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  • ChannelAdvisor Data For Amazon In June Is Out, Conclusion Remains The Same [View article]
    I am writing my thought process in analyzing the situation, still have not made up my mind.

    I believe that major downward price movement would happen when institutions loose their faith on AMZN.

    Current Status, AMZN revenue is growing, while margin is going down.

    1) Revenue growing - Does it mean more and more people doing business with AMZN? Does it mean same number of people increasing their business with AMZN? I hope its combination of both.

    2) Keeping margin low - Helps grab market share, keep competition out of market.

    More and more people using AMZN services and it is keeping its profit margin low, which might be going further low.

    So conclusion, Currently with low margin/less profit, AMZN does not make a good business to own.

    Now lets think about future,
    1) A business with huge revenue means well market penetration,
    2) A business with low profit margin must have build reputation of being a business which sells good/services at fairly good price

    With above two in place, if AMZN keeps introducing new products/services at good price, customers would keep flocking to do more business with AMZN.

    These small margin might start adding up across many goods/services and the volume, which might become very good business.

    Now the questions are,
    1) Would AMZN business grow so huge that even with its small margin it would generate great profit/share?
    2) Would AMZN be able to keep growing its revenue the way it had been?

    I don't know the answers of these two questions. Could you experts please put more light on these two question?

    Also could you please correct my thought process, in case it has flaws?
    Jul 15, 2013. 05:56 AM | Likes Like |Link to Comment
  • The percentage of the stock market now owned by hedge funds (5%) is the highest since Q2 2008, BofA Merrill Lynch finds in its Hedge Fund Quarterly Report. Hedge funds reduced cash holdings to the Q2 2007 trough of 4.3%, and raised net equity exposure to the Q2 2007 peak of 59%. Their largest exposure is to consumer discretionary stocks (XLY) followed by IT (XLK) and financials (XLF). [View news story]
    So in simple word, what does it mean?
    Does it mean, there would not be more buyer in the market and it would lead the market down?
    Jun 8, 2013. 07:36 PM | Likes Like |Link to Comment
  • Visa - What Is Going On Here? [View article]
    Whats driving Visa today?
    Mar 25, 2013. 02:30 PM | Likes Like |Link to Comment
  • J.C. Penney (JCP) sends an e-mail to shoppers advertising thousands of discounts for the holiday week. Though the company hasn't officially moved off of its new pricing strategy, it's increasingly having relapses into offering promotions and discounts. [View news story]
    Following questions popping up in the mind,
    1) Is customer not wise enough to see the difference between daily value pricing and coupon based pricing?
    2) If JCP is not getting sales without coupons, does it mean market does not work efficiently (even in long run)?
    Jul 3, 2012. 01:40 PM | Likes Like |Link to Comment
  • Is Green Mountain Coffee's Inventory A Toxic Brew? [View article]
    Could any body explain me what GMCR did and why is that problem?
    Apr 25, 2012. 01:17 PM | Likes Like |Link to Comment