- One-day loss for Intel is 3.52%, one-day return for McAfee is 57.07%
- Considering the trend, the loss for Intel was rather low, indicating that market punishment was not as severe for acquisition of unrelated (software) business
- My speculation is that perhaps the market was expecting a deal from Intel, as signaled by high trading volume and declining stock price prior to the announcement
- The high return on MFE signals significant liquidity motivation to exit the company
- INTC listing NASDAQ might have reduced the loss while MFE listing on NYSE might have increased the gain
- My speculative view on strategy of the deal: apart from hardware security, Intel now has access to cloud security which can be used to offer complementary service to key cloud service providers i.e. Amazon, Salesforce… This strengthens Intel’s alliance beyond the long-standing one with Microsoft (which is currently lost in the cloud). Then what can would Intel do with an alliance? War against Apple?
- Addendum: market reaction is favorable for Intel, signaling good corporate governance
Finance
| 
aapl, acquisition, amazon, amzn, anti-virus, apple, cloud, computing, corporate-governance, fins5538, fins5566, hardware, intc, intel, m&a, mcafee, merger, mfe, microsoft, msft, nasdaq, nyse, performance, salesforce, security, software, trading, unsw, volume
Education
| 3m, abnormal, active, addition, adjustment, aig, algebra, alternative, altria, american, amex, annualized, arithmetic, asset, axp, behavioral, benninga, bodie, capital, capm, class, cml, context, continuous, correlation, covariance, cumulative, diagonal, discrete, distribution, efficient-frontier, efficient-market-hypothesis, electric, equity, excel, excess, express, exxon, exxonmobil, farrell, fins1613, fins2624, fins3640, fixed-income, forecast, ge, General, geometric, gm, goldman, group, gs, identity, index, index-fund, international, inventory, inversion, investment, james, jorion, kane, kft, kraft, line, macdonalds, management, marcus, market, matrix, mcd, menu, microsoft, mo, mobil, modeling, motors, msft, multiplication, multivariate, normal, optimal, optimization, passive, percentile, pfe, pfizer, philipe, plot, portfolio, portfolio-management, predict, private-equity, programming, quantitative, real-estate, regression, residual, return, risk, robust, sachs, scalar, scatter, security, shortcut, sim, simon, sml, solver, spreadsheet, standard-deviation, stata, statistics, stock, subtraction, technique, term-structure, transaction, transaction-cost, transpose, uniform, universe, unsw, utility, value at risk, var, variance, venture-capital, wal-mart, walmart, wmt, xom
I have always blogged directly on the WordPress web interface. However, connection to Vietnam has recently been so slow I need to use a blogging client.
FINS3640 Investment Management Modeling, Semester 2, 2010
Dear Students,
Session preparation
In week 4 (10/8/2010) we’ll venture deeper into portfolio management practice. I’d advise you to revise the following knowledge:
- Portfolio management and optimisation knowledge from FINS2624
- Statistical knowledge
- Stata commands we went through in week 2 and 3
- How to perform all of the above on paper and using spreadsheet, particularly Microsoft Excel 2007
Administration
Assignment 1 will be uploaded soon. Check Blackboard regularly for updates.
Tai
Education
| excel, fins2624, fins3640, microsoft, office, portfolio, portfolio-management, portfolio-optimization, spreadsheet, stata, statistics, unsw
And here come $126 Chinese iPed and $35 Indian iPad clone. This is not to mention the not-so-an-imitation Hewlett-Packard’s Slate.
The real value Apple is creating, however, is not only encapsulated in the hardware. What matters, and cannot be imitated by competitors, is the information exchange platform AppStore through which Apple has earned sweet royalties. Furthermore, while thousands of third-party companies and developers strive their best to be profitable building applications, Apple reaps the reward and share none of the failure.
Same does Facebook. And Wii.
This is the era where hardware has become commodities and information and services bring more value. And revenue.
What other platforms are you thinking of?
Business
| 360, aapl, apple, clone, competition, facebook, hp, imitation, information, ipad, iped, microsoft, nintendo, platform, playstation, service, slate, sony, wii, xbox
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