P 500 will need to buy $7.3 billion in Google stock, according to an estimate from Citigroup.
2. Oh, Come Back Nikkei, Come Back!
With apologies to Prince, the Nikkei has indeed come back, now trading at a five-year high.
- Japan's Nikkei index closed above 17,000 on Thursday, its highest level for more than five-and-a-half years.
- Shares in technology and high value companies have been pushing the Nikkei up, and the index has risen by 3.4% over the past five trading days alone.
- Forecasts last month for GDP growth of 3.6% for 2006 mean Japan could potentially be the fastest growing of the G7 nations over the next two years.
- Meanwhile, the Bank of Japan (BOJ) has ended its policy of quantitative easing, with the emphasis now more on an inflation target of up to 2%.
3. Peruvian Metal Mash
One of the best parts about the Minyanville network is the "eyes" scattered about the globe. Courtesy of savvy Minyan Adam, our eyes are turned toward the upcoming elections in Peru.
- Uh, OK. elections in Peru. So what.
- Ollanta Humala, the frontrunner in Peru's presidential elections, has vowed to alter contracts with foreign investors that are currently ex-exempt from paying royalties, a move that would affect global miners such as Newmont, BHP Billiton, Phelps Dodge, Falconbridge and Barrick.
- In an interview with the Financial Times, Mr Humala also pledged to introduce "21st-century nationalization" and said he would refuse to sign the trade deal Peru has agreed with Washington.
- Mr Humala, a radical nationalist, regularly attacks foreign investors in his campaign speeches.
- Meanwhile, as Minyan Adam noted from NEM's recent 10k, "For the years 2005, 2004 and 2003, 39%, 34% and 34%, respectively, of revenues came from Peru."
- 16.8 Million of NEM's 93.2 Million gold reserves are from Peru.
- Meanwhile, as Prof. Succo noted on the Buzz & Banter this morning, the PHLX Gold & Silver Index (XAU), is underperforming gold.
- Prof. Depew noted on Feb. 10 that his PnF indicators are also favoring the metal over the stocks.
4. For Iran, the Choices Are Narrowing
Iran has been given 30 days to return to the negotiating table or face isolation, foreign ministers from six major powers have warned.
- A statement by the UN Security Council has urged Iran to halt its nuclear enrichment program.
- Iran has rejected the call, and insists its nuclear activities are peaceful.
- The Berlin talks included the five veto-wielding permanent members of the Security Council - the US, China, France, Russia and the UK - as well as Germany.
- Iranian Foreign Minister Manouchehr Mottaki said Tehran was still open to talks on the issue with the IAEA, but that there was "mistrust" over negotiations with European nations.
5. Jet Lag
Researchers in Australia launched a test flight Thursday of a supersonic jet designed to fly 10 times faster than conventional airplanes.
- The test flight was conducted by researchers at the University of Queensland under commission from the Japan Aerospace Exploration Agency.
- The so-called Supersonic Combustion Ramjet - or scramjet - engine was designed to travel at speeds of up to 5,000 mph, or 10 times the speed of conventional aircraft, the University of Queensland said in a statement.
- The U.S. has already carried out a flight test with a scramjet engine, while the European Union, Japan, China, Russia and India are in different stages of testing their technologies.
- Some observers say scramjet technologies could revolutionize air travel.
THIS CONTENT IS FOR EDUCATIONAL PURPOSES AND IS NOT INTENDED AS ADVICE.
Minyanville contributors may trade securities that are discussed on the site, both before and after the articles are published and/or may have a position in such securities for either personal or firm account(s). Minyanville contributors will indicate whether he or the firm has a position in stocks or other securities in any of the companies he discusses in an article. He will not disclose his or the firm's ownership of any securities issued by companies that are not discussed in an article. The disclosures will be accurate as of the time of publication of an article and may change at any time thereafter without notice to the reader.
The information on this website reflects an analysis of market conditions by Minyanville contributors and should not be interpreted as or deemed to be a recommendation to any investor or category of investors to purchase, sell or hold any security. Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Minyanville contributors will not respond to requests for individual and specific investment advice.
The views expressed on this website are solely those of the writers whose articles appear on this site and do not necessarily reflect the views of the Fund or of any other person except where expressly indicated.
Copyright 2006 Minyanville Publishing and Multimedia, LLC. All Rights Reserved.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter