• Category Archives Corporate
  • Apple Stock Slump Continues – Tests Key Technical Support

    Apple share price continues to tumble since it unveiled the iPhone 8 and X, following yesterday’s triple whammy of bad news.
    Back at it lowest since August 1st’s after-hours spike on earnings, AAPL is now testing the key 100-day moving average…
    And as goes AAPL, so goes the Nasdaq.. again

    This post was published at Zero Hedge on Sep 21, 2017.


  • Stocks and Precious Metals Charts – On the Daedalian Wings of Paper Money and Corrupted Power

    “The conventional wisdom seems to be that the problems of the euro zone are, as economist Martin Feldstein once put it, ‘the inevitable consequence of imposing a single currency on a very heterogeneous group of countries.’
    What this commentary gets wrong, however, is that single currencies are never the product of debates about optimal economic solutions. Instead, currencies like the U. S. dollar itself are the result of political battles, where motivated actors try to centralize power.
    This has most often occurred ‘through iron and blood,’ as Otto van Bismarck, the unifier of Germany put it, as a result of catastrophic wars. Smaller geographic units were brought together to build the modern nation state, with a unified fiscal system, a common national language that was often imposed by force, a unified legal system, and, a single currency. Put differently, war makes the state, and the state makes the currency….
    European leaders weren’t stupid or self indulgent when they decided to move ahead with the euro, without fiscal union or strong Europe-level democracy. They just cared more about politics and international security than economics. They wanted to build a Europe that had transcended the divisions of the Cold War, and bind together Germany, which was reunited and much more powerful, with the rest of Europe.”
    Kathleen McNamara, This is what economists don’t understand about the euro crisis – or the U. S. dollar
    “Another cause of today’s instability is that we now have a society in America, Europe and much of the world which is totally dominated by the two elements of sovereignty that are not included in the state structure: control of credit and banking, and the corporation.

    This post was published at Jesses Crossroads Cafe on 18 SEPTEMBER 2017.


  • Advice from the trader who made $1+ billion in 1929…

    [Editor’s note: This letter was co-written with Tim Price, co-founder of the VT Price Value portfolio and editor of Price Value International.]
    In the late spring of 1720, Sir Isaac Newton decided to sell his stocks.
    Newton had been an investor in the South Sea Company, a famous enterprise which effectively commanded a trading monopoly with South America.
    The investment had already made Newton a lot of money, he was up more than 100% in a very short time.
    In fact, investors were clamoring to buy up the South Sea Company’s stock, and the share price kept climbing. And climbing.
    Newton sensed that the market was getting overheated. It no longer made sense to him. So he sold.
    There was only one problem: the share price of the South Sea Company kept climbing.
    All of Newton’s friends were getting rich. So, against his better judgement, Newton went back in, repurchasing shares at more than three times the price of his original stake.
    The market then collapsed, and he lost virtually all his life savings.

    This post was published at Sovereign Man on September 18, 2017.


  • “Not Lovin’ It” – McDonald’s Plunges On Heavy Volume

    McDonald’s share price just plunged over 3% on massive volume. For now there is no clear catalyst for the move…
    There is some inconformed desk chatter of a negative note from M Science in circulation with regard domestic comparable sales.
    “Not Lovin’ It!”
    This MCD move is knocking 25 points off The Dow.

    This post was published at Zero Hedge on Sep 12, 2017.


