Comparing Heavyweight Tech Titans: Why Intel Is a Better Investment Than IBM [View article]
1. PCs (and servers) are not going away. Mobile devices are more convenient for simple tasks, but there are many things that they are simply not equipped to do. I like using my iPad a lot more than my PC, but I still need the PC.
2. There are legions of people around the world who do not have PCs. Growth in PCs will likely be slower than growth in mobile devices, but there will be growth.
3. I'm betting that Intel will eventually figure it out either through R&D or by acquisition. Once it does, it will eventually command an outsized, if not dominant share in the market. Why? That's just what Intel does.
4. Cloud computing is supposed to be a high-growth area, which would increase demand for servers. Intel is dominant here, and will remain dominant even as IBM and HP take share.
In conclusion, Intel will definitely be part of the future. Meanwhile, enjoy the high dividend yield and low PEG ratio.
Can't Comcast "magically" go directly to the comsumer? Before it split itself into two companies, Time Warner could go directly to the consumer as well. Disney and Apple are natural allies due to Jobs' influence at DIS.
I see two scenarios, which other commenters have touched upon:
1. Streaming isn't difficult, and Netflix does not have any special claim to the infrastructure. If Netflix is making so much money, why are the content generators signing their profits away to Netflix on the cheap? Just because Starz signed a bad deal does not mean that Disney, Time Warner, Sony, Comcast, Discovery, NewsCorp, etc., etc. will follow suit. Consumers may get angry if the content producers cut Netflix out, as it is a convenient aggregator. However, consumers will continue watch what they want to watch, and if they like their shows enough, they will even sign up with multiple content producers if something like Hulu does not work out. Content generators saw what Apple did to the recording industry, and they are loathe to let Netflix dominate their industry. Basically, to survive, Netflix would have beg the content generators to let them play. Good luck with that one.
2. If, for some reason, the content producers do not stream themselves, companies like Apple, Microsoft, Google, and Amazon are sure to (eventually) defeat Netflix. These companies have the financial wherewithal to 1) offer content generators deals that make Netflix's "huge checks" look like pocket change and 2) undercut Netflix's prices. In other words, they have the ability to be better middlemen than Netflix. Apple and Google are Netflix partners now, but I doubt these partnerships will last forever (or even a few years).
Can you make an argument as to why either one of these scenarios will not happen?
The yuan is fixed to the dollar, but floats against most other currencies. Citing the real's 37% gain against the yuan as causing a surge in Chinese imports, Brazil nearly doubles tariffs against China on several different toys. [View news story]
Next year, Brazil will report a sharp drop in lead poisoning from toys.
"We are completely able to control the overall level of prices." Ben Bernanke? No. It's Chinese Premier Wen Jiabao, who, while acknowledging that price increases have "made life more difficult" for the average Chinese, is confident that Beijing has the matter under control. [View news story]
Despite the fact that the Chinese economy is still run by the Communist Party, it has too many capitalist characteristics for Beijing to completely control prices. I look forward to seeing it blow up in Wen's face.
Outlook 2011: Is the Smart Money Right About China? [View article]
"Germany would be a powere house in Europe if they stood on the DM rather than the currency of the EU."
That's false. Germany's economy lives and dies by its exports. If there was no Euro, then recent events would have caused the DM to strengthen dramatically relative to its neighbors. Also, at least among the major currencies, the DM would have shared the burden with the yen as the dollar weakened. Strong DM = weak exports = pain for Germany.
The Germans' recent complaint about QEII should tell you all you need to know.
Most of what Wall Street does is socially worthless, so what good is it really, John Cassidy writes. "Big banks are forever trying to invent new financial products that they can sell but that their competitors, at least for the moment, cannot," he says. Most of these "innovations... serve little purpose or... blew up and caused a lot of collateral damage." [View news story]
Perhaps the Fed created the environment, but there's something to be said for personal responsibility and decency. No one made people borrow more than they can afford. No one made WaMu and Countrywide approve loan applications without doing due diligence. No one made Moody's plaster AAA on pile after pile of garbage. No one made AIG bet that property values will never ever drop. No one made Bear Stearns lever up to the point that they were betting the entire company every day.
Sure, Greenspan's policies were strange. However, the ultimately responsibility is on the plethora of bad actors teeming in the cesspool known as Wall Street.
Most of what Wall Street does is socially worthless, so what good is it really, John Cassidy writes. "Big banks are forever trying to invent new financial products that they can sell but that their competitors, at least for the moment, cannot," he says. Most of these "innovations... serve little purpose or... blew up and caused a lot of collateral damage." [View news story]
The financial sector went from less than 5% of the economy to more than 20% at its height. How can a country have such a large percentage of the economy based on buying and selling pieces of paper? At least the financial sector isn't as important to the United States as it was to Iceland and Ireland. Yikes!
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
China's one of the worst manipulators around. In a way, China's a pot calling the kettle black, except China's even worse.
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
What's so special about the Chinese? Places like Indonesia, Vietnam, and Cambodia can make that junk, too, and do so more cheaply. I don't think multinational corporations will just stand still. If they can outsource jobs into China, they will certainly outsource jobs out of China when the time and price are right.
