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Friday, January 9, 2015
Investor Peter Thiel's fund buys into marijuana business
Fri, Jan 9, 2015
By JONATHAN FAHEY
Investor Peter Thiel's fund buys into marijuana business
NEW YORK (AP) — The pros are getting into pot.
Founders Fund, the $2 billion San Francisco venture capital firm run by Silicon Valley stars including Peter Thiel, co-founder and former CEO of Paypal, is investing in Privateer Holdings, a marijuana company that owns several pot-related brands.
The companies declined to disclose the size of the investment Thursday, but described it as a "multi-million dollar" participation in a $75 million fundraising effort by Privateer.
The deal had been rumored last year.
Privateer, based in Seattle, owns the Canadian medical marijuana producer Tilray and the pot information service Leafly. It is also launching a brand of marijuana and products with the family of Bob Marley called Marley Natural.
Founders Fund partner Geoff Lewis, who is leading the firm's investment in Privateer, said in an interview that he believes the broader legalization of marijuana is inevitable.
"Public sentiment is there, and it crosses political lines," Lewis said.
There are 23 states that allow the use of marijuana for medical purposes and Colorado has legalized its recreational use.
There has been some pushback, however, despite growing public support. The states of Nebraska and Oklahoma have filed a lawsuit seeking to overturn the legalization of marijuana in Colorado, saying that they are being overrun with marijuana from across their borders.
And Founders Fund does not expect a quick turnaround on its investment in Privateer, Lewis said. Founders is investing in Privateer because it believes Privateer can eventually establish mainstream brands that will be recognized and trusted as marijuana becomes legal and socially acceptable, he said.
Privateer was founded in 2010 and has previously landed $22 million in funding.
Before the announcement Thursday, Privateer's funding came mostly through wealthy individuals and investment offices that steer private family funds.
Privateer CEO Brendan Kennedy thinks the Founders investment will lead to more professional investment into marijuana-related businesses and help advance the push toward legalization.
"One of the important milestones for this business is having access to capital, and significant capital," he said.
Privateer, based in Seattle, owns the Canadian medical marijuana producer Tilray and the pot information service Leafly. It is also launching a brand of marijuana and products with the family of Bob Marley called Marley Natural.
Founders Fund partner Geoff Lewis, who is leading the firm's investment in Privateer, said in an interview that he believes the broader legalization of marijuana is inevitable.
"Public sentiment is there, and it crosses political lines," Lewis said.
There are 23 states that allow the use of marijuana for medical purposes and Colorado has legalized its recreational use.
There has been some pushback, however, despite growing public support. The states of Nebraska and Oklahoma have filed a lawsuit seeking to overturn the legalization of marijuana in Colorado, saying that they are being overrun with marijuana from across their borders.
And Founders Fund does not expect a quick turnaround on its investment in Privateer, Lewis said. Founders is investing in Privateer because it believes Privateer can eventually establish mainstream brands that will be recognized and trusted as marijuana becomes legal and socially acceptable, he said.
Privateer was founded in 2010 and has previously landed $22 million in funding.
Before the announcement Thursday, Privateer's funding came mostly through wealthy individuals and investment offices that steer private family funds.
Privateer CEO Brendan Kennedy thinks the Founders investment will lead to more professional investment into marijuana-related businesses and help advance the push toward legalization.
"One of the important milestones for this business is having access to capital, and significant capital," he said.
"There will be a lot of people who wake up (now) and realize they need to look at this industry just as they have looked at other emerging industries around the world."
Founders Fund was an early investor in Facebook and has current investments in SpaceX, Spotify and Airbnb.
Founders Fund was an early investor in Facebook and has current investments in SpaceX, Spotify and Airbnb.
Thursday, January 8, 2015
Betting against home builders
This is a real world example of writing callls against stocks in your portfolio to increase income.
Behind the $50 million bet against home builders
By Maxwell Meyers | CNBC – Tue, 30 Dec, 2014
Housing stocks (NYSE Arca: XHB) have been the ultimate catch-up trade in the fourth quarter, rising 13 percent since October. But if the options market is any indication, things are about to cool off.
