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inthemoney

inthemoney
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  • Gartner expects global business IT spending to grow 3.9% in 2012; while this represents a decline from the 5.9% growth expected for 2011, it's a relatively optimistic forecast, given recent market pessimism. Like Ovum, Gartner sees demand for public cloud services proving especially strong.  [View news story]
    There is definitely overwhelming demand to make information available on mobile devices.
    IT spending on automation is also high. Computers don't need retirement plans or health insurance and who knows what else.
    The cloud doesn't seem to be suiited for large corporations because it is not very clear how to access and integrate the information"on the cloud" and information within the corporate ecosystem. I can see "the cloud" being a suitable solution for mid-size companies but the mid-size market tradionally meant low margins.
    The social and cloud computing are much more suitable for the end-consumer market, which puts them in competition with Microsoft and other consumer oriented companies.
    Oct 17 02:30 PM | Likes Like |Link to Comment
  • Barton Biggs has boosted bullish bets on equities in his Traxis Global fund to 65% from 40% based on improving U.S. economic data. “I’m inclined to stay where I am, which is moderately, cowardly bullish,” Biggs says. “The high frequency economic news from the U.S. has definitely improved.” In mid-August, he had predicted that the S&P 500 was bottoming.  [View news story]
    Well, when did he get to 40%? Every time he is on TV it is a good time to buy according to him, we never hear otherwise . May be if we heard him say when it is time to sell it would've been easier to judge his calls.
    Oct 17 02:03 PM | Likes Like |Link to Comment
  • "The politics of Russia is not what worries us," says Pepsi (PEP) CEO Indra Nooyi, unperturbed about Vlamimir Putin's return to power (did he ever leave?). Nooyi says Russian leadership has been and is expected to continue to be "friendly to investment."  [View news story]
    It is not that different from China, really.
    Oct 17 01:42 PM | Likes Like |Link to Comment
  • "The politics of Russia is not what worries us," says Pepsi (PEP) CEO Indra Nooyi, unperturbed about Vlamimir Putin's return to power (did he ever leave?). Nooyi says Russian leadership has been and is expected to continue to be "friendly to investment."  [View news story]
    They are friendly because Pepsi creates jobs and produces Kvas, which makes the population happy.
    Oct 17 01:40 PM | Likes Like |Link to Comment
  • Sears' (SHLD +1.1%) move to allows rivals to sell its brands such as Craftsman tools and DieHard batteries is an "ingenious elixir" for short-term earnings, but also might help it dig its own grave in the long haul. Bucking a retailer trend of protecting proprietary brands and "differentiating" from competitors, Sears aims to punish shorts hounding the stock with a quick revenue fix that one industry insider predicts will be a "total disaster."  [View news story]
    Sears should've gone out of businesses 10 years ago. The only reason they are still around is the financial wizardry. It will prolong the death only for so long.
    Every time I read about it I congratulate myself that I haven't given in into the temptation to short this stock for 2 years running now, lol. Lambert's financial talents would be best used elsewhere though. Sears is no hedge fund, but it is run like one. It is pretty funny to watch.
    Oct 17 11:49 AM | 1 Like Like |Link to Comment
  • 3 Technology Stocks To Buy, 3 To Sell, 1 To Hold [View article]
    You are double counting - forward P/E already includes the growth. It all comes down to for how long they will grow. Usually, in tech industry everything changes so fast you can only foresee next 2 years. VMW is less of an offender though than CRM. CRM would be the top short.
    Oct 17 11:48 AM | Likes Like |Link to Comment
  • 3 Technology Stocks To Buy, 3 To Sell, 1 To Hold [View article]
    You basically identified the momo stocks - F5,VMW, CRM, which are trading well above where they should by 50-100%. Noone will disagree with you but unless you can go against the insititutional money you cannot short these stocks. You have to wait until the momo breaks, which usually happens when insitutions start to liquidate . The story of Tilson and Netflix clearly demonstrated that you dont' fight the momo and you don't fight the FED. FED seems to be locked in a corner for now, so should the market turn it might be a good time to short these stocks (very carefully).