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
Yeah, it's a vicious cycle. China's game of heads I win, tails you lose is turning into heads we lose, tails we lose.
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
Few play the victim like China. Grow up, you're in the big leagues now.
By the way, now would be a good time for you to start thinking about playing by the rules. The world is wise to you now, and will not take your shenanigans lying down.
When and Why to Buy or Sell a Stock (Part 1 of a Series) [View article]
Based on what I have read on Seeking Alpha over the last year, I am quite certain that your series will be among the best articles posted on Seeking Alpha. Thanks for sharing your work.
Comparing Heavyweight Tech Titans: Why Intel Is a Better Investment Than IBM [View article]
2. There are legions of people around the world who do not have PCs. Growth in PCs will likely be slower than growth in mobile devices, but there will be growth.
3. I'm betting that Intel will eventually figure it out either through R&D or by acquisition. Once it does, it will eventually command an outsized, if not dominant share in the market. Why? That's just what Intel does.
4. Cloud computing is supposed to be a high-growth area, which would increase demand for servers. Intel is dominant here, and will remain dominant even as IBM and HP take share.
In conclusion, Intel will definitely be part of the future. Meanwhile, enjoy the high dividend yield and low PEG ratio.
Comparing Heavyweight Tech Titans: Why Intel Is a Better Investment Than IBM [View article]
Visa: Netflix's Future [View article]
I see two scenarios, which other commenters have touched upon:
1. Streaming isn't difficult, and Netflix does not have any special claim to the infrastructure. If Netflix is making so much money, why are the content generators signing their profits away to Netflix on the cheap? Just because Starz signed a bad deal does not mean that Disney, Time Warner, Sony, Comcast, Discovery, NewsCorp, etc., etc. will follow suit. Consumers may get angry if the content producers cut Netflix out, as it is a convenient aggregator. However, consumers will continue watch what they want to watch, and if they like their shows enough, they will even sign up with multiple content producers if something like Hulu does not work out. Content generators saw what Apple did to the recording industry, and they are loathe to let Netflix dominate their industry. Basically, to survive, Netflix would have beg the content generators to let them play. Good luck with that one.
2. If, for some reason, the content producers do not stream themselves, companies like Apple, Microsoft, Google, and Amazon are sure to (eventually) defeat Netflix. These companies have the financial wherewithal to 1) offer content generators deals that make Netflix's "huge checks" look like pocket change and 2) undercut Netflix's prices. In other words, they have the ability to be better middlemen than Netflix. Apple and Google are Netflix partners now, but I doubt these partnerships will last forever (or even a few years).
Can you make an argument as to why either one of these scenarios will not happen?
The yuan is fixed to the dollar, but floats against most other currencies. Citing the real's 37% gain against the yuan as causing a surge in Chinese imports, Brazil nearly doubles tariffs against China on several different toys. [View news story]
Latin America: Education as an Economic Indicator [View article]
"We are completely able to control the overall level of prices." Ben Bernanke? No. It's Chinese Premier Wen Jiabao, who, while acknowledging that price increases have "made life more difficult" for the average Chinese, is confident that Beijing has the matter under control. [View news story]
Outlook 2011: Is the Smart Money Right About China? [View article]
That's false. Germany's economy lives and dies by its exports. If there was no Euro, then recent events would have caused the DM to strengthen dramatically relative to its neighbors. Also, at least among the major currencies, the DM would have shared the burden with the yen as the dollar weakened. Strong DM = weak exports = pain for Germany.
The Germans' recent complaint about QEII should tell you all you need to know.
Most of what Wall Street does is socially worthless, so what good is it really, John Cassidy writes. "Big banks are forever trying to invent new financial products that they can sell but that their competitors, at least for the moment, cannot," he says. Most of these "innovations... serve little purpose or... blew up and caused a lot of collateral damage." [View news story]
Sure, Greenspan's policies were strange. However, the ultimately responsibility is on the plethora of bad actors teeming in the cesspool known as Wall Street.
Most of what Wall Street does is socially worthless, so what good is it really, John Cassidy writes. "Big banks are forever trying to invent new financial products that they can sell but that their competitors, at least for the moment, cannot," he says. Most of these "innovations... serve little purpose or... blew up and caused a lot of collateral damage." [View news story]
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
Dollar printing is "out of control," says Chinese commerce minister Chen Deming in one of that country's more explicit attacks on U.S. policy. Because of dollar issuance, he says, "China is being attacked by imported inflation." In spite of that, Chen expects China's export growth would be stable and imports would increase strongly. [View news story]
By the way, now would be a good time for you to start thinking about playing by the rules. The world is wise to you now, and will not take your shenanigans lying down.
When and Why to Buy or Sell a Stock (Part 1 of a Series) [View article]
Britain's plan to cut 500,000 government workers - equivalent to 3M layoffs in the U.S. - comes at a time when the private sector is unable to pick up the slack, Paul Krugman laments. British will suffer from the government that took office at "the height of the austerity fad," he says, but the U.K.'s cost of borrowing has dipped to its lowest level in two decades. [View news story]
I'm sure all the recipients of the Medicine, Chemistry, and Physics prizes are leftists, too ...