  • “They Dodged A Bullet”: Why Insurer Stocks Are Soaring

    After tumbling last week on concerns that between damage from Harvey and Irma, losses for the P&C space would be devastating, today the broader insurer space is breathing a sigh of relief after the Hurricane’s damage reportedly underwhelmed, especially following some especially dire observations over the weekend from the likes of Torsten Jeworrek, member of the board of the German reinsurance giant Munich Re, who on Sunday said that Hurricane Irma is proving to be a ‘major event’ for Florida and the insurance industry.
    As Reuters reported yesterday, Jeworrek and other insurance executives gathered in Monaco for an annual conference to haggle over reinsurance prices and strike underwriting deals. And even though Irma eventually skirted densely populated Miami, the Munich Re board member said that ‘Irma is still a major event for Florida and also a major event for the insurance industry.’ When asked by journalists, Jeworrek also hazarded a rough guess for the insured losses for the global industry of Hurricane Harvey: he said that losses were estimated at between $20 billion and $30 billion, which would put the storm on a scale of Sandy.
    That number will likely prove to be overly optimistic, because as Goldman showed yesterday, many estimates of Harvey damages rose sharply during the first week after landfall; however, most have now settled in the $70-100bn range (Goldman itself assumes $85bn). While the uncertainty around these figures remains high, it seems clear that Harvey’s aftermath will be particularly severe.

    This post was published at Zero Hedge on Sep 11, 2017.


  • Gartman: “We Are To Err Bullishly Of Equities In Global Terms, Deer-In-Headlights Fearfully Long”

    If there was any doubt whether Dennis Gartman was simply trolling the subscribers to his daily newsletter before – and everyone else – the following excerpt should clarify it all.
    STOCK PRICES, GLOBALLY, HAVE CONTINUED TO QUIETLY RISE and once again we note what ‘Old Turkey’ said to the young Jesse Livermore: ‘After all, this is a bull market’ for nothing seems able to stem the global bull markets steady, relentless and even surprising strength. The global bull market can absorb the seriousness of Hurricanes Harvey and Irma; it can absorb the continued threats from North Korea; it can absorb the threats to the very veracity of the European Union as the citizens of Catalonia are prepared to separate in a quiet civil ‘war’ from the rest of Spain. It absorbs the high valuations to which share prices have advanced relative to book value; P/e multiples are high and rising; price:book value ratios are as extended as we’ve seen them since the late 90’s and the early first years of this century.

    This post was published at Zero Hedge on Sep 8, 2017.


  • GLD Assets Spike Higher

    A late-August surge in gold prices has finally attracted traders back into SPDR Gold Shares (GLD), the largest of the gold bullion ETNs. This week’s chart looks at total assets held in the GLD Trust, which issues or redeems shares as needed in order to keep the share price as close as possible to the net asset value. Those shares are backed by actual gold bullion, and so issuing more shares means more gold in their vaults. Data are available
    A number of assets held by GLD tend to fluctuate in step with gold prices.

    This post was published at FinancialSense on 08/31/2017.


  • One Statistics Professor Was Just Banned By Google: Here Is His Story

    Statistics professor Salil Mehta, adjunct professor at Columbia and Georgetown who teaches probability and data science and whose work has appeared on this website on numerous prior occasions, was banned by Google on Friday.
    What did Salil do to provoke Google? It is not entirely clear, however what is clear is that his repeated attempts at restoring his email, blog and other Google-linked accounts have so far been rejected with a blanket and uniform statement from the search giant.
    Here is what happened, in Salil Mehta’s own words.
    Don’t do a googol of evil
    Freedom is not free unless corporations who exert a large influence in our lives believe in our well-being. I am a statistics professor and understand that there needs to be reasonable standards to control a large social network and make sure everyone is able to enjoy it freely. Invariably people disagree (we all see this), but some principles, such as simply showing probability and statistics with the sole hope of educating others, should be acceptable and in the middle of the distribution. I am for a higher standard, and a higher purpose. There is great care that I have taken to make sure that people treat one other well, admit faults, and present math and probability education to a wide audience.

    This post was published at Zero Hedge on Aug 21, 2017.


  • DIGITAL TYRANNY: Google and Facebook’s Automated Censorship Program (I Hope You Can Speak Chinese)

    21st Century Wire says…
    Based on their own reports and public statements, it was clear that both Google and Facebook, and others, were engaged in formulating a wide program of censorship in order to ‘tackle’ what the corporations deem as ‘offensive speech’ or ‘hate speech’. Although based on the political biases of members of these corporations, the actual administration of this will be done by fully hidden and unaccountable automated computer algorithms.
    According to new reports, the new method are not merely the manipulation of metrics used to downplay content. These are incredibly clandestine and very sinister measures: without visibly shutting down an account, this new automated censorship process will simply make an account holder’s posts invisible to their friends, fans and followers, in what Google/YouTube is calling ‘a limited state’ in order to ‘isolate and contain’ a targeted user – even if they have NOT violated the user terms of services. This is designed not only to ‘disappear’ important opinions and information – but also to frustrate users, in the hopes that they will eventually abandon the platform as a viable content distribution network.

