As everyone knows, Democrats and Republicans are currently involved in contentious negotiations over raising the US debt ceiling. The deadline for getting deal without shutting down parts of government and defaulting on debt is in early August. So far the markets have been factoring in an almost zero percent chance that the limit will not...
Monthly Archives: June 2011
Sino-Forest Fallout
The shares of Sino-Forest Corporation recently plunged 80% after research firm Muddy Waters LLC issued a scathing report that flatly accused the company of being a fraud. The report claimed that the Chinese tree plantation operator inflated the size of its actual timber holdings and had misled investors with a series of sham transactions. If...
What Not to Look For in a Takeover Candidate
In order for one company to acquire another, it typically has to make an offer that is significantly higher than the current value of the stock. Over the years I have been fortunate enough for some of the companies I have owned to be acquired at a premium (and misfortunate enough to have sold Lionore...
