Fiat to buy the rest of Chrysler

Fiat is again moving in on Chrysler. In 2009 they took over a large percentage of the company and are now trying to take over the remaining 41.5%. This remainder is currently held by UAW health. The two companies have been in conversation over the sale but have been unable to agree on a price, they have a discrepancy of around $2 million.

The recently hired Lazard Ldt (NYSE: LAZ) vice chairman Ron Bloom to help with the buyout. Other notable leadership at Lazard include chairman and CEO Kenneth Jacobs. Ron Bloom is also currently representing the retirees in their case against Detroit's filing for bankruptcy.

Investing in Solar

With all this environmentalism in the air, many investors are going after alternative energy stocks. Wind power saw a lot of action over the last year, with wind farms popping up all over the country. Solar has not seen the same sort of investment but maybe that will start soon.

One company to watch is Solar City (NASDAQ: SCTY). They are branding themselves as America's #1 full service provider and have been a pioneer for affordable clean energy. They run on a lease system with free panel installation as well as insurance and monitoring. The company claims that they can bring your cost of energy below the cost of utility companies.

As an investment they certainly have great leadership, their chairman in Elon Musk, you might recognize his name from Tesla or perhaps SpaceX. The company is still working on becoming profitable but has seen a lot of growth this year. Their stock is up 110% for the year. Definitely a stock to watch.

Pandora Jump Ship!

Pandora has seen amazing growth in the last year starting at a low of $7.18 in november and rising to over $26.99 last week. Pandora internet has become a part of many of our lives. It is a great way to find new music and I know that my office and many other listen to Pandora during the day. They have seen subscriptions increase 38% since last year.

Now if you invested in Pandora a year ago, you probably made out really well with around a 176% return on investments. However with the launch of Apple Radio Pandora has already seen a big hit to their stock, 10%. With a more streamline way to listen to the radio and buy music, Apple is a huge threat to Pandora. In addition Apple radio is 30% cheaper for subscription. The initial launch of Apple radio saw 11 million unique users. This is definitely formidable for Pandora, if you already have stock and have not sold it yet, jump ship now, sell!

Investments in Natural Gas

As I'm sure many of you have noticed Natural Gas has gone through what many have called a revolution. The techniques involved with fracking have caused a full on shale boom. The boom of the fracking industry brought so much gas to the market that it overwhelmed the market capacity and send prices crashing. Drillers have so much gas right now that they are burning off millions of dollars in gas with no where in the market to take it. Many fleets are even making the switch from burning diesel or gasoline fuels in favor of natural gas. In some cases this has resulted in fuel cost savings of up to 40%. So where are the investment opportunities surrounding natural gas?

Clean Energy Fuels 
This company is building a network of fueling stations to bring gas to market and to new customers. This company is not making money yet, but it is very new and has a good head start investing in the infrastructure to support the 30% of new transit vehicles powered by natural gas.

Mega Cap Energy Players
Companies like Chevron, Royal Dutch Shell, and ExxonMobil that already have natural gas projects should also do well. Given the volatility of the gas market these more diverse companies will remain stable. The gas market is definitely on the rise but once the market becomes more global and shipments start flowing to say Asia portfolios should definitely see a bump. Although I wouldn't expect a large bump until 2015.

If you would like more information on opportunities in shale Gas. KKR's Global Institute chaired by General David Petraeus and run in tandem with Ken Mehlman released a detailed report on Historic Opportunities from the Shale Gas Revolution. 

Will V.F. Corp continue to climb?

V.F. Corporation (NYSE: VFC) is a global apparel company based in the United States. V.F. designs and manufactures a variety of apparel and footwear. Some of V.F.'s brand names include: Wrangler, Lee Jeans, JanSport, The North Face, SmartWool, Timberland, and Nautica. The company hit a 52-week high of $204.94 on Friday, September 20, 2013. The stock of the company gained momentum after announcing their initiatives and strategies to enhance its performance amid a soft economic scenario.

Recently the company announced the opening of three global innovation centers to concentrate on developing revolutionary product innovation in technical apparel, footwear and jeans.  The stocks also reflect the positive earning momentum of the company. In the past 10 quarters V.F. has outperformed expert expectations by an average 7.5%. Based on its current growth and a good focus on further brand development I think this company is well poised for long term growth.

