Spatial Arbitrage – Louth Online http://louthonline.com/ Mon, 30 May 2022 16:54:21 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://louthonline.com/wp-content/uploads/2021/03/louthonline-icon-70x70.png Spatial Arbitrage – Louth Online http://louthonline.com/ 32 32 Insider Weekends: Tech Management Keeps Selling (NASDAQ:Z) http://louthonline.com/insider-weekends-tech-management-keeps-selling-nasdaqz/ Mon, 30 May 2022 08:55:00 +0000 http://louthonline.com/insider-weekends-tech-management-keeps-selling-nasdaqz/

hapabapa/iStock Editorial via Getty Images

In a week where we saw most stock indices rebound strongly, insiders reduced their buying after three weeks of high buying. Purchases fell 64% in absolute dollars and 26% in terms of number of companies which saw insider buying. I followed a select group of tech growth companies to see when insiders at those companies might stop selling and start buying instead. Despite the huge declines in their stock, insiders continue to sell. This doesn’t give me much confidence that the rally we saw last week marked the end of the bear market, but looks more like a bear market rally from temporarily oversold conditions. Obviously, there’s no way to know for sure and we’ll see if that’s indeed the case in the coming months. I was looking in Zillow (NASDAQ:Z) recently and I was surprised at how many members of the management team continued to sell the shares and in many cases below their recent strike prices because I tweeted friday (changes made):

With Zillow back to the levels TCV independent director Jay Hoag was buying in May 2019, I was curious to see if he, founder/CEO Rich Barton, or any other insider was buying stock. As we’ve seen with other growth companies, buying has been sparse despite the stock’s 80% drop. Instead of buying shares, insiders including the CFO, COO, CTO, GM, CRO, and President are all selling and they’re selling at lower prices. to their last option exercises.

I’ve been long on the stock for years but resisted the urge to add until I saw the company stabilize, management started buying and I saw Jay Hoag or Rich Barton buy on the open market. With housing easing, their house flipping business in run-off mode, average monthly visits down 5% YoY in Q1 2022, and slowing growth in its IMT (Internet, Media and technology), the business will remain difficult for some time.

I wrote the following about Zillow leaving its home-based flipping business last November in an article titled What does the release of iBuying’s Zillow mean for Opendoor?

Zillow was using their iBuying business to create an operating system for buying and selling homes, which they called Zillow 360. They got into value-added services like mortgage originations and I wouldn’t have been surprised if they turned to things like title insurance. Opendoor already does some of this through Opendoor Home Loans, but if the company hopes to succeed, it will need to do much more than just buy and sell homes.

Zillow remains committed to a grand vision of creating the “super housing app” that will bring value to home buyers and sellers at different points in their journey. They want to go from a big slice of the $19 billion real estate marketing pie to a much bigger slice of the $300 billion real estate transaction, rental and mortgage fees pie. Until the company begins to make meaningful progress towards realizing this grand vision, the stock will likely remain under pressure as the company works on overhanging its house-flipping error.

Zillow Super App Vision

Zillow Investor Presentation

Welcome to issue 621 of Insider Weekends. Insider buying declined last week, with insiders buying $115.85 million in shares from $324.11 million the previous week. Sales also fell to $944.38 million from $1.08 billion the previous week. We also saw insider buying by the CEOs of SoFi Technologies (SOFI), Uber (UBER) and PayPal (PYPL). Several funds and institutions that were involved in some of these growth companies before their IPOs have also bought shares in recent months, including venture capital firm Sequoia buying shares of DoorDash (DASH) in March, the Indian fund of Sequoia buying shares of Freshworks (FRSH) in March. and Singapore’s sovereign wealth fund buying shares of Affirm (AFRM) in April.

Sale/purchase ratio:

The insider sell/buy ratio is calculated by dividing the total insider sells in a given week by the total insider buys that week. Last week’s adjusted ratio rose to 8.15. In other words, insiders sold more than 8 times as many shares as they bought. The sell/buy ratio this week was unfavorable compared to the previous week when the ratio stood at 3.33.

Notable Insider Buys:

1. Avis Budget Group, Inc. (CAR): $200.98

Executive Chairman Bernardo Hees acquired 28,334 shares of this car and truck rental company, paying $172.78 per share for a total consideration of $4.89 million. These shares were purchased indirectly through a trust.

PER: 6.31 Front P/E: 9.53 Industry P/E: 42.26
P/S: 0.94 Price/Book: N/A EV/EBITDA: 12.18
Market cap: $9.7 billion Avg. Daily volume: 1,054,339 52 week range: $65.87 – $545.11

2. The Beachbody Company, Inc. (BODY): $2.16

The shares of this health and wellness platform were acquired by 2 insiders:

  • Chairman and CEO Carl Daikeler acquired 1,789,200 shares, paying $1.75 per share for a total consideration of $3.13 million. Mr. Daikeler increased his stake by 367.63% to 2,275,879 shares with this purchase.
  • Administrator Michael Heller acquired 224,423 shares, paying $1.32 per share for a total amount of $297,093. Mr. Heller increased his stake by 5.43% to 4,357,866 shares with this purchase.

PER: N/A Forward P/E: -7.45 Industry P/E: N/A
P/S: 0.79 Price/Booking: 2.11 EV/EBITDA: -4.02
Market cap: $671.24 million Avg. Daily volume: 1,191,814 52 week range: $0.91 – $13.5

3. Newmark Group, Inc. (NMRK): $11.29

Chairman Howard W. Lutnick acquired 277,000 shares of this commercial real estate services company, paying $10.83 per share for a total consideration of $2.99 ​​million. These shares were purchased indirectly through a trust.

PER: 3.09 Front P/E: 5.76 Industry P/E: N/A
P/S: 0.84 Price/Book: 1.7 EV/EBITDA: 19.19
Market cap: $2.58 billion Avg. Daily volume: 1,610,601 52 week range: $10.14 – $19.1

4. Coinbase Global, Inc. (COIN): $75.32

Director Frederick Ernest Ehrsam III acquired 30,030 shares of this crypto-focused brokerage, paying $60.60 per share for a total consideration of $1.82 million. These shares were purchased indirectly through a trust.

PER: 7.7 Forward P/E: -18.37 Industry PER: 13.38
P/S: 2.74 Price/Book: 2.57 EV/EBITDA: 4.42
Market cap: $19.73 billion Avg. Daily volume: 9,122,877 52 week range: $40.83 – $368.9

5. BitNile Holdings, Inc. (NILE): $0.36

Executive Chairman Milton C. Ault III acquired 5,042,500 shares of this bitcoin mining company, paying $0.31 per share for a total consideration of $1.55 million. 5,000,000 of these shares were purchased indirectly by Ault Alpha LP.

PER: N/A Forward P/E: -2.13 Industry P/E: 26.18
P/S: 1.57 Price/pound: 0.26 EV/EBITDA: -18.62
Market Cap: $113.15M Avg. Daily volume: 37,055,626 52 week range: $0.23 – $3.7

You can view the full list of buys from this insider buying page.

Notable insider sales:

1. Arista Networks, Inc. (ANET): $105.87

Shares of this networking company were sold by 3 insiders:

  • Development director Andreas Bechtolsheim sold 403,000 shares for $101.12, generating $40.75 million from the sale. These shares were sold indirectly through a trust. 3,000 of these shares were sold following the exercise of options immediately before the sale.
  • Platform director John F. McCool sold 7,621 shares for $97.93, generating $746,330 from the sale. These shares were sold indirectly through a trust.
  • Director Kelly Bodnar Battles sold 560 shares for $98.50, generating $55,159 from the sale.

