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JA Solar to be taken private in deal with equity value of about $362 million

“Chinese solar company JA Solar Holdings Co” writes Ciara Linnane for marketwatch.com. JASO, +5.32% said Friday it has agreed to be taken private by an investor consortium in an all-cash deal with an equity value of about $362.1 million.Holders of the company’s ordinary shares will receive $1.51 per share, while holders of the American Depositary Shares, which represent five shares, will receive $7.55.The deal will be financed with a mixture of debt and equity and is expected to close in the first quarter of 2018. Source: marketwatch.com Share This:

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The stock market is flashing warning signs

“He outlines Hussman’s argument that equity valuations are too high, and that technical indicators are flashing sell signals” writes Kara Chin for businessinsider.com. Blodget says the current environment reminds him of the second half of the 1990s, when bearish value investors were shamed as the market continued to rally.Silverstein and Blodget then debate whether these recent comments from Hussman and Edwards hold water, citing a handful of bull arguments that suggest the market will continue higher for much longer. Source: businessinsider.com Share This:

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US private equity firm places near $50 billion jet order with Airbus

“Airbus has turned its fortunes around at the Dubai Airshow with a mammoth order of 430 jets worth a total $49.5 billion” writes unknown author for cnbc.com. Veteran airline investor Bill Franke of Indigo Partners signed the preliminary order on Wednesday morning to buy 430 planes, comprising of 273 A320neos and 157 A321neos.The deal includes aircraft for Wizz Air, Frontier Airlines, Jetsmart and Mexico’s Volaris. “We’ve done a little research and we don’t ‎think there’s been a larger order ever,” Franke said at the press conference in Dubai on Wednesday. Source:…

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Bloated company balance sheets signal trouble for stock market’s record run

“The ratio of non-financial corporate debt to GDP stood at 73.2% in the second-quarter of 2017, a near-record, according to data from the Federal Reserve Board” writes Sunny Oh for marketwatch.com. Aversion to highly leveraged companies is increasingly visible,” said the analysts, led by head of quantitative equity research, Andrew Lapthorne.With investors exercising care in their stock picking, equities have seen a wide divergence in performance this year.For those still holding the weak companies, the relative performance consequence is painful, leading to further selling and further polarization,” the strategists said. Source:…

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Investors are set on riding the equity rally all the way through to Christmas

“The returns in 2017, at least for equity investors, are staggering” writes unknown author for cnbc.com. In a letter last week, the strategist wrote: “The biggest risk to investors over the remainder of 2017 is an upside melt-up in equity markets.Some regard equity markets and valuations, having made very strong advances in 2017, as stretched.Driving this is what many call a “sweet spot” for investors: a backdrop of solid growth, low inflation, strong corporate earnings and continuously supportive monetary policy from central banks, despite efforts to gradually tighten stimulus.With 41…

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Senate plans disastrous tax on vesting that could kill stock compensation

“The proposed tax could prevent wide swaths of tech employees from accepting stock options and RSUs” writes Josh Constine for techcrunch.com. The U.S. Senate released its proposed tax reform bill late last week under the aggrandized “Tax Cuts and Jobs Act.” It includes a tax on stock options and Restricted Stock Units (RSUs) that applies as they vest, rather than using the existing scheme that taxes stock options when they’re exercised or when the underlying shares are released for RSUs. And if the vesting tax becomes law, it could wreak havoc…

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Should you use a reverse mortgage in retirement?

“Working with a well-versed financial adviser a reverse mortgage can be customized to meet or complement a number of retirement financial goals” writes Peter Rueth for marketwatch.com. Then the reverse mortgage balance will start at about $160,000 with no required ongoing payments other than taxes and insurance.An extremely important feature of the line of credit reverse mortgage is any unused portion of the credit line grows at the same effective rate that’s applied to the loan.Unlike aircraft fuel tanks, the reverse mortgage line of credit is a reserve tank of…

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How use a reverse mortgage in retirement

“Working with a well-versed financial adviser a reverse mortgage can be customized to meet or complement a number of retirement financial goals” writes Peter Rueth for marketwatch.com. Then the reverse mortgage balance will start at about $160,000 with no required ongoing payments other than taxes and insurance.An extremely important feature of the line of credit reverse mortgage is any unused portion of the credit line grows at the same effective rate that’s applied to the loan.Unlike aircraft fuel tanks, the reverse mortgage line of credit is a reserve tank of…

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What is ‘carried interest’ and why it matters in the new GOP tax bill

“The Republican approach could affect one group of investors: activist hedge fund investors” reports washingtonpost.com. The investors with the most to lose are real estate developers, private equity managers and venture capitalists, tax experts say.Hedge fund managers don’t often make long-term bets, he said.The preferential tax treatment has sparked a multiyear battle between some of the most influential forces on Wall Street and Democrats who say the rule is unfair.Private equity funds make their money by buying struggling companies cheap, turning them around and then selling them for a profit. Source: washingtonpost.com…

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For Trump, the stock market is a scorecard for the Fed

“Approval ratings might not matter to President Trump but the stock market does” reports forexlive.com. Trump was inclined to pick Yellen because he sees her as responsible for the stock market and equities.Trump constantly tweets about record highs in the Dow but it’s not just political spin, he really cares about equity prices.For me, the takeaway is that the President deeply cares about equity prices. Source: forexlive.com Share This:

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