SanDisk to Buy Fusion-IO to Capture the Flash-Based SSD Market


SanDisk Corp. is all set to buy Fusion-io Inc. for a whopping $1.6 billion. SanDisk is famous for supplying flash storage drive to business customers. To make a much-felt presence in this domain, SanDisk has decided to acquire Fusion-io.

Analyst Steven Fox wrote, “SanDisk was already positioning the company as more of an enterprise storage company … what the Fusion-io deal does is it enhances that significantly.” SanDisk manufactures flash storage drives. The company recently developing solid-state drives using its chips.

The biggest advantage of solid-state drives is speed. SSDs are faster than conventional hard-disk drives. Other advantages are environment-friendliness and better shock resistance. Acquisition of Fusion-io would be marked as a big chip making giant acknowledging a small company’s expertise in a specified field. Fusion-io’s expertise could boost SanDisk’s ongoing effort to move to vertical integration of storage.

Fusion-io employed Steve Wozniak, co-founder of Apple as the company’s chief scientist. The company is specialized in high-end solid-state storage technology. SSD is yet to become all-pervasive in the data storage industry. For that reason Fusion-io’s clientele is not long enough; the clientele, however, includes Facebook and Apple.

The trend of using flash-based SSDs for enterprise storage is gradually increasing. In 2013, almost 4.4 million flash-based solid-state drivers were purchased by corporations. The figure could increase 39% every year till 2018. Thus, the market for flash SSDs is just getting ready. Considering this, Steven Fox said, “It’s leading edge. It’s a question of someone being able to harness that … and drive it to profitability.”

SanDisk has earned a name for providing flash memory storage solution.

SanDisk’s consumer electronics products like pen drive, external hard disks, MicroSD cards, USB flash drives are market leaders. Its competitors are Samsung Electronics, Kingston, etc. In the enterprise storage market, the company doesn’t have a strong presence. With the acquisition of Fusion-io, however, it’s going to change. SanDisk CEO Sanjay Mehrotra indicated this by saying, “SanDisk will have the broadest enterprise flash solution portfolio in the industry.”

After the news of the acquisition broke, Fusion-io’s share price saw an increase of 22%. The stock is now being traded at $11.36. SanDisk Corp. is on the other hand trading at $102 after 3.58% increase.


Fixed Mortgage Rates are lower than the Previous Year


Good news for US housing industry. Data released by Freddie Mac shows fixed mortgage rates are lower for the first time in 12 months. A week ago, 30 years fixed rate average was 4.17%. Today, it comes down to 4.14% with an average of 0.5 points from previous year’s 4.46%.

Interestingly, mortgage rate was 4.12% at the end of last month. So the rate is definitely not at its lowest point in this year. However, it’s the first time since June 2013 that 30 years fixed rate is below from what it was a year ago. A year back, mortgage rates rose above 4 percent because of Federal Reserve’s decision to attenuate its bond-buying program. The rise above 4 percent happened last time in 2011.

In the housing market, there are two types of customers. The first type of customers looks for standard and long-term loan. For them, the interest rate for 30 years fixed rate home loan would be 4.125%. The annual percentage rate would be 4.15. The second type of customers is those, who look for mortgage option and want shorter and inexpensive home loans. Banks offer them 15 year fixed rate mortgage plans at an interest rate of 3.25%. The annual percentage rate yield would be 3.31%.

It should be mentioned that 30 years the fixed rate has come down 38 basis points since January and 15 years the fixed rate has come down 33 basis points since the same time period. Frank Nothaft, the vice president of Freddie Mac said, “Mortgage rates were down following the release of first quarter real GDP final estimate, which fell at a 2.9 percent annualized rate, a steeper than expected decline and the worst reading since the first quarter of 2009.”

Hybrid adjustable rate mortgages too fell headlong. Five years ARM average fell to 2.98% with an average 0.3 point. A week back, the ARM average was 3% and a year ago it was 3.08%. Henceforth, this is the fourth time in this year when five year ARM rate is less than 3%.

As for the one year ARM average, the rate has slumped to 2.4% with an average 0.4 point. A week back, the rate was 2.41%.


US Stock Market Ended on Monday with Mixed Results

US Stock Market

Continuing unrest in Iraq has caused US stocks on Monday to finish with mixed economic data. Stocks ended on Monday being marginally lower. The S&P 500 and Dow Jones Industrial Average went up after making decent gains for six consecutive days. At the beginning of the day, the equity indices were low, for the rest of the day, they were in the narrow range. S&P 500 attempted to gain back its flatline after its opening but failed.

The loss made by the Dow Jones Industrial Average was 9.82 points. This was a loss of 0.06%. It stood at 16 937.26. The broad-based S&P 500 fell 0.01% and stood at 1962.61 with a loss of 0.26. The Nasdaq Composite Index stood at 4368.68 after losing 0.64 or 0.01%.

The trend was such that selective industries like consumer staples and healthcare stocks slumped. This caused a pressure on the market throughout the session. The stocks which made gains were mostly technology and energy-related. Price of oil prices dropped because of turbulence in Iraq. However, some investors are bullish that situation in Iraq will improve and US Secretary of State John Kerry’s visit to Iraq sufficed to their optimism.

