Signup for our free newsletter:

The Comcast and NBC Universal Mega-Deal

Written By Brian Hicks

Posted December 5, 2009

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

Another dizzying week of ups and downs was capped with good news yesterday…

The unemployment rate unexpectedly fell to 10% in November — an encouraging sign that the labor market is near its bottom. The economy lost 11,000 jobs last month, bettering expectations for an expected 130,000 loss.

But there’s still a fear of higher unemployment as the economy struggles to find jobs for the 15 million people still looking for work.

In other news this week:

  • In a much-anticipated deal, Comcast and General Electric agreed to a venture that’d give Comcast control of NBC Universal. The deal — which values NBC Universal at $30 billion — will make Comcast a major force to be reckoned with in television and movie production and the Internet.

Comcast will reportedly put up $6.5 billion in cash and $7.25 billion in assets to buy a 51% stake of NBC Universal from GE, giving Comcast control of the NBC network Telemundo, dozens of cable channels like USA and The Weather Channel, sports networks, and Universal Networks, to name a few. It just has to pass regulatory hurdles before all is said and done.

Jay Leno may want to rethink his cable jokes.

  • Gold was exploding with upward momentum until Friday’s jobs number. But you may want to use this as a buying opportunity, as worldwide governments devalue currency, and pump their economies full of "out of thin air" liquidity. If you need further evidence that gold will rise, take a look at what China just announced or look at where our pummeled dollar is heading.

On Monday, China Youth Daily reported that a task force was set up to look at the issue of gold reserves. "We suggested that China’s gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years," the report quoted Ji Xiaonan, chairman of the supervisory board at the State-Owned Supervision and Administration Commission.

  • Bank of America (BAC) call options were under heavy demand as the bank announced it would repay taxpayers the $45 billion TARP investment. The bank is doing this ahead of schedule and is being viewed as a positive by the market. The move will also free the bank from government involvement in bonuses and hopefully lead to a new CEO. But don’t be so quick to buy BAC. Here’s why.

Electronic Arts (ERTS) drew some bearish action in puts. News is that Wal-Mart is cutting videogame prices, fueling the action. Look for further potential downside. Gamestop (GME) saw bearish action in the puts, as well, as investors questioned whether the Wal-Mart move would hurt Gamestop sales.

  • Speaking of options, be on the look out for Options Trading Coach. Expected to launch within weeks, we’ll show you how options can lead to explosive wealth in any market. Stay tuned.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week’s top-read articles from Wealth Daily and our sister publications, I’ve included them for you here.

What Dubai Means for U.S. Commercial Real Estate: "Delay and Pray" Can’t Continue For Long…
Wealth Daily‘s Ian Cooper takes a look at the potential Dubai impact on the U.S. commercial real estate market.

Top Bakken Stocks: Now Has Never Been An Easier Time to Profit
Wealth Daily reports: It’s no secret that the Bakken has been good to us. For the past several weeks, news has been pouring out of the area, as North Dakota has officially overtaken Louisiana’s spot as the fourth largest oil producer in the U.S. and the Bakken formation has been getting a lot more attention.

Climate Change Opportunities: The Truth About Climate Change Will Make You Rich
Green Chip Editor Jeff Siegel shares his thoughts on climate change investment opportunities…

Data Center Power Consumption: What’s Powering the Internet?
Energy & Capital Editor Nick Hodge discusses data center power consumption… and how reducing it can make investors a fortune.

Top Biotech Stocks: The Race for the Cure
Not only is this company working on the cure to one of the deadliest diseases know to man, it’s also following an enormously profitable trend in the biotech sector. Wealth Daily reveals this company in a new report.

Paulson Picks Citigroup Stock (NYSE:C): Buy, Sell or Hold: Citigroup Stock Rises From the Ashes
Wealth Daily Editor Steve Christ takes a fresh look at Citigroup Stock. Is Citi a buy, sell, or hold? Steve provides the answers.