PER: 36.38 Front P/E: 24.85 Industry PER: 20.42
P/S: 10.3 Price/Book: 7.86 EV/EBITDA: 27.31
Market cap: $32.53 billion Avg. Daily volume: 1,956,115 52 week range: $82.94 – $148.57

2. Loews Corporation (L): $65.93

The shares of this diversified holding were sold by 2 insiders:

  • Director Andrew H. Tisch sold 500,000 shares for $64.15, generating $32.08 million from the sale. These shares were sold indirectly by trusts.
  • Senior Vice President and Chief Investment Officer Richard Waldo Scott sold 6,123 shares for $64.35, generating $394,015 from the sale. These shares were sold following the exercise of options immediately prior to the sale.

PER: 10.16 Front P/E: 22.73 Industry P/E: 11.01
P/S: 1.12 Price/pound: 0.98 EV/EBITDA: 6.73
Market cap: $16.23 billion Avg. Daily volume: 948,098 52 week range: $51.35 – $68.2

3. Chubb Limited (CB): $210.89

The shares of this insurance company were sold by 2 insiders:

  • Chairman and CEO Evan G. Greenberg sold 62,410 shares for $208.44, generating $13.01 million from the sale. 14,400 of these shares were sold indirectly through various trusts.
  • Director Michael G. Atieh sold 500 shares for $203.49, generating $101,745 from the sale.

PER: 11.23 Front P/E: 12.49 Industry P/E: 11.01
P/S: 2.2 Price/Book: 1.58 EV/EBITDA: 13.04
Market cap: $89.36 billion Avg. Daily volume: 1,753,169 52 week range: $155.78 – $218.99

4. Royalty Pharma plc (RPRX): $41.27

The shares of this biotechnology company were sold by 3 insiders:

  • Director Rory B. Riggs sold 150,000 shares for $39.42, generating $5.91 million from the sale.
  • EVP, Investments & GC George W. Lloyd sold 100,000 shares for $40.27, generating $4.03 million from the sale.
  • Executive Vice President and Chief Scientific Officer James F. Reddoch sold 75,000 shares for $40.44, generating $3.03 million from the sale. These shares were sold indirectly by Reddoch RPI LLC.

PER: 30.15 Front P/E: 12.21 Industry P/E: 24.25
P/S: 12:27 p.m. Price/Booking: 3.11 EV/EBITDA: 18.38
Market cap: $27.96 billion Avg. Daily volume: 2,120,115 52 week range: $34.86 – $47.1

5. Matterport, Inc. (MTTR): $5.67

Director Jason Krikorian sold 2,206,146 shares of this spatial data company for $5.32, generating $11.73 million from the sale. These shares were sold indirectly by DCM VI, LP Jason Krikorian.

PER: N/A Forward P/E: -15.32 Industry P/E: 49.27
P/S: 2:18 p.m. Price/Book: 2.42 EV/EBITDA: -4.87
Market cap: $1.6 billion Avg. Daily volume: 7,321,207 52 week range: $3.94 – $37.6

You can view the full list of sales from this insider sales page.

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Aglet will release a pair of real-world sneakers that can also be worn digitally as NFTs http://louthonline.com/aglet-will-release-a-pair-of-real-world-sneakers-that-can-also-be-worn-digitally-as-nfts/ Wed, 11 May 2022 23:37:34 +0000 http://louthonline.com/aglet-will-release-a-pair-of-real-world-sneakers-that-can-also-be-worn-digitally-as-nfts/

onlife Inc., a next-generation experience platform that merges virtual worlds and physical goods, has announced the first-ever physical version of one of its most iconic sneakers, the Aglet One, which can be pre-ordered in the company’s virtual game, Aglet, starting May 28.

Players who purchase the IRL shoes will also receive a specially minted NFT to mark the release, the shoes and tokens will be strictly limited for the initial run.

Earlier this month, Aglet launched NFTs as unique in-game assets, starting with the original Aglet One Low sketch, followed by an NFT version of the classic ‘OG’ colorway before publishing. the IRL version linked to the physical sneaker.

“The obvious problem with the current iteration of NFTs is that most projects are pump-and-dump schemes, with the last unfortunate participant remaining holding the bag,” said Ryan Mullins, CEO of Aglet and onlife Inc. ..

“Our intention from the start has been to integrate digital assets, and now NFTs, into your daily life as you move around the world. The primary focus is not arbitrage – there are other games NFT if your goal is to flip the latest goofy zoo animal for maximum profit.We focus on the true ownership, mobility and utility of the assets you collect when playing the game of life.

Aglet NFTs as they appear in-game.

“For two years, our players have been collecting digital assets in the form of virtual sneakers, which were already non-fungible in a sense, because they could be bought, traded and sold, and using them in ways that best suit their needs, ” said Owen Batt, co-founder of onlife Inc. “We are now realizing a two-year dream to connect digital assets to the physical world with the release of the Aglet One Low sneakers that are loved and coveted by our players around the globe. .”

onlife Inc., the creator of Aglet, recently raised a new round of funding for its platform led by Galaxy Interactive and Amazon’s Alexa Fund. During 2022 and beyond, Aglet will roll out a series of NFT features coming to the gamified experience:

Q2 2022

  • First-ever Aglet NFT in-game store launched
  • Digital meets physical – the first IRL sneaker store connected to Aglet NFT is launched
  • In-game Airdrops – rolling out a mix of exclusive Aglet sneakers, shelf backgrounds, and apparel exclusively to Aglet NFT holders during 2022 and beyond

Q3 2022

  • Space launch of NFT: Mint and cop Aglet NFTs in Treasure Stash out in the real world
  • Additional IRL sneaker outputs connected to NFT
  • Players can buy and sell Aglet NFT on Aglet Marketplace
  • Aglet NFT can be purchased and traded for USDC and ETH in Aglet Shop and Marketplace
  • Exclusive/Early Access to Aglet Merch Launches for NFT Holders

Q4 2022

  • Aglet NFTs can be bought and sold on ImmutableX Marketplace
  • Aglet NFTs can be bought and sold on Layer 1 marketplaces (OpenSea, etc.)
  • Aglet Live Content Series with NFT Sneakers, Metaverses and Fixtures – Exclusive to NFT Holders
  • Aglet Backpack – players can integrate wallets across multiple blockchains to manage in a single game space

Aglet’s utility and distinctive features have been executed with their ever-growing community in mind. With added NFT components, Aglet opens up to a new audience while creating deeper engagement for existing players. By creating a bustle, grind, and win loop that allows players to transact NFTs on the outside, Aglet is positioning itself to be a leader in gamified commerce while teaching valuable lessons about health and entrepreneurship to young people in its fan base.

Please connect with LinkedIn to comment

Aglet NFT

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Wall Street Breakfast: Heading for a Peak? http://louthonline.com/wall-street-breakfast-heading-for-a-peak/ Wed, 11 May 2022 11:47:00 +0000 http://louthonline.com/wall-street-breakfast-heading-for-a-peak/

Are you approaching a peak?

Today, investors are bracing for another inflation report north of 8%, although that figure may provide some relief to those looking for a slowdown in the CPI. While April’s consumer price index is expected to hit a blazing 8.1% year on year, the figure would be down from the 8.5% print seen in March, which marked the highest level of inflation seen since the early 1980s. The CPI provides a snapshot of overall prices – meaning the costs of certain goods may continue to rise – so keep an eye on the inflation figure as well. inflation (which excludes food and energy), as well as on sub-sectors such as cars and rental.

Estimate: “I want every American to know that I take inflation very seriously and it is my top national priority,” President Biden said Tuesday ahead of the closely watched report. “The primary cause of inflation is a once-in-a-century pandemic. Not only has it crippled our global economy, it has completely thrown supply chains and demand out of whack… And this year , we have a second cause: Mr. Putin’s war in Ukraine.

