Reason that Cash is King

Those of you who have read my blogs in the past know that I am a proponent of having an ample, but not excessive, amount of cash on hand.  This emergency fund will pay off for you handsomely at one time in your financial life, and help you sleep better all the time.  But now there is another reason to keep ample cash on hand - access to one of the (inappropriate and harmful) alternatives often used by people tight on cash could be blocked.

Today, two senators announced that they are introducing legislation that, in an effort to counter the erosion of retirement assets, would limit the ability of workers to tap their 401(k) retirement plans for loans.

"During these difficult economic times, we are increasingly seeing 401(k) funds being treated as rainy-day funds," Senator Herb Kohl, a Wisconsin Democrat, said in a statement obtained by Bloomberg News. "A 401(k) savings account should not be used as a piggy bank for revolving loans."

Almost 28 percent of participants in 401(k)-type accounts had an outstanding loan at the end of 2010, which is a record, according to a study released today by benefits consultant Aon Hewitt, a unit of Chicago-based Aon Corp.

"The big risk with loans is that participants leave their job," said Alison Borland, head of retirement strategy for Aon Hewitt.  Most 401(k) plans require employees to repay loans in full when leaving a job, usually within 60 days, said Borland.  Almost 70 percent default, Borland said, so the unpaid funds get counted as taxable income and may add to the burden of a jobless worker.

One of my key tenets of smart financial management is to avoid having to buy or sell something on short notice (also know, invariably, as "the wrong time").  Executing that plan requires having the appropriate amount of cash on hand to protect you, should you experience an emergency or your income is reduced or eliminated.

And even though Congress has your best interests in mind when trying to keep you from borrowing against your 401(K), it does close an option for you and require you to look seriously at how much cash you are holding.

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The Top 10 Billionaires in the World

According to Forbes, two new records have been made this year 2011:
1) Total number of Billionaires (1210) and
2) combined wealth of them ($4.5 trillion).
The new comers to the list are mainly from Brazil, Russia, India and China. The most surprising is that Bill Gates now moved to the 2nd position and the person who has beaten him is Carlos Slim from Mexico.

Here is the list of top 10 Billionaires in the world:
No. 1 Carlos Slim Helú & family
Net Worth: $74 billion
Source: Telecom
Citizenship: Mexico


No. 2 Bill Gates
Net Worth: $56 billion
Source: Microsoft
Citizenship: U.S.


No. 3 Warren Buffett
Net Worth: $50 billion
Source: Berkshire Hathaway
Citizenship: U.S.


No. 4 Bernard Arnault
Net Worth: $41 billion
Source: LVMH
Citizenship: France


No. 5 Larry Ellison
Net Worth: $39.5 billion
Source: Oracle
Citizenship: U.S.


No. 6 Lakshmi Mittal
Net Worth: $31.1 billion
Source: Steel
Citizenship: India


No. 7 Amancio Ortega
Net Worth: $31 billion
Source: Zara
Citizenship: Spain


No. 8 Eike Batista
Net Worth: $30 billion
Source: Mining, oil
Citizenship: Brazil


No. 9 Mukesh Ambani
Net Worth: $27 billion
Source: Petrochemicals
Citizenship: India


No. 10 Christy Walton & family
Net Worth: $26.5 billion
Source: Wal-Mart
Citizenship: U.S.

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The PMI Group, Inc. Announces the Adoption of Amended and Restated Tax Benefits Preservation Plan

The PMI Group, Inc. (NYSE: PMI) today announced that its Board of Directors has adopted an Amended and Restated Tax Benefits Preservation Plan, between The PMI Group and American Stock Transfer & Trust Company, LLC, as rights agent, which amends and restates The PMI Group's original Tax Benefits Preservation Plan entered into between The PMI Group and the rights agent on August 12, 2010.

The amendments:
extend the final expiration date from August 11, 2011 under the original plan to February 16, 2014 under the amended plan;provide that the amended plan will expire if The PMI Group's Board of Directors determines that a limitation on the use of tax benefits under Section 382 of the Internal Revenue Code would no longer be material to The PMI Group; provide that the amended plan will expire on August 11, 2011 if stockholder approval of the amended plan has not been received before such time; andprovide that The PMI Group's Board of Directors will consider at least annually whether to permit the amended plan to expire.

