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Nitin B. Sharma

 
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  • Brazil seeks to freeze Eike Batista's assets [View news story]
    What a fall. A lesson for the ages.
    Sep 14 12:59 AM | Likes Like |Link to Comment
  • Amidst Rising Debt, The Amazon CFO Quits [View instapost]
    Great note.
    Sep 8 05:54 PM | 1 Like Like |Link to Comment
  • Babak Parviz And Amazon's New Venture Into The Smartphone World [View article]
    agreed. rockstars get disrupted all the time. just coz a rockstar has been hired doesn't mean anything. success is teamwork, not individual names.
    Aug 11 10:46 PM | Likes Like |Link to Comment
  • Amazon's Battle With Hachette Has Negatively Impacted Income, But Those Costs Are Temporary [View article]
    Amazon wants to offer $9.99 prices for two reasons:

    (a) that's their value proposition. if customers even sniff a hint that there are other platforms, which offer the same book for a lower price (even if that other platform is loss-making), these customers will flock to those platforms. Amazon slowly sees its value prop of being the lowest cost provider of goods erode (already happening, by the way, in several product categories).

    (b) Second, once Amazon loses a customer, they lose other non-eBook revenues as well. This same customer who bought the book, would have also spent on other merchandizing on the Amazon site.

    So, losing a customer is a double whammy.

    Now, let's look at the publisher. What do they care about? The best price they can get from customers. Their goal is highest margin available for the "unique content" - can we blame them for that? The argument that there are cost savings on other fronts like no printing, etc. is not agreeable to me, because while there are no printing costs, the entire publishing industry has been democratized leading to heavier requirements on marketing investments ensuring that "original" content surfaces to the top on different marketing channels including social media, blogosphere, traditional outlets, etc. So, can't blame the publisher to "try" to bilk their potential customers either, right?

    What's the true end game? Amazon thinks they can drive lowest margins on products and succeed. And I predict Amazon will get crushed in every product category where they lead through price. There will always be a new VC fund ready to fund another niche startup, which does not fight on price, but attracts customers. And while startups are one fear, competitors like Netflix, Google, Microsoft with billions of dollars of cash pile, and billions of dollars of cash coming in through their core cash cows will continue to fight on price and become true loss-leaders in those categories and WIN.

    AWS margin hits are a true example of that. I am impressed the way Google crushed Amazon in the AWS price warfare (not because I want Amazon to lose, but because that's the right way to compete). Who could not have seen this coming? More importantly though, it was Amazon which had started AWS price war hoping it would win! Unbelievable.
    Jul 31 10:55 AM | Likes Like |Link to Comment
  • Amazon's Battle With Hachette Has Negatively Impacted Income, But Those Costs Are Temporary [View article]
    "Sam Walton believed in driving prices down as low as possible. The vision of low prices, rather than high ones, has often been at odds with short-term returns. In a world focused on returns by the quarter, higher prices create higher net income."

    A very, very generic statement. It all depends on the product, category, customer segment being targeted, marketing, packaging.

    The most valuable company in the world is not selling products at a loss or thin margins. They have 100% margins on their retail price for iPads.

    Low cost is one model. It is not the only one. I would argue that in eCommerce, the most successful companies will be the ones, which actually create a niche and sell quality products at an acceptable price for the targeted customer segment. The cost of customer acquisition for all the customers in the world is so high that it can never be profitable. And Amazon is an example of that.
    Jul 30 11:28 PM | Likes Like |Link to Comment
  • Alibaba invests $192M in top Chinese soccer team [View news story]
    reeks of problems.
    Jun 5 02:46 PM | 1 Like Like |Link to Comment
  • The U.S. Civilian Gun Market Has Peaked; Downside Ahead [View article]
    @Shiroitora:

    For SWHC, there are 19M shares short out of 55M outstanding. That represents 35% of the float. To borrow these stocks, one would have to pay through the nose, so in that respect, it might be a blessing. You can always buy puts, although I recommend selling puts, of course :)
    Jan 5 02:18 AM | Likes Like |Link to Comment
  • The U.S. Civilian Gun Market Has Peaked; Downside Ahead [View article]
    @Volte-Face Investments:

    Sure, the sky is falling. The market and the stock price seems to vehemently disagree with you (+30% since the short was announced). I can't believe a short thesis has been put into place just based on NICS, while totally disregarding all my past comments about:

    - Solid Company execution
    - Upcoming Inventory build-up at wholesellers in 2014
    - Growing interest in recreational guns
    - Increased marketing by these companies
    - Solid brand name of RGR and SWHC

    Lastly, who shorts a stock in the face of a $100M buyback? When you wrote this article, SWHC still had $85M worth of buyback remaining.

