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This week's investment banking rebuttals and inspiration | Deal Insight

2012 has just started us on our long held Insight series’ online. Not much more than a change in Title to reflect the true values and the enterprise behind the “insight” you choose to recieve. Advantage Dealbook is now Deal Insight, Similarily our treasure trove is China Insight & Insight China , The European year of the debt is Insight Europe and more when we publish more streams of knowledge. You could come on board any time or recommend to friends who do not like the “AFK” status either to help along this enterprise.

Trashing Zynga can’t pay much


Image via Wikipedia

A brokerage started today’s run on the new digital property, with more serious web users, ( I suspect, also unconcerned about SOPA and PIPE ) debunking this internet boom per force of habit. Even as 180 million PCs and 75 mln Tablets sold for the year including the 60 mln iPads and now 5 mln Kindles added up to quite a resurgence where everyone understood it to be non essential socialising and reading, detractors point to Zynga’s 25% drop in Daily Active Users across each game.

Though a couple of analysts have pointed out the flaw, it is not been made amply clear perhaps that Zynga has generated revenues from only 3% or less of its users and revenues have jumped from 400 mln in the 9 months of 2010 to 850 mln in the nine months to September 2011, while user strengths of people who return daily to that game reflect decline as it launched a half a dozen games at once with heavier architecture also I suspect forcing users to finally limit the no. of games they could play regularly and kep their winning profile ūüôā

Thus for me it is not even equivalent to the dominant force on the internet fragmenting which even I could almost belive faced ith the data, but that growing paying users as a percentage and introducing complex game plays may bring Daily active numbers down i.e. numbers that come to the site each Day but it will not really take away share from Zynga as overall gaming, or take away the share of online gaming vis a vis all browsing

Also linked to that growth in web access toys like iPad is the fact that there will be more users of serious video despite the non interesting start for Reuters and Bloomberg and now including the WSJ, FT and other services. In fact web based TV is just months away.

The Keystone US Canada Pipeline

VANCOUVER, CANADA - OCTOBER 15:   A man holds ...

Image by Getty Images via @daylife

As expected, the President has refused to encourage the Chinese investment in energy in Canada with the Oil sands projects causing the rejection of the Keystone pipeline. The Keystone pipeline brought in a $7 bln investment from TransCanada and could supply 700k barrels of Oil per day. That’s 60 years of North Dakota Shale¬†, also using fracking and someone should try and get Oil to below a $1 per gallon at the local station? Corporates like Whole Foods and BBY are leading a crusade against Canadian Oil sands in the US Transcanada is also part of the pipeline project to China from its Western Coast for a ready market for the Alberta Oil Sands

RBS sells aviation leasing assets

RBS managed to sell its Aviation leasing Corp  with Sumitomo Mitsui Financials paying full price for the acquidsition at $7 bln. Sumitomo Mitsui also followed up with a $93 mln purchase of a boutique investment bank Moelis in the USA. Three Sumitomo companies incl trading house Sumitomo Corp will pay $1.3 bln ( Yen 100 bln) for the equity of RBS Aviation Capital with $7.2 bln of aircraft lease  and sale assets on its balance sheets. China DEvelopment Corp and Wells Fargo were part of the bid.

Wells Fargo trading profits

Though it includes $20 bln in AFS assets and in the trading book carried over from December to the first week of Januaryonly, Wells Fargo did report $430 mln in trading profits in its $4.1 bln quarter to end 2011 with $81 bln in revenues and $15.9 bln in profits. The

Wells Fargo Stagecoach

Image by Noel C. Hankamer via Flickr

bank seemingly lost 2-3% in brokerage assets and a slightly higher amount in Wealth management revenues at $3.1 bln for the quarter, out of its revenues of $20.1 bln. In line with weakness in Industry, the bank as usual managed to stay away from risky disposition plaguing Wall Street to keep bottom lines healthy. However, the bank has made headway in the Investment Banking business reported as par t of its I&L (Investing and Lending) businesses ($1.6 bln).  Mortgage lending never picked up in 2011 despite housing reports becoming optimistic in August 2011. Core loan portfolios were up $13.7 bln in the quarter , net increase by $9 bln to $769.6 bln

The bank did celebrate  ranking in the League tables with 5% share of Fee Advisory 20% more than 2010. It ended 21st in M&A with under $30 bln in M&A and 12th in Debt underwriting. its Capital Markets division contributed to a near 47% take at $9.71 bln in Non Interest income at 14%. Mortgages contributed 25% to the Non Interest income.

Morgan Stanley posts results tomorrow


North Dakota Shale assets

Keystone XL demonstration, White House,8-23-20...

Image via Wikipedia

Marketwatch reports that (60 years of North Dakota Shale)   the other Environmental thorn, hydraulic fracking of shale is well underway in the tiny state of North Dakota as well, where reserves are estimated to be in excess of 20 bln barrels. With production already reaching 500,000 barrels per day, it could well be a source of 1 million barrels per day for the next 6 decades or till Hydraulic Fracking is shut down, whichever is earlier.

Jerry Yang bids adieu to Yahoo!

After he turned MSFT’s $47 bln bid down in 2005, Jerry Yang could never bring the glory back to Yahoo, now under protracted negotiations with its Asian investors Alibaba and Softbank for Alibaba and Yahoo Japan. Microsoft took over its search engine in a much smaller deal later. Scott Thompson from Paypal replaced outgoing CEO Carol Bartz who left in September

Dell probe solved finally

One of the cases begun during Raj Rajarathnam’s prosecution the prefect hedge case against Dell employees, Sandeeep Goyal, SAC manager Horvath($1 mln)¬†and Todd Newman($3.8 mln)¬†of Diamond back Capital with Anthony Chiasson($57 mln), co founder of Level Global were charged with making illegal profits in 2008 Q1 and Q2 earnings release for DELL. Two other SAC managers were sentenced last year including Noah Freeman. Employees of mentioned hedge funds cooperated with the government on the investigation incl Dell employee Sandeep Goyal

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2 comments on “This week's investment banking rebuttals and inspiration | Deal Insight

  1. Pingback: This week’s investment buzz and inspiration | Deal insight | The Banking and Strategy Initiative

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This entry was posted on January 18, 2012 by in Banking, Financial Markets, Retail Lifestyle, US.


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