All of the other terms of the amended plan remain the same as the original plan.  The amended plan will be submitted to The PMI Group's stockholders for approval at The PMI Group's 2011 annual meeting.
Additional information regarding the amended plan will be contained in a Form 8-K and in a Registration Statement on Form 8-A/A that The PMI Group is filing with the Securities and Exchange Commission.


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U.K. Inflation As Expected, Sterling Under Crowded Selling

The U.K.'s Office for National Statistics earlier released the Consumer Price Index for last month.  According to the statement, month-on-month, the CPI fell to 0.1%, matching the forecasts by a consensus of analysts, and well off last month's 1% rise.  As compared to the same period a year ago, however, data shows that the CPI rose to 4% from January 2009 3.7%, slightly off analysts' forecast of 4.1%.  Using the CPI as a gauge of inflation, at 4.0%, the inflation rate is now double the Bank of England's 2% target, and is now the highest it's been in more than two years.

The data calls into question the Bank of England's commitment to keep interest rates at their historically low .5%.  Their concern is that raising interest rates now could further jeopardize their already fragile economy, and make full recovery even more difficult to achieve.  The U.K. central bank has been relying on the argument that one-off fundamentals were driving inflation.  One of those "one-off" includes a hike in the Value Added Tax, which went into effect on January 4th.  One economist concurs that the January CPI figures are "tricky" and may in fact have been affected by the recently implemented tax changes.

Nonetheless, this recent data calls the Bank of England's assertion and commitment into question.  Growing pressure on prices are leading investors to the inexorable conclusion that the central bank may have no choice but to consider a rate increase, at a minimum of 25 basis points, as soon as May.

While some market players said that the expected inflationary pressures were already factored into market prices, the Pound Sterling slipped broadly, nonetheless.  Currently, the Pound Sterling is trending lower against major currencies, and trading against the U.S. Dollar at 1.6020; on the eToro trading floor, among traders of GBP/USD the sentiment is bullish with a ratio of 6 to 5 in favor of selling.  The Pound is also lower against the Euro; EUR/GBP is at .8438 and on the eToro trading floor, the sentiment is bullish with a ratio of 2 to 4 in favor of selling.  Against the Japanese Yen, the Pound Sterling is 133.9241; on the eToro trading floor, among traders of GBP/JPY the sentiment is bullish with a ratio of 3 to 2 in favor of buying.

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IT-BPO Sector To Grow 19 Percent In FY11: Nasscom

Despite an uncertain global economic environment, the Indian IT-BPO industry is estimated to have grown 19 percent, with revenues of $76 billion in 2010,11, software industry body National Association of Software & Services Companies (Nasscom) said on Wednesday.

The industry has once again exhibited buoyancy and maturity, reflected through a strong customer demand, it said.

"Pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first time buyers, and re-invented value proposition for existing customers, were the key drives for the industry performance," Nasscom president Som Mittal said in a statement.

Exports continued to be the mainstay of the industry with revenues of $59 billion, growing at 18.7 percent, while the domestic market witnessed steady growth of 16 percent.

For FY12, the software and services growth is expected to grow at 16-18 percent with $68-70 billion in revenues. The domestic market is estimated to grow by 15-17 percent with revenues of Rs 90,000-92,000 crore.

"Domain expertise, process excellence, the ability to leverage technology to enhance operating efficiencies, greater scalability are becoming paramount in ensuring the long-term success of the global sourcing model and a major differentiating factor among countries. India is a front runner in imbibing these multipliers into its value proposition." Mittal said.

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Centene Helping To Lead The Health Insurance Sector Higher

While most of the major sectors are showing only modest moves in morning trading on Tuesday, considerable strength has emerged among health insurance stocks. Centene (CNC) is helping to lead the sector higher after reporting better than expected fourth quarter earnings.

Reflecting the strength in the health insurance sector, the Morgan Stanley Healthcare Payor Index is currently up by 1.7 percent. The index is poised to end the session at a three-month closing.

Health insurer Centene is currently up by 6.1 percent after reaching its best intraday in almost five years. The gain by Centene comes after the company reported fourth quarter earnings of $0.50 per share, exceeding analyst estimates for earnings of $0.48 per share.

For full year 2011, Centene said it expects earnings in a range of $2.00 to $2.10 per share on premium and service revenues in a range between $4.9 billion and $5.1 billion. Analysts expect earnings of $2.05 per share on revenues of $5.03 billion.

Molina Healthcare (MOH) is also turning in a strong performance on the day, rising by 3.4 percent. At its high for the session, Molina was at its best intraday level in well over two years.

