Securities and Exchange Commission

Herbalife Surges After Announcing $600MM Stock Buyback, Failed LBO Transaction

Herbalife announced that while the company had tried and failed to pursue an LBO, it has instead entered into a pact with Carl Icahn and unveiled a "self-tender" offer according to which it would pursue a whopping $600 million buyback, equivalent to about 10% of its market cap, purchasing shares at a price between $60 and $68

Spitznagel: Why Cryptocurrencies Will Never Be Safe Havens

"Cryptocurrencies are a very important development, and an enormous step in the direction toward the decentralization of monetary power. This has enormously positive potential, and I am a big cheerleader for their success. But caveat emptor - thinking that we are magically creating new stores-of-value and thus a new safe haven is a profound mistake."

Frontrunning: August 8

  • Tax Overhaul Effort Shaped by Debate Over Corporations (WSJ)
  • Funds target 'unknown' stocks as Wall Street cuts analyst jobs (Reuters)
  • GOP Plans Tax Compromise to Sidestep Democrats (BBG)
  • Few expect Trump's 15-percent corporate tax rate: Deloitte survey (Reuters)
  • Raid on Venezuelan Base Got Help From Active Officers (WSJ)
  • Hackers demand million in ransom for stolen HBO data (AP)

Bitcoin: Fake Asset Or Security?

What the success of bitcoin says about the world of dollars, euros and yen is unsettling at a number of levels, but then again, bitcoin is ultimately just a brilliantly designed virtual market that, initially at least, promised security and anonymity.  Whether those qualities can endure as the audience grows is a very intriguing question that investors need to consider.

Frontrunning: July 26

  • Oil bounce, results keep stocks on high (Reuters)
  • Healthcare brawl returns to Senate floor (Reuters); Senate Sets Up Health Votes for Chaotic Obamacare Debate (BBG); Health Debate Rolls On After First Option Fails (WSJ)
  • Who Will Blink First in the Sessions Standoff? (BBG)
  • Iran Says ‘Hostile’ U.S. Sanctions Vote Undermines Nuclear Deal (BBG)
  • Russia Warns of ‘Painful’ Response If Trump Backs U.S. Sanctions (BBG)

Frontrunning: July 17

  • Americans Feel Good About the Economy, Not So Good About Trump (BBG)
  • GOP Leaders Brace for CBO Estimate on Revised Health-Care Bill (BBG)
  • From $2 Billion to Zero: A Private-Equity Fund Goes Bust in the Oil Patch (WSJ)
  • Turkey Building Up Army Base in Qatar, Erdogan Adviser Says (BBG)
  • U.S. Companies Have a New 401(k) Fix: Spend More (WSJ)

Don't Google "How SEC Detect Unusual Trade" Before Insider Trading

The first rule of insider trading is never to buy calls on the target of an acquisition announcement. The second rule, as Chinese research scientist Fei Yan just found out, is to never google "how sec detect unusual trade" before (while and after) trading on inside information.