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SPRINT STEALS CLWR $S $CLWR $CMCSA $INTC

December 17, 2012

This post was just published on ZYX Buy Change Alert. It appears that Sprint has maneuvered successful to steal CLWR for a lot less than its fair value. In our analysis, the probability of CLWR stock going higher is less than 15%. Sprint (S) has entered into a definitive agreement to acquire the approximately 50% stake in Clearwire (CLWR) it does not currently own for $2.97 per share, equating to a total payment to Clearwire shareholders, other than Sprint, of $2.2B. This transaction results in a total Clearwire enterprise value of approximately $10B, including net debt and spectrum lease obligations of

THE REAL REASONS BEHIND FRIDAY’S APPLE STOCK DROP $AAPL $UBS $GOOG $MSFT $NOK

December 15, 2012

Apple bulls have been pinning their hopes on China, but Apple has been losing its ‘cool’ factor in China. Only time will tell if Apple mania in China will go the way of other fads. The Wall Street Journal reports that introduction of the iPhone 5 in Beijing was “arguably the least eventful launch of an Apple device in the company’s four-year history in the Chinese capital.” In the past, introduction of new Apple products in China have been met with crowds coveting the new devices. In 2011, when iPhone 4S was launched, the Sanlitun store experienced a near riot. This time when the Sanlitun

WEEKLY MARKET DIGEST: NEW QE IN PRACTICAL TERMS $GLD $SLV $TBT $SPY $QQQ $DIA $TBF

December 14, 2012

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.) INFLATION DATA IN LINE December 14, 2013 Core Consumer Price Index (CPI) came at 0.1% vs consensus of 0.1%. CPI including food and energy fell 0.3%. Low inflation numbers help the Federal Reserve stay on its present course. Expect the markets to see saw based on news or rumors related to the fiscal cliff. Gold futures are at $1696, silver futures are at $32.46, and oil futures are $86.49. S&P 500 resistance levels are 1424, 1439, and

CHINA WINS, U.S. LOSES IN A123 BANKRUPTCY $JCI $AAPL $F $GM

December 13, 2012

President Obama was determined not to let China run away with green energy technologies of the future. A case in point is the American battery maker A123 Systems. A123 makes batteries for electric and hybrid cars, and the electric grid. To help compete with China, the Obama administration gave $249 million to A123. Of course, the U.S. Treasury borrows billions from China. Money is fungible. In an ironic twist, A123 filed for bankruptcy. In the bankruptcy auction, a Chinese conglomerate, Wanxiang Group beat American company Johnson Controls to buy A123 for $257 million. In a further ironic twist, Wanxiang generates large amounts of revenues

THE BUYOUT OFFER FOR CLWR IS A STARTING POINT FOR NEGOTIATIONS $CLWR $S $CMCSA $INTC

December 13, 2012

This post was just published on ZYX Buy Change Alert. We recognize that some of our subscribers have doubled their money in CLWR. As tempting as it is to take profits here, it is advisable to hold for bigger gains. Of course there are no guarantees. The offer for CLWR should be at least 50% higher. Sprint (S) disclosed that its board authorized management to proceed with discussions with Clearwire (CLWR) with the intent to attempt to reach a definitive agreement for a potential merger transaction. Sprint stated it understands that the board of Clearwire has formed a special committee that is reviewing the

ADDING TO SILVER SHORT BASED ON THE FED STATEMENT $SLV $GLD

December 12, 2012

This post was just published on ZYX Short Sell Change Alert. Adding a 5% tranche to SLV short around $32.37 (future equivalent is $33.40) based on Fed statement. Stop zone on this tranche is $33.12 to $33.26. The Fed announcement is in line with what we told you about expectations of most rational Fed watchers in this ‘morning’s capsule’ in the Real Time Feed. The momo crowd was completely off base.

TRADE OF THE DECADE: JAPANESE YEN RUNS THROUGH THE RESISTANCE AT 83 $YCS

December 12, 2012

This post was just published on ZYX Global Multi Asset Allocation Alert. Our trade of the decade is short yen against the U.S. dollar. Our vehicle of choice is inverse ETF YCS. Most subscribers are long YCS from high $30s. As of this writing YCS has moved to $46.72. USDJPY has just run through major resistance at 83.00. The move as of this writing is 65 pips, this is a very large move for yen. FOMC announcement at 12:30 pm ET today followed by Bernanke’s conference at 2:15 pm ET may have further implications for this trade. Please stay alert. What To

APPLE CAN HIT $1,000 IN 2013 IF TIM COOK FOLLOWS STEVE JOBS’ FORMULA $AAPL

December 11, 2012

When I recommended Apple(AAPL) at $131, I stated that a $1,000 very long-term target was possible. In recent months, however, my models have been steadily reducing the probability of Apple reaching that $1,000 target. The last probability I published was 53%. Over the past month, I was in Asia, and wrote about the wide use of non-Apple products. (See, ‘Trip To Asia Shows How Apple’s Vaunted Ecosystem Doesn’t Save It From Competition.’) As the information from the Asia trip is incorporated in the model, the probability of reaching $1,000 target will go down further, but there is one potential salvation, if