The Finance Whisperer

OpenTable Trades at What??!

Ok. Maybe $105 / share isn't that much. But when you consider that OpenTable is trading at about 95 times the 2011 earnings estimates, that's a little crazy.

Don't get me wrong. I love OpenTable - if a restaurant that I want to dine in on a Saturday night isn't listed on OpenTable, chances are I won't go there (unless you want to make the reservation and treat me). But why are it's shares valued so high? Does its success point to an online startup bubble?

So if looking back at the dot-com bubble of the late 90's gets you worried, you may want to avoid OpenTable. Unless you want to make a reservation for this weekend.

-The Finance Whisperer

The Sky Might Not Be Falling - Part 2

In fact, the sky is less likely than it was in January to be falling - at least when it comes to the municipal bond market.

Despite facing its worst quarter since early 2000, savvy portfolio managers in the space know that now is as a good a time, if not better, to buy. The key, here, is avoiding non-rated issues, which pose the most risk when it comes to asset classes. These bonds, which are below investment grade, actually account for more than 85% of defaulted muni bonds.

When you do the math, a mere 0.44% of the $3 trillion muni market can be counted as investment grade bonds that are defaulted. So if muni's still have you running scared, I reserve the right to call you Chicken Little from here on out.

-The Finance Whisperer

Have You Filed your Tax Returns?

More importantly, did you cheat on this year's taxes? If you are single, male, and under 45, you may have.

A recent survey indicated that of the 15% of people who admit (admit being the keyword, here) to cheating on their taxes, the demographic is overwhelming comprised of young, single males.

Tax-cheaters other faults? Keeping the wrong change from a cashier, wearing an outfit and returning it to the store, and stealing from children. If you fit the description above and are currently swiping pennies from your child's piggy-bank, you may have a problem. Forget the IRS - you are going to have one angry child.

-The Finance Whisperer

Calculate your Way to One Million

Maybe you've passed the $1 million mark. Or maybe you think you'll never get there, what with prices of the Big Mac likely to surge. Either way, CNN Money makes it easy for you to figure out just how long it will take you to make a cool million.

By using their When Will You Be A Millionaire? calculator, you won't even have to be a finance or accounting wiz to plan out your retirement funds. And once you've saved up, the only question is how fast can you spend it?

-The Finance Whisperer

Did AT&T Just Form a Super Group?

Well, the AT&T - T-Mobile merger definitely formed a super carrier. By acquiring the 4th largest carrier in the U.S. market for $39 billion, AT&T moves up from the number 2 spot to be the single biggest mobile company in the country.

While this is proving to be good news for stocks in general - the three major indices surged on Monday - the merger may not be such good news for U.S. consumers. In fact, it seems to offer as many advantages as it does disadvantages. For example, while U.S. consumers will gain wireless coverage, they will face higher prices. And while T-Mobile users will get the iPhone, users of either carrier will have fewer choices overall.

As an AT&T user for the past 9 years, I'm waiting to pass judgment on the merger until it effects my coverage or my bill (let's hope it's the former). But let's hear from other AT&T and T-Mobile users. Verizon and Sprint users can comment, too, if they're feeling left out.

-The Finance Whisperer

Check out BrokerCheck

Earlier today, FINRA announced its expulsion of MICG Investment Management, a wealth management company that services the Mid-Atlantic region, for securities fraud. The firm's CEO was charged with, "misusing investors' funds."

As fraud continues to be an issue within wealth management, there has never been a better time to do your homework when it comes to investing. Luckily, you can check up on any FINRA-registered Broker Dealer / Institutional Brokerage by using BrokerCheck. This is a free service, so there is really no excuse not to take advantage of it.

Think about it: spend some time now doing your research, or let an institution wrongfully spend your money. It's your call.

-The Finance Whisperer

Happy Birthday Starbucks

Lordy, Lordy, Starbucks is 40! And since shares have surged by more than 45% over the past year and by more than 345% since 2008, Starbucks is celebrating. With a facelift.

I must say, this new look is definitely my favorite. Because 40's are definitely the new 30's, and because I love a good Peppermint White Chocolate Mocha at any time of year (even if they do taste better in the holiday cups), I'm willing to bet that 40 looks good on Starbucks.

-The Finance Whisperer

So You Think You Know HFT

Heavy Football Trainers? Hairy Fencing Teachers? No! High Frequency Trading. Although, to be honest, an article on Hairy Fencing Teachers may be slightly more interesting.

First off, what is HFT? A type of algorithmic trading, HFT is the practice of using computers to execute a large amount of trades, usually millions, in a small amount of time, usually microseconds.

Now, onto industry trends. Naturally, the area in which growth and trends would readily appear is the technology used in high frequency trading. As more and more trading continues to be done in this way, three of the most important factors to consider when it comes to HFT technology are speed, integrity and security. Almost sounds too simple, but think about it. If your firm is making millions of trades, you would want those trades to be executed in a better-than-timely manner - you want it done fast. And you probably can't afford to make a mistake when it comes to millions of trades - enter integrity. And you certainly can't afford any breaches of information - hello, security.

Simple as they may be, any technology or software that provides these three qualities also provides peace of mind. Well, about as much peace of mind as a trader can have, I guess.

-The Finance Whisperer

The Bond Market is Wearing its Rally Cap

According to today's Employment Situation Summary, U.S. unemployment dropped from 9.0% in January to 8.9% in February. For most inflation hawks, that's worrying. Usually, when more people are working, more people are spending. And while that may be the case, inflation still does not appear to be on the near horizon.

Why the subdued inflation fears? Because the bond market seems to be rallying today, showing lower rates despite the lower rate...of unemployment, that is. The rate on the 10-year note is now at 3.52%, down from yesterday's 3.58% and from February's high of 3.74%.

But this is only today. Many analysts predict that as jobs increase, bond rates will steadily approach the 4% mark, which make spark a new frenzy of inflation fears.

Now, let's not rehash the effect of QE2 on all this. Instead, let's hear some opinions. What do you think will happen over the next few months? Higher rates? More inflation? Leave your comments below.

-The Finance Whisperer

Want to Be an Asset Manager...for Libya?

Now that oil prices are soaring over $100 a barrel and rising, Libya might be in the market for an asset manager. The country has been playing with billions of dollars, thanks to their huge supply of crude oil, for quite some time. But today, they are considered one of the world's largest sovereign wealth funds with assets scattered across at least 3 continents.

But their strategy seems strange, investing large sums anywhere from U.S. banks to publishing houses to football teams to unstable African countries. Are they really "just getting used to the fact they have a lot of cash on hand to invest"? I mean, Juventus isn't even that good.

Any brilliant ideas as to why their investments have panned out this way?