Friday, February 16, 2018

James Grant And Nouriel Roubini

Monday, November 13, 2017

GE Cuts Its Dividend and Its Stock Price Drops 7 1/2 %

GE has been much in the news.  It announced that it would cut its dividend in half.  While that would seem to have been much anticipated, the stock nevertheless dropped seven and a half percent.  Thomas Gryta reports in the Wall Street Journal:

"General Electric Cuts Dividend by Half and Slashes Profit Goals
Industrial giant to revamp board as new CEO pursues restructuring"

New SEC rules will make GE look worse still according to Tomi Kilgore on Market Watch,
"GE’s stock suffers worst day in 8 1/2-years after transformation plan unveiled," Nov 13, 2017

Thursday, October 19, 2017

What Happens to Tesla, If It Can Not Produce a Half Million Electric Cars Next Year?

In the Wall Street Journal (10/6/2017), we fin that "Tesla Needs to Pick Up the Pace of Production:" 7:00AM

Tesla's super automated car factory had to finish its cars by hand.  It produced 70% less than target. Elon Musk's electric-car company fell short of its third-quarter production goals. Is it too ambitious?

Monday, October 09, 2017

Is Amazon Vulnerable?

Amazon is the FENG Powerhouse. To avoid a regulatory crackdown, NYU's Scott Galloway says the e-commerce giant must take this defensive measure.

What is The Millennials' Biggest Investment Mistake?

Liz Ann Sonders of Charles Schwab speaks to Barrons about "The Biggest Mistake Millennial Investors Make." Gunshy from two grand bear markets, they fail to see that a market crash is not their only risk. Here's how to protect against other risks as well:

Tuesday, October 03, 2017

Sam Sdams Makes a Comeback

Barrons: "A New Twist for Boston Beer," 10/2/2017 8:11AM. After a 30-month slide, Boston Beer shares have staged a surprising turnaround.

Amazon Doesn't Want to Make Money

In Barrons: "What Amazon Will Destroy Next?"9/30/2017,NYU's Scott Galloway talks with Barron's about the future of Prime shopping, and why Netflix should be worried. Also, hope for Wal-Mart.  

There is a certain insanity about a firm that has a market capitalization of $460 billion and does its best not to make money.  What are investors valuing?

Saturday, August 19, 2017

Who Is Pro-Business? Steve Bannon or the Financial-Media-Tech Complex?

Steve Bannon has left the White House. Various ways can characterize it. He left as planned, he was ousted, Chief of Staff John Kelly is trying to create some order. 

Courtney Weaver and Shawn Daonnan write in the Financial Times, "Bannon goes on offensive after White House ousting." What they write exemplifies the disconnect between the elite and the reality on the ground. I will focus on one particular statement:

They characterize Mr. Bannon as having "clashed with pro-business moderates within the administration." The Goldman Sachs troika and their allies are "pro-business" only in the sense of being for large multi-nationals, investment bankers and their allies in the financial-media-tech complex that prospers at the expense of small businesses and ordinary Americans. 

The financial-media-tech complex destroys jobs, while the little guys have always been the source of 80% of America's job growth. Even here in Kansas, Republican Brownback subsidizes Amazon while the Seattle Goliath drives community building small books stores out of business

Why has job growth slowed? Why have we had the slowest economic recovery in a hundred years? The "reforms" of the last eight years have stifled the little guys while protecting the big guys. Is it any surprise we have had increased income inequality and slower growth? The elites get fatter, while Everyman and the community he or she lives in dies.

Thursday, July 13, 2017

How the iPhone Was Born: Inside Stories of Missteps and Triumphs

How the iPhone Was Born: WSJ 6/25/2017 9:00AM 

On the iPhone’s 10th birthday, former Apple executives Scott Forstall, Tony Fadell and Greg Christie recount the arduous process of turning Steve Jobs’s vision into one of the best-selling products ever made.