Why it matters when big tech firms extend their power into media content

 

Why it matters when big tech firms extend their power into media content

Courtesy of David Hesmondhalgh, University of Leeds

File 20171114 26460 1sx4asd.jpg?ixlib=rb 1.1

Shutterstock

A major shift is taking place in global media. Until recently, tech corporations were mainly involved in distribution rather than production. But now, instead of simply delivering TV shows, music and films onto our devices and screens, major firms are sinking huge amounts of money into the content itself.

The herald of this change was Netflix. Here was a tech company from the heart of Silicon Valley which in 2011 began to commission expensive middlebrow fare for its video streaming service. Amazon soon followed, and now Apple are poaching star TV executives, investing a billion dollars a year in production, and almost certainly planning a new video streaming site. Google and Facebook are developing content strategies, too.

However, this shift is not, as some would have it, a case of boring old “legacy” media companies giving way to smart, dynamic usurpers that will give the world better television.

It is better understood as a wholesale media power grab by the tech sector.

Taking over? Jesse33/Shutterstock

Blurred boundaries

There is a precedent for media being dominated by a bigger, neighbouring sector. In the 20th century, many key developments in media and culture were driven by electronics corporations. The recording and radio industries were essentially created in order to provide content to play on electronics devices – where initially the biggest profits lay.

Once content itself became sufficiently lucrative, electronics firms established themselves in production and distribution, forming the heart of vast media oligopolies. Key US broadcasting network NBC was an offshoot of General Electric, big record companies were often subsidiaries of electronics giants, and later, Japanese electronics group Sony became a massive media force.

Boundaries have blurred, but the electronics and tech sectors remain distinct, with their own cultures and industry bodies. And the new tech oligopoly has even more power than the electronics corporations and media giants.

It is important to…
continue reading





  • Phil/ Thanks to your obsessive bearish anxiety over the last few weeks, I made money on the long side this month, phased gradually to bearish, came in net short today and managed to make money both long and short all week, ending today [and each day this week] in the green. I don't know how you do it, but thank you.

    Zeroxzero

  • Brilliant covering of the arcane, the profane , but never the mundane! Easy to understand the reason for your huge following, Phil, and why you have become a must read on my daily agenda. Please accept my complete appreciation.

    Seeking Truth

  • I have definitely learned to take smaller wins early and be happy with that. Lately, I've aimed for $250 profit per day. Doing that daily/weekly x 48 weeks (assuming I take some time off) works out to 60k per year. That's a lot of money!! $250 moves happen all the time if you just wait for them.

    JeffDoc

  • TBT - Many thanks, Phil. I join you in your opinion favoring the Jan expirations. That's a great play. I can never thank you enough for what I have gained educationally as well as monitarily. Here it is late Sunday evening and I am able to get world class advice, just by asking for it. I feel like I am staying in a 5 star hotel, and room service is just a telephone call away!

    Gel1

  • Thanks to Phil (again) for the lessons on the art of the roll, selling premium and hanging tight under fire (particularly in the first hour of trading-MADNESS). Watching you manage the $25KP has really helped my trading in a big way.

    Oknoman

  • I cannot believe the success I have had in the last 6 months because of what I have learned here! It has been truly life changing. It's like the old adage about teaching someone how to fish instead of just giving them a fish. Thank you Phil, I am forever grateful and hope I have helped someone else along the way.

    Craigsa620

  • Greetings Phil, I am an Economist at Harvard and some of my colleagues and I would like to let you know that we follow your posts on SA, and find your analysis refreshing, rigorous, and acute. Great work! Though many of us (including myself) have our work covered in the Wall St Journal, in many ways your macro commentary is more fearless and accurate than what is generally found in that venerable publication. Kind regards, Daniel

    Daniel

  • I'd like to wish Phil and everyone else that contributes to this board a very Merry Christmas and happy New Year. The wealth of knowledge on here is incredible, and it has greatly contributed to my understanding of markets, politics, and the world in general. This year was when Phil's teachings all seemed to click in place, and my portfolio's performance shot up, and for that I am very grateful. Thank you!

    Palotay

  • Phil: Thank You! Scaling, Scaling, and Scaling… then patience, patience, patience I'm 2 to 1 short and even on a day the broad market is up I had my largest one day gain in years. The last 6 weeks in fact have been great. I really feel I've learned to use some tools that will enable me to deal with the turbulence ahead. Selling short calls is definitely my preferred approach. Even allowed me to play golf this afternoon while the premium melted away and shoot a career low round. I owe you man!

    Lincoln

  • You guys gotta give it to phil–the voice of reason yesterday, last nite and this morning.

    Corleone

  • Hello Phil, Thanks for the heads up on the comming sell off on friday, and the bs job yesterday. your our guiding light!

    Microflux

  • Thanks for the USO directions today. Made it 3 times (up/down/up) for a very nice win.

