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Chazuu

Chazuu
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AGNC, BMO, CBRL, CLX, CVX, D, ENB, FRT, GPC, KO, MCD, MDLZ, PEP, T, TD, THI, XOM
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  • $15 minimum wage on its way to NY [View news story]
    When you see a healthy business or sector you find one with plenty of customers with cash to spend. If the masses of customers are barely making the grade they won't have the excess cash to stimulate business.
    Detroit is a poor example. It was run incompetently and when the auto industry collapsed it was in big trouble.
    Pittsburgh and other old industry cities have reinvented themselves and although suffering population loss they have survived and prospered.
    Jul 31, 2015. 09:07 AM | 1 Like Like |Link to Comment
  • $15 minimum wage on its way to NY [View news story]
    I ran a small manufacturing business for most of my long working life. We increased or reduced staff because of demand or lack thereof; not because of the wage levels.
    Certainly we constantly worked to automate production.
    We priced according to what the market would pay. When demand was high our prices were higher and we made more profit. When demand was slow we reduced staff and usually ran in the red.
    Thriving businesses reflect high demand. Masses of customers with more money in their pockets will push demand and profit up. Trickle down economics hasn't been working except for the few at the top and makers of luxury goods.
    Jul 30, 2015. 08:35 AM | 2 Likes Like |Link to Comment
  • $15 minimum wage on its way to NY [View news story]
    Henry Ford was vilified by his fellow industrialists when he began paying his workers $5 per day, which was about double the wages of other industrial jobs at that time. He understood the elementary truth that if people are struggling along financially they are not able to buy cars. If they have some extra disposable income they can become customers. Henry had a lot to do with creating our prosperous middle class, which sadly is shrinking today.
    If low wage workers are paid better they will spend more. The may not save much more. That is for those who are economically more secure, but they will spend and that is the greatest economic engine of any economy. (Except war. Governments always seem to have enough money to wage war.)
    Jul 29, 2015. 12:12 PM | 1 Like Like |Link to Comment
  • $15 minimum wage on its way to NY [View news story]
    What a bunch of crybabies!
    In your view, if the bottom echelon of workers make more money the world will descend into anarchy.
    The people at the top who put out the propaganda of trickle down have you convinced that only the wealthy need more money.
    Jul 23, 2015. 10:55 AM | 4 Likes Like |Link to Comment
  • Rising Wages Will Not Lead To Inflation [View article]
    Wage growth in businesses which have no foreign competition should help to stimulate domestic business. If people in domestic service jobs have higher wages they tend to spend most of the increases. The ripple effect on the economy from happens quickly. So, wage increases for restaurant workers, government, workers, carpenters, plumbers, electricians, appliance repair people, and many others should be welcomed. Low wage competition from foreign competitors doesn't exist for these workers.
    Inflation or deflation has much more to do with supply and demand than with wages. Increased wages only help to cause inflation if producers are nearing capacity limits and can see no other way to increase or maintain profit but by raising prices. Plentiful of product, capital and competition are combining to keep inflation low at present.
    Jul 19, 2015. 05:04 PM | 1 Like Like |Link to Comment
  • 3 Reasons To Short McDonald's; We See Up To 25% Downside [View article]
    Dear Orange PeeI - suggest you try some Windex on your crystal ball.
    Jul 15, 2015. 02:52 PM | 2 Likes Like |Link to Comment
  • Johnson & Johnson Q2 revenues off 9%; EPS up 7%; sales and op earnings growth decelerating [View news story]
    Given JNJ's long history as a dividend champ I wouldn't bet against it long term. But the numbers make it look like a hold rather than a buy.
    Jul 14, 2015. 11:03 AM | 1 Like Like |Link to Comment
  • McDonald's Is Sick, Still Has 25% Downside [View article]
    "The last two times we addressed the company's turnaround plan was in the beginning of May."
    Do you think that is really a lot of time for the largest restaurant chain in the world to turn itself around?
    Within a few miles of my home in southwestern Pennsylvania there must be at least 20 fast food restaurants, including three MCDs.
    Burger King, Sonic, KFC, Red Robin, Wendy's, Five Guys, Subway and a gang of others are represented. Every one of the three MCDs has more customers by far than any of the others. Some of the others seem to have almost no customers.
