Buying Instagram Is A Good Move, Spending $1 Billion Isn't [View article]
Does Facebook even care about return on investment? Where is the return from this acquisition? Even this excuse of cutting out competition doesn't justify an entire year's worth of earnings. Also, Instagrams industry has virtually no barriers to entry. What if another player pops up.
This is a warning sign to people who are willing throw their capital at the Facebook IPO. Do you really think that Facebook is able to spend your money wisely and actually get a return?
Natural gas futures drop below $2 for the first time since Jan. 2002, as weak demand and robust production have sent prices sliding 33% YTD. While the number of working U.S. gas rigs has fallen 27% Y/Y, gas output remains high because most wells produce a mix of oil and gas regardless of classification; high oil prices thus often effectively subsidize the cost of continued gas production. [View news story]
Is there a defined correlation between natural gas prices and oil prices? This Market Current brings up an important point in regards to the subsidizing effects of high oil prices on natural gas prices.
George Soros once said markets have a way of predicting the future because they create it. The 10-year Treasury yield just dropped below 2% again, a near 30-point decline in a handful of sessions since the Fed minutes squashed expectations for imminent QE. Falling equities and bond yields since that moment may change some minds at the FOMC. [View news story]
This must have something to do with fears in regards to earnings.
What Do Reserve Currencies Mean To You And Your Portfolio? [View article]
I think the only thing I can conclude is that more and more people are getting out of the US dollar. People are going to have to put their money in one thing or another.
Stocks Battered By Economic Data, Spanish Bond Sale [View article]
Greece's economic state has received so much attention in the media not because of the potential losses from a national default, but its contagion effects on the larger euro zone countries. A Greek default will not be disastrous (although some French and German banks will suffer); it is its affect on bond yields which is disastrous. When Greece is under control, Portugal and the other big players will have their yields under control. Just like schatzl said, Portugal and Italy cannot be bailed out if their bond yields decide to skyrocket.
The Consumerist crowns Electronic Arts (EA) 2012's “worst company in America," based on results of 250K voters. EA tends to “nickel and dime consumers to death," the consumer affairs blog says, citing accusations that EA deliberately holds back game content “with the sole intent of charging a fee for it at a later date.” [View news story]
I wonder if other video game companies are implementing the same strategy.
The closed nature of the iPad and iPhone content may lead to problems in the future. This may relate to a restricted product range of apps when compared to the Android and Microsoft alternative. Although this may play out in the long term, it is still a weak reason to question Apple. There are far more important things to concern yourself about Apple.
One particularly important point that is mentioned in the "As an aside" section is AAPL's leverage to its latest product. There is no doubt that the release of the latest iPhone will either break or make the company. This company has been heavily de-risked due to its high earnings potential. Regardless of how well the older products are selling, it's all about the latest hot product.
This also highlights a very important point about tech stocks. It is no surprise that AAPL has such a large cash base. Tech companies must always been in the forefront of technology - they must produce the latest hot product. If a tech company fails to do so, they must acquire the hot product. Therefore, a giant reserve of cash is required in order safeguard a tech company from a bust product.
Buying Instagram Is A Good Move, Spending $1 Billion Isn't [View article]
This is a warning sign to people who are willing throw their capital at the Facebook IPO. Do you really think that Facebook is able to spend your money wisely and actually get a return?
Natural gas futures drop below $2 for the first time since Jan. 2002, as weak demand and robust production have sent prices sliding 33% YTD. While the number of working U.S. gas rigs has fallen 27% Y/Y, gas output remains high because most wells produce a mix of oil and gas regardless of classification; high oil prices thus often effectively subsidize the cost of continued gas production. [View news story]
Netflix Just Doesn't Get It [View article]
George Soros once said markets have a way of predicting the future because they create it. The 10-year Treasury yield just dropped below 2% again, a near 30-point decline in a handful of sessions since the Fed minutes squashed expectations for imminent QE. Falling equities and bond yields since that moment may change some minds at the FOMC. [View news story]
What Do Reserve Currencies Mean To You And Your Portfolio? [View article]
Why The ECB Expanded Its Balance Sheet By Over $1 Trillion In Less Than 9 Months [View article]
What Do Reserve Currencies Mean To You And Your Portfolio? [View article]
Facebook IPO Analysis: Thanks, But No Thanks [View article]
Jobs Data And The Recent Week In Perspective [View article]
Positioning A Portfolio For Rising Rates [View article]
Stocks Battered By Economic Data, Spanish Bond Sale [View article]
The Consumerist crowns Electronic Arts (EA) 2012's “worst company in America," based on results of 250K voters. EA tends to “nickel and dime consumers to death," the consumer affairs blog says, citing accusations that EA deliberately holds back game content “with the sole intent of charging a fee for it at a later date.” [View news story]
Stocks Battered By Economic Data, Spanish Bond Sale [View article]
What The Euro Has Done For Germany [View article]
Why I Now Dislike Apple [View article]
One particularly important point that is mentioned in the "As an aside" section is AAPL's leverage to its latest product. There is no doubt that the release of the latest iPhone will either break or make the company. This company has been heavily de-risked due to its high earnings potential. Regardless of how well the older products are selling, it's all about the latest hot product.
This also highlights a very important point about tech stocks. It is no surprise that AAPL has such a large cash base. Tech companies must always been in the forefront of technology - they must produce the latest hot product. If a tech company fails to do so, they must acquire the hot product. Therefore, a giant reserve of cash is required in order safeguard a tech company from a bust product.