Two-Year Chase Siphoned Money and Resources

SoftBank Corp.’s abrupt decision to break off pursuit of wireless carrier T-Mobile US Inc. has shifted focus to how the Japanese company will turn around its U.S. Sprint Corp. unit without the deal, and what other acquisitions it might be planning. Full story is here

My prediction:  and -these proposed deals are dead for at least 9 months to a year-$S maybe forever.

 

January 2013 Facebook Stock Market Prediction Proved Accurate Today

Happy to see that another one of the predictions I made back in January regarding 2013 stock market trends proved accurate today. Here’s what I said on January 10, 2013:

“Facebook shares may trade up to the initial public offering price of $38 before the year is over as rumors of its demise have been greatly exaggerated.”

CNN reported that Facebook shares hit a high of $38.21 today.

The prediction I made regarding Apple’s stock price (US: AAPL) was realized before the end of the first quarter of 2013.

2013 Market Prediction

One of my predictions for 2013 came true before the first quarter was even up. I said in January that Apple’s (US: AAPL) stock price is likely to drop to $420 before it reaches $700 again. I also noted that margins will likely get squeezed throughout the year, and its ability to create new and innovative products could slow considerably. The day I made the prediction AAPL opened at $528. On March 4, 2013 AAPL trading hit a low of $419 – in the face of a market that increased by 6.94% over that same time period.

WSJ: Knight Capital Staring at Bleak Deal Environment

Knight shares opened down 50% to $3.50 following Wednesday’s 33% plunge. The company has now lost over $660 million in market value in the past two days.

“If they don’t get an investor within the next 48 to 72 hours, I think Knight’s going to have a hard time surviving,” said David Simon, chief executive of hedge fund firm Twin Capital Management LLC. “When a financial firm is in trouble, it can feed on itself.”

Knight’s technology stumble provided investors a fresh reminder of the pitfalls that electronic trading groups navigate on a daily basis. Analysts saw the rapid downdraft in Knight’s shares casting a further pall over privately held companies, such as high-frequency trading groups and automated trade-routers, that have weighed tapping the public markets.

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