• Gold Prices ‘Still Very Inflated’: Talking Numbers’ Brian Sullivan

    Neither industrial metal nor an official currency, the gold commodity is an asset investors have come to either love or hate.

    The yellow metal is trading near $1,430 an ounce, down 25% from a record high of $1,920 in September 2011.

    Related: 12 (Misguided) Commandments of Gold Bugs: Barry Ritholtz

    More hedge funds are selling short the yellow metal while other investors are getting out of their long positions. Holdings in exchange-traded funds backed by gold bullion are at their lowest level since July 2011, according to Bloomberg.

    But Blackrock, the world’s largest money manager, is still buying gold, according to its president Robert Kapito and billionaire John Paulson continues to stick with gold despite a 27% loss in his gold fund in April. His company is the biggest investor in the SPDR Gold Trust (GLD). And gold demand in China and India is still strong.

    Related: Gold Tumbles Again: Is the Era of Gold Over?

    Brian Sullivan, host of Talking Numbers, a joint production from

    Read More »from Gold Prices ‘Still Very Inflated’: Talking Numbers’ Brian Sullivan
  • When shareholders of JP Morgan Chase (JPM) huddle in Florida this weekend for their annual meeting, they'll find themselves about 35% richer than they were in 2012, despite enduring a crisis-filled year of turmoil, regulation and investigation. But instead of celebrating Jamie Dimon's achievement and management dexterity, they'll be voting on whether to demote the bank's hard-charging chairman and CEO.

    Predictably, this type of professional affront and disrespect has not sat well with the man who has, by most accounts, capably run the nation's largest lender for nine challenging years. Officially, investors will be given the chance to defy the bank's board of directors and strip Dimon of his chairmanship duties, while installing an unknown entity in his place to oversee him.

    While the shareholder vote is expected to be defeated again this year, as it was last, the lead up to the balloting has been anything but salutary. And as my co-host Jeff Macke and I discuss in the attached video, while it is understandable that investors are angry about the $6 billion in so-called "London Whale" losses incurred from a high-risk hedging program being run in the UK, they're taking an even bigger risk if they alienate the 57-year-old leader.

    In fact, CLSA banking analyst Mike Mayo has just published a report that says if Dimon is rebuffed or riled enough to walk away from both jobs, shares of JP Morgan would likely drop by 10% or about $20 billion. Not only would it cause a tumultuous transition with no successor in place, but Mayo predicts subsequent executive departures would cause additional hardship.

    Read More »from JPMorgan’s Dimon Problem: A $20 Billion Gamble?
  • Hedge fund manager Daniel Loeb is trying to seize Sony (SNE). The New York Times reports he flew to Tokyo and hand-delivered a letter to Sony's CEO, calling for the company to be split in two. Yahoo! Finance Senior Columnist Mike Santoli has details in the video above.

    Meanwhile, the future looks duller than ever for another waning Japanese electronics maker: Sharp (SHCAF). This morning the company reported an annual loss of $5.4-billion, the biggest in its 100-year history. Sharp says it will be replacing both its president and chairman next month. The men were on the job for just a year.

    Facebook's (FB) phone is looking like a flop. Sales have been so sluggish AT&T (T) is now thinking about dropping the device from its offerings. The phone, which is called Home, was unveiled with much fanfare last month. It's made by HTC but puts Facebook front and center on the home screen. The price has already been cut from $99 to 99-cents. Facebook has been trading just shy of $27. That's $11

    Read More »from Sony Spinoff Proposal; Facebook Flop; Tesla vs. Lexus
  • Tesla (TSLA) is up another 6% in early trading. The stock rose 14% yesterday, at which point it had gained 44% in just the past week. It all has to do with the Model S sedan which scored 99 out 100 in a Consumer Reports test. Tesla says sales of the car have also exceeded expectations, which helped the company turn its first-ever profit when it reported quarterly earnings last week. Year-to-date the stock is up 117% which an article this morning in the Motley Fool warns is a disconnect from reality. The company now has a larger market cap than Fiat, and would be almost as big as Lexus if it were a stand-alone company.

    Next up is a much smaller company, but one that's been on just as big of a tear: Unilife (UNIS). Shares were up 25% yesterday, following a climb of 62% on Friday. This is a Pennsylvania-based company that makes equipment used to inject drugs. The company beat expectations for quarterly earnings when it reported last week, but missed on revenues. Even with this past

    Read More »from Tesla Takes Off; Netflix Flies; Barnes & Noble Sputters

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