    Doro165

  • Phil - I just referred 10 people. Last week was a 50% gainer for me. There are companies that want to sell mentoring service for thousands of dollars. This is far better of a deal with very good advice.

    Steve

  • Phil, I wanted to thank you for all of your teaching, advice, and guidance. Because of you I don't chase, don't worry about missed chances, and play things much more selectively. Yesterday's /ES and /TF and today /CL are my first futures plays of the month. Thanks Phil. (Out of /TF and /ES yesterday with a nice gain)

    Japarikh

  • Started my membership in mid-Oct and have since then learned so much about options by reading the site's articles and postings, members' chats and suggested trades – as a bonus, the articles are entertaining as well! Phil's long-term investing strategy makes really good sense as I've seen its effect on my GLW positions. Phil – thanks for sharing your knowledge of the market! I've worked as risk analyst for the investment dept of a $19B insurance company, and the scope and depth of your daily commentaries blows away what I have seen and heard from the PMs and even the chief investment officer! Most of all, I will continue to be a member because you have your priorities right (from my POV) – it's not all about money and power.

    Bai2r

  • Phil is a fundamentalist to his fingertips. His ability to value a stock goes well beyond p/e, as he understands the essence of many businesses, what gives them value and how they make their money. As such, his recommendations are invaluable to a investor who takes a value-oriented approach.

    Zeroxzero

  • Phil, Passed a milestone today since joining 2 months ago. 25% of my account is in buy/writes, bull call spreads and disaster hedges. A majority of the trades were taken directly from your ideas or someone else`s contributions. Some were daytrades that became spreads. That part of my account is up 30% as of today. I don`t worry about it, or mess with it much, did a few rolls etc. Rest of the account is there to day trade, cover the writes and take advantage of opportunities. Thanks to everyone who contributes here, what a sweet way to trade, so many opportunities.

    Ben1Be

  • Phil - Thanks for the welcoming gift of the POT at a buck Just paid for this month and my membership is not even 24 hours old! looking forward to many more - bk

    Bjkeck

  • Phil — gotta thank you for your advice this week, and especially today. I took many aspects of your advice this morning, with all of my shorts -- being prepared on the short side, selling into intial excitement, taking the money and running, not being greedy. I also made money on the your /QM and /YM calls. It used to be I would be terrified of weeks like this one. Now, it feels somewhat comfortable, for want of a better word.

    Escohen5

  • I want to thank you for sharing your wisdom with us. I've learned a lot (and still am) about your trading strategy, but also I see a man who truly cares about our country, America. Thank you.

    Autolander

  • Phil- I am a former portfolio manager and now retired. I have been following you for about six months and I now know why you have so many followers you are very insightful and knowledgeable.

    Mkozberg

  • Peace of mind / I have a portfolio mainly consisting of long term long calls, short term short calls and puts, and long term BCS. Three years, ago when I started my journey on this board I would be freaking out panicking as to what to do, as many of the short calls are ITM, Three years later (today) I look at the screen and serenely process the information. Three years ago, I inevitably made the wrong decisions which cost me a lot of money. Three years on I calmly roll the positions to whatever makes sense. No drama, no hair pulling, and a great cost saver. I guess they call that the power of education.

    Winston

  • SPY/Phil, I took a big swing on January 26th following your advice to another member and bought 1615 contracts of Mar 185/190 BCS on SPY that will expire ITM today paying $290,700 on the $500k bet. I thought it might be fun to see what a winning trade looks like. Great call on your part and looking back it seems pretty obvious.

    Sibe14 (premium)

  • Market manipulation…. One of the things I've gained from this site is the concept of market manipulation. I never thought it was so prevalent, but now I know it is. I actually consider its effect when I make trades. Several days ago, when AAPL was moving toward 220 I sold 210 calls. My reasoning was that they will probably pin this month at 210. They came in big time as the stock moved ever closer to 210. I agree with Phil's comment that one of the things we need to do is find out what they are manipulating, and how, and hitch a ride. They are doing this with several equities. I've actually seen one article describing several equities that were being manipulated to pin at expiration each month, and describing how it was done, and of course Phil has described it well. In some ways it's easier to figure this out than it is a ‘normal' market behavior, and thus easier to make money in certain equities.

    Iflantheman

  • By the way thank you Phil for the DNDN idea. 3x till this morning and will 4x my small investment by next OE THANKS !!!!

    Microflux

  • Phil...The hundred grand portfolio updates are helpful...Fun ..and have been profitable...really like em... made some nice entries into USB, KEY today... and I better add those FAZ calls tomorrow... Really glad you put that up this morning...

    Becker

  • Phil, You were on the $ today with your calls almost exactly on the turns – Krap kuhn krup (Thai for thank you very much).