Aetna (AET), Amerigroup (AGP), and WellCare Health Plans (WCG) are also posting notable gains, contributing to the strength in the health insurance sector.

On the other hand, shares of Coventry Health Care (CVH) are currently down by 3.7 percent after the company reported better than expected fourth quarter earnings but forecast full year 2011 results below expectations. Coventry is pulling back off the well over two year high it set on Monday.

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Canadian Real Estate Explains Chinese Boom

Canada maintains no reserve ratio for banks;China requires a whopping 18.5%.
Wen Jiabao, the Chinese Premier, may have the economic quote of the year. After China’s central bank declared that it would raise the benchmark overnight interest rate by a quarter point, he commented, that “inflation expectations are more dire than inflation itself,” noting that while inflation is a concern, so too are investor expectations.

Thus far, in the non-emerging markets, it has been the fear of inflation – and not inflation itself – that is sending prices higher. In the emerging markets, at least in China, higher benchmark rates are intended to be a solution to ever rising prices in Chinese real estate. Some contend that this real estate market is indicative of a bubble, and that just like the United States, higher real estate will eventually lead to a pop.

Why the Chinese Market Won’t Pop?
To showcase this point, one country often forgotten in the world of investment will have to make a guest appearance. Canada, which may as well be an extension of the United States, neither suffered a massive real estate bubble, nor did it see any real decline in prices, even as its largest trading partner, the United States, crippled to a bursting bubble.

So what do the 2000 Canadian rise in home prices have to do with a 2010 rise in Chinese real estate prices? Not that much, but they do share a number of similarities.

Learning from Canada vs. the United States
At the height of the US real estate market, one out of four new loans was made to sub-prime borrowers. In Canada, that number hovered around 5 percent. In China, loans for property are difficult to obtain, even by the most creditworthy, and the closest China ever came to “sub-prime crisis” may have been US Treasury default fears following the Fannie and Freddie bailouts with unlimited lines of credit.

At the height of the US real estate bubble, the United States was shedding capital at roughly $50 billion per month in a growing trade deficit, while Canada enjoyed a positive trade balance all the way up to 2008. China has trade surpluses of roughly $200 billion per year, every year.

Canada maintains no reserve ratio for banks, while the US required 10% and China requires a whopping 18.5%, all the while hot money knows no difference between either China nor Canada. Both countries saw massive new foreign investment (Canada’s oil trusts and China’s consumer sector), and each country throughout its bubble had a zero or negative real interest rate policy. As for deleveraging, Chinese speculation is almost entirely in cash, where the United States, and even Canada, had at least some of their real estate runs due mostly to lending growth.

The Long Run
Is real estate a strong, pro-growth investment? No. Real estate is a boring, slowly rewarding, investment that is usually found in consumption, rather than production economies. However, with rates as low as they are, and inflation pushing higher, real estate is an attractive investment.

On the other hand, higher rates means borrowed money will have to find somewhere else to go. If this money finds itself in the stock markets, watch out. There isn’t a ceiling high enough to hold that explosion.


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Directbuy Offers Guidelines for Selecting Your Home Improvement Projects

Perhaps it's the innate pioneer spirit in all of us to build and mend our own home. Or maybe it's watching one too many 'Extreme Makeover' shows and thinking, 'that seemed simple enough.'  DirectBuy,  the leading members-only showroom and home design center, offers some helpful suggestions for deciding when to take on a home improvement project'or just leave it to the pros.

'To steal a line from Shakespeare, to thine own self be true,' said Sara Shragal, of DirectBuy. 'What that means is you have to be able to honestly assess your abilities, your temperament, your schedule and your standards. Are you able to do a job nearly as well as a professional? Can you accept that fact, from an aesthetic point of view? If you're satisfied with your answers, then you have to get the tools and materials you need to do the job.'

Perhaps the most challenging part of deciding whether or not to take on home improvement project is determining your skill level. If you're painting a room, it doesn't require a lot of skill and for materials you essentially need a brush or roller, bucket and some rags. Installing hardwoodflooring is another story. You'll probably need to have a power saw, sanders and nailers on hand and know how to competently use them.

