Diamonds and Dogs
4/15/13SPDR Gold Shares (GLD) and Gold Commodity
Are gold stocks actually fool's gold? SPDR Gold ETF took quite a hit today, down 8.82% at $131.25. The ETF which tracks the commodity dropped as gold continued its downward spiral. Between Friday and today gold has had its largest two-day decline in over 30 years. Gold seems to be the victim of a double edge sword. First, the strong overall market and currency has pushed gold down. Second, with gold headed down and gaining momentum it appears that many hedge fund managers are leaving the commodity in order to dodge possible margin calls. Regardless of the reasons, Gold is facing its worst decline in decades, and SPDR Gold ETF is trading less than $1.00 above its 52-week low.
Sprint Nextel Corp. (S)
Sprint Nextel is running higher today, up 13.83% at $7.08. The cell service company saw its shares pop on news of a takeover bid. DISH Network made an unsolicited offer to Sprint which totaled $25.5 billion. The deal values Sprint at $7.00 per share, which is comprised of $4.76 per share in cash and the rest in the form of stock. DISH believes that the combined company could generate synergies and growth opportunities valued at $37 billion, including $11 billion in cost savings. DISH said that it hopes to create a company that offers a fully integrated nationwide bundle of in-home and out-of-home services. Sprint traded up near its 52-week high of $7.33.