Mad Hedge Hot Tips
February 7, 2019
The Five Most Important Things That Happened Today
(and what to do about them)
1) The Biggest Bank Takeover in a Decade, hits the tape with BB&T (BBT) buying SunTrust (STI) for $28 billion, a 7% premium. This is another chip away at the massive overbanking of the US. The US still has 5,000 banks while Australia gets by with four. Click here.
2) Video Game Stocks Get Destroyed, as privately held Epic Games’ Fortnight sucks all the oxygen out of the room. Yes, $250 million a month in competing sales can wipe out your entire business. Electronic Arts (EA) and Activision Blizzard (ATVI) are banging on the basement door. If you wonder where your kids have disappeared to, they’re all playing Fortnight online. Click here.
3) Another Nail in the Bitcoin Coffin. A major crypto exchange files for bankruptcy protection when the founder died and took all the passwords with him. Quadriga CX is now in liquidation in Canada and investors are likely to get stiffed for $140 million. I know it’s not Bitcoin, but it’s hardly a ringing endorsement for the sector. Click here.
4) Farm Sector Bankruptcies are Soaring, hitting a decade high. Apparently, the trade wars and global warming aren’t working for them. Ironically, ag prices are about to take off to the upside when a Chinese trade deal gets done. Buy the ags for a trade. Click here.
5) Tesla Cuts Prices Again, in a blatant bid for market share and global domination. The low-end Tesla 3 price drops to $42,900. Next stop $35,000. Too bad they laid off my customer support personel to cut costs. I can’t find my AM radio. Click here.
Published today in the Mad Hedge Global Trading Dispatch and Mad Hedge Technology Letter:
(WHAT TO BUY AT MARKET TOPS?),
(CAT), ($COPPER), (FCX), (BHP), (RIO),
(EUROPEAN STYLE HOMELAND SECURITY),
(THE DEATH OF THE COLLEGE DEGREE),
(GOOGL), (IBM), (AAPL), (BABA), (BIDU)