In a series of trades that caught the attention of options experts Monday, one large investor made several moderately bearish bets on a number of home builder stocks, including Pulte Home (PHM), D.R. Horton (DHI) and Lennar (LEN).
The nature of the bets suggests that while this trader doesn't see those stocks falling hard in the new year, he or she doesn't see much upside either.
"One sizable institutional trader believes the home builders are about to hit a wall," said CNBC contributor Mike Khouw on Monday's Options Action segment inside Fast Money .
Specifically, the trader sold a number of calls on those stocks. When traders sell calls , they are betting that a stock will not rise above the strike price of the call of the option that they sold. In exchange for selling that call, they collect the price of the option, commonly called "premium" in options parlance. All told, the call sales on those three stocks generated $50 million dollars in proceeds.
The most bearish bet was placed on Pulte Homes, where the trader sold 8,500 of the Feb. 22 strike calls for $0.50, a strategy that remains profitable if shares of Pulte Homes stay below $22.50 by February expiration.
The timing of the sales are also noteworthy, according to Khouw.
As a group, those stocks are up an average of 20 percent since their October lows.
And the expiry of those sold calls captures both the earnings for the three companies, and Tuesday's Case-Shiller home price data.
Said Khouw: "Maybe they're thinking (the rally) is going to slow down a little, at least in the next 53 days or so."
Link: https://ca.finance.yahoo.com/news/behind-50-million-bet-against-165001217.html
Housing stocks (NYSE Arca: XHB) have been the ultimate catch-up trade in the fourth quarter, rising 13 percent since October. But if the options market is any indication, things are about to cool off.
In a series of trades that caught the attention of options experts Monday, one large investor made several moderately bearish bets on a number of home builder stocks, including Pulte Home (PHM), D.R. Horton (DHI) and Lennar (LEN).
The nature of the bets suggests that while this trader doesn't see those stocks falling hard in the new year, he or she doesn't see much upside either.
"One sizable institutional trader believes the home builders are about to hit a wall," said CNBC contributor Mike Khouw on Monday's Options Action segment inside Fast Money .
Specifically, the trader sold a number of calls on those stocks. When traders sell calls , they are betting that a stock will not rise above the strike price of the call of the option that they sold. In exchange for selling that call, they collect the price of the option, commonly called "premium" in options parlance. All told, the call sales on those three stocks generated $50 million dollars in proceeds.
The most bearish bet was placed on Pulte Homes, where the trader sold 8,500 of the Feb. 22 strike calls for $0.50, a strategy that remains profitable if shares of Pulte Homes stay below $22.50 by February expiration.
The timing of the sales are also noteworthy, according to Khouw.
As a group, those stocks are up an average of 20 percent since their October lows.
And the expiry of those sold calls captures both the earnings for the three companies, and Tuesday's Case-Shiller home price data.
Said Khouw: "Maybe they're thinking (the rally) is going to slow down a little, at least in the next 53 days or so."
Link: https://ca.finance.yahoo.com/news/behind-50-million-bet-against-165001217.html
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Monday, January 5, 2015
Russia ETF
Leveraged Bear Russia is not Hibernating
By ETFtrends.com12 hours ago
Bears hibernate during the winter months, but on the back of extended declines for oil and Russian equities, the Direxion Daily Russia Bear 3x Shares (RUSS) is far from sleepy.
Brent oil, the contract Russia prices crude in, for February delivery is off 5.4% to $53.37 at this writing while the United States Brent Oil Fund (BNO) is lower by 5.2% on volume that is already nearly double the daily average.
BNO has plunged 43.6% over the past 90 days. Confirming its correlation (and vulnerability) to oil prices, the Market Vectors Russia ETF (RSX) , the largest and most heavily traded Russia ETF, has shed 35.5% over that period. [Russia ETFs See Surprising Inflows]
RUSS is the triple-leveraged equivalent of RSX as the former seeks to deliver three times the daily inverse performance of the Market Vectors Russia TR Index, RSX’s underlying index. With the path of least resistance for oil and Russian stocks being to the downside, RUSS becomes an increasingly alluring idea for the risk-tolerant trader
“On the RSX daily chart, you can see a bearish pennant formed. The RSX is under $15, which means a breakdown is now on the table. Any further weakness likely sees an actionable short trigger from here,” according to Chessnwine of Market Chess.