    This post was published at 21st Century Wire on AUGUST 6, 2017.


  • Earnings Beat “Fist Pumps” Very Muted This Quarter

    Via Global Macro Monitor,
    Stephen Gandel of Bloomberg out with a good piece this morning on:
    …shares of companies that have reported both better-than-expected profits and sales for the second quarter have barely budged this earnings season. It’s the least fist-bumping investors have done for great quarters in 17 years. – Bloomberg
    Is this the beginning of a catch up trade?
    Stocks rose during the recent earnings recesssion through P/E multiple expansion and this just may be the market allowing fundamentals to catch up with prices. Nah, that’s too rational.
    Too much catching up to do as noted by Howard Marks comments below.
    The S&P 500 is selling at 25 times trailing-twelve-month earnings, compared to a long-term median of 15. The Shiller Cyclically Adjusted PE Ratio stands at almost 30 versus a historic median of 16. This multiple was exceeded only in 1929 and 2000 – both clearly bubbles. While the ‘p’ in p/e ratios is high today, the ‘e’ has probably been inflated by cost cutting, stock buybacks, and merger and acquisition activity. Thus today’s reported valuations, while high, may actually be understated relative to underlying profits.

    This post was published at Zero Hedge on Aug 3, 2017.


  • There Are Two Problems With Trump’s Tweet About Record Corporate Profits

    "Corporations have NEVER made as much money as they are making now." Thank you Stuart Varney @foxandfriends Jobs are starting to roar, watch!
    — Donald J. Trump (@realDonaldTrump) August 1, 2017

    Earlier today, in an attempt to deflect from the relentless scandals that plague his administration, Trump tried to pivot attention to either the stock market, highlighting the record high 22,000 print in the Dow Jones, while also pointing out that “Corporations have NEVER made as much money as they are making now.”
    There are two problems with this tweet.
    First, it’s wrong. While on a non-GAAP basis, which excludes the impact of “one-time, non-recurring” items, and pretty much anything else management does not want counted – with the explicit blessing of the biggest moneys in the room known as the FASB – which allows companies to ignore countless above the line expense and cost items, adjusted “profits” may indeed be at an all time high, but those “profits” are a monetary mirage, meant only to justify the record high level in the S&P ever applying (ever greater) P/E multiples.

    This post was published at Zero Hedge on Aug 1, 2017.


  • Deutsche Bank Former Executives Waive Half Their Bonuses

    Ten former and one incumbent executive board member of Deutsche Bank AG agreed to forfeit 38.4 million ($44.8 million) of outstanding bonus payments, drawing a line under almost two years of negotiations with the German lender related to misconduct fines.
    Deutsche Bank said it won’t hold the management board members liable as part of the deal, which includes them receiving the remaining 31.4 million in unpaid bonuses, according to a statement Thursday from the lender. There’s insufficient evidence for actionable damage claims against the members, the bank said.
    The lender has been seeking to persuade the former executives to contribute to billions of dollars in fines the lender had to pay because of past misconduct. Supervisory board Chairman Paul Achleitner said at the bank’s annual general meeting in May that an agreement with the 11 men was nearing.
    Deutsche Bank’s ‘supervisory board appreciates the fact that with the additional waiver of bonuses, the management board members in office at that time are making a further personal contribution to closing this chapter,’ Achleitner said in Thursday’s statement. ‘This helps us to look forward toward the future again.’

    This post was published at bloomberg


  • What Explains amazon.com’s Share Price?

