|Stock market soars to record high|
|Written by Clyde Noel|
|Wednesday, 13 March 2013|
The stock market set new highs every day last week, and there shouldn’t be any speed bumps in the near term.
Declining unemployment is a big sign of improvement in the U.S. economy. The unemployment rate fell to 7.7 percent, its lowest level since 2008, and the economy added 236,000 jobs.
The Dow hit a record high of 14,165 Oct. 9, 2007, but the market lost more than half its value within 15 months. Worries remain as the March 27 deadline looms – current funding for the federal government expires, raising the specter of another shutdown battle.
Investors have been buying into the market during this week’s rally. The recovering economy and loose monetary policy by central banks around the world have pushed U.S. stocks higher this year. With the market firmly in bullish territory and economic drivers pointing upward, experts advise investors to keep 95 to 98 percent of their equity positions in the market.
Two Town Crier “50” stocks in the news:
• Yahoo Inc. (YHOO; $22.70) gave President and CEO Marissa Mayer a $1.1 million bonus in addition to her $1.1 million salary and stock compensation worth $56 million.
The board and investors rewarded Mayer for the company’s stock performance during her first five months at the helm – the stock rose from $16.54 to $22.90, a 46 percent gain. The company has hired six CEOs in five years, and most have looked outward. Mayer has concentrated on fixing internal problems.
She recently put an end to Yahoo’s work-from-home option. Approximately 200 employees worked from home, leaving empty cubicles and parking spaces at the company’s Sunnyvale headquarters. Mayer wanted workers in the office.
Since Mayer took the reins, analysts have begun to jump on the Yahoo bandwagon, with numerous analysts upgrading the stock from a hold to a buy.
• Rambus Inc. (RMBS; $5.66) has transferred a portfolio of patent assets covering display technologies to a subsidiary of Acacia Research Corp.
Rambus received an initial upfront payment and is expected to receive subsequent payments.
“The transaction enables Rambus to deliver value to our shareholders while we focus our resources and investments in other areas,” said Ronald Black, Rambus president and CEO.
The Sunnyvale-based company, founded in 1990, engages in the creation, design, development and licensing of patented innovations, technologies and architecture to digital electronic products.
Rambus’ share price has ranged between a high of $150 in 2000 to a low of $3 in 2002, with a 4:1 split in June 2000. The share price in 2010 fluctuated between $20 and $24, giving the firm a market capitalization value of $2.5 billion.
The company has lived with continuous lawsuits that determine the market price. In the past 52 weeks, the stock price has ranged between $3.78 and $6.96.
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