Some traders are already warming to the idea of RUSS delivering more near-term upside. Over the past week, only two other Direxion leveraged ETFs have seen greater increases in volume relative to the 20-day average than RUSS and over the past month, RUSS has seen creation activity while over $20.2 million has been yanked from the Direxion Daily Russia Bull 3x Shares (RUSL) , according to Direxion data.
Of course, there are risks to long RUSS thesis. A snapback rally in BNO would likely mean the same for RSX, which would pressure RUSS. Not surprisingly, RUSS is also a highly volatile ETF. In fact, it has been the most volatile bearish ETF in Direxion’s stable over the past month. Among all leveraged Direxion ETFs, only RUSL has been more volatile over that period, according to issuer data.
“The risk, of course, is that oversold United States Oil Fund (USO) and the Energy Select Sector SPDR (XLE) will bounce. But, for now, it looks like too many trapped longs are still shell-shocked and have yet to fully capitulate,” according to Market Chess. [Leveraged Russia ETFs Gain Cash]
Direxion Daily Russia Bear 3x Shares
Link: http://finance.yahoo.com/news/leveraged-bear-russia-not-hibernating-181151244.html?soc_src=copy
SEC Form 13F
A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment Managers Form. It is a quarterly filing required of institutional investment managers with over $100 million in qualifying assets. Companies required to file SEC Form 13-F may include insurance companies, banks, pension funds, investment advisers and broker-dealers. This form, which must be filed within 45 days of the end of each quarter, contains information about the investment manager and potentially a list of their recent investment holdings.
INVESTOPEDIA EXPLAINS 'SEC FORM 13F'
SEC Form 13-F was made famous by investment con artist Bernie Madoff. It provides investors with an inside look at the holdings of Wall Street's largest investment managers. While this form can provide valuable insight into the management style of some of Wall Street's best, history has proven that these forms are only truly usable by investors when the investment manager reports accurately and honestly.
Related Forms: SEC Forms 13-FE, 13-G.
Related Forms: SEC Forms 13-FE, 13-G.
Experimental drones shot down
Experimental seismic drones shot down over Midland, TX
HOUSTON, Texas – According to reports from the Sugarland Chronicle, 3 seismic drones, each worth US$745,000, were shot down on the outskirts of Midland, Texas. The drones were experimental prototypes that were being tested in the area by Calgary-based startup Seismoplane, which is headed by Rhomas Pickletin.
Dr. Rhomas PickletinMy company spent nearly $3 million and just over 17,000 man-hours, sorry, people-hours, to create these prototypes and it has all come down to this. Some farmer on the outskirts of BFN takes then down and I’m not even sure why. We had approval from the Texas Experimental Seismic Test Flying Authority and everything. This could mark the end of Seisomoplane if we aren’t somehow compensated. – Dr. Pickletin, P.Seis.
The 37-person startup was living out a dream of being the first company to modify a military grade UAV so that it could shoot 3D seismic for its clients and its clients’ competition in a special stealth mode.
But according to a Midland resident, who witnessed the 3 Seismoair 2000 units shot down, the drones were destroyed because they were mistaken for PETA drones which have been spying on farmers in the area in hopes of reporting inhumane farming practices.
Leroy-Earl Jenkins, witnessI heard Cooter up der grumblin ’bout them there animal rights marchers when he heard of dem’n their drones tryin to catch farmers doin’ wrong stuff. So Cooter took to shootin’ everything that flew up o’er his head. He even went out shootin’ at a jumbo flying waaay high overhead. – Leroy-Earl Jenkins, witness
Mr. Cooter McCurdy of Midland, TX was arrested without incident and charged with 3 counts of destruction of others’ property. Local law enforcement made it clear to residents of the small farming town that this practice will not be tolerated.
A grainy image of Mr. McCurdy shooting into the air. Image from video taken by neighbour.