Here are some basic guidelines or questions you need to ask before trying a home improvement project:
        Do you have the skill set needed to take on the project? BE HONEST!
        Do you have the tools needed for the project? If the project requires an expensive tool that you may never use again, you may want to rethink doing it yourself.
        Do you have the installation instructions and, most importantly, do you understand them?
If you answered 'yes' to those questions, you then need to make a further personal assessment on how the project will affect your life, both while undertaking the project and afterwards. For example:
        Do you have the time and patience to undertake this project? Guesstimate the time you think the project should take and then double it. If you can live with that, go forward.
        How will the project affect your family? Will you be done in a matter of hours, or will your family have to move around your project?
        Finally, what are your aesthetic standards? Can you live with 'good enough,' or do you want perfection?

The last thing you want to do is take on a home improvement project and then have to call in a professional because you didn't like the results.

If you answered affirmatively to the above questions, DirectBuy can help you get the materials and tools you need for any do-it-yourself project'e.g. nailers, sanders, painting supplies, flooring, tiling, and more'all at prices direct from the manufacturers and their authorized suppliers. DirectBuy also employs product specialists and designers, so if a project is a bit out of your skill level or you don't have the time, you have professionals at your service who can get the job done.


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Interview with Boris Schlossberg: “Risk control is EVERYTHING”

Today, we bring you an interview with Boris Schlossberg, director of currency research at GFT Forex, co-founder of BK Forex Advisors, and co-contributor to FX360. He is also a weekly contributor to CNBC’s Squawk Box and a regular commentator for Bloomberg radio and television. His daily currency research is widely quoted and appears in numerous newspapers worldwide. He is the author of Technical Analysis of the Currency Market (2006) and Millionaire Traders (2007). Below, Mr. Schlossberg shares his thoughts on risk management, leverage, currency wars, and other assorted topics.

Forex Blog: Can you briefly explain your approach to analyzing the forex markets. Do you prefer technical or fundamental analysis, or a combination of both?

I am primarily a fundamentally driven trader but I use price action to inform my trades as well, Specifically I focus on price action around the 00 levels to see if there is support/resistance there.

Forex Blog: How is your experiment to ignore real-time P&L going? Have you found that it has confirmed your belief in the Heisenberg principle and led to increased success in trading?

I have not had much of a chance to pursue that yet given the holidays, but I think just writing about the phenomena helped me to feel less pressured about the intra-day swing in my P&L.

Forex Blog: I was intrigued by your assertion that over the long-term, the tortoise may beat the hare in forex trading. What are the practical implications of this notion? Do you think it supports using fundamental analysis and adopting a more long-term approach to trading?

No the key is that risk control is EVERYTHING. As long as you can contain your losses, if you hang around the market long enough you will be able to catch positive swings regardless of whether you trade fundamentally or technically.

Forex Blog: When the Euro rallied in the beginning of the summer, a number of forex commentators (myself included) declared a paradigm shift, whereby investors would stop worrying about risk and instead focus on the fundamentals. Ultimately, this shift never materialized, and the Euro appears to have resumed its decline. What is your assessment of the Euro’s recent performance, and what can we expect for the immediate future?

Everybody hates the euro and there are certainly many reasons to do so, but I think that China will no allow the EZ to fracture and if that’s the case then euro may have a chance to bounce in 2011. My favorite way to play that is long EURGBP.

Forex Blog: You blogged recently about an encounter with an aspiring forex trader, in which you advised him to “There is only one way [to succeed in forex trading]. You open an account and just trade.” That being said, are there any practical tips that you can offer to novice forex traders?

There is no substitute for experience. They say you need 10,000 hours of practice to master a skill and I think that’s a fair metric to use.

Forex Blog:  It has been said that the Fed is caught in a lose-lose situation, whereby its QE2 will fail and the US economy will drift back into recession or it will succeed in invigorating the economy and stoking inflation. Do you share this interpretation?

No. There is deflation in US – not inflation. The Fed is doing is the only thing it can and so far it appears to have helped the economy.

Forex Blog: I agree with your assessment that high levels of dangerous leverage (~50:1) are a recipe for disaster. Do you support the recent regulatory changes that effectively cap the maximum amount of leverage on forex trades? Is there a general level of leverage that you think is acceptable, or is it specific to each trade?

Yes I agree with regulation. I myself trade with 3:1 leverage and never exceed 10:1.

Forex Blog: As you pointed out, “The Psychology of Round Numbers” is a phenomenon that is observable on all aspects of life in which numbers are involved. As far as forex is concerned, have you observed that round numbers are almost always a source of either support or resistance? How can traders predict whether a currency pair will stop at a given (round number) level or surge through?