    If I were going to buy a restaurant franchise, there is no doubt which one I would want. You can say all you want about food quality, brand perception or whatever else you want. In our area customers vote with their feet and their wallets for MCD.
    Jul 5, 2015. 04:22 PM | 1 Like Like |Link to Comment
  • Guess What Happened The Last Time The Chinese Stock Market Crashed Like This? [View article]
    The most scrupulous accountants necessarily do a lot of guess work. What is the value of a company's inventory, for example. How closely does the depreciation rate of equipment match the real world value? Equipment that was very valuable last year may be close to worthless if new superior technology appears.
    What about exchange rate of the various currencies a large enterprise does business in?
    Honest accounting is iffy at best in my opinion. Only the very naive trust the financial reports of Chinese companies. I have avoided owning any Chinese, Russian or other companies of nations with weak financial oversight. This doesn't protect one from an Enron, but it keeps the risk at a much lower level.
    Jul 4, 2015. 05:47 PM | 1 Like Like |Link to Comment
  • Is Cash Going To Be King If Greece Defaults? [View article]
    For perspective - Greece's economy is about the size of the greater Boston, MA megapolis' economy.
    Jun 29, 2015. 11:48 AM | 3 Likes Like |Link to Comment
  • Genuine Parts Co. - Dividend Fact Sheet [View article]
    I bought GPC in May and August 2012. Combined they have gained about 42.5% since then. That doesn't included the dividends.
    I had owned GPC before the 2008 crash and it was sold on my stop loss order. I probably should have not had a stop loss on it. It is one of those few stocks that a dividend investor should plan on keeping forever.
    Jun 19, 2015. 11:33 PM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Chinese Shares Shout Mayday! [View article]
    James Carlini
    A quick Internet search shows almost no U. S governmental aid for Greece.
    However, US companies have been quick to take advantage of low Greek wages--
    "Due to the Credit Cruch Crisis since 2008 that has negatively affected Greek economy, thousands of U.S. firms have shifted their productive activities from other Balkan countries and Italy to Greece due to lower costs of production." -Wikipedia
    Jun 19, 2015. 02:23 PM | 1 Like Like |Link to Comment
  • Crude Oil: Demand Destruction Keeps Oil On The Selling Block [View article]
    Vicad
    The pace of change is accelerating. 30 years ago there were no hybrid cars and no electric cars. Diesel engines were far less efficient than today's.
    Rail freight was in the dark ages relatively. Long distance bulk hauling is now being dominated by rail and pipeline.
    Jun 19, 2015. 02:03 PM | 1 Like Like |Link to Comment
  • Crude Oil: Demand Destruction Keeps Oil On The Selling Block [View article]
    CAFE standard light truck mileage in 1985 was 19.5 mpg. In 2013 it was 25.7.
    Passenger cars in 1985 were 27.5. In 2013 33.5.
    By 2025 it is set at 54.5 mpg.
    As geologists and engineers improve methods to extract more and more petroleum demand is inevitably declining. World wide and in the US, railroads are hauling more and more freight. Trucks ship a ton of freight an average of 120 miles on a gallon of diesel.. Railroads can move the same amount of cargo 600 miles on that gallon. (Fortune Magazine 6/15/15).

    As efficient extraction keep the supply up, more efficient use of the fuel tends to hold down demand.
    Jun 19, 2015. 11:49 AM | 1 Like Like |Link to Comment
  • McDonald's Needs To Keep Its Eye On The Ball And Learn What Customers Want [View article]
    Yesterday morning I had an Egg McMuffin without meat (I don't eat beef, pork or poultry). There was a very short wait of possibly 3 minutes for my special order plus coffee. The check was just under $5.00 (Should be a profitable price for the franchisee).
    Inside the restaurant was very busy. Outside, there was a long line of cars and trucks being served at the drive up windows. Next door at the Burger king there were about one third as many customers. Down the road at the Dunkin Donuts and Subway there were just a two or three customers at each. There was also a Wendy's with no customers (Maybe they don't serve breakfast??).
    MCD is the big gorilla in fast food and they will fix whatever problems they may have IMO. Don't worry about monthly or quarterly numbers. Just look at the long term charts.
    Jun 5, 2015. 03:23 PM | 8 Likes Like |Link to Comment
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