After learning of this development, PETA’s VP of Drone Intelligence decided to deploy a fleet of its own camera and microphone equipped drones, which were untouched over the Texas skies. This reconnaissance mission recorded evidence that resulted in 67 local farmers being arrested and charged with offences including indecent relationships with farm animals.
Sunday, January 4, 2015
Credit David Brown & Bob Hoye
Credit David Brown
The term "Rational Fringe" has been used to distinguish our research from the mainstream convictions that financial history was random and could be managed by inspired manipulation of interest rates.
Our models are based upon a thorough review of the highly volatile conclusions of 5 previous new financial eras. This provides forecasts of significant trend changes with enough lead time to formulate strategy. See our notes on the Capitulation Model.
Our original observations were that key financial sectors such as the stock market or the yield curve each recorded similar behaviour patterns through each previous era of great financial booms.
The conclusion was that these patterns would provide a guide through our wild financial party and that the action would override orthodox financial research and policy making.
Our models are based upon a thorough review of the highly volatile conclusions of 5 previous new financial eras. This provides forecasts of significant trend changes with enough lead time to formulate strategy. See our notes on the Capitulation Model.
Our original observations were that key financial sectors such as the stock market or the yield curve each recorded similar behaviour patterns through each previous era of great financial booms.
The conclusion was that these patterns would provide a guide through our wild financial party and that the action would override orthodox financial research and policy making.
Archives: http://www.institutionaladvisors.com/archive_2012.html
Gas Fracking in New York State
Photo Courtesy Giles Ashford
Gas Fracking in New York State
Since July 2008 Riverkeeper has tracked the prospect of industrial gas drilling in New York State. While gas drilling in New York is not new, what is new is the magnitude, scope, and location of the proposed drilling method of high-volume hydraulic fracturing or “fracking”. Indeed, industrial gas drilling throughout the Marcellus Shale and other shale reserves in New York has the potential to impact the environment and communities dramatically.
This is one reason why Governor Paterson ordered New York State to update an outdated environmental review of gas drilling impacts.
The entire West-of-Hudson portion of the New York City Watershed (supplying 90% of drinking water to over half the state’s population) sits on top of part of the Marcellus Shale, a large mineral reserve deposit deep beneath the earth’s surface. Oil and gas companies have known about this shale reserve for decades, but the technology to extract natural gas from it has become available only recently. The Marcellus Shale spans across at least five states. To extract natural gas from the mineral reserve, oil companies plan to use a process called “hydraulic fracturing.”
“Fracking” involves injecting toxic chemicals, sand, and millions of gallons of water under high pressure directly into shale formations. This toxic brew, along with any natural gas, is then extracted, or leaked to the surface. Whether any toxic discharges will flow into New York City’s drinking water supply is uncertain.
Riverkeeper’s Position
Riverkeeper opposes shale gas extraction by means of high-volume hydrofracking in New York, including any pilot or demonstration project which would allow this practice, unless and until the industry can prove it CAN and WILL be done safely for both human health and the environment and will be a net economic benefit to local communities and the state’s economy. Based on the best new scientific evidence from across the country, there are growing doubts that the industry will ever be able to meet that standard.
Fractured Communities Report
News and Press Releases
Support Our Watershed
- See more at: http://www.riverkeeper.org/campaigns/safeguard/gas-drilling/#sthash.qeGX5lW4.dpuf
Riverkeeper
@riverkeeper
NY's Clean Water Advocate-Defending the Hudson River & protecting the drinking water supply of nine million New York City & Hudson Valley residents.
Ossining, NY
riverkeeper.org
Joined August 2009
Link: http://www.riverkeeper.org/campaigns/safeguard/gas-drilling/
Thursday, January 1, 2015
Small Business
AT&TVoice: What's your business's Cherry Garcia? http://onforb.es/1BdQwSF #bestof
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Seeking Alpha @SeekingAlpha
Canadian Pacific Railway - Positioned For Growth http://seekingalpha.com/article/2791895-canadian-pacific-railway-positioned-for-growth?source=feed_f … $CP
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"Do It the Hard Way." Philip Levine's advice for the young poet http://lgrd.co/13UitEa #quotes @parisreview
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