    HPQ is such a basket case, I think I am going to take a wait and see approach. Meg Whitman is not a good fit for it. They need an angineer there, not another celebrity.
    I just sold Intel at 20% profit after the ran up from the lows. I'll be looking to buy it again though.
    Apple is another no go due death of Steve Jobs.
    Oct 17 10:32 AM | Likes Like |Link to Comment
  • "Until you can restore confidence you can't move forward," Jeff Immelt (GE) says, expressing empathy for the Wall Street protesters. "Unemployment is 9.1%. Under-employment is much higher than that, particularly among young people that don't have a college degree... It's natural to assume that people are angry."  [View news story]
    American job market won't get better until americans reconcile with a simple fact - a young person in Bangalore or Shanghai deserves a good job no less than a young person in NY. Further, I would say they deserve it more since they work so much harder for it. Until people start understanding and embracing the global picture there will be no solution. You know the stages- denial (check), anger (check), acceptance, neogotiation. If you want a job that pays an american wage you ahve to be 5 times better than an indian or chinese and this is currently not the case for the majority of the unemployed.
    Oct 17 09:58 AM | 2 Likes Like |Link to Comment
  • Unintended consequences: Low interest rates aren't spurring companies to grow, as they hoard cash and forsake growth opportunities. Instead, a corporate fear of borrowing into a weak economy overrides any euphoria over "easy money," according to (video) Miller Buckfire's Kenneth Buckfire. He agrees with Philly Fed President Plosser's take on Operation Twist: More risk than reward.  [View news story]
    The consequence of the policy is the destruction of the ability for people to save via fixed instruments. Thus they have less income, less stability , less spending ,w hich all affect the demand negatively. The consequence was actually fully planned by the FED - they want to make holding cash and saving PAINFUL, they want everybody spending and investing to create yet another bubble to cover up all the previous ones. But they somewhat miscalculated - people are so tramatized, they don't want to invest, they don't want anymore risk. They want to stay in safe cash even though they are punished for it by the FED and therefore their government (Congress) who oversee the FED. This is why we are in stagflation, people cannot spend because they cannot make income from wages and they cannot make income from savings. They are stuck.
    Oct 14 11:48 AM | Likes Like |Link to Comment
  • A quarter of U.S. millionaires pay lower taxes than some in the middle class, the Congressional Research Service reports. The average tax rate for households earning $1M-plus was 30.5%, vs. 24.6% paid on average by families earning less than $250K, but several paid close to 24% - at times lower than taxes paid by middle-income families that didn't benefit from deductions.  [View news story]
    > . Your schema will punish the savers and reward the spenders. It is not society's problem if someone spends his entire income during his lifetime and has nothing for his retirement

    You just read the first sentence out of the whole conversation and went berserk. I was explaining why definition of rich should be tied to assets instead of income. It is the definition accepted in the whole world. The pople look at how much money you have in the bank, not on how much you make to figure out whether you are rich or not.
    As for punishing savers - tell me has it not already been the US official policy for the last 10 years, with its ultra-low interest rates? Put everyone into speculation and borrowing, punish savers. I am the one trying to be prudent and save here, so that taxpayers don't have to pay for me in my old age. But it is very difficult right now. Plus, because our family income is 250K+ everyone wants to tax us more, even though we are just average folks with young children, who we are trying to raise to be productive future citizens while working full time. Fine, tax us more since apparently you feel that 40% of my income already going into various taxes and fees is not enough. I am just one person, I cannot do anything against the majority of the US population, who is always looking to get something for nothing. Then I'll have 2 choices for retirement - leave the country and spend my retirement money elsewhere where it can buy more ( thus no support for the US economy) or rely on the support of the US taxpayer. Either case is a loss of wealth for the US.