Biden then offered solutions such as “reducing day-to-day costs for hard-working Americans” through negotiation and Medicare price caps, improving operations at ports to reduce traffic jams in the supply chain. procurement and promoting competition to bring small businesses into the market. Reducing the deficit will also be a priority by “calling on big business and the wealthiest Americans not to indulge in price gouging and pay their fair share of taxes.” On cutting high energy prices, Biden said he “led the world in the biggest release of oil from our stockpiles in history,” allowed biofuels in gasoline and at the same time stimulates green investments. as domestic crude oil production near record high. Oil companies also won’t get a “free pass” to unused oil concessions (there are 9,000 nationwide) and will have to pay taxes on them if they don’t produce more oil.

Not on a report: “I will not tell [today’s] The CPI counts by itself. I think the combination of mars, [today’s] and the May data will be kind of the big inflection point,” said Ben Jeffery, fixed income strategist at BMO. 3.20%, or I think that will inspire more bearish interest in investors who have been waiting for signs that inflation is beginning to peak.” (27 comments)

The Luna trash can

It is not easy to design a new currency, especially an algorithmic stablecoin. Terra (UST-USD), the world’s third-largest stablecoin, lost its peg to the US dollar on Monday, falling as low as 69 cents and forcing a slew of investors to liquidate their holdings. Things picked up somewhat yesterday, before falling below 40 cents overnight, sparking widespread panic as the controversial stablecoin (which has a circulating supply of nearly 17 billion tokens) entered a slump free.

Instantaneous: There are basically two types of stablecoins, which use distributed ledger technology to attach the value of tokens to something that already exists. One is backed by cash and assets to hold their value, like Tether (USDT-USD) and USD Coin (USDC-USD), while others have no collateral behind them like algorithmic stablecoins. Instead, the pegs on which these coins are built are supposed to be maintained through an arbitration relationship with another cryptocurrency (in Terra’s case, it’s based on a sister token named Luna (LUNA-USD) ).

The problem is that it doesn’t work (at least for a few days). The relationship hinges solely on the belief that there is a particular floor for currencies, hoping that one can always trade (or print) Luna to secure the $1 peg to Terra. Aware of this dynamic, Do Kwon, the founder of Terraform Labs (which powers the Terra blockchain) has diversified into Bitcoin reserves (BTC-USD) for currency support – in case confidence erodes in Luna. and Terra – but it could also be dangerous if Bitcoin becomes devalued as it has over the past six months. “Close to announcing stimulus package for $UST. Hang in there,” Kwon tweeted in response to the crisis.

Need for regulation: “[With stablecoins,] we see risks, which could threaten financial stability, risks associated with a payment system and its integrity and risks associated with increased concentration if stablecoins are issued by companies that already have substantial market power said Treasury Secretary Janet Yellen during a hearing before the Senate Banking Committee on Tuesday. “A stablecoin known as TerraUSD has had a run and lost value. I think this just illustrates that this is a fast growing commodity and the risks are increasing rapidly. We really need of a coherent federal framework.” (2 comments)

@realdonaldtrump

Questions swirled whether Donald Trump will be allowed to return to Twitter (TWTR) after Elon Musk’s pending $44 billion purchase of the company, and yesterday we got an answer: Musk said he would cancel the permanent ban from the former US president, calling him “morally evil and downright stupid.” Trump was banned from the platform following the attack on the United States Capitol on January 6, 2021, after Twitter cited “the risk of further incitement to violence” and “repeated violations and serious” network policies.

Focus on freedom of expression: “I think it was wrong to ban Donald Trump. I think it was wrong because it alienated a lot of the country and ultimately didn’t stop Donald Trump from being heard,” he said. Musk told the FTConference on the future of the car. “If there are tweets that are false and bad, those should be deleted or made invisible, and a suspension – a temporary suspension – is appropriate, but not a permanent ban.”

While Twitter’s actions were legal — private businesses are not subject to the First Amendment — they highlight corporate influence on public discourse and online conversation more clearly than ever. Musk has called Twitter “a place in the digital city, where issues vital to the future of humanity are debated,” and some fear that limiting the conversation will end up harming society or causing less controversy. interaction between a wide variety of points of view. This could force many users to adopt like-minded echo chambers, which could reinforce their own beliefs and further polarize the political landscape, but unrestrained alternatives can be just as frightening.

What does Trump say? Well, the whole story coincides with the rollout of his TRUTH social network, which publicly trades under the symbol “DWAC”. Trump has previously announced he won’t return to Twitter, saying they’ve “got rid of a lot of their conservative voices,” but things could change quickly before the next election cycles. TRUTH Social has also been plagued by technical issues since launch, as well as executive departures. (210 comments)

End of an era

The MP3 player wars in the early 2000s were fought by Archos, MiniDisc, SanDisk, Zune and others, until the iPod was finally embraced by the masses. Apple (AAPL) won over even more consumers with its robust lineup that included the iPod Classic, iPod Mini and Nano, iPod Shuffle and eventually the iPod Touch. While the iPhone and the streaming era rendered many devices obsolete, the latest iPod Touch stuck around for much of the last decade, until it died out – permanently.

A little history : Apple last updated the iPod Touch in 2019, keeping it for select users. Some people wanted the features of an iPhone (without having a phone), like sending iMessages and FaceTime over a Wi-Fi connection. However, the device which is now in its 7th generation is coming to an end , with an announcement that the latest iPod Touch will only be available in stores “while supplies last”.

“The demise of the iPod is probably the best example of Apple not caring about cannibalizing its own products,” noted Carolina Milanesi, principal analyst at Creative Strategies.

Company statement: “Today, the spirit of the iPod lives on. We’ve built an incredible music experience into all of our products, from iPhone to Apple Watch to HomePod mini, and to Mac, iPad and Apple TV. “said Greg Joswiak, Apple’s senior vice president of worldwide marketing. “Apple Music delivers industry-leading sound quality with support for spatial audio – there’s no better way to enjoy, discover, and experience music.” (17 comments)

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The global economy lends itself to divergence in the era of high interest rates http://louthonline.com/the-global-economy-lends-itself-to-divergence-in-the-era-of-high-interest-rates/ Wed, 04 May 2022 09:57:56 +0000 http://louthonline.com/the-global-economy-lends-itself-to-divergence-in-the-era-of-high-interest-rates/

Climate affairs are now visible suffering in every nation, battles for each political leadership, while little or no progress in the search for new narratives. Nation by nation, unless national mobilizations of entrepreneurship are unleashed on the “green economy” mandated as the core national economic agenda to create green engines centered on entrepreneurship, what else is on the table today. Political ClimoClysmo or urgently recommended are as follows TEN bold moves.

ONE: Basic Lesson on Economics: The world goes through a needle’s eye; because there are no wars, just trade shows for defense industry sectors and financial restructuring of defense contractors. Real value creation has morphed into value manipulation resulting in crypto-tyranny, where destructive economics versus basic economics prevail. The economy of destruction; when the hands only grasp solid gold hammers, suddenly breaking rusty and bent nails seems to be the most wanted. Basic savings; when the same hands sow seeds, plow ideas to fertilize diverse and tolerant societies, local prosperity emerges. The choice is simple. Nevertheless, capitalism is not failing; it’s “economic development” globally stuck in job seeker mentalities with a visible vacuum of job creator mentality. Study more on Google “Mindset Hypotheses”.

