Wall Street Breakfast: Must-Know News [View article]
I love Eli's work. Especially the EPS drill. Saves so much time. Go Alpha--support Eli. Reminds me of the classic statements of Warren Buffett: "What is the biggest vice of investors?" Warren, "Being overactive." "How could you have made more money?" Warren, "Sat on the porch more; done less." Eli helps me do both. My addition: Most companies need a MBA/Mgt playground so they do less and keep sustaining their brands....
New York Times Earnings Reflect Ongoing Double Whammy [View article]
It's the product, stupid, should be what is watched. The NYT used to be the "paper of record." Since the owners have become avowed "Anti-Bushers" they have compromised that status. As Barbara Bush said famously to George Senior, "If you read that paper, don't talk to me about it." He canceled his subscription as have many others. Their brand was based on uncompromising integrity; by taking sides they are just another newspaper, albeit a darn good one.
Another Reason Google's Business Model Is Brilliant [View article]
Excellent points about pricing power, Warren Buffett's favorite attribute of a stock, of adwords. At Simply we started out with CD Software in categories they were not "used to" and got up to a million impressions (our objective, not clicks) before their AI system caught up to us (all of 7 days!) and they bumped us from 10 cents per click to $1. We hung around for 15 days more; they bumped many to $5. We surrendered. But they had built a new business--and other higher priced ad people took over. Impressive. And fast.
The better you do, the higher the price; think of it, where else does a volume discount become a volume INCREASE?
Will Apple Follow in Google's Footsteps? [View article]
Momentum is incredible behind Apple, its brand, its products, its stores, and fighting the dark force--made even more dark by the Vista mess. If Apple stays the course, they'll leave MSN in their wake. A Mac is back in my house (after being gone since the late 80s; several iPhones and iPods; iPhones in our business; will Macs be next--we kept our XPs thank goodness; and only use a Vista for testing purposes). Go Apple!
Netflix's Plans Are Optimized for Profit [View article]
The underlying message is Netflix has maintained pretty good pricing in a challenging environment. I'm in the 3 Disc club but it is a relatively poor deal for my family since we keep em too long. However, no late fees; they are prompt; and no car trips (more than the cost of one CD rental these days--and we live in MA; imagine in a state with some real distances...).
Netflix is impressive--right along with iTunes and audible.com (purchased as the ultimate bargain by Amazon, another favorite).
Why We Doubled Our Position in Borders [View article]
Catching a falling knife is a dangerous game. Borders is in the same position as Circuit City--both have a strong number 1 to compete with, but that number 1 has benefited from industry consolidation (for Best Buy the demise of Circuit City; for Barnes & Noble the demise of so many small chains and independents). The number 1 chains have issues as more chains take a "bite" out of Best Buy and Amazon is taking a whole hunk out of Borders. I am a heavy user book buyer/reader--80 per year; and I stopped bothering with Borders years ago (I rarely shop at Barnes & Noble, but do sometimes). Amazon is the place--and for the future too. Good luck with the dropping knife....
Three Reasons to Hold Walgreen Long Term [View article]
Walgreen is a convenient place to shop and more competitive than almost any other small footprint store. They also personalize by area (in Ft. Lauderdale, near the beach, with condo/hotel suite rentals, they stock up on a simple gondola of food--at great prices--no, not Dollar Store or Wal-Mart--but good). Well run; loyal to employees; with a long term perspective. Always a good buy.
Wal-Mart: Another 20%-40% Upside in Store [View article]
Some of the criticism of Walmart in these comments is deserved. We find the Dollar Stores in the US adopting the "old" low price WMT approach. They are growing much faster. The real play is WMT International--they have a huge future. Once they realize they should cool it in the US, go back to low prices, make Americans happy, and put their $ overseas, they'll be unstoppable.
Will they? Is that too simple? Stop making people mad (just read some of the above comments)--then grow elsewhere....
Blockbuster CEO: I Wanna Be Like Apple [View article]
Impresssive article willing to state what "some" would think obvious (but clearly not the CEO of Blockbuster) and build upon it. Sounds like two drunks trying to cure themselves. As the author states, they have no innovative talent where Apple is loaded both inside and out. There is no "second" to Apple; it is cool in a very special way, as google is. Both suffer from being on the wrong side of Clayton Christiansen's The Innovator Dilemma (I refer to a lot, but I don't think too much), simpler and cheaper wins. Netflix doesn't "punish you" for being late; that's why I use them. Our local video stores closed first; Blockbuster not yet--but traffic is lousy (parking lot observation). CC is a weak alternative to BBY. CompUSA went out which gave their business to both. But this doesn't hide the weakness of both with mass merchants selling more and more tech, downloads, direct to consumer, and so on and so on.
