In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
Both Tesla and SolarCity are losing a lot of money, and both could be in serious trouble if Mr. Musk cannot figure out a way to start generate cash and a lot of it—and fast. Musk has taken a very bold gamble here; he’s essentially betting two of his companies on a fundamental shift in the way the world gets electricity. If that change does not occur, both Tesla and SolarCity will find themselves caught in the death spiral.
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The real problem is that gasoline prices in some parts of the country are higher than others. In some regions, gas prices are so high as to be a drag on the economy and a possible threat to retail sales.
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The number of delinquent loan balances at BOFI doubled between June 30, 2014, and September 30, 2014, which indicates that the bank’s loan book could quickly melt down.
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My prediction is that CVS’s revenue will continue to grow but none of its competitors will follow its lead and go tobacco free. Instead, CVS will be something of an anomaly, which will buy it a lot of good publicity and support from the healthcare industry.
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The loss of Costco Canada is already hurting American Express, where revenue fell slightly between December 2014 and March 2015. AmEx reported a TTM revenue of $34.04 billion on March 31, down from $34.29 billion on December 31. The loss of Costco Canada hit American Express hard because the club store giant is huge in Canada, as anybody who visits the country knows.
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It is no coincidence that Amazon reported a TTM revenue growth rate of 15.08% on March 31, while Target and Walmart’s sales were staying flat. America’s middle class has changed its shopping habits dramatically in the past decade.
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What is even more worrisome is that the number of bank repossessions, or REOS, increased by 49% between February and March 2015, RealtyTrac reported. The bank repossession rate hit a 17-month high and rose to a rate that was 25% higher than for March 2014. These statistics indicate that the foreclosure crisis has returned with a vengeance, folks.
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My take on the situation is this. Both eBay and PayPal are value investments; they’re great brands and well-run companies that generate a lot of cash. Both companies also operate in a sector that has a lot of room for growth. Yet they are also undervalued by the market, probably because they operate in an unsexy sector, namely, basic e-commerce.
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The numbers indicate that WWE CEO Vincent Kennedy McMahon Jr. is some sort of visionary at the cutting edge of entertainment. He seemed to have the insight that wrestling fans would be willing to pay a flat rate of $9.99 a month for just the programming they wanted to watch.
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My take is that Ford would be a very good buy and hold play right now. It has a strong brand, great dividends and a good return on equity.
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