The price of Oracle rose 0.7% as the company announced it was purchasing its rival Micro Systems for whopping $5.3 billion. The deal is to foster Oracle’s presence in the hospitality sector. Micro’s existing clientele is full of casinos, restaurants, hotel and retail chain companies. Oracle is currently being traded at $41.10, which is almost 70% more than the previous closing.

In the energy sector too, there was news of the acquisition. Utility Wisconsin Energy said it was in the process of buying Integrys Energy Group for $9.1 billion. The utility wants to be a power giant in the Midwest of the United States where there’s increasing demand for power. After the announcement, Integrys stock price went up 12.1%.

Interestingly, good news came from China. HSBC PMI index for China stood at 50.8 in June. Last month, it was 49.4. A reading of more than 50.0 indicates growth and expansion. This brings good news for export industries of US and Europe as China is world’s largest importer of raw materials and related commodities.


Recovering US Housing Starts Fell Short of Estimation

housing market

The US housing market has been slowly recovering for last few months. But between the months of April and May, housing starts fell 6.5% to a seasonally adjusted annual rate of 1,001,000. The revised April estimate was 1,071,000. The rate, however, is 9.4% more than May 2013 rate of 915000.

With this steep decline, the housing market in US heads to the opposite direction of growth. The decline, however, is not unidimensional. Variations can be observed across regions and construction types. For example, single-family housing starts were at a rate of 619,000 which was down 5.9% from the April estimate of 664000. Multi-Family housing starts, on the other hand, fell 7.6%.

The market doesn’t at all look bullish because it fails in building permit approval also. Approval application for new buildings is a reliable indicator of future growth. The report from US Department of Commerce shows private housing unit authorization in May stood at a seasonally adjusted rate of 991,000 which was 6.4% below the April estimation of 1,059,000 and 1.9% less than May 2013 estimation of 1,010,000.

Housing completion rate is positive. The completion rate was 897,000, which was up 6.8% from April estimation of 840,000. May 2013 estimation of housing completion was 719,000. May completions were above 24.8% from previous year. Single-family completions were up 2.1% from April estimation of 605,000 and multiple unit building completions were at a rate of 269,000, up 16.4% from April estimation of 231,000.

The data points out the housing market is still far away from complete recovery. Economist Jim O’Sullivan has rightly said, “Housing has yet to establish clear upward momentum again.” The Federal Reserve is currently busy in a two-day meeting. The meeting started on Tuesday and will end with the newest decision of policymakers on economic projection.

But some economists don’t think the downturn could be handled effectively in a short time. Economist Diane Swonk said, “the housing market, in particular, remains a question mark as it is not able to gain the traction the Fed expected to see by this time in the economic cycle.”

The builders are however optimistic. They believe the housing market is currently just one level below stability and will improve in the future.


Bad Credit – Not to Worry As Loans Are Now Easy


Bad credit loans are specifically designed for people who have a poor credit history. Often people are turned down repeatedly for loans by many banks and different financial corporations. In these circumstances, unsecured dangerous credit loans will lead to people borrowing through specialist monetary establishments and authorized lenders.

Bad credit loans

People often end up in a financially difficult position, which leads to their inability to pay consistent debt repayments on in agreement due dates. This may cause payment arrears or bankruptcy that is all eventually recorded on the concerned person’s credit file. These are crucial in consideration by the finance corporations, banks etc. once when applying for loans.

Bad credit loans lenders offer varied styles of borrowing. These embody dangerous credit loans with no credit check and dangerous credit loans with no fees. These sorts of borrowing are often extremely advantageous for those that are in financial troubles. Aside from getting a loan, the power to try to do can even facilitate to repair a poor credit record providing the repayments are paid on time.

A loan with a guarantee

Another form of borrowing that’s on the market from specialist corporations is termed ‘bad credit loans no guarantor’. This essentially means you will have a sort of nominee who will be willing to fulfil the repayments if you fail to pay it yourself under some circumstances. However, you should have somebody who will be willing enough to be as a guarantor then it should increase your possibilities of having the ability to get the loan called ‘bad credit loans secured approval’.

Several finance corporations operate online through their own websites. This implies that it’s usually okay to want a bad credit loan to borrow some money up to a restricted quantity in the time of dire need. To borrow a lot of money, you will want a guarantor, and it’s sometimes helpful if that person is a landlord as this could mean that you will be able to receive higher amounts as your loan amount.

What should you do?

If you are considering applying for any of these above-mentioned options, then there some rules to follow. Necessities like you must be eighteen years or older, you must show a gradual financial gain and you must have a checking account should be taken care of.

Some financial institutions allow the borrowers to deal online in order so that the borrowers can do all the transactions from the comforts of their home. The corporate can then act on your behalf by sourcing finance that’s applicable to your scenario and your ability to repay the loan. Once you meet the standards set by the loaner and prove that you can pay the repayments, you will be ready to gain approval in only a matter of minutes.

The final word

Several people might have failed in their planning or meet certain misfortune resulting in the dire need of some money, these circumstances can get out of hand very fast.  People have to meet their daily expenses and it is hard particularly if they have their families to support. It’s thus a comforting thought that there are still ways in which you can get a loan even if your credit history is really bad.