MarketFoolery: 02.02.2011
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 2 February 2011
⏱️ 15 minutes
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Summary
Egypt’s stock market has been closed since last Thursday. So why were investors snapping up shares of a certain ETF on Monday? Google accuses Microsoft of copying its search results. Does Google have a legitimate gripe or is it a case of corporate whining? And who should Mattel shareholders thank for the latest batch of great quarterly earnings? Barbie, of course. Listen now and take our Barbie quiz. We promise you’ll never look at Barbie or Ken the same way again.
Transcript
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| 0:00.0 | It's Wednesday, February 2nd, and this is Market Flory. |
| 0:06.0 | I'm Chris Hill and joining me in studio today from Motley Fool Global Gaines, Tim Hanson, |
| 0:09.8 | from Income Investor James Early, and from Hidden Gems. |
| 0:14.0 | Guys, happy Groundhog Day. |
| 0:16.0 | Thank you, Chris. |
| 0:17.0 | We've got a slap fight between Google and Microsoft and we've got earnings from Mattel. |
| 0:21.0 | We'll get to those in a minute, but the violent conflict continues in Egypt, |
| 0:26.2 | and yet that hasn't stopped some investors from piling into the Market Vectors Egypt Index |
| 0:31.4 | EDF. |
| 0:32.4 | Wall Street's only publicly traded Egypt Fund. The fund was up 8% |
| 0:37.1 | yesterday on trading that was 80 times the normal volume. Tim Hanson, what in the world is going on here? |
| 0:44.4 | Well this is crazy in a lot of ways, but I will say that I agree with the sentiment |
| 0:51.0 | sort of behind this, which is that is that you know as Warren Buffett says |
| 0:54.0 | be greedy when others are fearful on the Egyptian stock market is down sharply |
| 0:58.2 | since these these protests and now riots began yet you know Egypt arguably has a lot of great assets including |
| 1:04.2 | probably the biggest blue chip toll booth asset in the world, the Suez Canal. |
| 1:08.0 | So there's some good fundamentals there to take advantage of on a dip. But the reason trading in this Egypt fund is crazy is because |
| 1:15.2 | the Egyptian stock market now has been closed for a week. So the Egypt E.T.F. is supposed to be tracking the underlying values of the stocks that are actually |
| 1:26.1 | trading in Egypt. |
| 1:27.4 | But those stocks aren't trading in Egypt, so the price that you're paying for the |
| 1:30.3 | E.J.T.F. is basically just being pulled out of thin air by the EDF |
| 1:34.9 | provider which means that you know when the Egyptian stock market does open |
... |
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