TWO: Think small, focus locally, but create a global vision: Only full stomachs can create a green economy, everything else is an illusion. Therefore, building a basic economy, already hidden in the new micro-thinking; where micro-regionalization and operationalization are achieved with entrepreneurial mobilization. Once these local mandates are executed, public support increases and commercialization begins to create sensible grassroots prosperity supporting the fertilization of the green economy.

THREE: SME thinking: In all developed countries, the export of massive industrial plants abroad, considered a mastery in the name of globalization, has failed. SME thinking, potentially growing towards the creation of micro-commerce, micro-exports, micro-manufacturing, where grassroots prosperity can become the new norm for success. The new thought is extremely offensive to the old mentality.

FOUR: Understanding liquidity dependence: The already star-studded, triply-covered false economies, like sophisticated cat burglars, quietly glide from the glass skyscrapers into the darkness of night. Addicted to counterfeit cash, the front line intellectualism on real economic development appears almost illiterate. When, as if adding a comic episode, an urgent need to glorify a nuclear strike, reality must show an end for all of us, a final reminder. Human problems are only solved with human solutions. Video game economics and metaverse leadership cannot provide NetZero.

FIVE: Is COP26 – COP27 a “global political climate” or an entrepreneurial challenge?
Historically, entrepreneurship has always manifested itself as a driver of the economy of small and medium-sized enterprises in the world, which makes it by far the largest tax contributor and the largest job-creating sector in the world. However, ignored, abused and pushed around by their own local governments, shunned by banks and big business, they are still the most resilient force to be reckoned with. What is a green economy? Study the entrepreneurial mindset. It’s common sense commercialization, like starting a business to grow without damaging the land it stands on. Categorically, differentiating between real and fake entrepreneurship is key because the often disguised offer on get-rich-quick schemes is mislabeled as entrepreneurship.

SIX: Measuring the depth of SME oceans; what is an SME; a small, focused, ever-growing nucleolus of prosperity at the base. Like little microbes, they crawl all over the global landscapes of commerce and corporate growth and create civilization. Notice how the SME economy, born out of raw experimental entrepreneurship, deeply rooted in the job-creating mindset, offers unprecedented growth opportunities to achieve the COP26-COP27 goals. For a long time, there are some 500 million SMEs currently in the world; slowly as they rise, when the global open-tech commonalities provide special wings to potentially become the biggest players in the COP26 – COP27 scene. However, this new futuristic thinking requires futuristic literacy. the “Conference of the Parties” called COP, after 26 global events, the future hidden in the “grassroots prosperity honeycombs” is where local SMEs, region by region, grow, grow and create sustainable prosperity respectful of the environment. Goals of achieving the “global public good” are slowly moving towards NetZero goals and this is what clarifies the abstraction. The green economy is not about new funding or new taxes, it is about entrepreneurship to create new paradigms. Study, electricity, automobiles, mobility, etc.

SEVEN: Mobilization of entrepreneurship & armadas of SMEs: How armies of entrepreneurs can create green economy thinking and how armadas of deployed SMEs can help save the global climate? The facts, all SMEs around the world created solely by entrepreneurs and not by academic experience or classroom manufacturing. Facts, all the powerful corporations in the world were once SMEs, Facts, Job, Disney, Bezos and thousands of other giants all started as SMEs in a sandbox. As if the Coca-Colas of the world were initially just lemonade stands. Unless entrepreneurship is understood, academic chants are not enough and they must remain focused on the sciences and on creating good quality job seeker mindsets, as is already recognized and essential to build the employment organization, created by the entrepreneurial minds of job creators. Together they shine. Understand and differentiate these concepts for smarter progress.

EIGHT: why only ECan entrepreneurship build a strong green economy? Neither politics nor academic bureaucracies provide the speed required to create transformative forces to harness the expectation “ClimoClysmo” scenarios, but developing scales of efficiency with good causes and motivations for the global population based on mobilization, all as by-products of job-creating entrepreneurship. The current whispers of such thinking suffer critically because the lack of entrepreneurship and the lack of entrepreneurial warriors make NetZero a bridge too far.

NINE: National Mobilization of Entrepreneurship: Thorough study is an advantage, political intentions are better in policies, but not in such entrepreneurial executions. Academia remains focused on research, Muppet shows and controlled movie dramas, but dives into the commercialization of the green economy. Extract from the global ocean the desired 500 million or so SMEs in national figures and place them on a mobilization agenda. Mind you, the lingering margin of such talent, so, so teleprompters who now need new narratives about mobilizing entrepreneurship, must declare climate change a common good, but how? Watch, world opinion now in the hands of five billion connected alpha dreamers, who will change the world. Get ready for some 35 major election results by 2022.

TEN: New definitions lead to new narratives: Any intelligent debate about “economics” is a debate about numbers because the School of Economics is all about numbers like “surgery” is about surgery in an operating room not butchering on a shooting film. Therefore, any high-level debate about the “environmental crisis” is a scientific debate, not a conference about cinematography or winning Oscars. Therefore, building green economies and model cities are strictly entrepreneurial challenges; study the creation of 100 cities over the last 1000 years; built by job-creating entrepreneurial mindsets. Designed and structured by brilliant architects with job seeker mindsets and managed and administered by zillion job seeker mindsets giving cities life, prestige and lasting character. Remember that big companies can’t do this; their moderate obligations to a large number of stakeholders simply prohibit such questions. Observe, hovering at low altitude; circumnavigating the globe through developed countries, the thundering dark clouds of pollution spewing smokestacks destroying neighborhoods, or the multicolored streams flowing through riverbanks creating a colorful tapestry of toxic chemicals destroying waterways and rivers. oceans. The fury of commercialization, the counterfeiting of labels on packaging, the fumes of corruption and the blindness to environmental damage are unforgiving.

The Challenge: Which front team can demonstrate authoritative entrepreneurial skills at the top?

Conclusion: A new world is unfolding day by day, only the shields of change will protect it. Google Expothon and more to find out why it’s garnering global attention. When bold and clear stories allow the rebound of a progressive and collaborative dialogue, COP27: Three key steps, One: Identify some authoritative components on each of the hot topics; entrepreneurship, environmentalism and political vision, juxtaposed with regional issues, open up timelines, costs, benefits and allow entrepreneurship to build on options and create a collaborative atmosphere. Two: Simply, avoid academic elitism, political rhetoric, and tax bureaucracy rather than let commercialization and entrepreneurship lead. Three: Once the first steps are successful, build a national mobilization of entrepreneurship as new thinking and deploy across the country as COP27 solution warriors.

The rest is easy.

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COP26 – COP27: a global policy or an entrepreneurial challenge? http://louthonline.com/cop26-cop27-a-global-policy-or-an-entrepreneurial-challenge/ Wed, 04 May 2022 07:01:58 +0000 http://louthonline.com/cop26-cop27-a-global-policy-or-an-entrepreneurial-challenge/

Climate affairs are now visible suffering in every nation, battles for each political leadership, while little or no progress in the search for new narratives. Nation by nation, unless national mobilizations of entrepreneurship are unleashed on the “green economy” mandated as the core national economic agenda to create green engines centered on entrepreneurship, what else is on the table today. Political ClimoClysmo or urgently recommended are as follows TEN bold moves.

ONE: Basic Lesson on Economics: The world goes through a needle’s eye; because there are no wars, just trade shows for defense industry sectors and financial restructuring of defense contractors. Real value creation has morphed into value manipulation resulting in crypto-tyranny, where destructive economics versus basic economics prevail. The economy of destruction; when the hands only grasp solid gold hammers, suddenly breaking rusty and bent nails seems to be the most wanted. Basic savings; when the same hands sow seeds, plow ideas to fertilize diverse and tolerant societies, local prosperity emerges. The choice is simple. Nevertheless, capitalism is not failing; it’s “economic development” globally stuck in job seeker mentalities with a visible vacuum of job creator mentality. Study more on Google “Mindset Hypotheses”.

