Yahoo Plans Revamp Amid Losses (WSJ)
The rats have been fleeing the ship. Sorry if that comes of bad, it's just the cheapest metaphor we could think of. This is an unusual moment in corporate history, something we don't see very often. High profile Yahoo executives are fleeing the company in droves. It seems to be on the order of three or four per day, and word is that the company has a "sweeping reorg" in the works. Btw: Try Googling "Yahoo" and "sweeping reorg" (42,900) and see how many hits you get. One thing to consider though. At most companies, these sub C-level executives just aren't that well known, so even if they leave, they leave kind of anonymously. At Yahoo, where every tech blogger worth their salt has the company org chart committed to memory, all this turmoil gets an unual amount of play.
Schwarzman's `Perfectly Timed' IPO Means Long Wait for Holders (Bloomberg)
Kind of hard to believe how the world has changed since Blackstone came public last year. No need to rehash, and no need to remind that the company's stock is, well, down since it's IPO price. But man, if there were ever a single situation in which (in retrospect) the public looks like fools for buying that the smart money are selling, this would be it. of course, that's just a device for historians, but still, that will be the narrative.
Russian Billionaire Part of Record Deal For Trump Mansion (WSJ)
You know we hate to use the B-word, but sorry, this totally calls for an ag bubble alert. What more symbolism could we need than a Russian fertilizer billionaire paying $100 million for a Palm Beach mansion owned by US real estate billionaire (?) Donal Trump. Seriously.
EU to lift sanctions on Cuba (AP)
To be honest, we're surprise that the EU ever had diplomatic sanctions against Cuba. For one thing, the EUs love to flout the US' desires, so this was always an obvious way to tell us to shove it. And beyond that, the sanctions are kind of dumb and ineffective, so it makes pefect sense to drop them, even without an ulterior motive. Evidently though, the diplomatic (which doesn't appear to be the same thing as trade sanctions) sanctions weren't really enforced, and we more symbolic to begin with. Still.
Fugitive's Girlfriend Is Charged (NYT)
Oh, so he's not dead? The girlfriend of Samuel Israel III has been arrested on charges of helping the ex-hedge fund manager escape justice. That's got to be a tough spot for her. Cause realistically, we'd probably help out someone too that was about to be incarcerated for two decades. Now she faces up to 10 years in prison. Imagine if they just get her, and not him. That'd suck. Oh, and her occupation is "decorator".
Busting Phil Hellmuth -- Day 2, continued (World Series of Poker Blog)
Courtesy of Paul Kedrosky, I've been reading this blog, written by a trader and hedge fund guy, as part of my World Series of Poker reading. It's pretty enjoyable sharp, well written, funny, and from the perspective one of those faces you occasionally see on an ESPN broadcast, but about whom the commentators know little. Anyway, here's a very cool anecdote about busting Phil Hellmuth out of a tournament.
Posted by guest , Jun 20, 2008 8:43AM
Sorry, was there someone who didn't think that Blackstone was going public because the market for their IPO would never be better?
That's like a company issuing more stock, either they really need the money or they believe their stock is overvalued. Or they're a financial institution and more borrowing is the last thing they need.
Posted by guest , Jun 20, 2008 8:57AM
Did MSFT manage to kill YHOO without spending much money?
Will GOOG and YHOO deal get stuck in anti-trust in EU & Asia?
Posted by guest , Jun 20, 2008 8:57AM
Did MSFT manage to kill YHOO without spending much money?
Will GOOG and YHOO deal get stuck in anti-trust in EU & Asia?
Posted by guest , Jun 20, 2008 9:00AM
I know its fun to pull out the old saw of the public buying while the "smart money" is selling, but households were actually HUGE net sellers of corporate equities in 2006 and even moreso in 2007, while institutional investors huge buyers, who really who is the smart money this time?
also, institutional holders account for the majority of BX shares.
Posted by ab , Jun 20, 2008 9:22AM
@9:00
S&P 500:
YE05: 1248.29
YE06: 1418.3
YE07: 1468.36
households didn't exactly hose the institutions on that one.
Posted by guest , Jun 20, 2008 9:26AM
"also, institutional holders account for the majority of BX shares."
@ 9:00, in what way does that disprove the smart money selling/dumb money buying paradigm? The only difference between a dipshit institutional PM and a dipshit with an E-trade account is that the former gets fleeced on higher priced stocks, Value Stock-Tip Guy notwithstanding.