If we could predict that with certainty we would never have to work again . That having been said I watch those levels very carefully and I see them at play every single day both as magnets for stop runs and as targets for turn trades against the trend.

Forex Blog: A discussion of the major themes in forex markets wouldn’t be complete without mentioning the ongoing currency wars. First of all, do you think that the label “currency war” is fair? Do you think that most countries’ Central Banks will continue to intervene on behalf of their respective currencies, and do you think they will succeed in  preventing them from rising further?

I think intervention is much more ingrained in Asia where export driven economies depend on low exchange rates. In the long run its a horrible strategy because it will inevitably lead to anti-competitive behavior. (Look how well Germany, Switzerland and Netherlands perform despite high exchange rates).

Forex Blog: What is your advice for (forex) investors that want to beat the market during these uncertain times?

Focus on one strategy that you are comfortable with and refine it continuously.

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The Economy Remains the Main Concern Around the World, Shaping 2011 New Year's Resolutions

The economy remains the number one priority on the global stage.  More than half of participants in a new global survey by Survey Sampling International (SSI) cite "improving the economy" as the most important issue to tackle in 2011.  Members of SSI's online research panels in 8 countries chose the economy as their top concern from a list of 8 issues, including reforming healthcare, preserving the environment, preventing terrorism, reforming education, monitoring the food industry, improving relations with other countries and preparing for natural disasters.  Respondents from Japan (71%) and the US (70%) are most focused on today's economic challenges.

Germany is the only country where respondents do not see the economy as the primary issue for their government to address.  More than a quarter of German respondents say that "reforming healthcare" should be the government's chief concern.  Australian respondents also are worried about healthcare, splitting their votes fairly evenly between the economy (34 %) and healthcare (31%).

SSI's findings are based on an Internet study of 4,000+ adults on its online panels.  Countries covered include the US, UK, Germany, France, Japan, Australia, China, and Singapore.  SSI offers extensive worldwide reach to support survey research through SSI Dynamix™, its dynamic sampling platform that links to its proprietary online panels, as well as Web sites, social media, affiliate partnerships and more.

Economic Worries Shape New Year's Resolutions
Survey participants' economic fears are reflected in their New Year's resolutions.  "Improving financial situation" is among the top-two resolutions globally.  Around the world, 40% of respondents are resolving to improve their financial situations in 2011.  The sole exception is Japan, where only a quarter of panelists are focusing their resolutions on financial issues.

Although the economy is on almost everyone's mind, it is not the only concern driving New Year's resolutions.  In the US, UK, Germany, France and Australia, "losing weight" is as likely to be the top resolution as "improving financial situation."  "Developing a healthy habit" and "getting organized" also are top choices for New Year's resolutions around the globe.

People Remain Optimistic Despite Economic Concerns
Although economic worries linger, people across the globe are optimistic when looking forward to 2011.  More than twice as many respondents expect to be "much or somewhat better off" next year than those who anticipate being "much or somewhat worse off."

Chinese and Singaporean respondents are most optimistic about their prospects, with 77% and 65% of respondents respectively believing their financial pictures will improve in 2011.  In contrast, France and Japan have the highest levels of pessimism, with 29% and 32% respectively expecting declines in their financial situations and less than a quarter anticipating improvement.  UK respondents are evenly split between economic optimists (29%) and pessimists (32%).

Less than Half of Respondents in Many Countries Plan on Making Major Purchases
Although there is general optimism in most countries, respondents still are not ready to plan for major purchases.  Less than half of the respondents in the US (43%), Germany (43%), France (47%), UK (48%) and Japan (48%) say that they will buy a computer, flat screen TV, car, boat or home in 2011.
The picture is far brighter in China, where 85% of respondents plan a major purchase in 2011 and Singapore, where 73% are looking forward to buying big ticket items.  The financial optimism among respondents in these countries appears to be translating into purchase plans, perhaps due to the perceived need for technology items, such as laptops.

About Survey Sampling International
Survey Sampling International (www.surveysampling.com) is the premier global provider of sampling solutions for survey research.  SSI reaches respondents in 72 countries via Internet, telephone and mobile/wireless.  Client services include questionnaire design consultation, programming and hosting, and data processing.  SSI serves more than 2,000 clients, including 48 of the top 50 research organizations. Founded in 1977, SSI has 17 offices in 15 countries.

