Ebay Inc.’s (Nasdaq: EBAY) plans to spin off its PayPal unit has left many on Wall Street salivating over the potential of the stand-alone payments business.
And some pundits are speculating that Google Inc. (Nasdaq: GOOG) or Alibaba Group Holding Ltd. (NYSE: BABA) might buy PayPal.
But they should be asking this question: Will Alibaba buy eBay?
Here’s why a deal would make sense for both companies…
Here’s why a deal makes sense for both companies…
Turn the Tables on the Market Manipulators
In theory, we have free markets, where manipulation is illegal and punishable.
We've found that's not often the case in the financial markets.
Unfortunately, this web of "disruptive practices" and "market rigging" is not likely to change any time soon.
Despite a government "crackdown" on illegalities that occasionally makes the headlines.
The problem may be especially manifest in the futures market.But you don't have to be a victim...
YHOO Stock Now Has to Wrestle with Taxes Post-Alibaba IPO
Yahoo! Inc. (Nasdaq: YHOO) stock rose 4% today, with Starboard Value LP reportedly buying up a large stake in the company.
The investment management firm’s decision is a positive development for YHOO, which had seen its shares tumble for most of the week on concerns that as it sheds its portfolio of overseas investments, the remaining core business will be valueless.Here’s one thing YHOO needs to do to reassure shareholders now…
Dow Jones Makes It Clear That Inversion Deals Are Unwanted Trend
Dow Jones Industrial Average officials just made membership requirements for its elite index even more stringent, prompted by a surge in inversion deals made to avoid the high U.S. corporate tax rate.
The committee overseeing the storied blue-chip benchmark just updated the definition for index inclusion. The classification now states that companies that conduct business in the United States, but are incorporated abroad, are not eligible for admission in the 30-stock index.
The Dow tweaked the language used in its process of accepting components into the coveted index to officially read that member companies must be incorporated and headquartered in the United States. Additionally, the United States must be a company’s largest revenue-generating country.
That means the new eligibility requirements clearly exclude companies that have moved overseas via inversion deals.Keep reading...
Dividend-Paying Stocks: MSFT, MCD, and 22 More New Dividend Boosts
The profusion of dividend-paying stocks that have increased payouts over the last several weeks reflects a robust second-quarter earnings season.
Companies in the S&P 500 turned in 10.3% earnings growth in Q2 - the highest advance since 2011's third quarter.Last week Microsoft (Nasdaq: MSFT), McDonald's (NYSE: MCD), and 22 other dividend stocks raised payouts. Here's the full list of dividend hikes announced during the week ending Sept. 19, 2014.
The Truth Behind the Dangerous "Helicopter Money" Delusion
Seeking out major trends and power shifts in the global economy is a part of my work that I enjoy most.
It's a lot of work, and needless to say, it involves constant research.
That's why a piece I recently read in Foreign Affairs absolutely shocked me...
The piece is a bit revolutionary, as its authors speak to a drastically different way of stimulating an ailing economy than the path we're on today.Full story...
How the Federal Reserve Is Killing America
It's maddening. Our economy is stagnating. The divide between haves and have-nots is widening every day. There are fewer and fewer good jobs and careers to be had. What the heck happened?
The U.S. Federal Reserve System is killing America. It has destroyed the economy. It has undermined savers and retirees. It is even responsible for the corruption in Congress.We have to kill the Fed before it kills America for good.
August Jobs Report Flop: Smallest Gain This Year with Only 142,000 Jobs Added
The August jobs report was disappointing indeed, missing estimates by a whopping 83,000.
Last month employers added the fewest jobs in eight months, the U.S. Department of Labor reported Friday. Payrolls increased by an uninspiring 142,000 in August, handily missing the median forecast for an increase of 230,000.But that headline number wasn't even the worst part of the report...
The Only Way to Fix the Broken U.S. Free Market Economy
There's a reason America is floundering economically. There's a reason for the ever-widening divide between the "haves" and the "have-nots" in the United States.
Our country is no longer a free market, capitalist republic.
America has devolved into a socialist plutocracy as a result of the "financialization" of the economy.
Wealthy financial alchemists with the backing of paid-for White House administrations and Congressional lap-dogs engineer and manage the U.S. economy.
They also manage the public's access to money and credit for their speculative benefit when they win, and to taxpayers' detriment when they lose.
There's only one way out of this downward spiral...Read More...
You Can Make Money in Stocks (Especially These Three) No Matter What Rates Do
It's commonly held wisdom that stock markets go to heck in a hand basket when interest rates rise. So, the thinking goes, you'd be better off selling ahead of time before that happens.
No doubt it's tempting to head for the hills with rates at historical lows, but it pays to do your research before you hit the "sell" button.
The three companies I'm going to show you today, for example, can actually benefit from rising rates.
First, let's take an "Econ 101" look at the impact interest rates can have on stocks, especially when rates start rising...Full Story
What Markets Are Doing After Today's FOMC Meeting Minutes Release
The three major indexes all dropped in unison shortly after the release of the minutes from the U.S. Federal Reserve's July Federal Open Market Committee (FOMC) meeting, reflecting Fed sentiment that accommodative monetary policy could end sooner than expected if improvements continue in the labor market.
While the Fed made no remarks on an explicit timetable for interest rate hikes, which is what the markets are observing attentively, the minutes did indicate that the situation in the labor market was looking healthier and improving quicker than expected.Here's what the Fed's agenda will be for the rest of the year...
The New Way the Government Is Poisoning the American Dream
Private equity shops and institutional players are buying and packaging nonperforming mortgages from the Federal Housing Administration (FHA) and selling those mortgages to mutual funds and themselves.
On the surface, the HUD wants to minimize the cost to taxpayers. That's really nice of HUD and the FHA, thinking about us taxpayers.But something else is behind this recent action, and it's poisoning the American Dream...
How Today's Stock Market Valuations Compare to 2000 – and What to Do About It
Opinions on stock market valuations flow easily around Wall Street, too often without backing.Read More...
Looking at the typical measurement used to determine stock valuations, I'm increasingly cautious.
Indeed, some of the numbers are downright scary just now, both in nominal value and in terms of red-light factors blinking on the horizon.
When you put it all together, here are some of my concerns about our hard-earned gains, and what we can do to profit...Full Story
Startup Companies Are Changing the World (Infographic)
Established companies get most of the attention, but startup companies are where the world gets its best ideas, and are the source of most of America's economic strength.
Startup companies are the embodiment of the entrepreneurial spirit that built America. Such innovators made the nation an industrial giant in the late nineteenth century with the rise of railroads and oil, and lives on today in the tech innovations of Silicon Valley.This infographic explains why startups are so vital to the economy...
July Retail Sales Data Lowest in Six Months, Suggesting a Weak Q3
July retail sales data was flat, only up 0.1% from June.
The dismal July read was the weakest since January.Here’s how that fits in to the overall U.S. economic recovery – or lack of…
Short Selling Unpopular GameStop Stock (NYSE: GME) Hasn't Paid Off – Yet
GameStop stock (NYSE: GME) is a short selling favorite, and for good reason.
It's trying to navigate an online-centric marketplace as a physical retailer, and the short bets are playing off this knowledge to mount a strong position against the company.But trying to profit off GME's downfall has proven harder than anticipated. Here's why...