Whatever you choose to call it is irrelevant. What matters to OLED shareholders is does it give LG leverage in long-term contract negotiations with OLED? If yes, then that will be to our detriment. I am concerned that OLED management will hand out another sweetheart deal at the expense of shareholders yet again.
I don't consider a 2% oversupply a 'glut'. Oil pricing is currently being determined by speculators trading futures, NOT any fundamental supply-demand issues.
Sure you can get oil but to think that there will be no supply deficit if Russia stopped output oil is silly. Can you get palladium for the world automotive industry? Russia produces 40% of the world output or that shiny precious metal and quite a bit of its sister metla platinum.
There is no collapse until Russia cannot service its foreign debts. That is certainly not imminent. It is very possible this temporary insanity ($50 oil and RUB shorting) fades away before the threat of default becomes real. This is not 1998. Russia is in a far better condition to deal with this situation this time around.
So you would have Russia throw 3B at 'maybe' making speculators go away? Dude, didn't you learn from the EU crisis that speculators don't just cash in when they see blood in the streets? Russia made the only smart move they could. Is it enough I don;t know, but I'm glad they didn't waste foreign reserves buying RUB. The market needs time to absorb all the ramifications of it.
Maybe you should sell so you can sleep at night again. Any investment you make in Russia should be with the view that it can all be lost. I have shares in NILSY for years now (in fact I just added some call me crazy), but I certainly wouldn't risk more than I can afford to lose.
I know that.
My point is that when Samsung switched to a long-term contract, they used the 'I'm the only one making oled' ploy to negotiate better long-term contract terms.. Remember how it did not turn out to be the gigantic success PANL longs had dreamed about?
Well, fast forward a couple of years and now LG is the only real player in oled TV, so again OLED is faced with a customer who can tell them 'look give me a better contract deal or I will walk away from mainstream oled and focus on qd lcd tv.'. And they win and again PANL shareholders are stuck with mediocre contract terms.
Not saying it will turn out to be the case, but it would not completely surprise me given OLED management's history of settling for the moon instead of the sun and the stars.
So they're not going all-in on OLED after all huh...
@@@@SEOUL, Dec 16 (Reuters) - LG Electronics Inc, the world's No. 2 television maker behind South Korean compatriot Samsung Electronics Co Ltd, said on Tuesday it will launch quantum dot television sets in early 2015. LG, in a statement, said it will have 55-inch and 65-inch ultra-high definition (UHD) quantum dot TVs on display at the annual International CES trade show next month in Las Vegas. An LG spokesman said the electronics maker will start selling quantum dot products early next year, without offering details.
Never underestimate the tenacity of speculators. They may believe this action means it's Russia that's trapped, not them.
How the heJJ are Russian companies going to be able to afford refinancing any RUB debt coming due with these sky-high rates?
The Nobel Peace Prize Laureate needs to make a final decision. All eyes are on him to see if he is in fact worthy of such a high honour bestowed to him... I have my doubts.
Here's how I think this works. I am definitely not an expert at this though and I could very well be be wrong.
At the close date of the deal, each LO share will receive $50 and 0.2909 NewCo shares If RAI is trading at $67 (YY) that day then your LO share will have a value of $50 + 0.2909*67 = $50+19.50=69.50. The cash fraction of your LO share is 50/69.50=0.72 and the NewCo share fraction of your LO share is 19.50/69.50=0.28
If you bought your LO share at, for example, $60 (ZZ), then you have a gain of 69.50-60=9.50 on the share. That gain is split up into the cash and share portions using the two fractions, so the cash gain on the LO share is 0.72*9.50=6.84 and the NewCo share gain is 0.28*9.50=2.66.
The cash part of the gain is taxable. The NewCo share part of the gain is deferred... it lowers the ACB of your NewCo shares to 19.50-2.66=16.84 per 0.2909 NewCo share, or 16.84/0.2909=57.89 per NewCo share. If you eventually sell that NewCo share at say $80 (XX) then your taxable gain on each NewCo share will be 80-57.89=22.11
Of course, you need to plug in the actual price of RAI (YY) on the day the deal closes, the actual price you bought your LO (ZZ) shares for, and the price you eventually sell your NewCo share (XX) for into these calculations. I hope this helps.
A low voter turnout does not necessarily mean he has a weak mandate. If the incumbent ruler is a huge favorite, there is less justification to go to vote since victory is already assured. The populace is apparently convinced that Three Arrows plan is their best chance at success.
Maybe part, but speculation amplifies any underlying causes.
@@@@(Reuters) - Oil producers group OPEC can ride out a slump in oil prices and keep output unchanged, its head said on Sunday, arguing market weakness did not reflect supply and demand fundamentals and could have been driven by speculators.
Once upon a time, before Ukraine blew up, Syria crossed Obama's red line and used chemical weapons. Putin through diplomatic efforts, convinced Assad to abandon chemical weapons and thereby averted a war and got the USA out of a very ugly situation. That was an act worthy of a Peace Prize. What did Obama do to deserve that prize?
From a perspective of supply and demand, I don't understand how a minor gap in supply-demand resulted in this magnitude of price drop. There have been similar sized gaps over the last couple of years and it did not trigger any selloff so it smacks of speculation rather than a price adjustment to market.
One could argue the market reacted to the threat of the supply-demand gap growing, but now various indicators (dropping rig count, projects getting pulled, capex reductions) suggest the gap start to shrink so the market should act to factor that in.