TWO: Think small, focus locally, but create a global vision: Only full stomachs can create a green economy, everything else is an illusion. Therefore, building a basic economy, already hidden in the new micro-thinking; where micro-regionalization and operationalization are achieved with entrepreneurial mobilization. Once these local mandates are executed, public support increases and commercialization begins to create sensible grassroots prosperity supporting the fertilization of the green economy.

THREE: SME thinking: In all developed countries, the export of massive industrial plants abroad, considered a mastery in the name of globalization, has failed. SME thinking, potentially growing towards creating micro-commerce, micro-exports, micro-manufacturing, where grassroots prosperity can become the new standard for success. The new thought is extremely offensive to the old mentality.

FOUR: Understanding liquidity dependence: The already star-studded, triply-covered false economies, like sophisticated cat burglars, quietly glide from the glass skyscrapers into the darkness of night. Addicted to counterfeit cash, the front line intellectualism on real economic development appears almost illiterate. When, as if adding a comic episode, an urgent need to glorify a nuclear strike, reality must show an end for all of us, a final reminder. Human problems are only solved with human solutions. Video game economics and metaverse leadership cannot provide NetZero.

FIVE: Is COP26 – COP27 a “global political climate” or an entrepreneurial challenge?
Historically, entrepreneurship has always manifested itself as a driver of the economy of small and medium-sized enterprises in the world, which makes it by far the largest tax contributor and the largest job-creating sector in the world. However, ignored, abused and pushed around by their own local governments, shunned by banks and big business, they are still the most resilient force to be reckoned with. What is a green economy? Study the entrepreneurial mindset. It’s common sense commercialization, like starting a business to grow without damaging the land it stands on. Categorically, differentiating between real and fake entrepreneurship is key as an often disguised offer on get-rich-quick schemes mislabeled as entrepreneurship.

SIX: Measuring the depth of SME oceans; what is an SME; a small, focused, ever-growing nucleolus of prosperity at the base. Like little microbes, they crawl all over the global landscapes of commerce and corporate growth and create civilization. Notice how the SME economy, born out of raw experimental entrepreneurship, deeply rooted in the job-creating mindset, offers unprecedented growth opportunities to achieve the COP26-COP27 goals. For a long time, there are some 500 million SMEs currently in the world; slowly as they rise, when the global open-tech commonalities provide special wings to potentially become the biggest players in the COP26 – COP27 scene. However, this new futuristic thinking requires futuristic literacy. the “Conference of the Parties” called COP, after 26 global events, the future hidden in the “grassroots prosperity honeycombs” is where local SMEs, region by region, grow, grow and create sustainable prosperity respectful of the environment. Goals of achieving the “global public good” are slowly moving towards NetZero goals and this is what clarifies the abstraction. The green economy is not about new funding or new taxes, it is about entrepreneurship to create new paradigms. Study, electricity, automobiles, mobility, etc.

SEVEN: Mobilization of entrepreneurship & armadas of SMEs: How armies of entrepreneurs can create green economy thinking and how armadas of deployed SMEs can help save the global climate? The facts, all SMEs around the world created solely by entrepreneurs and not by academic experience or classroom manufacturing. Facts, all the powerful corporations in the world were once SMEs, Facts, Job, Disney, Bezos and thousands of other giants all started as SMEs in a sandbox. As if the Coca-Colas of the world were initially just lemonade stands. Unless entrepreneurship is understood, academic chants are not enough and they must remain focused on the sciences and on creating good quality job seeker mindsets, as is already recognized and essential to build the employment organization, created by the entrepreneurial minds of job creators. Together they shine. Understand and differentiate these concepts for smarter progress.

EIGHT: why only ECan entrepreneurship build a strong green economy? Neither politics nor academic bureaucracies provide the speed required to create transformative forces to harness the expectation “ClimoClysmo” scenarios, but developing scales of efficiency with good causes and motivations for the global population based on mobilization, all as by-products of job-creating entrepreneurship. The current whispers of such thinking suffer critically because the lack of entrepreneurship and the lack of entrepreneurial warriors make NetZero a bridge too far.

NINE: National Mobilization of Entrepreneurship: Thorough study is an advantage, political intentions are better in policies, but not in such entrepreneurial executions. Academia remains focused on research, Muppet shows and controlled movie dramas, but dives into the commercialization of the green economy. Extract from the global ocean the desired 500 million or so SMEs in national figures and place them on a mobilization agenda. Mind you, the lingering margin of such talent, so, so teleprompters who now need new narratives about mobilizing entrepreneurship, must declare climate change a common good, but how? Watch, world opinion now in the hands of five billion connected alpha dreamers, who will change the world. Get ready for some 35 major election results by 2022.

TEN: New definitions lead to new narratives: Any intelligent debate about “economics” is a debate about numbers because the School of Economics is all about numbers like “surgery” is about surgery in an operating room not butchering on a shooting film. Therefore, any high-level debate about the “environmental crisis” is a scientific debate, not a lecture about cinematography or winning Oscars. Therefore, building green economies and model cities are strictly entrepreneurial challenges; study the creation of 100 cities over the last 1000 years; built by job-creating entrepreneurial mindsets. Designed and structured by brilliant architects with job seeker mindsets and managed and administered by millions of job seeker mindsets giving cities life, prestige and lasting character. Remember that big companies can’t do this; their moderate obligations to a large number of stakeholders simply prohibit such questions. Observe, hovering at low altitude; circumnavigating the globe through developed countries, the thundering dark clouds of pollution spewing smokestacks destroying neighborhoods, or the multicolored streams flowing through riverbanks creating a colorful tapestry of toxic chemicals destroying waterways and rivers. oceans. The fury of commercialization, the counterfeiting of labels on packaging, the fumes of corruption and the blindness to environmental damage are unforgiving.

The Challenge: Which front team can demonstrate authoritative entrepreneurial skills at the top?

Conclusion: A new world is unfolding day by day, only the shields of change will protect it. Google Expothon and more to find out why it’s garnering global attention. When bold and clear stories allow the rebound of a progressive and collaborative dialogue, COP27: Three key steps, One: Identify some authoritative components on each of the hot topics; entrepreneurship, environmentalism and political vision, juxtaposed with regional issues, open up timelines, costs, benefits and allow entrepreneurship to build on options and create a collaborative atmosphere. Two: Simply, avoid academic elitism, political rhetoric, and tax bureaucracy rather than let commercialization and entrepreneurship lead. Three: Once the first steps are successful, build a national mobilization of entrepreneurship as new thinking and deploy across the country as COP27 solution warriors.

The rest is easy.

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What is Spatial Arbitrage? | IIFL Knowledge Center http://louthonline.com/what-is-spatial-arbitrage-iifl-knowledge-center/ Wed, 27 Apr 2022 22:14:35 +0000 http://louthonline.com/what-is-spatial-arbitrage-iifl-knowledge-center/

The main objective of every investor in the financial market is to obtain a high return on investment. Stocks, bonds, commodities, derivatives, etc. are among the asset classes that investors use to trade, diversify and hedge. However, there are different trading techniques to use the profit margin to its maximum. One such technique is spatial arbitrage.

But to understand spatial arbitrage, it’s important to learn about arbitrage in general.

What is Arbitration?

Various assets are traded in high volume on different exchanges in India. However, due to market inefficiencies and the gap between supply and demand, the price of asset classes may vary from platform to platform. For example, you may have noticed that shares of a particular company have different prices on the National Stock Exchange and the Bombay Stock Exchange. When this happens, investors see the potential for profit.

