Wednesday, March 30, 2011

Inside the Deal:AT&T/T-Mobile

Dallas,Texas-based AT&T is purchasing T-Mobile from Bonn,Germany's Deutsche Telekom AG for 39 billion dollars.AT&T's competitors declined to comment on the news.Sprint had reportedly been talking with DT for some time about possibly acquiring T-Mobile itself,but agreement eluded them on valuation,among other issues.
Analyst Kevin Smithen of Macquarie Group Limited said that Sprint was left standing at the altar.We believe that Sprint is the odd man out.
The deal makes AT&T the largest U.S. wireless carrier.It needs more radio spectrum to improve smart phone data transmission,spectrum which will help it set up its high speed network,Mr.Smithen noted.AT&T is also acquiring spectrum from Qualcomm.These moves should help in the short term.They will be in the market for more,however.
With this deal,AT&T will get customers and infrastructure as well.Overall smart phone penetration rates are 21-22%.As more phones hit the market,there will be a huge demand for wireless data over the next 12 months,Mr.Smithen believes.
The need for wireless data will continue to grow.This creates a huge opportunity for players who do control spectrum going forward.The deal will help AT&T roll out the futuristic LT service to 95% of the nation,the Macquarie analyst predicted.
AT&T(T),Deutsche Telekom AG(DT)

Wednesday, March 23, 2011

Japan Prospects and Impacts

This is a great buying opportunity in Japan,says Robert Masetti of French financial titan BNP Paribas.The crisis will take down Japan's GDP by 1.2% this year.In 2012,we will see a 1.2% bump in GDP.We could see their inflation go to 1-2%.
We're not trying to pick a bottom.This will pass.It will play out.Look at the positives:an end to deflation;a recapitalisation.It would be surprising to us to see a big drop of the Japanese market from these levels.
Japan remains attractive.We're positive about the medium to long term outlook for Japan.This is yet another buying opportunity along the path of an improving Japan,according to Mr.Masetti.
Short term,the Japan crisis is having an industrial impact worldwide.GM is shutting a plant in Indiana because of a lack of parts from Japan.Almost all U.S. vehicles have Japanese components.One fifth of chips are Japanese.These chips are in household appliances from refrigerators to stoves,as well as a number of consumer electronic goods.
iShares Japan Index Fund(EWJ)

Wednesday, March 16, 2011

What Drives Molycorp Minerals

Molycorp Minerals describes itself as the Western Hemisphere's only producer of rare earth oxides.The price of rare earth metals has appreciated markedly recently,and CEO Mark A. Smith says this is largely driven by an increased volume of sales at a time of tight supply and demand.
We really are not seeing any slowdown in China and India.We are right on schedule with our new mine.It is to be fully producing by the end of 2012.
Every person we talk to continues to indicate that China will continue to lower its export quota of rare earth metals.The number of opportunities in this business are more than I've seen in my 24 years in this business,Mr.Smith noted.
China supplies 97% of the world supply of these essential materials,but has been cutting back on exports for some time now.Rare earth metals are used in high tech applications such as fiber optics,lasers and hard disc drives,as well as hybrid vehicles,green energy,national security and water treatment applications.
Molycorp Minerals is headquartered in Greenwood Village,Colorado.
Molycorp Minerals(MCP)

Saturday, March 12, 2011

Tuesday, March 8, 2011

Risk Management:Carlyle Group Mothballs Egypt Plans

Private equity firm The Carlyle Group has deferred plans to invest in Egypt.They have concerns over the recent change in leadership there.In Egypt,you need an official sign-off to make an investment.They feel that what's going on in Egypt isn't going to end anytime soon,and are concerned over getting local partners to exit a project.
Carlyle has an office in Egypt and will continue to work in Saudi Arabia and Turkey.As of 2009,they had 500 million dollars in their Middle East and North Africa fund.The group has a 40% stake in a Turkish hospital company,as well as a stake in a Saudi lighting fixture firm.
The Carlyle Group is a global alternative asset manager with more than 97.7 billion dollars under management.It combines global vision with local insight from its 19 offices that span the continents from North America to Asia.
Those who are interested in private equity may want to consider the PowerShares Global Listed Private Equity Portfolio(PSP).This exchange traded fund buys shares of 40-60 companies whose principal business is to invest in,and lend capital to,privately held companies.

Thursday, March 3, 2011

Genomics Pioneer Leads Internationally Recognized Institute

Dr.Claire M. Fraser-Liggett,PhD,one of the first scientists to describe sequencing techniques for microbial genomics,enabling the mapping of a complete genetic blueprint for bacteria species,was recruited by the University of Maryland School of Medicine in 2007 to head its new Institute for Genomic Sciences(IGS).She was seeking strategic collaborations in which results from sequencing the human genome could catalyse advances in health care,integrating genomics with biomedical research.
Dr.Fraser-Liggett brought a team of more than a dozen senior investigators with her from The Insitute for Genomic Research(TIGR)in Rockville,Maryland to IGS.Located at the University of Maryland BioPark in Baltimore,this new research center of international excellence,which was formally opened in April 2009,is using genomics to develop personalised medicine,a more detailed treatment methodology than current practice.For example,in personalised medicine,there could be different treatments for different types of pain patients may be experiencing,rather then a blanket approach to pain,based on expanded knowledge of disease processes achieved through genomics research.Such an approach is believed to hold promise for more effective treatments with fewer side effects.
Among other topics being studied at IGS are the human microbiome,the vast collection of microbes inhabiting the human body and the role of their genomics in disease processes;and deveoping better malaria drugs and vaccines.
These studies involve more than merely cataloging DNA sequence data.The data must also be analysed and annotated,adding biological data to genomic sequences.The ablity of IGS to do this is globally admired.
Dr.Fraser-Liggett has a BS in biology from Renssalaer Polytechnic Institute in Troy,New York,and a PhD in pharmacology from the State University of New York.
iShares Nasdaq Biotechnology Index Fund(IBB)

Tuesday, March 1, 2011

Making the Case For Change:Toronto Executive Confident in Stock Exchange Merger

Something business leaders have to face from time to time is convincing regulators-typically politicians-to permit their larger plans to go forward.Thomas Kloet,CEO of the TMX Group,parent of the Toronto Stock Exchange,thinks they will get the deal done.The Ontario provincial government,as well as other provinces and the federal government in Ottawa,are scrutinizing the proposed merger of the Toronto and London stock exchanges.
I understand there's a political element to this,Mr.Kloet said.There are gonna be multiple questions.We think we have a very compelling story to tell.It's good for Canadian investors and capital formation.
Ours is a merger of equals,with shared government and management nearly 50/50.You're seeing a consolidation within the space.We see it as a chance to offer low cost services to our clients.We think we'll compete very favorably,with the most listed issues.
I believe we're positioned for further growth with this consolidation.We have an excellent business strategy.This combination accelerates our strategy and increases its possibility for success,Mr.Kloet maintained.
NYSE/Euronext and Deutsche Boerse are also attempting to merge,and the NASDAQ/OMX Group is evaluating its own options.