    Oct 13 12:56 PM | 2 Likes Like |Link to Comment
  • A quarter of U.S. millionaires pay lower taxes than some in the middle class, the Congressional Research Service reports. The average tax rate for households earning $1M-plus was 30.5%, vs. 24.6% paid on average by families earning less than $250K, but several paid close to 24% - at times lower than taxes paid by middle-income families that didn't benefit from deductions.  [View news story]
    > I disagree. Operative definition of "rich" is in someone's lifestyle

    I can go and borrow a million dollars and spend it all and appear to be rich. But how do I pay it back? That is the issue with too many people. They appear to berich but they ahve nothing to retire on, they ahve no savings. Living "rich" for a few years doesn't make anyone rich.
    You definitely have to lookat the assets, not income for defnition of who is rich.
    Oct 13 12:07 PM | 2 Likes Like |Link to Comment
  • A quarter of U.S. millionaires pay lower taxes than some in the middle class, the Congressional Research Service reports. The average tax rate for households earning $1M-plus was 30.5%, vs. 24.6% paid on average by families earning less than $250K, but several paid close to 24% - at times lower than taxes paid by middle-income families that didn't benefit from deductions.  [View news story]
    > if not actually "rich" (in fact, I don't think I personally know anybody who makes $250k; not even my boss).

    My definition of "rich" is not having to work for the living if you are inclined so. If I stop working. I'll become poor in a hurry. At this point, after 20 years of working, we don't have enough savings to live of "rent". Especially with interest rates at 0%. If you go dividend route and assume about 5% div taxed at 20%, that is about 4% effective dividend rate. To get to just 50K a year on 4% dividend you need 1,250,000 in savings. Plus, iof you actually factor 2% inflation each year, you need about 2 mil in savings to get to 50K real money vs. nominal. How do you get to 2 mil over 20-30 years working life ? It is hard even with 250K, because about 40% of that money already goes into various taxes - federal, state, property, sales. If you save 20K each year, in the last 10years of the flat market it is only 400K, far cry from 2 million.
    Oct 13 11:17 AM | 1 Like Like |Link to Comment
  • A quarter of U.S. millionaires pay lower taxes than some in the middle class, the Congressional Research Service reports. The average tax rate for households earning $1M-plus was 30.5%, vs. 24.6% paid on average by families earning less than $250K, but several paid close to 24% - at times lower than taxes paid by middle-income families that didn't benefit from deductions.  [View news story]
    Our family income is over 250K and we are most definitely are middle class. We both work in IT and live in a regular house. We do save for retirement and kids education, though, unlike most of the middle class people I know, who spend more on vacations, pool, cars and so on. Is ability to save for retirement now puts us into "rich" category?
    Oct 13 11:00 AM | 1 Like Like |Link to Comment
  • A Senate panel finds that the last tax repatriation holiday in 2004-5, when firms brought home $312B in cash held abroad, failed. The measure is expected to cost the Treasury at least $3.3B in lost revenue over ten years, while it hasn't led to more jobs, as predicted. Those pressing for a repeat are unimpressed.  [View news story]
    Most likely answer is stock buybacks and aquisitions, which will increase the stock prices and benefit those few who own the stocks and the management. Yes, capital gains taxes will be paid, but these are much lower than taxes paid on labor. Not to mention that these financial acitivities add almost no value to the real productive economy.
    Oct 11 04:58 PM | Likes Like |Link to Comment
  • Wall Street protesters draw attention to "excessive" bank profits, but financial firms are not at the top in either least taxes paid or CEO pay, according to a CNBC analysis. Financials' effective corporate tax rate is in the middle, ranking sixth among sectors at 28.8%. Tech firms have the second highest amount of average earnings but the lowest effective tax rate, 23.4%.  [View news story]
    Actually, the huge tech companies pay under 10% since most of their operations are in India and production in China and Taiwan.
    Oct 11 01:53 PM | Likes Like |Link to Comment
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