Arbitrage is the simultaneous buying and selling of any of the securities, such as stocks, commodities, bonds, currencies, etc., in different markets to take advantage of the price difference. These investors, called arbitrageurs, look for the price difference and buy the security in one market at a lower price and resell it in another market where the price is high.

There are different types of arbitration, such as merger arbitration, regulatory arbitration, etc. One of the most widely used types is spatial arbitration.

What is Spatial Arbitrage?

It is when an arbitrageur uses geographic factors to buy an asset in one region and sell it in a different location at a higher price. For example, if crude oil prices are low in Delhi, an arbitrageur can buy it there and sell it in a place like Chennai if crude oil prices are higher there.

What are the three conditions for arbitration?

Arbitration is possible under the following three conditions:

  • The assets must be the same, trading in different markets. If the asset is not trading in both markets, arbitrage is not possible.
  • Assets that trade in different markets must have the same cash flow. For example, if a bond costs Rs 10,000 in one market and Rs 9,500 in another but pays the same 5% interest, there is an arbitrage opportunity.
  • If an asset is trading at a discount to a predetermined future price relative to its risk-free interest rate, there is a possibility of arbitrage. For example, if a company is to be acquired at Rs 15 per share at a later date, but its shares are trading at Rs 10 today, arbitrage is possible in such a situation.

What are arbitrage strategies?

Here are some of the arbitrage strategies you can use to ensure you make a profit:

Arbitrage and its types have the power to increase your profits and diversity within your chosen asset class. As the market always exhibits some type of inefficiency, you can seek out and buy cheap assets and sell where the prices are high. However, it is always wise to limit your risk exposure and make sure you buy assets wisely.

  • Consult with an experienced financial advisor such as IIFL to understand the process, legality and taxation of arbitration.
  • Learn and understand each type of arbitration before choosing your preferred technique.
  • Do thorough research before buying an asset and keep a potential buyer ready to sell the asset.
  • It is wise not to buy multiple assets simultaneously and only buy one after selling the previous one.
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The rise of real-time location intelligence http://louthonline.com/the-rise-of-real-time-location-intelligence/ Wed, 27 Apr 2022 20:09:11 +0000 http://louthonline.com/the-rise-of-real-time-location-intelligence/

Early adopters merge and analyze their massive geospatial and time series data in real time to support new application areas.

Real-time decisions informed by smart sensors and IoT data are increasingly critical across many industries and applications. However, new approaches to data management and analysis must be adopted as more of the data from these devices is streaming data that includes time and location information. Early adopters merge and analyze their massive geospatial and time series data in real time to support new areas of growth.

RTInsights recently sat down with Chad Meley, CMO at Kinetica, to talk about the explosion of this type of data, the challenges companies face in analyzing the data, the benefits that come with it when leveraged correctly, and how which Kinietica can help. Here is a summary of our conversation:

RTInsights: Where does the wealth of real-time geospatial data come from?

Chad Meley from Kinetica

Meley: The fastest growing type of data this decade is real-time geospatial data. Specifically, we are talking about all data with an x ​​and y coordinate that changes over time. The best way to think of it is as an evolution of traditional IoT data. The first IoT data came from sensors that took a reading like temperature or vibration, from a thing like a wheel bearing or a cylinder, over time. This way, analysts could detect anomalies and make the necessary adjustments. Nowadays, these sensors can also broadcast their position. When location is tagged on data, it creates more value and use cases.

Real-time geospatial data is proliferating because prices have dropped dramatically on the technology that generates this data. The cost of location-based chips for cellular connectivity has steadily declined since 2017. The expansion of 5G networks is contributing to the collection of greater volumes of geospatial data. Bluetooth beacons with integrated energy harvesting like the Apple Air beacons are falling in price.

Download Now: Essential Capabilities for Real-Time Location Intelligence

Then couple that with the growth of satellite imagery and closed circuit cameras. Both capture real-time video that is inherently geospatial since objects in the imagery can be analyzed and plotted on a 2D or 3D map. Satellite launch costs have fallen sharply over the past decade on a per kilogram basis, meaning more data collection satellite launches in the next few years. Additionally, it is estimated that one billion surveillance cameras are in use worldwide, both in fixed locations such as a store or city street and in motion such as drone footage.

RTInsights: Why is real-time location-based analytics so popular?

Meley: When I talk to people in the industry, you can sense the excitement and interest in real-time location intelligence. I think it’s because people see how disruptive and valuable this space is. It’s also pretty cool as a developer to work with space and real-time data because you can build apps that are fresh and beyond the typical dashboard and batch recommendations we we’re used to with the first generation of big data.

For example, yesterday I made a presentation to Merv Adrian at Gartner. Merv covers databases, Spark, NoSQL and other adjacent technologies at Gartner, and it appears on most lists of top influencers for data science and big data. During the presentation, I shared a recent example of how one of our EV customers solved a previously unsolvable problem using real-time vehicle location data with a variety of constraints. of route. He stopped me and said something about how he was getting vendor briefings all the time and how the use cases were basically the same as what we go to as industry for years. However, in this case, the customer was using the data in a new way and driving the new economy forward.

Over the past five years, companies have been so focused on redesigning the platform for the cloud, which was badly needed, but now there’s an appetite to accelerate innovation through data analytics. . The explosion of real-time location data and breakthroughs in technologies that allow organizations to expand the collection, analysis and operationalization of this new form of data is an area ripe for innovation.

RTInsights: What are some of the challenges companies face when trying to perform or support such analysis?

Meley: I see a lot of parallels with the challenges companies faced in managing “big data” at the turn of the previous decade. The era of Big Data has marked the shift from managing and analyzing structured data from transaction systems to semi-structured data from web logs. The way data was collected, transformed and analyzed had to be redesigned. There was a period in the beginning where companies either used their old technologies and methods, which ultimately failed, or they did nothing, resulting in opportunity costs. Emerging leaders were able to identify appropriate new technologies and launch new sets of best practices to harness and extract value from this new form of data.

The same is true as we move from web logs that capture web interactions to the next generation of IoT data that captures observations from sensors and cameras. Old technologies and methods must once again be reconsidered. For example, the way joins between two sets of spatial data should be done by calculating overlapping polygons will cripple a traditional data warehouse or data lake. Add a time series function on top of that, and chances are the query will never come back. Additionally, most high-value use cases come from real-time decision making. Data warehouses and data lakes were simply not designed to solve complex problems in a real-time latency profile.

Download Now: Essential Capabilities for Real-Time Location Intelligence

RTInsights: How does Kinetica help you?

Meley: Kinetica’s Design Center merges huge geospatial and time-series datasets and processes complex spatio-temporal analyzes in real time. Many of our customers refer to their Kinetica implementation as the “speed layer”. It fills a critical gap between traditional data warehouses and data lakes which are batch oriented and optimized for transaction and log data and streaming tools like Kafka, Confluent and Kinesis which are real-time but unable to ‘run advanced scans. Kinetica is available as a service and everything from connecting to Kafka queues to calling powerful spatial and time series functions is done through simple SQL, resulting in incredible time to value.

Kinetica’s origins were in tracking terrorists in 2009 for the NSA by merging data from satellites and the full corpus of cellphones, email, social media and other sources. The original Kinetica engineers had to develop a completely different approach to database architecture to achieve the mission goal using matrix calculations. Now that real-time spatial data is proliferating in commercial sectors, Kinetica is a proven, hardened database that accelerates the adoption of real-time location intelligence.

RTInsights: What are Kinetica’s real-time location-based client use cases?

Meley: One of the largest package delivery organizations in the world uses Kinetica to track and trace shipments across its network and continuously re-optimizes routes for on-time delivery while simultaneously reducing fuel costs.

