October 2013

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Carl Icahn & Transocean – a quick look at what’s been happening lately

Just revisiting a post I published in January following the news that Carl Icahn was building a stake in Transocean and thought I would update the story. Since I wrote that article Transocean decided in May to pay a 5% dividend (USD 2,24) vs. the USD 4 Carl Icahn was fighting for. That brings his break-even for the position close to CHF 40-42. That also coincides with where the stocks multi…


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Meyer Burger moves from IFRS to Swiss GAAP FER

Just two weeks after Burkhalter Holding (see post) another SIX listed company has decided to switch from IFRS to Swiss GAAP FER. Meyer Burger has cited growing complexity, the overly detailed rules (costly) of IFRS as factors behind their decision to switch to Swiss GAAP FER. They are convinced that Swiss GAAP FER is a solid framework permitting a true and fair view. The shares of Meyer Burger (Ticker: MBTN)…


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Burkhalter Holding moves from IFRS to Swiss GAAP FER

Today the board of Burkhalter Holding (Ticker: BKRN) announced the switch from IFRS to Swiss GAAP FER. The main reasons given were the treatment of pension plans and of goodwill and in a further remark the steady increase of rules (read: making accounting more tedious and expensive with IFRS). They can now offset the equity capital, which will sink, with goodwill. As they no longer need to adhere to IAS 19…


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Calculating Variance of a Portfolio with 2 Market Returns – CIIA Foundation

Using the data from the following table, evaluate the risk measured by the standard deviation) in CHF of a portfolio invested 75% in the Swiss market and 25% in the UK market, rounded to the nearest integer. [table] Description,Percentage Standard Deviation in CHF of the Swiss Market return,15% Standard Deviation in CHF of the UK market return,13% Covariance between the Swiss market return in CHF, and the UK market in…