    PCR Takes a Look at Today’s ‘Top Stories’
    ‘Here are today’s top stories on Bloomberg’
    ‘Jeff Bezos briefly overtook Bill Gates as the world’s richest person. A surge in Amazon shares Thursday morning in advance of its earnings report gave Bezos a net worth of $92.3 billion, surpassing the Microsoft founder’s $90.8 billion fortune. In afternoon trading, Bezos remains ranked second on the Bloomberg Billionaires Index. Gates has held the top spot since May 2013.’Amazon’s stock closed yesterday at $1,046 per share. Amazon’s profits do not support this extraordinary price. Apple, a very profitable company, has a share price of $150.56, an overprice itself.
    What or who is making Bezos so rich from an online sales company? Note, amazon.com is just sales. It is not some new manufacturing technology that produces valuable output at low cost. amazon.com is what Walmart, Sears, and Macy’s do, the difference being that amazon.com is online and Walmart, Sears, and Macy’s are in physical locations where real merchandise can be experienced hands on and tried on for fit.

    This post was published at Paul Craig Roberts on July 28, 2017.


  • Ted Butler Quote of the Day 07-26-17

    I have been expecting a price explosion in silver since early May, when the COMEX positioning extremes in silver hit then-record levels (Remember the unprecedented 17 days of consecutive price declines?). But incorporated in my price explosion premise was that the raptors would be ready sellers of their big long positions as prices rose. With the new COT report indicating that not only have the raptors not begun to sell on higher prices, they actually added new longs. If this was no fluke and is indicative that the raptors may be in no rush to sell, then who the heck is going to sell to the technical funds when they plow onto the buy side?

    There’s no question that the technical funds will rush to buy (or attempt to buy) many tens of thousands of COMEX gold and silver contracts on higher prices from here; the only question is who will sell to them? If it isn’t the raptors, it is a near-certainty that prices will explode.

    This is the perfect set up for a selling vacuum and price explosion that I have long envisioned, but not with such clarity. If there’s ever been a better time to be positioned to the maximum for a silver rally than now, that time is unknown by me.

    A small excerpt from Ted Butler’s subscription letter on 22 July 2017.

    More precious metals news & information available at
    Ed Steer’s Gold & Silver Digest.
     


  • Will Plunging Store Rents Slow the Retail Doom-and-Gloom?

    Landlords are reading the memo, but it may be too late.
    Shares of Amazon multiplied by a factor of ten since 2009. Shares of Wal-Mart are flat over the past five years but are up 30% since the beginning of 2016. Since mid-2015, shares of Best Buy are up 58%, Home Depot 28%, and Costco 10%. These and other retailers like them saw their share prices rise because they managed to navigate the new retail environment.
    Many online retailers and online operations of brick-and-mortar retailers are thriving. Other retailers are thriving because, like Home Depot, they’re in a segment that is booming. So not all brick-and-mortar retailers are melting down. But many are, including the samples in the list below. The percentage denotes the crash in share prices over the past two years:

    This post was published at Wolf Street by Wolf Richter ‘ Jul 23, 2017.


  • The ECB Morphs into the Mother of All ‘Bad Banks’

    As part of its QE operations, the ECB continues to pour billions of freshly created euros each month into corporate bonds – and sometimes when it buys bonds via ‘private placements’ directly into some of Europe’s biggest corporations and the European subsidiaries of non-European transnationals. Its total corporate bond purchases recently passed the 100 billion threshold. And it’s growing at a rate of roughly 7 billion a month. And it’s in the process of becoming the biggest ‘bad bank.’
    When the ECB first embarked on its corporate bond-buying scheme in March 2016, it stated that it would buy only investment-grade rated debt. But shortly after that, concerns were raised about what might happen if a name it owned was downgraded to below investment grade. A few months later a representative of the bank put such fears to rest by announcing that it ‘is not required to sell its holdings in the event of a downgrade’ to junk, raising the prospect of it holding so-called ‘fallen angels.’
    Now, sixteen months into the program, it turns out that the ECB has bought into 981 different corporate bond issuances, of which 34 are currently rated BB+, so non-investment grade, or junk. And 208 of the issuances are non-rated (NR). So in total, a quarter of the bond issuances it purchased are either junk or not rated (red bars):

    This post was published at Wolf Street by Don Quijones – Jul 20, 2017.