Several government agencies use Kinetica to scan objects in our airspace to detect risks and keep us safe. A major automaker uses Kinetica in its connected car program to recommend optimal routes based on EV charging station stops.

A leading health care provider works to monitor customers’ vital parameters, such as heart rate and stress levels, to make personalized wellness recommendations.

Several green energy start-ups use Kinetica to monitor and arbitrate electricity through smart meters. And a major insurance agency is now using Kinetica to combine real-time weather events with policyholder properties to take action that mitigates potential losses and responds by supporting claims faster than the competition.

Real-time location data exists in many industries and enables all kinds of new high-impact results.

To learn more about real-time location intelligence, visit Kinetica.com.

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What is Crypto Arbitrage? -LCX http://louthonline.com/what-is-crypto-arbitrage-lcx/ Wed, 27 Apr 2022 13:30:42 +0000 http://louthonline.com/what-is-crypto-arbitrage-lcx/

Crypto arbitrage is a technique for profiting from the variation in the price of a crypto between two or more exchanges or markets. A trader can benefit from buying low on one exchange and selling high on another, similar to traditional arbitrage. One important distinction between crypto arbitrage and traditional arbitrage is the type of asset being traded.

Crypto arbitrage opportunities are fleeting. Cryptos, on the other hand, are generally more volatile than traditional assets, which can provide more arbitrage opportunities. Arbitrage trading robots are frequently used in the crypto markets, as manually executing crypto arbitrage trades is often extremely slow and difficult to achieve success.

Since price differences for similar assets are usually very small, traders wishing to benefit from crypto arbitrage need to trade high volumes in a short period of time. Before seizing an opportunity, a trader must be registered with various exchanges, have funds on both, and have an account for deposit/withdrawal and trading fees. This strategy has a high barrier to entry, but it has the ability to be profitable for a smart trader (or programmer).

Types of Crypto Arbitrage Strategies

Crypto arbitrageurs can benefit from market inefficiencies in a variety of ways. Among them are:

Cross Arbitrage: This is the most basic framework of arbitrage trading, where a trader attempts to make a profit by buying cryptocurrency on one exchange and selling it on another.

Spatial arbitration: This is a type of cross arbitrage trading. The only difference is that the exchanges take place in different parts of the country. Using the spatial arbitrage method, for example, you could take advantage of the difference in bitcoin supply and demand in the United States and South Korea.

Triangular arbitration: This is the method of transferring funds on a single trade between 3 or more digital assets in order to take advantage of a price difference between one or two cryptocurrencies. A trader, for example, can set up a trading cycle that starts and stops with bitcoin.

Why is cryptocurrency arbitrage considered a low risk strategy?

You may have observed that crypto arbitrage traders won’t have to predict potential bitcoin prices or engage in trades that can take a day or hours to turn a profit unlike day traders.

Traders base their decisions on the intention of making a fixed profit by spotting and capitalizing on arbitrage opportunities, rather than on analyzing market emotions or other price prediction strategies. Additionally, based on the funds available to traders, arbitrage trades can be entered and exited within minutes or seconds. Taking these factors into account, we can come to the following conclusion:

  • Since it does not involve predictive analysis, the risk in crypto arbitrage trading is less than in other trading strategies.
  • Arbitrage traders only have to make trades that last no more than a few minutes, which greatly reduces their vulnerability to trading risk.

So it is all about crypto arbitrage and how it is profitable in crypto trading. So more market information stay tuned with LCX Overview.

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What are the risks associated with arbitration? http://louthonline.com/what-are-the-risks-associated-with-arbitration/ Tue, 26 Apr 2022 18:13:16 +0000 http://louthonline.com/what-are-the-risks-associated-with-arbitration/

In the media or the news, there are always reports about the merger or purchase of a company by another rival company. Mergers and acquisitions are an integral part of a company’s business cycle. In their quest for sustainability, many companies merge with other companies to ensure business synergy and that they can use the other company’s resources and customer base to grow. Apart from mergers, companies acquire different companies that are not performing well and have been showing consistent losses for several years. These companies are the ones that were once doing good business but have slid into losses due to the unexpected or mismanagement.

Large corporations are always looking for merger or acquisition of a business to push their business towards better profitability. The scout for those companies that are not doing well right now but have huge potential if given the resources. They make an offer to buy the companies, and if accepted, the merger or acquisition is successful.

When they enter the financial market to make profit, the news of a merger or acquisition is in the interest of the investor and they execute many strategies to use the price movement to make profit. Among the different strategies, Risk Arbitrage is the most widely used. But before understanding risk arbitrage trading, you must know the concept of arbitrage.

What is Arbitration?

Various assets are traded in high volume on different exchanges in India. However, due to market inefficiencies and the gap between supply and demand, the price of asset classes may vary from platform to platform. For example, you may have noticed that shares of a particular company have different prices on the National Stock Exchange and the Bombay Stock Exchange. When this happens, investors see the potential for profit.

Arbitrage is the simultaneous buying and selling of any of the securities, such as stocks, commodities, bonds, currencies, etc., in different markets to take advantage of the price difference. These investors, called arbitrageurs, look for the price difference and buy the security in one market at a lower price and resell it in another market where the price is high.

What is Risk Arbitrage?

Risk Arbitrage or Merger Arbitrage is one of the most common strategies in capital markets. This strategy involves buying stocks that are in the process of being merged or acquired, or merged. Merger arbitrage is popular among hedge funds with a higher risk appetite. They buy the shares of the target company and short sell the shares of the acquirer. These strategies are normally operated using futures contracts with company shares as the underlying asset.

This form of arbitrage is an event-driven trading strategy that speculates on whether the stock prices of the acquirer and the acquiring company will rise or fall. If investors think they will go up or down, they execute the risk arbitrage strategy to benefit from the price movement. Since the price of the acquiring company may rise after the announcement of the acquisition, investors take a long position in the stock. However, since they believe the shares of the acquiring company may fall at the same time, they simultaneously take a short position in the stock to create a hedge.

How does risk arbitrage work?

Risk Arbitrage is one of the most complex stock market strategies used by professional investors to profit from a merger or acquisition. To understand how risk arbitrage works, you might consider reading the following detailed example:

Suppose the shares of a company XYZ are trading at Rs 500. After the close of trading, another company, ABC, placed an open bid to buy XYZ at a premium of 20% or Rs 600 per share. This news instantly becomes public and reaches investors who believe that the positive news will boost XYZ stock price in the next trading session. The price may go up to Rs 600 as investors believe this to be the fair value of the company’s shares, otherwise ABC would not have made the offer at this price.

However, acquisitions are always at risk of not proceeding due to legal obligations, audit reasons, economic developments, regulatory challenges, etc. Uncertainty forces XYZ shares to oscillate near the Rs 600 level. For example, it may be trading at Rs 530, Rs 550, Rs 570, etc. The closer the XYZ share price is to Rs 600, the more likely it is that the takeover deal will succeed.

Order 1: The long position

Based on the speculation that the price of XYZ Company may rise from Rs 500 to Rs 600, an investor places a long order to buy 100 shares of XYZ as soon as the market opens. If the order is executed at Rs 530, the investor can sell all the shares at Rs 600 or when the acquisition operation is successful. The transaction will earn the investor a profit of Rs 7,000 (Rs 60,000-53,000)

Now, since the investor has placed a long position in the shares of XYZ, the next trade is to short the shares of ABC. Indeed, as ABC will bear the cost of acquiring XYZ, its stock price could decline due to the huge expense. Suppose ABC is trading at Rs 1,500 and the investor expects its share price to fall to Rs 1,200. The investor will place a short call.