    I appreciate all the discussion, but do note that the gun sales story is not about growth - it is about consistent cashflow, a stable business. Anyways, all the best.
    Jan 5 02:16 AM | Likes Like |Link to Comment
  • The U.S. Civilian Gun Market Has Peaked; Downside Ahead [View article]
    Volte-Face Investments says:

    Obama cannot pass new gun control laws...He couldn't do it when his approval was 56% after newton and now his approval rating has collapsed to 44% one of the biggest approval drops in a year on record.

    Seeking Alpha Breaking News current says:

    Government proposes two new gun-control regulations
    Jan 5 2014, 01:54

    The White House has proposed two gun control regulations that the government doesn't need Congress' approval for.
    One measure would clarify who isn't allowed to own a firearm because of mental illness and would provide guidance to states about the information they can share with a federal database that dealers use to check whether a buyer is allowed to purchase a gun.
    However, mental health advocates fear that the regulations could stop those who are unwell from seeking treatment for fear that their illness would be added to federal records.
    The other proposal would eliminate obstacles that could stop states from supplying information to the database.
    Related tickers: RGR, SWHC, CAB
    Jan 5 02:07 AM | Likes Like |Link to Comment
  • The U.S. Civilian Gun Market Has Peaked; Downside Ahead [View article]
    December 2013 NICS checks out. Here:

    http://1.usa.gov/1izrQhs

    What a beautiful number. Ex-Newtown, the highest on record - ever!

    Gun sales in US have seen a structural shift.

    Long SWHC.
    Jan 3 01:14 PM | Likes Like |Link to Comment
  • Intel: Don't Believe Bloomberg's Google Rumor [View article]
    Wow :) We agree to wait and watch how this story develops over the next few months then.
    Dec 12 06:58 PM | 11 Likes Like |Link to Comment
  • Intel: Don't Believe Bloomberg's Google Rumor [View article]
    QCOM is nothing if not ambitious - they have eaten INTC's lunch in mobile all the way for years now, after having publicly said they would. A server domination would give them another market to tap into. High-end smartphone growth is slowing, and QCOM is looking for growth avenues.

    Plus, think about pricing propositions that QCOM will offer to GOOG. They did the same thing with AAPL in their custom-designed chips fir iPhones.

    Lastly, I suspect GOOG is exploring this along with the likes of QCOM to see how these chips would perform and benefits that would ensue.

    Instead of looking it through just the single lens of denial, the real question is, what could GOOG gain by going this route? It is worth exploring that line of thinking. Thoughts welcome along that line.

    Disclosure: I was a QCOM employee until 2010.
    Dec 12 06:53 PM | 7 Likes Like |Link to Comment
  • Intel: Don't Believe Bloomberg's Google Rumor [View article]
    When a company wants to introduce a new product (like, in this case, in-house ARM-based chips), there are three ways to go about it:

    (1) Do it from scratch
    (2) Acquire someone who already does it
    (3) Partner with an industry leader

    You addressed the first two, but not the third. What is stopping Google from going the third route with the likes of QCOM with whom they already have a strong working relationship through their Android program? That would explain no hires as well.
    Dec 12 06:44 PM | 6 Likes Like |Link to Comment
  • Research Report: What Baseball Can Teach Us About NQ Mobile [View article]
    Excellent article.
    Dec 11 11:48 AM | Likes Like |Link to Comment
  • Smith & Wesson +5.8% AH; FQ2 report, FQ3 guidance clean out expectations [View news story]
    Long room ahead in terms of valuation. As just noted on the conference call, Mr. Debney, the CEO thinks that the industry is going through a long-term growth phase.

    http://seekingalpha.co...
    Dec 10 05:21 PM | Likes Like |Link to Comment
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