Thus Trump can destroy the Kansas City Southern or damage its operations severely. Plus, Trump could quickly sink the KSU’s stock price because I base the railroad’s value on its cross-border operations.Read more
Buying car insurance can seem overwhelming. Don’t worry, we’ve got you covered. Here’s everything you need to know.Read more
To explain, Verizon is the largest wireless carrier in the US with 153.97 million customers in 3rd Quarter 2018, Statista calculates. Moreover, that footprint is growing because Verizon had 148.87 million wireless customers in 3rd Quarter 2018.Read more
Thus there are gold miners losing money right now. Yet the potential for profit is there; for instance, Newmont records a gross profit of $731 million for 3rd Quarter 2018.Read more
Thus, Fiat Chrysler Automobiles has created a platform for autonomous driving technology.
Obviously, other self-driving vehicle systems can use Chrysler‘s platform. Examples of such systems include the Apple Car and NVIDIA’s Drive processor for autonomous vehicles.
Tellingly, neither Apple (NASDAQ: AAPL) or NVIDIA (NASDAQ: NVDA) owns a car factory. On the other hand, Fiat Chrysler Automobiles owns auto factories in Europe, China, North America, and elsewhere.
Therefore, Fiat Chrysler Automobiles (FCAU) could be a value investment for autonomous vehicles.Read more
Oracle cannot compete with all the developer power Microsoft can access through GitHub. For example, Microsoft can flood the market with thousands of applications.
Moreover, Microsoft can “advertise” that software on the one billion Windows-powered PCs around the world. In addition, Microsoft claims there are 400 million computers running Windows 10 globally, The Verge reports.
For instance, Microsoft can introduce GitHub to hundreds of millions of users by adding a GitHub app to future versions of Windows and Microsoft Office. To explain, the GitHub will let users buy GitHub software through Windows.
Furthermore, Microsoft can offer customers a build your own software with GitHub feature. To clarify, Microsoft business or cloud customers could order new apps or features on GitHub. Then GitHub developers will bid on the creation of a custom solution.Read more
Like TJX, Wayfair succeeds because it stays below the radar, caters to loyal customers, and offers great bargains. Another similarity is that Wayfair, like TJX, caters to women.
That is a smart strategy because women are the main shoppers for home furnishings. I think this partially explains why the market ignores Wayfair. To explain, most of the commentators and traders in the stock market are men who have little interest in home furnishing.
Moreover, most of the “experts” in e-commerce are men. Hence, Wayfair is cashing in by targeting a neglected segment of the market. In particular, Amazon has only made a big push into home furnishings in recent years.
On the other hand, both Walmart and Amazon have noticed Wayfair’s success. Not surprisingly, both Walmart and Amazon are making big offensives into the home furnishings market. Thus, Wayfair’s current success could be temporary.
Having money to burn allows Apple to enter risky ventures like Show Business. In particular, I think Apple is able to do serious damage to Netflix (NASDAQ: NFLX).
To enumerate, Apple can afford to hire big stars, major directors, and expensive talent to produce high-quality programming without affecting its bottom line. In particular, Apple can cut large checks to stars and creators and avoid paying them royalties or a cut of the profits.
For example, Applecould write a $30 million or $40 million check to Robert Downey Jr. or Jackie Chan for a starring role. Hence, Apple can buy a lot of exclusive content with a readymade audience.
Uniquely, Apple can create exclusive content just for Apple TV or iTunes. Then give it away as a loss leader to buyers of its products. For instance, the only place you will see the next Robert Downey Jr. movie is on Apple TV.
On the other hand, Netflix reported $3.067 billion in cash and short-term investments on 30 September 2018. Thus, Netflix will have to pay talent in royalties or a cut of the profits.Read more
In addition, Microsoft can offer next generation solutions such as Linux, the blockchain, cryptocurrencies, Ethereum, the internet of things (IoT), sidechains, and memached servers through GitHub. Another lucrative use of GitHub is joint ventures.
For example, Microsoft and Walmart (NYSE: WMT) are entering into a five-year strategic cloud partnership called 4.co. In 4.co engineers from both companies will develop internal apps utilizing Microsoft Azure and migrate Walmart operations the cloud, VentureBeat reports.
The 4.co team can leverage GitHub by using it to hire developers and make money by selling apps through GitHub. Moreover, the 4.co could greatly increase its brainpower and expertise with GitHub developers.
Planned 4.co projects that could leverage GitHub include internal chatbots, food-spoilage tracking, sensors, and improvements to Microsoft’s register-less ordering. The 4.co team will operate out of an office in Austin, Texas.
Thus GitHub is worth the risks for Microsoft. In particular, GitHub greatly increases Microsoft’s R&D capabilities without massive investments in new facilities or peopleRead more
BestBuy (BBY) needs more partnerships because it is not making that much money.
For instance, BestBuy recorded an operating income of $335 million and a net income of $244 million for 3rd Quarter 2018. However BestBuy recorded a gross profit of $2.229 billion on revenues of $9.379 billion for the same period.
Beyond that BestBuy reported an operating cash flow of $904 million, an investing cash flow of $127 million, and a free cash flow of $710 million in 3rd Quarter 2018. Thus, BestBuy has a cash rich business.
On the other hand, BestBuy needs to keep more of that cash. The partnerships are important because they could give BestBuy more cash flow without costly expansion.