Day: November 25, 2020

Goldman Sachs bankers using drones to help clinch M&A deals

Richard Newstead | Moment | Getty Images

Drones have arrived on Wall Street.

Goldman Sachs, the world’s top mergers advisor, is among investment banks using drone technology to give its clients a bird’s-eye view of the companies they are bidding on, according to Stephan Feldgoise, the firm’s global co-head of mergers and acquisitions.

After Covid-19 made the prospect of hosting in-person visits with groups of bidders unsafe, commercial-grade drones have been used to conduct virtual tours of everything from shipping ports and railroads to chemical factories, warehouses and big-box retail locations, he said.

“We have been selling asset-based businesses all over the world using drones for site visits and fly-overs,” Feldgoise said in a phone interview. “It gives buyers the confidence they need because when you are buying a business, you want to see, touch and feel what you are buying. “

It’s the latest example of how the pandemic has forced change onto what had been one of the most old-school, technologically-resistant corners of Wall Street. Investment banking has traditionally relied on platoons of twenty-somethings (using Excel and PowerPoint, software invented in the 1980s) to support senior bankers whose most valuable asset is their relationships, honed over boozy dinners and social events, to corporate officers and board members.

But the coronavirus put an end to the in-person

Read More

SpaceX plans for Starship test flight next week, which Elon Musk gives 1-in-3 odds of landing intact

SpaceX prototype rocket Starship SN8 stands on the company’s launchpad in Boca Chica, Texas before an engine test.

@LabPadre

SpaceX is aiming to launch its latest Starship rocket prototype as early as “next week,” CEO Elon Musk said on Tuesday, in what would be the company’s most ambitious flight test of the rocket to date.

Musk confirmed that Starship prototype Serial Number 8, or SN8, successfully completed a test firing of its three engines ahead of the flight attempt. This next launch is aiming to reach about 50,000 feet altitude – well above the 500 foot flights of the prototype’s predecessors SN5 and SN6, which completed flight tests on Aug. 5 and Sept. 3, respectively.

The prototypes are built of stainless steel and represent the first versions of the rocket that Musk unveiled last year. The company is developing Starship with the goal of launching cargo and as many as a 100 people at a time on missions to the Moon and Mars.

SpaceX is aiming to pass several further development milestones with Starship SN8’s flight.

“Goals are to test 3 engine ascent, body flaps, transition from main to header tanks & landing flip,” Musk said in a tweet.

Asked what he thought about chances of the Starship prototype landing intact after the flight, Musk gave SN8 low odds

Read More

Gap, Nordstrom, Deere, HP Inc. & more

Stocks making the biggest moves in the premarket: Gap, Nordstrom, Deere, HP Inc. & more



Source link Read More

The market is looking for clues from the Fed on whether it will adjust bond buying

U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell are seated to testify before a House Financial Services Committee hearing on oversight of the Treasury Department’s and Federal Reserve’s coronavirus disease (COVID-19) pandemic response on Capitol Hill in Washington, U.S., September 22, 2020.

Joshua Roberts | Reuters

The Federal Reserve could provide clues about its bond buying program when it releases its minutes Wednesday, but the odds the central bank takes action at its December meeting have fallen slightly with the expected nomination of Janet Yellen as Treasury Secretary.

Minutes from the Fed’s last meeting are released Wednesday at 2 p.m. ET. The Fed talked about possible ways to adjust the program at that early November meeting, so it may reveal some aspects of that discussion.

Market speculation had been building that the Fed will tweak the bond buying program when it meets in December by changing the duration of the bonds it is buying but keeping the total Treasury purchases at $80 billion a month. The theory is if the Fed increases the purchases of longer duration Treasurys, like 10-year notes and 30-year bonds, that would keep the rates that impact mortgages and other loans from rising.

Vincent Reinhart, chief economist at Mellon, said the minutes may not reveal much other than that changing the average duration

Read More

Avoiding Investor Mistakes – MintLife Blog

Many new investors have started investing, either through a traditional securities brokerage or with one of the new “app” based brokerage firms. No matter how long you’ve been an investor, or whichever firm you choose to buy your investment from, investor mistakes occur.

Mistakes generally fall into six categories. We’re going to break down what these categories are and how to avoid these mistakes.

Don’t just look at the short term 

Short term performance is speculative. It’s long term performance that tells the complete story of an investment. While we may be tempted to invest in something that has had good short term performance, longer-term performance measures such as total return (capital gain plus dividends) are better indicators of an investment. While past performance is no guarantee of success, it is often all we have to go on.

Review the financials of the company you want to invest in and ask yourself these questions:

  • Is there too much debt on its balance sheet?
  • How does this company you are investing in make its money?
  • Is this a company that makes a product that is becoming obsolete (think of the compact disc, the DVD, and before them VHS videotape, vinyl records, and 8 track tape players!)

Consider the risks 

Concentrating your investment capital in too few areas can put you at

Read More