Why are so many people interested in Seattle Genetics?

Seattle Genetics (NASDAQ: SGEN) is a biotechnology company that has caught the attention of many hedge fund managers. This Seattle based biotechnology company is focused on the development and commercialization of monoclonal antibody-based therapies for cancer. They currently have one drug on the market, Adcetris or brentuximab vedotin. This drug is approved in the U.S. by the FDA for treatment of Hodgkin lymphoma and is an antibody-drug conjugate or ADC.

So what makes Seattle Genetics a promising investment? The company currently has one drug on the market. Adcetris has performed very well since its release and has won 70% of the market for its approved uses. The drug has generated $70 million in revenue in the first half of the year. In addition Adcetris serves as a showpiece for the companies antibody-drug-conjugates, these complex molecules deliver payloads directly to cancerous cells without the collateral damage associated with traditional chemotherapy. Many major drug companies have made deals or are trying to make deals to gain access to Seattle Genetics's ADC portfolio.

This being said Seattle Genetics has a lot of potential, so far this year their shares are up more than 65%. On the downside for a company valued at nearly $5 billion, Seattle Gen still not turning a profit. I like their potential, they have good science and good collaborations, and if Adcetris is really successful that could be really good for the company. However like many life science companies Seattle Gen is still struggling to be profitable. If you do jump on Seattle Gen, I would recommend balancing your portfolio with some other more stable long term investments, but never the less this is still a company to watch.

KKR to Invest in Mainland China Property Market

Kohlber Kravis Roberts (NYSE: KKR) is one of the worlds largest private equity firms. It is an American multinational firm specializing in leveraged buyouts. The firm has completed over $400 billion of private equity transactions and was a pioneer in the leveraged buyout industry. Today they are still led by two of their founders George R. Roberts and Henry Kravis. Other notable KKR leaders include former chair of the Republican National Committee Kenneth Mehlman and former U.S. Commanding General David Petraeus.

Recently KKR has been looking into real estate investments throughout mainland China. This is an interesting choice of investments for the firm given China's concerns that its property market, although hot may be turning into a bubble. KKR this year launched its second fund dedicated exclusively to Asia. The most recent of these is a $6 billion private equity fund. In China specifically KKR is taking local stance with respect to their investments. The majority of their investments will be minorities. Joe Bae a managing partner says that KKR will focus on areas outlined by the government as needing improvement. He stated,

“Real estate in China is by nature a very local business, so I think you really need to have very targeted bets: in which city, what [type] of real estate – residential, commercial or retail.”

Kravis also stressed the mentality of KKR with respect to their investments. He stated that he does not want people to think of KKR as a "capital provider" but rather a "solution provider." He sees KKR's role as more than just a Capital Provider. In addition to their investments in China, Kravis said that Japanese firms which are known for their bureaucracy have become more open to foreign investment ideas.

JP Morgan's $800 Million Whale Settlement

JP morgan is paying $800 million dollars to the SEC and other agencies to put to rest its "London Whale" trading fiasco. The "London Whale" gets its name from JP Morgan Chase trader Bruno Iksil, (nicknamed the London Whale). Iksil took a large gamble on an obscure corner of the market and witnessed a spectacular loss. He incurred $6.2 billion in losses and allegedly mismarked some of the trades to cover up their magnitude. His boss is also being sued by the SEC for assisting in the cover up. JP Morgan has been the subject of an investigation by the U.S. government since the fiasco.

JP Morgan Chase is expected to pay $800 million in penalties and admit wrongdoing as part of a board regulatory settlement over the matter. An acknowledgment of wrongdoing by the company would be a high-profile win for the SEC. In addition to this investigation JP Morgan is also facing potential enforcement action from the Commodity Futures Trading Commission for allegedly placing misleading values on its derivatives positions behind the London trades. In spite of all of this the stock price (NYSE: JPM) has returned to pre-scandal levels.

An Introduction to Asset Management

Asset management refers to any system or company that monitors or maintains things of value for another entity or group. This could be referring to tangible assets such as property or perhaps intangible assets such as intellectual property. There are many asset management firms in the US and Canada as well as all around the world. This blog will look at what these firms are doing how this effects the companies they are managing as well as its effect on the market. We will also look at the leadership of these firms and what they do for their companies and communities.