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Items Tagged With David Neubert

Trader Survey Makes Me Glad We Have Market Regulations
Written By: David Neubert
2007-08-21 13:11:18
I enjoyed reading the results of Trader Monthly's poll of 2500 traders.   If ever there was a answer to why we need market regulators to level the playing field, Trader Monthly found it in the following questions:


"If you could parlay some insider info into a guaranteed $10 million trade but knew you stood a 50 percent chance of getting arrested for INSIDER TRADING, would you?
YES: 7%
If you could make that same $10 million trade but stood only a 10 PERCENT chance of getting arrested, would you?
YES: 28%
If you could make that same $10 million trade but stood NO CHANCE whatsoever of getting arrested, would you?
YES: 58%"

It would seem that the likelihood of being caught is a definite deterent.  Makes me think the S.E.C. could use more funding.

 


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U.S Mint Supports Zinc and Copper Prices
Written By: David Neubert
2008-03-10 10:49:36
Note to Congress:  Please get rid of the penny and stop supporting the wasteful use of zinc and copper for something that is thrown away.  According to this article about the penny at Mainstreet.com, there are 1.2 cents worth of copper and zinc in a U.S. penny and it costs 1.7 cents to produce one.

Business idea:  Start a penny smelting business. 


Value Investor: The Good, The Bad and The Ugly
Written By: David Neubert
2008-07-14 14:51:39
As a value investor, this recent market pullback has been good, bad and ugly for me.

Good: I'm getting the opportunity to buy quality companies and cheap-long term prices. Recent buys include Proctor and Gamble (PG - $63.38), Pepsi (PEP - $64.55), Coca Cola (KO - $51.00), General Electric (GE - $27.10) and United Technologies (UTX - $60.38)

Bad: My bet on oil stocks isn't paying off the way I had hoped in this rising oil market.

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Vikram Pandit Makes Rock Star Status
Written By: David Neubert
2007-12-12 15:50:58
Together with Madonna, Sting and Prince, Vikram Pandit, my old boss at Morgan Stanley, has acheived rock star status.  He's the only CEO I know of in the world who is referred to only by his first name.

I've been seeing a lot on CNBC and other media dissing the Citigroup Board for choosing Vikram Pandit as its (C - $31.53) CEO.  I used to work quite closely with Vikram at Morgan Stanley and I found him to be a thoughtful, insightful, extremely level-headed and intelligent manager.  He's one of the few managers I ever had who would understand every screw-ball idea I would throw at him. And believe me, I would dream up a lot of crazy derivative products. 

He has a conservative management style and considers every angle of a decision before moving forward.  I could almost see him going through his checklist on every decision, Profit Potential, Legal, Employee Morale, Reputation Risk, Credit Risk, Shareholders, Credit Rating, Sovereign Risk.  I can see him thinking the same way going forward at Citigroup.  Virkam was head of the Equity Division as we openned our Brazil office.  He aksed good questions, but unlike several other divisions at Morgan Stanley, was not so risk averse that we walked away from the potential.

So, I'm hanging on to my Citigroup.  If you've been watching my Citigroup stock purchases you know that I'm underwater on the position.  But I think the market's harsh treatment of Vikram right now is a symptom of a "beat up Citigroup" crowd mentality.

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What to With My Yahoo Shares in the Face of the Latest Microsoft Letter
Written By: David Neubert
2008-04-06 17:20:24
I like what blogger Thomas Hawk says about what will happen to Yahoo (YHOO) if they ignore Steve Ballmer's exploding offer to buy the company from the board.

In fact, if Microsoft really wanted to play hard ball at this point they could simply give Yahoo 48 hours to accept the terms or pull the offer off of the table. With the offer off of the table Yahoo stock would immediately drop. The lawsuits would take place driving the stock down further and if Microsoft just waited 6 months or so they might be able to end up buying the stock in the end for somewhere around $8 a share.



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