Yahoo Microsoft has really entered into final game with Microsoft showing inclination to raise the bid ($33) and Yahoo shareholders giving an indication what price ($37) would be acceptable to them. Since there is about $4 difference, it is likely that final deal would be reached at $35 raising total bid to about $50 B+ as I initially predicted in January.
How to play into this game ? One can buy May 30 (55-60 cents) or Jun 30 calls (.90 to $1) potentially doubling the money in next few days or losing all (if Microsoft withdraws the bid).
With GDP showing positive growth (0.6%) and interest rate cut by another 25 basis points, all the foundation is set for markets to get some foot-hold. So if no other major shoe drops in financials, markets are heading higher and would touch 13500 in summer.
Emerging markets are also showing some life with Latin America, China, India all growing nicely in last few days.
Fertilizer companies are really hot these days and one particular company Interpid Potash (IPI) whose IPO came at $32 looks pretty good. With projected revenues of $1B, it can command a valuation of about $5B - means it's stock can reach $70 (from current $48) in next 12-18 months. Other companies in these sector are Mosaic (MOS) and Potash (POT) are up by nearly 200% over last 12-18 months.
Good luck and good night
/Shyam
How to play into this game ? One can buy May 30 (55-60 cents) or Jun 30 calls (.90 to $1) potentially doubling the money in next few days or losing all (if Microsoft withdraws the bid).
With GDP showing positive growth (0.6%) and interest rate cut by another 25 basis points, all the foundation is set for markets to get some foot-hold. So if no other major shoe drops in financials, markets are heading higher and would touch 13500 in summer.
Emerging markets are also showing some life with Latin America, China, India all growing nicely in last few days.
Fertilizer companies are really hot these days and one particular company Interpid Potash (IPI) whose IPO came at $32 looks pretty good. With projected revenues of $1B, it can command a valuation of about $5B - means it's stock can reach $70 (from current $48) in next 12-18 months. Other companies in these sector are Mosaic (MOS) and Potash (POT) are up by nearly 200% over last 12-18 months.
Good luck and good night
/Shyam
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