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Hennessy Advisors, Inc. Announces Annual Earnings of $0.16 Per Share

Hennessy Advisors, Inc. (OTC Bulletin Board: HNNA) today announced fully diluted earnings per share for Hennessy Advisors, Inc. of $0.16 for the fiscal year ended September 30, 2010. Earnings increased over 633% versus the prior fiscal year, which were a loss of $(0.03) per share.  The increase in earnings is attributable to assets under management as well as a reduction in fixed costs.  While total assets under management decreased slightly from the beginning of fiscal year 2010 to the end ($923 million on Sept. 30, 2009 to $892 million on Sept. 30, 2010), the average level of assets during the entire year was $903 million.  By comparison, during fiscal year 2009 assets averaged $713 million over the entire year.

"We are very pleased to announce that the company has returned to profitability, with strong earnings for fiscal 2010 following a small loss per share in 2009," said Neil Hennessy, President, Chairman and CEO of Hennessy Advisors, Inc.  "Our balance sheet remains strong, we continued to pay our annual dividend and we initiated a stock buyback program this year," he added.

"Hennessy Advisors is made up of a strong team of professionals who work together for the common goal of serving our long-term shareholders. We will continue to build on past successes, seek acquisitions and pursue strategic marketing and sales opportunities," said Mr. Hennessy.


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The Committee to Enhance ITEX Reminds Shareholders to Vote for its Three Highly-Qualified Nominees for Election to ITEX's Board

Committee to Enhance ITEX reminds shareholders that there is still time to vote for the Committee's three highly-qualified independent director nominees for election to the Board of Directors of ITEX Corporation ("ITEX") at the annual meeting of shareholders which is being held on Friday, December 10, 2010. The Committee's three director nominees are Dr. Wayne P. Jones, Alnesh Mohan, and Sidd Pagidipati
David Polonitza, Chairman of the Committee, commented: "Members of the Committee have made significant purchases of ITEX's stock over the past five years and seek to gain side-by-side with all shareholders by implementing our plan. In order to help ensure that our plan to maximize shareholder value, including addressing ITEX's significant governance concerns, is implemented, it is imperative that all three of the Committee's nominees are elected."

"As ISS/Riskmetrics has recommended that shareholders only vote on the GOLD proxy card, we encourage shareholders to support all three of our highly qualified nominees for the benefit of all shareholders, franchisees and employees. We would appreciate your support in this critical moment in ITEX's history. Ultimately, on December 10th, the decision of changing board leadership will be yours, the shareholders of the company."


VOTE THE GOLD PROXY CARD TODAY
The Committee urges shareholders to vote the GOLD proxy card and NOT to sign any white proxy card sent to you by ITEX. Even if you have sent a white proxy card to ITEX, you have every right to change your vote. You may revoke that proxy and vote FOR the Committee's nominees – Dr. Wayne P. Jones, Alnesh Mohan, and Sidd Pagidipati – by signing, dating and mailing a later dated GOLD proxy card.

Your vote is important, no matter how many or how few shares you own. If you have any questions or need any assistance voting your shares, please do not hesitate to contact the Committee's proxy solicitor, InvestorCom, Inc., by toll-free telephone at 877-972-0090, or by e-mail at enhanceitex@investor-com.com.

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Seagate Leading Hardware Sector Lower After Ending Going Private Talks

Computer hardware stocks are seeing considerable weakness during trading on Tuesday, with Seagate Technology (STX) leading the sector lower after announcing that it has terminated discussions with private equity firms regarding a going private transaction.
The weakness among computer hardware stocks is reflected by the 1.5 percent loss currently being shown by the NYSE Arca Computer Hardware Index. Despite the loss, the index remains well off the one-month intraday low it set two weeks ago.
Seagate Technology is turning in one of the sector's worst performances, with the hard disk drive maker currently down by 2.9 percent. At its low for the session, Seagate was at its worst intraday level in well over a month.
The loss by Seagate comes after the company ended the going private talks, saying that the indications of the valuation range were not in the best interest of the company and its shareholders.
The company also said that its board has authorized the repurchase up to an additional $2 billion worth of its outstanding ordinary shares. Seagate said the repurchase authorization reflects its continued commitment to enhancing shareholder value.
Shares of Dell (DELL) have also come under pressure on the day, falling by 2.7 percent. With the loss, the computer maker hits its worst intraday level in almost two months earlier in the session.
Lexmark (LXK), Apple (AAPL), and NetApp (NTAP) are also posting notable losses, contributing to the weakness in the sector.
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