Wednesday, February 27th, 2008
International Business Machines Corp., the world’s biggest computer-services company, will buy back $15 billion of stock. IBM rose to a four-month high in New York trading and U.S. stocks rallied, erasing earlier declines. The repurchase, which adds to about $400 million remaining under a previous plan, may lift earnings by 5 cents a share this [...]
Tuesday, February 26th, 2008
Technical analysis is done by looking at previous price, and volume data. Technical analyst look at past chart of price and different indicator to make prediction about the future prices. The human emotion is an important aspect here. Their willingness to buy stock at a certain price will determine future price. This analysis assumes that [...]
Monday, February 25th, 2008
Fundamental analysis is finding the fair value of a company. The calculation is done by using the time of money concept, which is money now is better than money in the future. By knowing how is the cash flow, the in and out of money, you can count for it’s fair price. That’s the difficult [...]
Saturday, February 23rd, 2008
Using an option spread involves combining two different option. There are various kind of spread:
-Vertical spread, buy and sell option with different strike price, same expiration date
-Horizontal spread, buy and sell option with same strike price, but different expiration date
-Diagonal spread, buy and sell option with different strike price, and different expiration date
With vertical spread, [...]
Friday, February 22nd, 2008
The Covered Call is the most basic of income strategies, but it is very effective and can also be used by experts. From the name we knew that it use the call option which is protected by something. This strategy is an income strategy, so we first sell the call option. This way we can [...]
Friday, February 22nd, 2008
Long call is the basic of option strategy. For beginner, it is the perfect strategy for their first option. A call is an option to buy stock. When buying call option, you are hoping that the underlying will go up. You might know that securities give a target price higher than its current price. In [...]
Wednesday, February 20th, 2008
Asian stocks fell on February, 20, 2008, sending the region’s benchmark to its biggest decline in two weeks, on concern banks will report more subprime-related losses and after oil surged above $100 a barrel. Surging fuel price will cut demands for cars, increase fuel cost in industry, and transportation industry like airlines.
Crude oil rose 4.7 [...]
Saturday, February 16th, 2008
Indonesia’s president, Susilo Bambang Yudhoyono proposed Agus Martowardojo, the head of the country’s biggest lender, Bank Mandiri Tbk., as one of the two candidates to replace central bank Governor Burhanuddin Abdullah, whose term ends in May.
He also named Raden Pardede, deputy head of Indonesia’s bad-loan manager, as a second candidate. Agus Martowardojo, 52, president of [...]
Saturday, February 16th, 2008
Confidence among American consumers slumped to the lowest level since 1992, indicating the damage from the housing contraction is bringing the economy toward recession. The Reuters/University of Michigan index of consumer sentiment fell to 69.6 in February from 78.4 the previous month. With this data, we can see a quote clear sign of recession.
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Friday, February 15th, 2008
USB AG said the world’s banks is still remain at risk as much as $203 billion in additional writedowns, largely because the bond insurance crisis may worsen. Finch estimates Writedowns for subprime related losses already total $150 billion. That may rise by a further $120 billion for CDOs, $50 billion for structured investment vehicles, $18 [...]