Market Insanity Archives - Page 2 of 30

General Motors Builds All-Electric Camaro

Notably, the eCOPO concept is apparently built upon the frame of a conventional Chevy Camaro. Thus, the only difference between the electric Camaro and its gasoline brother is the engine.

For instance, the eCOPO’s engines will fit in the housing for the gasoline Camaro’s LS motors. Additionally, the eCOPO appears built for drag racing. Thus, GM is proving it can go head to head with Tesla Motors and win.

This is bad news for Tesla because GM could easily replicate any model it brings out. Therefore, the whole rationale behind Tesla, bringing out unique electric vehicles is called into question.

However, Elon Musk could view the eCOPO as vindication of his work at Tesla. To clarify, Musk’s major goal at Tesla is promoting electric vehicles not building a car company. Under those circumstances, the eCOPO vindicates all of Musk’s sacrifices at Tesla.

Market Insanity

Is Square (SQ) Making Money?

October 25, 2018 daniel Is Square (SQ) an Acquisition Target?, Is Square (SQ) Making Money Yet?, Is Square (SQ) Making Money?, Square (SQ), Square (SQ) Cash, Square (SQ) Pays No Dividend, The Square (SQ) Cash App is more popular than Venmo, The Square Terminal, Who Will Acquire Square (SQ)?, Will Square (SQ) Make Money?

Importantly, Cash is a money-transfer app accepted by big retailers. Recode claims Walmart (NYSE: WMT), America’s biggest retailer, and McDonald’s (NYSE: MCD) were the biggest recipients of Cash payments. That indicates Cash is reaching a mass market with ordinary people.

CNBC claims 33.5 million people had downloaded Cash in August 2018. If that is true, Cash has more users than Venmo. Additionally, Venmo they have downloaded Venmo 32.9 million times.

In detail, Cash supposedly lets you send money instantly in exchange for a 1.5% fee. Notably, Square (SQ) offers a personalized Cash Card that allows for ATM withdrawals and provides discounts at some merchants.

Therefore, a huge opportunity at Square is to offer POS devices integrated with Cash. To explain consumers could pay with Cash, receive Cash-based rewards points, and use Cash at ATMs. A Terminal that allows Cash users to receive change in paper cash will be a popular product.

Market Insanity Opportunities

Why Microsoft is Giving Away Patented Software

October 19, 2018 daniel GitHub, Here’s why Microsoft is Giving Away Patented Software, Microsoft (NASDAQ: MSFT), Microsoft-owned features, OIN, open-sourced software, Patented Software, Why Microsoft is Giving Away Patented Software, Will Microsoft Giveaway Patented Software Through GitHub?

Microsoft (NASDAQ: MSFT) can easily afford it. On June 30, 2018, Microsoft Corp reported a gross profit of $20.343 billion on 2nd Quarter revenues of $30.085 billion. Therefore, Microsoft can afford to give away patents.

Microsoft could distribute the software through GitHub; which it purchased for $7.5 billion in June. Notably, the OIN announcement came right before the European Commission approved the GitHub deal. To explain, Microsoft needs Commission approval to operate GitHub in the European Union.

GitHub is the perfect place to distribute the OIN patents because it is the world’s largest open-sourced software repository. In detail, GitHub serves 1.8 million organizations and 28 million software developers.

Unfortunately, news articles do not say which software will be released on GitHub.

Market Insanity

How to Tax Corporate Cash

October 14, 2018 daniel How to Tax Corporate Cash, Tax Corporate Cash, We Must Tax Corporate Cash Now, Why America Needs to Tax Corporate Cash, Why we should Tax Corporate Cash

My suggestion is to tax corporate cash at a rate of 5%, but levy that tax quarterly.
Under that regime, Amazon could pay around $1 billion a quarter or around $4 billion a year. Specifically, Amazon reported $27.05 billion in cash and short-term investments on June 30, 2018. Therefore at a 5% tax rate Amazon could pay $1.3525 billion on that cash.
Moreover, I suggest charging a tax of 10% on corporate cash hoards over $100 billion. For instance, JPMorgan Chase could pay $35.51 billion in taxes on its $405.1 billion cash hoard. I arrived at this number by multiplying $305.1 times 10% and adding $5 billion for the first $100 billion in cash.
Under this system, companies will keep the vast of their cash but they will have a strong incentive to spend it. Obviously, the spending will act as an economic stimulus.

Market Insanity

Will Trade War Destroy Alibaba?

September 24, 2018 daniel 20 Year Trade War, Alibaba, Alibaba Holdings (NYSE: BABA), Can Alibaba Make Money During a Trade War?, Can Alibaba Survive a 20 Year Trade War?, Is the Trade War Fake News?, Is the Trade War for Real?, Jack Ma, Will there be a 20 Year Trade War?, Will Trade War Destroy Alibaba?

A possibility that all investors need to consider is that Trump, Xi, and possibly Ma are putting on a show for the media. Their conflict might be a “work” one of the acts professional wrestlers put on to generate audience interest. Most wrestling works involve creating a fake conflict to add drama to a match.

