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Stephen Frankola  

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  • Amazon's Latest Free Shipping Teaser, And the Growing Long-Term Problem [View article]
    You are correct - my initial article was superficial in my description, and Amazon definitely takes in money on FBA transactions. The point I was trying to make was that, in some transactions, Amazon appears to be absorbing cost in order to please buyers/sellers - when I sell an item that weighs 2.5 pounds and get charged $2.50 of non-commission fees, Amazon is likely losing money on inbound processing, storage, outbound processing, and shipping that item. You're also correct about the discounted rates with carriers (I appreciate those rates every time I ship to an FBA warehouse). However, once everything is summed, Amazon is paying out $850m more than they take in to make all of this happen - which they seem OK with because it has a positive affect on sales and commission.

    I also agree that their model is currently working beautifully. But as you allude to yourself, when margins for many sellers are paper-thin, it will only take a slight fee increase to unbalance the equation, drive sellers away, and reduce Amazon's commission cut.
    Jan 17, 2011. 11:28 AM | Likes Like |Link to Comment
  • Amazon's Latest Free Shipping Teaser, And the Growing Long-Term Problem [View article]
    I personally don't think that the potential loss of tax-free selling will hurt Amazon's business; at worst, they go from being cheaper relative to other retailers to the same. I don't buy things from Amazon to save the 6-7% sales tax I'd be paying in PA (though I have seen plenty of comments on this topic where others state that tax avoidance is a big draw). However, if rulings unfavorable to Amazon to begin to occur, the immediate bill (billions) and litigation expense incurred while attempting to avoid it will be painful and meaningfully detrimental to short-term earnings.
    Jan 17, 2011. 11:08 AM | Likes Like |Link to Comment
  • Motorola Mobility Unit Spin-Off: Should Investors Tread Carefully? [View article]
    whether or not this stock will pan out, both gingerbread and new android devices have surpassed current iphone tech... so until iphone 5 comes along, you're simply wrong.

    (i don't have an android phone or an iphone or own this stock).
    Jan 12, 2011. 11:22 PM | 1 Like Like |Link to Comment
  • Rapper 50 Cent pumped a penny stock to his Twitter followers over the weekend, and the shares exploded higher. Jesse Eisinger asks: “Is what 50 Cent did really that different from what happens all day long on CNBC when professional money managers take to the airwaves to praise the stocks of companies they already own?”  [View news story]
    "I took quarter water and sold it in bottles for 2 bucks
    Coca-Cola came and bought it for billions, what the fu?"
    -50 Cent, in "I Get Money" on getting $200 million from his Vitamin Water stake.
    Jan 12, 2011. 10:45 PM | 2 Likes Like |Link to Comment
  • Seems that monetary policy was one of the pet peeves harbored by the nut who killed six people and wounded 14 this weekend in Arizona. Should that discredit those who hope for a return of the gold standard? Surely not, but such a stretch of logic might come naturally to certain economists, James Taranto writes.  [View news story]
    ridiculous and disrespectful lead in, SA.
    Jan 11, 2011. 10:23 PM | 7 Likes Like |Link to Comment
  • Five Ways the Verizon iPhone Will Change the Mobile Landscape [View article]
    honeycomb isn't even for mobile phones! are you even trying to make a point when mentioning that or just throwing out an android term you saw on the news lately?
    Jan 9, 2011. 07:38 PM | 1 Like Like |Link to Comment
  • Sirius XM and the Law of Large Numbers [View article]
    if you're old enough to remember (or even fake-remember) this "horizontal hold adjustments" that you write about, you're too old to realize that people under 30 don't care about satellite radio.
    Jan 7, 2011. 10:16 PM | 1 Like Like |Link to Comment
  • Sirius XM and the Law of Large Numbers [View article]
    a sirius radio is more useful than a smartphone?
    Jan 7, 2011. 08:08 PM | 3 Likes Like |Link to Comment
  • Sirius XM and the Law of Large Numbers [View article]
    literally any media ever produced is available on the internet if one tries to find it. cmon.
    Jan 7, 2011. 07:17 PM | 1 Like Like |Link to Comment
  • Sirius XM and the Law of Large Numbers [View article]
    Stern - the internet
    Jason Ellis - i dont know who that is
    raw dog - i also dont know who that is
    genre specific music - pandora, the internet, ipods, etc.
    Jan 7, 2011. 06:17 PM | 1 Like Like |Link to Comment
  • Sirius XM and the Law of Large Numbers [View article]
    i'm not trying to sway anyone's decisions - like you, I read and write for amusement.
    Jan 7, 2011. 05:24 PM | 2 Likes Like |Link to Comment
  • Sirius XM and the Law of Large Numbers [View article]
    Well here's the thing. If you're under age 35 and technologically savvy, there's lots of cooler things that sync can utilize than just satellite radio. A 25 year old who grew up stealing music off of napster isn't interested in a car because of sat radio... he'd rather touch or talk at it to change music on his ipod.
    Jan 7, 2011. 05:20 PM | 2 Likes Like |Link to Comment
  • The Future of Netflix? [View instapost]
    thanks. too bad the SA editors wouldn't approve this as an article...
    Jan 7, 2011. 12:34 PM | 1 Like Like |Link to Comment
  • Sirius XM and the Law of Large Numbers [View article]
    Nice complete misunderstanding and misuse of the law of large numbers. As written in your quotation, it means that, if something inherently has a 50% chance of happening, it may not happen at that rate in a population of 2, but will happen very close to that rate when the population is 20,000.

    But it's nothing new for Siri permabulls to attack people with legitimate, factual arguments (as you did in the first line of the second paragraph) with nothing but cheerleading and fluff.
    Jan 7, 2011. 12:31 PM | 10 Likes Like |Link to Comment
  • Sirius XM Shares: On Sale in 2011 [View article]
    "my figure includes a share buyback program" thanks, that really makes your $100/share estimate MUCH more reasonable.
    Jan 3, 2011. 06:48 PM | 4 Likes Like |Link to Comment
COMMENTS STATS
175 Comments
154 Likes