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Geppe has a passion for investing in the equity market. Geppe's equity research target any sector that fulfill certain criterias for investments. Geppe likes to find distressed equities which in the most optimal case have both a margin of safety in the valuation and products that have a durable... More
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  • Amazon - The Expanding Bubble

    Amazon (NASDAQ:AMZN) sells digital content and merchandise to consumers with no durable competitive advantage. It might have efficient supply chain and personnel but certainly not a competitive advantage. In the end there is little profitability in this business and this is probably one of the reasons that detracts competition until the course is set for profitability which at that point is usually too late to enter the market. Secondly, it seems irrational to believe that any competitor could not do it any better than Amazon or at least as good as Amazon is currently doing its business. Amazon do not have any patent or technology superiority that will be enable them to repel competitors. Competitors will however have to work with the trust that Amazon provides to consumers. This barrier of entry can easily be breached by a few scandals or by more competitors' entering the market.

    Let's have a look at Amazon's financial statements that I have compiled......

    Read more @ Hunt For Value

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Tags: AMZN, short-ideas
    Jul 23 10:45 AM | Link | Comment!
  • Metals Face Large Pressure From China

    Weak demand from china and rising costs in the business have hit the commodity business hard lately. Particularly Iron ore and Copper where China consume 40 % and 66 % of worldwide consumption according to Rio Tinto estimates. The question is whether Chinese banks faces a long term issue through bad loans, as property prices and leverage levels reach all time highs. As more banks are willing to lend with little assumed risk, the banks happily support the bubble until manufacturing and volatility in demand declines from western countries which could lead to the default of banks. This would spur a tsunami in the Chinese banking market. Just one of the banks have to fail to set off an economic avalanche because other banks often give out insurances as securities or other instruments in case the banks default. This could cause a systemic shutdown of lending to banks and thus consumers until government has implemented a way out of the crisis. Also I see the high lending ratio to GDP to produce artificial real estate prices, which as noticed now by many will lead to government intervention as in form of increased lending restrictions by banks. This should tamper consumption demand. All of these factors put pressure on commodities and should do for some quarters ahead.

    From the corporate side, we have seen many significant developments.............

    Read further @ Hunt For Value

    Jul 17 11:45 PM | Link | Comment!
  • The Catalysts Of Survival In The Steel Industry

    The million dollar question in the steel industry now is, how do you survive?. A) Liquidity B) Innovation C) Restructuring , no this is not a quiz, all of these are keys for survival by my understanding. Companies discussed are Outokumpu(OTC:OUTKF) Thyssenkrupp(OTC:TYEKY) POSCO(NYSE:PKX) SSAB(OTC:SSAAF) Salzgitter(SZGBY) Arcelor mittal(NYSE:MT) & (NYSE:X) .

    Read this article @ Hunt For Value

    Jul 17 12:26 PM | Link | Comment!
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