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Happy New Year
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ACAS Continues Buyback
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Housing and Welcoming “The Cliff”
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Subs: New Trade
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Rail Traffic Won’t Fall
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S&P Intrinsic Value Update
“Davidson” submits:
The Dallas Fed reported the 12mo Trimmed Mean PCE for November 2012 after the market close at 1.6%-see table. This lowers the “Prevailing Rate” to 4.62% and brings the “Intrinsic Value” of the SP500 to $1682-see chart. The effect of falling inflation results in higher stock pricing all other things being unchanged.
Inflation has been falling mainly due to the controlled spending of $Trillions injected by Chairman Bernanke. Basically, most are hoarding these dollars as a safe haven against future uncertainty. The inflationary risk is unpredictable as should now be obvious by the many unfulfilled forecasts of higher inflation at this point in the economy. I think that all we can do is to monitor the data on a monthly basis and adjust portfolios as the risks become apparent. The market itself does not have a history of being correct in pricing inflationary expectations.
For the past several years inflationary fears have caused many investment funds to buy hard assets as a protective asset. The problem with this concentration in oil, gold, copper, land and etc is that inflation fears have not been realized while returns on these investments have stalled at low levels. History shows that falling inflation is beneficial for stocks while rising inflation causes stock prices to fall-see the chart history. More than half of the $SPY rise from 1982 thru 1997 was due to inflation falling from ~10% to ~2%.
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Subs: A Housing Byproduct
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Subs: Ponzi? (Updated)
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Subs: Tepper
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Subs: Reverse Split
This is about all they can do to at this point. The chip, should it come to be is not due until late Q1-Q2 next year and this 10-1 reverse will get the stock out of the penny area until then.
GO, Inc. Files Preliminary Proxy Materials Requesting Stockholder Approval for Reverse Stock Split
SCOTTSDALE, Ariz., Dec. 20, 2012 (GLOBE NEWSWIRE) — iGO, Inc. (Nasdaq: $IGOI) announced today that it has filed preliminary proxy materials requesting stockholder approval for an amendment to the Company’s Certificate of Incorporation that would authorize the Board of Directors to effect a reverse stock split of the Company’s common stock at a ratio in the range of 1:10 to 1:15, if deemed necessary. A reverse stock split may enable the Company to regain compliance with NASDAQ’s $1.00 minimum bid price requirement and maintain its listing on the NASDAQ Capital Market. As described in the preliminary proxy materials, iGO, Inc. will hold a special meeting of stockholders in Scottsdale, Arizona on Wednesday, January 23, 2013 at 10:00 a.m. local time to consider approval of the reverse stock split. The meeting will be held at the Company’s headquarters located at 17800 North Perimeter Drive, Suite 200, Scottsdale, Arizona 85255. Stockholders of record at the close of business on December 24, 2012 will receive notice of the special meeting and be entitled to vote at the meeting. Further details of the special meeting and contemplated reverse stock split are set forth in the preliminary proxy materials filed today. Definitive proxy materials for this special meeting of stockholders are expected to be filed on or about December 31, 2012, subject to review from the Securities and Exchange Commission (SEC).
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Subs: AIG Now Talking Buybacks
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