Posted by guest , Jun 20, 2008 9:36AM
the former gets fleeced on higher priced stocks, but proportionally got fleeced less on BX
Posted by bank_teller , Jun 20, 2008 9:51AM
is that what a hedge fund girlfriend is supposed to look like? maybe that was the first clue...
Posted by guest , Jun 20, 2008 9:55AM
ooof. Debra's a reeeeeeeaaaal looker.
Posted by guest , Jun 20, 2008 9:55AM
"The tragedy was not that the firm was sold. The tragedy was that the firm was not sold at the optimal time; hence, the optimal price was not realized."
--Stephen Schwarzman, 1984, describing the sale of Lehman Brothers Kuhn Loeb to Shearson
Posted by Anal_yst , Jun 20, 2008 9:59AM
@ bank_teller
Tom Hudson would approve
Posted by girl , Jun 20, 2008 10:10AM
am i still drunk or smthg..where's her pic?
Posted by bank_teller , Jun 20, 2008 10:14AM
http://www.cnn.com/2008/CRIME/06/19/hedge.fund.arrest/index.html
@ Anal_yst -- now that you mention it, she does look a little like michael bolton
Posted by ArtVandelay , Jun 20, 2008 10:16AM
No. There WAS nothing wrong with my name... Until that no talent ass clown started winning Grammy's!
Posted by guest , Jun 20, 2008 10:19AM
uh ab, i think you forgot a year?
S&P 08 1325.
nice arithmetic.
carry on buying weakness.
-retail
Posted by guest , Jun 20, 2008 10:20AM
@ab are you conveniently neglecting to mention 6/20/08 1325. so who won, the buyer or the seller at 1468.36
Posted by guest , Jun 20, 2008 10:23AM
err, sadly all those equity gains were plowed right back into the housing market of course
Posted by guest , Jun 20, 2008 10:24AM
As i said, Hedge/IB is good for money, not pussy
Hedgers have some of the worst wives/gf on the planet
http://www.cnn.com/2008/CRIME/06/19/hedge.fund.arrest/index.html
Posted by guest , Jun 20, 2008 10:43AM
Paulson & Co. lose a lawsuit:
http://www.financialpost.com/story.html?id=599741
Is it beer o'clock yet?
--Calgary Schmooze
Posted by guest , Jun 20, 2008 10:53AM
WTF... the dude has a girlfriend that looks like a meth addict and drives a freaking GMC envoy? This is a joke right??
Posted by Debter , Jun 20, 2008 11:15AM
No talk of MBIA/ Ambac finally losing their last trip rating? Anyone see Lipman (EIC of Portfolio Mag) on CNBC this morning? I vote: yes please! God, Mike Meyers is out with a new movie this weekend. Looks really bad.
Stream of conciousness...
Posted by guest , Jun 20, 2008 11:30AM
Phil Hellmuth is pitching his startup around the Valley, in which he hires celebrities to LEAVE FANS GENERIC, DAILY VOICEMAILS... gay
Posted by guest , Jun 20, 2008 12:06PM
@Bank Teller
He was keeping that beast around just to take the fall.
A girl like that will do 20 years in exchange for a bit of attention from a rich dude with a bird tat on his thigh.
Pretty smart guy.
~New Orleans Chapter, member #5124, National Audubon Society
Posted by guest , Jun 20, 2008 12:09PM
Can we get a pic of Mr. Israel? All these guys are acting like he's some hot stud when in reality he's probably a fat shclub who had too much Manichevitz.
Posted by guest , Jun 20, 2008 12:13PM
@ cs
Paulson is a crazy (but rich dude). However i like his valuation methods (mark to paulson?). I wish he would value NPE & OPC (only for PA purposes - of course).
It is now noon EST and that makes it "Beer o'clock"!
Posted by guest , Jun 20, 2008 12:49PM
These Opening Bell segments are poorly written, and that's being kind.
Posted by guest , Jun 20, 2008 1:42PM
to guest @ 12:49
So don't read them!
Posted by guest , Jun 20, 2008 5:05PM
Guest@12:09pm. You haven't seen Mr. Israel's picture? Well, he's heavy, bald, ugly, and seems to have a problem with his lower lip kinda twisting up on one side over his upper lip. CNN likes to carry a montage.