Order 2: The short position

Based on the speculation that the price of ABC Company may drop from Rs 1,500 to Rs 1,200, an investor places a short order to buy 100 ABC shares as soon as the market opens. If the order is executed at Rs 1,450, the investor can wait for the price to drop to Rs 1,200 or when the acquisition operation is successful. The transaction will earn the investor a profit of Rs 25,000 (Rs 1.45,000-1.20,000).

This is how risk arbitrage trading in the stock market works and allows investors to make profits by placing a long position and a short position simultaneously

.

What are the risks involved in Risk Arbitrage?/h2>

As the risk arbitrage strategy is one of the most difficult to execute, it carries the following risks for the hedge fund or the investor:

  • Tracking Difficulty: Developments regarding mergers and acquisitions are difficult to follow because they happen instantly and without notice. Also, if followed, there is no guarantee that the news is reliable. As this may turn out to be wrong, investors who have taken long and short positions in risk arbitrage may end up losing their investments and suffering huge losses.
  • Trading risk: Transaction risk is the risk that an investor takes in the event that the acquisition transaction does not go through. If unsuccessful, this can negatively impact the company’s prices, causing the investor to lose a large sum of money.
  • Price drop : As investors only speculate that the share price of the acquiring company might rise, it may fall to very low levels. In such a case, investors may lose money on their long positions.
  • Uncertain chronology: Engaging in risk arbitrage only after the announcement of the acquisition or merger is risky because you can never know how long it will take for the deal to close. This can take months, allowing traders to enter equity derivatives and forcing the stock price to fluctuate.

Mergers and acquisitions happen regularly, some go through and some don’t. Risk arbitrage is an effective strategy for taking advantage of these trades and earning considerable profits in the process. However, since the strategy is complex to execute and carries many potential risks, it is also a good idea to consult a financial advisor such as IIFL. Once you know how to plan and execute the strategy, you can go ahead and benefit from the many trades that occur daily. For more information on risk arbitrage, visit the IIFL website or download the IIFL Markets app from the App Store.

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Agricultural sectors in a fragile situation – The case of rice in Myanmar – Myanmar http://louthonline.com/agricultural-sectors-in-a-fragile-situation-the-case-of-rice-in-myanmar-myanmar/ Mon, 18 Apr 2022 18:12:23 +0000 http://louthonline.com/agricultural-sectors-in-a-fragile-situation-the-case-of-rice-in-myanmar-myanmar/

1. INTRODUCTION

An estimated 1.8 billion people, almost a quarter of the world’s population, lived in fragile states in 2020. This proportion is expected to rise to 26% in 2030 and 31% in 2050 (OECD 2020). Moreover, three-quarters of the world’s extremely poor live in fragile states (OECD 2020). Yet, despite the enormous importance of these areas for the reduction of poverty and food insecurity around the world, there is relatively little research on livelihoods and trade, as the collection of safe and reliable data is often a challenge. Access to food, food prices and the functioning of food value chains are essential when states fail, but information on the functioning of agricultural markets and food value chains is scarce in these disaster-affected areas. conflict. In this article, we examine agricultural value chains in Myanmar during a period of major political instability. Myanmar’s military took control of the country in a coup on February 1, 2021, setting the country on a path of widespread violence and major economic collapse. In protest against the coup, the people of Myanmar organized a civil disobedience movement (CDM) and workers’ strikes, which led to disruptions in service delivery by public institutions and private companies. Banks shut down in-person services and faced severe cash shortages, limiting businesses’ ability to pay employees and suppliers, and residents to access their money. Access to formal and informal credit has largely dried up. Internet access and communication were restricted. Violence and insecurity increased sharply after the coup. Cumulatively, these disruptions had major economic consequences, as GDP fell by 18% and poverty rates rose to between 40 and 50% of Myanmar’s population (Boughton et al. 2021, World Bank 2021, UNDP 2021). We study the rice value chain for two reasons. First, rice is the main staple food in Myanmar, accounting for 51 and 62 percent of urban and rural calories consumed, respectively, making it crucial for the country’s food security. It is also the predominant crop for a large number of farmers and an important export. Second, about 70 percent of the rice consumed is purchased. Value chains are therefore essential for ensuring the sales of paddy by farmers, the processing of paddy into rice and the distribution of rice to consumers. Rice is generally traded over large distances in the country, implying that coup-related disruptions to the functioning of the value chain will be widely felt. To study the rice value chain, we use unique primary data collected by telephone before and after the coup at the midpoint (thousands of rice) and downstream (retail sellers) and combine this data with a number of number of secondary data sets. We address three research themes. First, we assess the extent of rice value chain disruptions following the military coup by investigating en route and downstream disruptions, and the availability of rice in markets. Retail. Second, we analyze the size of processing and distribution margins within the value chain and assess how they were affected by the coup. Third, we examine the spatial dispersion of prices from mills to food vendors by comparing rice prices before and after the coup using a market pair regression methodology of miller-vendor pairs with miller fixed effects and seller. We test which explanatory variables of price dispersion used in the international literature matter in this context and to what extent these factors have been affected by instability. We examine travel costs (Minten and Kyle 1999, Minten et al. 2016), border crossings (as a proxy for export market access) (Aker et al. 2014) and differences in composition of ethnic groups across markets (Aker et al. 2014, Robinson 2016). We also assess the direct effects of measures of violent events in source and destination markets on price dispersion. Our data reveals significant business disruptions for post-coup food vendors and rice millers related to banking and transportation. Yet, despite these challenges, local trading and milling continued, albeit at lower than normal levels of activity, ensuring the availability of rice in most retail markets in the country. Upstream, agricultural prices and milling margins were mostly stable after the coup. However, we are seeing retail rice price increases of 11% on average. The results of the simulation of these increased distribution margins indicate considerable welfare costs for rice consumers and producers, estimated at nearly USD 0.5 billion nationally (equivalent to about 3% of agricultural GDP in 2020). The regressions reveal that the spatial dispersion of prices increased after the coup, with the distance between factories and sellers widening price gaps. Violence near mills or vendors, which increased dramatically during the coup, also increased price dispersion. However, contrary to previous results (Aker et al. 2014, Robinson 2016), we find that differences in ethnic composition of source and destination townships/markets do not affect dispersion. Price dispersion further decreased with the proximity of food vendors to land borders, possibly due to the price-reducing effects of export competition in these markets. However, the border effect was strongly weakened during periods when borders were closed. The results indicate that the most severe effect of the coup on retail prices was seen in areas furthest from export opportunities and major production areas that were affected by the violence. When the state fails to assume its normal role and private sector activities are reduced, it is crucial that agricultural value chains continue to function well to ensure food security and prevent increases in retail food prices. to avoid further suffering for vulnerable households. Our results indicate that easing transport restrictions, stabilizing fuel prices, and facilitating safe spatial arbitrage of food commodities would reduce the social costs of market disruptions by preventing food price inflation while ensuring remunerative prices for farmers. To the extent possible, maintaining safe cross-border trade in agricultural products can help stabilize prices in the domestic market. Finally, as mobile phone use is often widespread, even in the event of an outage, close monitoring of a number of important aspects in such environments may take place and should therefore be encouraged. The paper unfolds as follows. In the following section, we provide important background information on the political conflict and the rice value chain in Myanmar. The econometric specification used to empirically test price changes during the crisis is discussed in Section 3, along with our data and survey methods. Section 4 illustrates the disruptions found in the value chain. Section 5 presents graphical analyzes of price and markup changes, revealing retail price increases following the coup, as well as the results of price regressions. Section 6 examines the implications of our findings and Section 7 concludes by summarizing the main findings and discussing key policy implications.

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