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Boeing says ousted CEO Muilenburg not entitled to severance payment

Muilenburg was fired from the job in December as the company failed to contain the fallout from a pair of fatal crashes that halted output of its bestselling 737 MAX jetliner and tarnished its reputation with airlines and regulators. Based on Boeing securities filings from early 2019, Muilenburg was eligible for about $39 million in severance. “Upon his departure, Dennis received the benefits to which he was contractually entitled and he did not receive any severance pay or a 2019 annual bonus,” Boeing said in a statement. …read more […]

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Your 529 Questions… Answered!

For all the drama around Iran and the threat of war, the markets have been remarkably stable so far in 2020. So let’s use this lull to return to a topic that spurred a lot of interesting questions from our readers: grandparents and 529s.
What are the consequences of letting a plan “coast” to the next generation or further? Is this idea a valid estate planning tool for future generations? – Rebecca L.
Since a 529 must be used for educational expenses, what happens if the grandchild doesn’t continue an educational path?
Wouldn’t funding a Roth IRA in your own name be …read more […]

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How Did McCormick & Company, Incorporated (MKC) Compare Against Hedge Fund Darlings in 2019?

Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying before 2018’s Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first […] …read more […]

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How to Trade Cleveland-Cliffs Options for Free

There is no better trade on Wall Street than a free ride. A free ride refers to a trade that goes your way to the point that you can take your initial investment off the table and still have exposure to the upside.
In this case, not only did War Room members take their initial investment off the table…
They took some profit too, enough that they’re being paid to be in the trade.
Let me explain…
Last week War Room members took a position in Cleveland-Cliffs (NYSE: CLF). This is the second time in less than a month members traded this stock and …read more […]

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Oil Posts Biggest Weekly Loss Since July as Mideast Risk Fades

(Bloomberg) — Oil ended the first full week of 2020 with the steepest loss since July as geopolitical threats to some of the world’s most important supplies fizzled.Futures settled at a one-month low in New York on Friday to cap a volatile week that saw crude soar and then crash as the U.S. and Iran teetered on the brink of all-out conflict. Ultimately, prices finished the week down more than 6%.“Prices are still sliding because of the easing in tensions in the Middle East,” said Michael Loewen, director of commodity strategy at Scotiabank. “That’s draining the supply risk premium that …read more […]

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Amazon Tells Shoppers That PayPal’s Honey Is a Security Risk

(Bloomberg) — PayPal Holdings Inc. made a big bet in November with its $4 billion acquisition of Honey, a web browser extension that helps online shoppers find the lowest prices. Now Amazon.com Inc. is warning customers not to use the tool.Shortly before Christmas, Amazon said Honey posed a security risk, which was reported Thursday by Wired. The warning perplexed some online shopping experts since the tool has been available for several years and Amazon makes no similar warnings about other browser extensions such as price tracker camelcamelcamel.com.“Amazon’s fight against Honey while letting a dozen other tools go on is confusing,” …read more […]

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PG&E Fire Victims Fight FEMA Over Multibillion-Dollar Payout

(Bloomberg) — Victims of wildfires blamed on PG&E Corp.’s power lines and government agencies that provided them disaster relief are tussling over a payout from the bankrupt utility.PG&E reached a settlement with fire victims to pay a total of $13.5 billion for damages tied to catastrophic blazes. California’s emergency services office and the Federal Emergency Management Agency, known as FEMA, want more than $6 billion — payouts that victims’ attorneys said Thursday would leave less money for those directly affected by the fires.Every dollar that FEMA and California’s agency receive “is one less dollar available to pay victims,” a committee …read more […]

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Are Stocks Divorced From Fundamentals?

The last 18 months have been a crazy period for the U.S. stock markets.
In the second half of 2018, it looked like we were going into a sustained interest rate tightening cycle. The Fed had interest rates on autopilot, and they kept going higher.
The markets weren’t happy about it. In November 2018, I wrote the following:
If equity and real estate markets get hit hard – which will probably happen if rates get back to 5% – everyone will be begging the Fed to lower rates and eventually restart quantitative easing. CNBC’s Jim Cramer is already screaming at the Fed to …read more […]

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The IPO Process: A Step-by-Step Guide to Going Public

Last year, investors speculated many companies would announce an IPO (initial public offering). But investors are still waiting for most of them to hit the market. That’s because the IPO process can take many months or even years to complete.
There are a few reasons a company decides to launch an IPO. The top reason is to raise capital. And in some cases, early investors want to cash out. Another benefit to going public is to increase brand visibility. Whatever the reason, going public can be a grueling and time-consuming process.
Below is a step-by-step guide to the IPO process. Let’s get …read more […]