Remember, Trump has had some experience with wrestling; he appeared in WWE about a decade ago. The Donald even had a fake match involving Vince McMahon and Stone Cold Steve Austin. For this reason, I think the “trade war” is fake news.

Market Insanity You Missed It

The Growing Attraction Of Seniors To The Internet

September 24, 2018September 24, 2018 daniel 81% of the elderly, Aren’t these figures interesting?, Growing Online Addiction Among Elderly, internet penetration in the seniors’ community, reasons why elders love the internet., Seniors Towards The Internet, The Growing Attraction Of Seniors To The Internet, The Growing Attraction Of Seniors Towards The Internet

There may be various reasons why elders love the internet. While some of them use the internet for healthcare purposes, others want to explore the world through online videos. Many use it to stay in touch with their children, grandchildren, or other family members via social networks, email, or video calls.

Market Insanity

What you should know about the Trump Trade War

September 21, 2018 daniel The most important implications of the Trump Trade War, Trump Trade War

The trade war could soon impact average Americans. America’s largest retailer Walmart (NYSE: WMT) supposedly urged US Trade Representative Robert (Bob) Emmet Lighthizer to leave a variety of goods off the tariff lists in a letter, The Hill reports.

To survive the trade war the United States will have to devalue the dollar. Obviously, there is no way American remain competitive in trade with a strong dollar.

Market Insanity

Will WhatsApp Destroy Facebook (NASDAQ: FB)?

September 18, 2018 daniel Facebook (NASDAQ: FB), Facebook needs WhatsApp if it wants to grow., Facebook needs WhatsApp to grow outside the United States, Facebook should sell WhatsApp, Is Facebook a classic Warren Buffett value investment?, run WhatsApp as a public service, Should Facebook (NASDAQ: FB) Sell WhatsApp?, Telegram’s TON, WhatsApp Foundation, WhatsApp is what’s wrong with Facebook (NASDAQ: FB), Will Encrypted Messaging and WhatsApp make Money?, Will WhatsApp Destroy Facebook (NASDAQ: FB)?

WhatsApp proves that Facebook is a mess. However; value investors should examine the Social Network, because Facebook is a mess that makes a lot of money.

For all its faults, Facebook is still a moneymaking machine par excellence. Facebook generated $11.552 billion in cash and equivalents and $30.757 billion in short-term investments during 2nd Quarter 2018. That gave Facebook an astonishing $42.309 billion in cash and short-term investments on June 30, 2018.

Is Facebook a classic Warren Buffett value investment? Uncle Warren loves to invest in moneymaking companies “that somebody’s idiot nephew can run.” Surprisingly, Facebook might fall into that category.

Market Insanity

Climate Change is destroying Everybody’s Property Value – Even Warren Buffett’s

September 11, 2018 daniel Aspen Insurance Holdings (NYSE: AHL), Beach Front Property Values being destroyed by Climate Change, Berkshire Hathaway (NYSE: BRK.A), Berkshire Hathaway's (NYSE: BRKB) real estate and insurance businesses expose it to Climate Change., Climate Change, Climate Change is destroying Everybody’s Property Value – Even Warren Buffett’s, Climate Change is Devastating Insurance and Real Estate, Climate Change will increase Property Insurance Rates, How Climate Change is Changing Insurance, How Speculators can Profit from Climate Change, Warren Buffett

Companies are likely to pull out of reinsurance because of Climate Change. Under those circumstances, publicly-traded insurers are likely to go private or sell out to hedge funds.

Property owners will face rising premiums because insurance companies operating costs are increasing. Reinsurance firms like Gen Re and Aspen underwrite property and other insurance properties. Consequently, insurers will pass higher reinsurance costs onto policyholders.

In summary, sell the beachfront and forest properties now. Prices for such properties are likely to plummet as insurance costs rise.

Billionaires like Kimmel and Buffett are outliers in Climate Change losses. They can afford to take a loss on beach property, most homeowners cannot.

Market Insanity

Amazon Jobs are Terrible Wealth Redistribution Mechanisms

September 10, 2018 daniel Amazon (NASDAQ: AMZN), Amazon Jobs, Amazon Jobs are Terrible Wealth Redistribution Mechanisms, Are Amazon Jobs a Drain on Society?, Government-mandated jobs creation, Government-mandated jobs creation raises serious ethical problems., How Amazon Jobs Trap People in the Lower Working Class, Jobs are Not the Answer to Poverty, Jobs Do Not Guarantee Wealth, jobs for wealth redistribution, The Troubles with Wealth Distribution by Jobs, Will a $15-an-Hour Minimum Wage really help the Working Class?

The poster child for jobs’ failure to redistribute wealth is Amazon (NASDAQ: AMZN) where CEO Jeff Bezos is reputedly worth $150 billion. The average salary for an Amazon fulfillment or warehouse “job” is $26,000; a year or $13 an hour, Glassdoor estimated. If he or she is lucky that associate can receive $980 in cash bonuses, a stock bonus of $1,111 and profit sharing of $1,016.