Tag Archives: citigroup

Make Saudi Arabia Great Again

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The mass weekend arrests by Saudi Arabia could be due to both the stated purpose of cracking down on corruption and a power grab by the kingdom’s young, reform-minded crown prince who may soon take the throne, said Robert Jordan, former U.S. ambassador to the kingdom.

On Saturday, 11 princes, including well-known billionaire investor Alwaleed bin Talal, and four ministers, including the one in charge of the National Guard, were arrested, according to various reports, along with a number of former ministers.

MDC says, Saudi Arabia’s arrest of Prince Alwaleed ‘would be like arresting Warren Buffett, Jeff Bezos,  or Bill Gates’ in the United States. Alwaleed’s Kingdom Holding has major stakes in Fox, Time Warner, Citigroup, Twitter, Apple, Motorola and many other well-known companies, as well as several satellite television networks that are prominent in the Arab world.

We would also like to add that our Duffus POTUS commented in tweets Monday evening, President Trump appeared to endorse Saudi Arabian King Salman’s decision to remove a prince who headed the National Guard and create a new “anti-corruption” committee on Saturday.

“I have great confidence in King Salman and the Crown Prince of Saudi Arabia, they know exactly what they are doing….” the president tweeted.

He completed the statement with a second tweet.

“….Some of those they are harshly treating have been ‘milking’ their country for years!” he wrote. MDC would like to add, Trump acts like a dictator and basically endorsed a dictator’s executive decision move.

The arrests happened hours after King Salman created an anti-corruption committee chaired by his 32-year-old son, Crown Prince Mohammad Bin Salman. MBS, as the crown prince is known, could become king later this year or in early 2018 when his 81-year-old father abdicates the throne. wd9wuDb

At 11pm on Saturday, guests at the Ritz-Carlton hotel in Riyadh got a rude awakening. Businesspeople and consultants who were staying in one of Riyadh’s most opulent digs, along with diners and visitors, were all told to assemble in the lobby with their bags. No one knew why.

As guests made their way to buses to be taken to other hotels in the Saudi capital, senior officials were making plans for new arrivals who weren’t prepared for a night away from home, let alone a spell in a five-star hotel. They were soon to become the highest-profile prisoners in the modern kingdom’s history. And the most pampered.

From midnight, buses arrived in the sprawling complex disgorging princes, business leaders, other royals, their guards and their captors. The arrivals marked the start of an extraordinary episode that exposed the kingdom’s elite to rare public scrutiny and showed that, even when accused of high crime, the powerful maintain privileges.

By dawn on Sunday, more than 30 of Saudi Arabia’s most senior figures, among them blood relatives of senior rulers, were locked inside the hotel, accused of corruption. Their ignominious arrests were the talk of the country, and so too was the fact that they were far from a prison cell, where most citizens facing similar charges could expect to find themselves.

 

The Stock Option

 

MDC just spent the weekend with Ojore and Kamau and they are  sharing some knowledge.

While nothing is for sure with investing, there are ways to use financial instruments called options to attempt to milk more profit out of stocks that are already owned or to lock in gains on winning stocks.

Before explaining how options can help investors lock in gains, first a word on what options are. Options are financial instruments that give buyers the right, but not the obligation, to buy assets at a preset time in the future at a preset price.

Options can be used by speculators to place wild bets on stocks, and that’s why they often get a reputation for being for advanced traders. But used properly, usually in connection with a stock that an investor already owns, options can actually be very conservative and prudent.

There are two main types of options, puts and calls. Puts give their owners the right to sell a stock to someone else at preset price at a certain date in the future. Calls give their owners the right to buy a stock at a preset time and price in the future.

We are going to speak on two options strategies considered to be pretty conservative. Both have interesting outcomes for investors, who are playing it safe. They are:

1) Locking in gains with a “protective put.” If you own a stock that’s been a big winner, and you don’t want all your gains to slip away, then a protective put might be for you. Let’s say you bought a stock for $100, and the stock is now $200. You have a big gain you don’t want to lose, but you don’t want to sell either and risk missing any future upside. You might consider buying a put that gives you the right to sell your stock for $180, or instance. For a price, which is determined by the options market, even if the stock falls to $50 a share, you can sell for $180.

The protective put essentially guarantees you’ll keep a profit on a winning stock. Keep in mind, though, that protective puts won’t turn a losing stock into a winner. You can use protective puts, though, to make sure a losing stock doesn’t get worse, for a fee.

2) Hauling in income with a covered call. Most investors realize dividends can be a valuable source of income generated by a stock. But some might not know that options, too, can be used to bring in an income stream on a stock that’s already owned.
Here’s how it works. Typically, investors will sell calls to investors for a stock they own at a price that’s higher than the current stock price. The buyer of the option will pay the owner of the stock a fee, or premium. If the stock stays where it is, or even falls, investors can keep selling the calls over and over again and collect the premium. The premiums are like an income stream.
Keep in mind, though, that this trade is not guaranteed to stem losses or last forever. If the stock falls, the value of the stock falls, too. Covered calls don’t provide protection from stock price declines, either, while the income from the calls can help ease the pain. Also, if the stock takes off and soars, the owner of the call will buy the stock from you at the lower price.

Options can be useful tools for even beginning investors.

The key is to understand how they work and what they will cost you.