  • Technology that Glitters in Gold: Solar Energy, Bioprinting and Tractor Beams

    Researchers continue to come up with amazing new technologies utilizing gold.
    We generally think of gold as an investment as well as money, but it is increasingly being used in high-tech applications. Gold’s conductivity and malleability make it suitable for a number of futuristic applications, from energy production to healthcare. Researchers are even using the metal in things that sound like they came out of a sci-fi book. In fact, the tech sector accounted for about 6% of gold demand in 2016.
    A team of researchers in Japan has developed a material incorporating gold nanoparticlescapable of harvesting a broader spectrum of sunlight in solar panels. According to AsianScientist, the new formulation makes traditional semiconductor material 60 time more efficient at splitting water to harvest hydrogen atoms. This could revolutionize hydrogen energy production.
    Hydrogen ranks among the cleanest low-carbon fuels. It gives off energy when it combines with oxygen. The byproduct is water. But currently, the process of harvesting hydrogen molecules by splitting H2O takes more energy than the produced hydrogen gives back. AsianScientist explains how gold may make the process more efficient.


    This post was published at Schiffgold on JULY 20, 2017.


  • Net Neutrality: The Liars Need To Be Locked Up

    The last couple of days have been so-called days of action on so-called “Net neutrality” and now a veritable trove of large “consumer” corporations have joined the fray — Amazon, Facebook and (of course) Netflix among them.
    It’s time to cut the crap on all of this — every one of these firms simply wants to shove their costs down your throat, whether you use their services or not.
    That’s what this is really about, you see.
    It’s obvious with Netflix, of course, but less-so with the others. Facebook, for example, has to deliver advertising — including high-bandwidth video advertising — to make money. To do that someone has to pay for the transport of the data from their servers to your computer or phone.
    Who pays?

    This post was published at Market-Ticker on 2017-07-13.


  • BART Withholds Video Of Attacks Over Concern About “Stereotypes”

    Over the last few months, several attacks by large groups have targeted riders on San Francisco’s Bay Area Rapid Transit (BART) trains, resulting in robberies and injuries. The first of these took place in April and involved as many as sixty youth and seven victims, two of whom were beaten. The two most recent came at the end of June, including an armed robbery with a knife and another incident with a dozen perpetrators robbing a woman.
    BART riders have begun to fear for their safety, and want video released to see who are committing these robberies. BART won’t release the video, however, and BART board member Deborah Allen tells CBS that it’s because they are afraid that the videos will ‘unfairly affect and characterize riders of color’:
    According to a memo distributed to BART Directors, the agency won’t do a press release on the June 30 theft because it was a ‘petty crime’ that would make BART look ‘crime ridden.’ Furthermore, it would ‘unfairly affect and characterize riders of color, leading to sweeping generalizations in media reports.’
    The memo was from BART Assistant General Manager Kerry Hamill.

    This post was published at Zero Hedge on Jul 12, 2017.


  • BOND ROUT!!!

    Nothing ever goes in a straight line. For every rally there will inevitably be a retracement, a minor selloff often of no more than profit taking. These are generally pauses where a durable trend either overcomes doubts, or succumbs to them. In the stock market, they call it the wall of worry. In bonds, it’s become a bit more complicated.
    At this particular moment, US treasuries are again being sold. It’s really not to this point all that much, but you wouldn’t know it from the commentary trying to describe it. The headlines all scream in unison BOND ROUT! It is in many ways the opposite of stocks, where even larger corrections (like the liquidations in 215 and 2016) get shrugged off as nothing of great concern.
    This disparity is, however, quite easily explained. Stocks on the way up are a reflection of the way the world is supposed to be. It just isn’t possible, in mainstream convention, for prolonged economic agony. Share prices as they are now, as they have been since especially QE3 in 2012, are signaling the end of the malaise and the belated return of conventional sense. Bond yields going only lower are a loud (and more robust) contradiction to good orthodox understanding of the way the whole world might actually work.

    This post was published at Wall Street Examiner by Jeffrey P. Snider – July 7, 2017.