Penn Wealth Publishing

2018.03.25 Penn Wealth Report Vol 6 Issue 01

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16 Penn Wealth rePort voluMe 6 issue 01 25 Mar 2018 Penn Wealth RePoRt Copyright 2018. All Rights Reserved. investMent intelligenCe Weekly business rePort bitCoin futures begin trading on the ChiCago board oPtions exChange It has been a crazy ride this year for the world's first major digital currency known as bitcoin. The NYSE Bitcoin Index is up in the ballpark of 1,500% this year, and the cur- rency began futures trading on the CBOE on Monday the 11th of December. After crashing the CBOE's system Sunday night, bitcoin futures opened up around 15% on their first morning of trading. CBOE's rival exchange, the CME Group, plans to launch its own bitcoin futures operation next week. While bitcoin junkies are proclaiming these futures markets are giving credibility to the currency, doubters believe this will simply open up new avenues for hackers to flood the scene. They point to Mt. Gox, formerly one of the largest bitcoin exchanges. The organization collapsed three years ago after being digitally robbed (the only real way one can with this medium) of over $470 million worth of bitcoin. Here's another arrow in the quiver of detractors: the new exchanges will open up the possibility to short bitcoin for the first time. Until now it was a long-only game. This will certainly change the dynamic for traders. Want to actually own some bitcoins your- self? It's relatively easy. Simply open the app store on your smartphone and search "bit- coin." You will find a number of bitcoin wallets which you can tie to your bank account to purchase the digital currency. as CoMCast droPs bid, disney Will end uP With fox assets, Minus fox neWs Perhaps Rupert Murdoch's Twenty-First Century Fox (FOX $24-$33-$34) needed to merge with a bigger player sooner or later to remain relevant in an rapidly-changing indus- try, but Comcast (CMCSA) certainly wasn't the answer. The NBC parent announced that it would no longer pursue the acquisition of Fox, leaving a deal with $157 billion Walt Disney (DIS $96-$107-$116) all but certain. From Disney's standpoint, the deal is genius, as it will make the company Hollywood's heaviest hitter, cherry-picking such assets as 20th Century Fox studios, the Fox broadcast network, hundreds of televi- sion channels around the world, and a large percentage of Britain's Sky Plc TV. It will give the company the ability to broadcast directly to the consumer, avoiding the money-suck- ing middleman. The merger will create a powerful new threat to streaming giant Netflix (NFLX), a company which has already lost its rights to the Disney archives. As for Fox, a major catalyst for the deal has been the ascendancy of the two Murdoch trust fund babies, James and Lachlan. With the largely stock-funded deal, the two will become major shareholders of Disney, and James will probably be offered a lofty posi- tion at the firm. As for the Fox Entertainment Group and Fox News, which the boys have shunned in the past, these assets will be spun off and, perhaps, even taken private. air forCe taPs loCkheed Martin to ProduCe autonoMous Cruise Missiles Aerospace giant Lockheed Martin (LMT $247- $318-$324) has been awarded a $110 million contract from the Air Force Research Laboratory (AFRL) to develop a prototype subsonic cruise missile known as "Gray Wolf." The autonomous missiles would be part of a next-generation network designed to decimate an enemy's integrated air defense system. To be considered successful (and become eligible for actual Air Force orders for the weapon), the long-range cruise missile must be able to "survive" its way through a sophisticated environment of radar, com- munications sites, and surface-to-air missiles before impacting its pre-designated target. The Gray Wolf 's preferred launch system will probably be Air Force bombers, such as the B-1 Lancer and B-2 Spirit. Other Air Force strike systems are being developed by Kratos Defense & Security Systems (KTOS), and pri- vately held Dynetics and General Atomics. raytheon's Patriot Missile systeM shines in saudi inCident Saudi air defense forces successfully intercepted and destroyed a rebel missile in the capital city of Riyadh using a Raytheon (RTN $141-$187- $192)—built missile from one of its ground-based Patriot batteries. The incoming projectile, which was destroyed seconds before it would have slammed into a royal pal- ace, was probably an Iranian Volcano 2-H medium-range ballistic missile. The Islamic Houthi movement, based in Yemen, claimed responsibility for the launch. Raytheon, a member of the Penn Global Leaders Club, is up 31.34% year-to-date. Weekly Business Report CurrenCy trading/forex aerosPaCe & defense The Bitcoin craze got completely out of control beginning in late spring of 2017 Media & entertainMent Lockheed JASSM; Photo Courtesy: Lockheed Martin

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