In my opinion, they will die alone or together, doesn't much matter. The consumer has moved on.
Why Microsoft (Yes, Microsoft) Could Dominate Software-as-a-Service [View article]
The author has identified the trend of old line high priced software companies moving over to the B2B space to escape pricing pressure in the consumer space, a la Clayton Christiansen's The Innovator's Dilemma, of simpler and cheaper winning (e.g., iTunes, Netflix, Google--the champion, and Simply with near free software--$1.99 to $3.99, doing an office suite, checkwriting program--both challenging MSN office on one side and Intuit Quicken on the other).
With the consumer 70% of the economy and growing, and B2B 30% and declining, and more businesses "buying" like consumers (e.g., using Quill.com not office supply companies; etickets--ehotels--cre... card payments--etc) the "real" B2B numbers are lower (Simply uses Quill.com, Expedia, Cheaptickets, hotel.com, etickets, credit card payments for business purchases--not just T & E, retail customer payments via credit card, our own openoffice suite, Simply Money checking for businesses, google.docs--instead of a fancy B2B program, etc. and so on).
Nature abhors a vacuum. As Christiansen says, "Those that come in low, move up." Canon, Toyota did this--and MSN and INTU in its youth did so too. As Robert Townsend said in Up The Organization, "If they did then, what they do now, they wouldn't have gotten to now." B2B is the siren song for MSN. Google must be throwing a very big party!
Wall Street Breakfast: Must-Know News [View article]
Eli does great work for all of us every morning. Well done. I am a pedant by profession (we write and edit audiobooks, books, and text for software and audiobook deliveries), but skate right by Mr. Hoffman's errors. This speaks well to the ability to scan his report--focus in on the key elements. Well done!
Economic Drubbing Should Subside - Temporarily [View article]
My error about the investment in 2 audiobooks. That was just for April. She saves another $1100 in May and so on and so on. That will get reinvested too.
Wall Street Breakfast: Must-Know News [View article]
Why Aren't Trucking Costs Pushing Prices Up? [View article]
Thanks for the focus.
New York Times Earnings Reflect Ongoing Double Whammy [View article]
Why Was Everyone Wrong on Google? [View article]
Another Reason Google's Business Model Is Brilliant [View article]
The better you do, the higher the price; think of it, where else does a volume discount become a volume INCREASE?
Will Apple Follow in Google's Footsteps? [View article]
Netflix's Plans Are Optimized for Profit [View article]
Netflix is impressive--right along with iTunes and audible.com (purchased as the ultimate bargain by Amazon, another favorite).
Why We Doubled Our Position in Borders [View article]
Three Reasons to Hold Walgreen Long Term [View article]
Wal-Mart: Another 20%-40% Upside in Store [View article]
Will they? Is that too simple? Stop making people mad (just read some of the above comments)--then grow elsewhere....
Blockbuster CEO: I Wanna Be Like Apple [View article]
In my opinion, they will die alone or together, doesn't much matter. The consumer has moved on.
Why Microsoft (Yes, Microsoft) Could Dominate Software-as-a-Service [View article]
With the consumer 70% of the economy and growing, and B2B 30% and declining, and more businesses "buying" like consumers (e.g., using Quill.com not office supply companies; etickets--ehotels--cre... card payments--etc) the "real" B2B numbers are lower (Simply uses Quill.com, Expedia, Cheaptickets, hotel.com, etickets, credit card payments for business purchases--not just T & E, retail customer payments via credit card, our own openoffice suite, Simply Money checking for businesses, google.docs--instead of a fancy B2B program, etc. and so on).
Nature abhors a vacuum. As Christiansen says, "Those that come in low, move up." Canon, Toyota did this--and MSN and INTU in its youth did so too. As Robert Townsend said in Up The Organization, "If they did then, what they do now, they wouldn't have gotten to now." B2B is the siren song for MSN. Google must be throwing a very big party!
Wall Street Breakfast: Must-Know News [View article]
Economic Report Summary: Worst Labor Report In Years [View article]
Economic Drubbing Should Subside - Temporarily [View article]