InvestYoung

IBM And Sun!

It’s a done deal, IBM is no longer interested in Sun Microsystems. Just a few weeks ago Sun rejected IBM’s low ball price of $7 billion. Now Sun had asked IBM to come back to the table to start talking again, but the answer was no. It’s not that IBM doesn’t want them, it’s the hoops they will need to jump through to close the deal. The U.S. Justice Department and the U.S. Securities and Exchange Commission make everyone jump through hoops. Although IBM would have these departments to battle, I think they just don’t want to pay the big price tag for Sun. I think Sun should wait to the economy comes back a little more before they sell. Because right now their a barging, because of the beating these businesses have taken. They need to recover more, then sell the company, that’s what I would do.

Jobless Claims!

The jobless claims are on the raise once again. Although there was a very small drop in unemployment insurance claims we’re still at an all time high. Reported by The Labor Department there are 5.84 plus million people without a job. That number is just based on the people getting checks from the Government. So how many people are really without a job? I would be willing to bet that there are more than 6 million people without work. We haven’t seen numbers like this since the great depression. We hear the stories from the people that lived through the great depression, now we will have our own stories to tell about this one. No one wants to say it, but this is just like the great depression. The only thing that’s is different is that we have unemployment insurance and huge government borrowing. If we didn’t have these two things we would be in a world of hurt, and that’s the truth.

Pop Superstar!

It’s about time a judge in Africa had finale stood up to these movie star’s and pop star’s trying to adopt African children. And that’s just what had happened today. The judge is Esme Chombo in Malawi, he blocked the adoption of a 3 year old girl that Madonna tried to adopt. I had read that the judge stated that Madonna hadn’t been in the country since 2008, which was the main reason for the denial. He also noted that during this adoption she wasn’t even in the country for a week. His main reason was “residency requirements,” which she failed to meet. And from what I read I agree with his decision. How could Madonna take a child she doesn’t even know. The child is 3 years old and would be totally scared if taken from her care givers. I don’t care how much money you have or how many home theater chairs you have in your basement, it wouldn’t be right. The judge was right, but in the end money will win this one. The judge will be pressured to push it through by the African Government. Hopefully this won’t happen and the Government stands by this judge.

Acquisition Of Sun!

The deal between IBM and Sun Microsystems looks to be almost complete. I read that the main reason for the hold up is the price. Of course Sun would like to get what they feel their worth, and IBM wants to payless. The deal will happen at any price, because IBM wants Sun badly, and Sun Knows this. The technology that is coming with Sun is something IBM has be after for years.

Sun Microsystems true value doesn’t show in their stock value. I think because of the state of the economy Sun lost a lot of value, stock value. Just about every publicly traded company lost stock value, which makes them easy to be taken over by giants like IBM. These smaller tech companies need to hold their ground from take over bids from giants like IBM. If they don’t IBM will take them all over, one by one. And in the end, consumers will pay the higher price for all their tech toys. Any way’s, after their done working out the price the deal will come under heavy antitrust scrutiny. So the deal could still fail, but most likely it will not.