What we’re reading (11/12)
“Pfizer’s CEO Sold $5.6 Million In Stock The Day He Announced Promising Vaccine News” (CNN Business). Here’s a possible example of a basic idea that goes back a long time in finance: if you believe a company’s executives have better information than the market about the company’s prospects, then their trading behavior may be informative of value. In other words, when managers are selling (or companies are issuing), that could be because the stock is in fact overvalued. A counterpoint is that they could just be monetizing their stock awards to get some liquidity.
“Deposit Rates Are Taking A Pandemic Nosedive” (Wall Street Journal). “Banks are paying a pittance on deposits, but customers don’t seem to care. Some banks are slashing deposit rates. Others are keeping already-low rates at next to nothing, sometimes 0.01%. But customers keep stashing cash at banks anyway. Big banks can afford to be stingy because they already are awash in deposits. Total deposits at U.S. commercial banks have swelled to about $15.9 trillion, up from about $13.2 trillion at the start of the year, according to the Federal Reserve.”
“DoorDash, Roblox, Wish And Airbnb All Expected To Go Public Before Year’s End, Sources Say” (CNBC). “Between early and mid-December, public investors will likely get their first crack at buying stock in food delivery provider DoorDash, e-retailer Wish and kids gaming company Roblox, according to people familiar with the matter. Airbnb is also expected to file its prospectus by early next week, putting the room-sharing company in position to hold its market debut after Thanksgiving, said two of the people. Filings are expected by next week, though the timing could change based on market conditions, said the people who asked not to be named because their plans are private.”
“After A Long Ride, Harley-Davidson Is Leaving India” (New York Times). “Harley-Davidson, the proudly American company, is giving up on India because of weak sales, after more than a decade of pursuing a huge but ultimately frustrating place to do business…[t]he closure has dealt a blow to India’s ambitions to lure manufacturers, a campaign modeled on China’s success called ‘Make in India.’ It has set back Harley-Davidson’s efforts to expand its popularity overseas. And it strands a small but devoted group of Harley devotees who are wondering how they will keep their prized rides rumbling.”
“Straight Talk With Hank Paulson: Ray Dalio” (Paulson Institute). A 42-minute conversation between former U.S. Treasury Secretary Hank Paulson and Bridgewater Associates founder Ray Dalio.