    Jomptien

  • I love it when a trade really comes together. After 4 DD's and a roll, I cashed out 16 times my initial position in TLT today for a 140% gain. Thank you Phil for the lessons in scaling in, and paying for position.

    2Can

  • Being a bear is easy (and I am not convinced we are doing all that well on the whole as an economy), but one cannot fight the trend (didn't Phil say that a while ago)? Just cover, make 5-10-15-20% and move on. It really does add up by chipping away. All I can say is I am back to 2007 levels in my account b'f the crash with this run up and some very nice help on this board….so kudos to us (and me!!)…

    Pharmboy

  • Personally I admire and respect you disciplined approach to investing. My style is at the extreme side of aggressive and I have to learn how to be less that way. If I yell " Let it Ride" at my house, no one says a word so I can't use that to temper my behavior. Phil has done a pretty good job of knocking some of my potential moves and as a result, I have increased my portfolio value by almost 25% since late July.

    DoubleD

‘Hot potato’ shows why workers won’t benefit from Trump’s corporate tax cut

 

'Hot potato' shows why workers won't benefit from Trump's corporate tax cut

Courtesy of Steven PressmanColorado State University

File 20171117 19250 19mgss2.jpg?ixlib=rb 1.1

Who will be left holding the potato? Nobuhiro Asada/Shutterstock.com

Many children have played hot potato, a game in which they pass a spud to other children quickly so they don’t get stuck with it when the music stops.

Taxes are like that potato. No one likes paying them; everyone tries to pass them to others. The game of hot potato sheds some light on the debate over Republican tax cutting plans, particularly when it comes to companies.

The House just passed its tax cut bill. It would give about two-thirds of roughly US$1.5 trillion in net tax cuts over the next decade to businesses, mainly by lowering the corporate income tax rate to 20 percent from 35 percent. That puts a lot of money on the table. About $100 billion in U.S. corporate profits would be retained by companies rather than paid to the government each year.

Treasury Secretary Steve Mnuchin has claimed that most of this tax savings would go to workers, in the form of higher wages, in line with the president’s argument that the plan would benefit the middle class.

With the help of hot potatoes, let me explain why he’s wrong.

Treasury Secretary Steven Mnuchin holds up a sheet of $1 bills, the first bearing his name, as his wife Louise Linton looks on. AP Photo/Jacquelyn Martin

Why workers won’t gain

There are two ways a corporate income tax cut can trickle down to workers’ pockets: directly through higher wages or indirectly via lower prices at stores selling the things they buy.

Mnuchin contends that workers currently bear 70 percent of the corporate tax burden – or get stuck with 70 percent of the corporate tax hot potato. So, a tax cut would mean that companies pass much of their tax benefits to their employees by paying them more or by cutting prices and increasing the buying…
continue reading





Fearless Friday – Markets Head into the Holidays at All-Time Highs

Image result for winter vacation cartoonNext week is nonsense

In the US, Thanksgiving is Thursday and the markets are closed and many people take the whole week off and almost everyone is in vacation mode by Wednesday and Friday (a half-day on Wall Street) is a total joke for those who show up – often the lowest volume day of the year.  So we don't expect much action next week and certainly not a move higher and then, after Thanksgiving it's Christmas time and then New Years so let's just meet back here on Jan 2nd and see where things are, OK? 

We've been reviewing our porfolios in our Live Member Chat Room and we're well-locked in neutral already with very little gained in the past month but that's OK, as the market has made very little gains in the past months.  In fact, our last Portfolio Review was October 28th and the S&P closed that Friday at 2,581 and, this morning, we're at 2,585 so – happy holidays – see you in Januray!  

If you do insist on hanging around, you can expect more of the same in December – unless the Trump Tax Plan fails to pass the Senate, then we are likely to break below the range.  At the moment, as we've discussed before, most people are holding their equities (including us) into next year, so we can take our profits when the taxes are lower.  If no one is willing to sell (and take high-tax profits), then the new buyers are forced to offer higher prices and the market does drift higher but the low volumes indicate it may be very hard to find buyers once people do want to cash in their gains. 

There are good strategies for locking in gains and I'll tell you a few.  Apple, for example, is at $171 and let's say you bought 1,000 shares for $120 ($120,000) and you have a $51,000 gain.  If you take that gain now, you will be taxed, for example, 38.5% ($19,635) but if you wait and next year you pay just 25% ($12,750) you are saving almost $7,000.  So your 1,000 shares of AAPL would have to fall more than $7 (4%) for it to be…
continue reading





PhilStockWorld.com Weekly Trading Webinar

 

PhilStockWorld.com Weekly Trading Webinar – 11-15-17

For LIVE access on Wednesday afternoons, join us at Phil's Stock World – click here

Major Topics:

00:01:59 Checking on the Markets
00:03:44 AAPL
00:04:11 EXE
00:06:45 SQ
00:09:33 DFS
00:16:20 GNC
00:18:03 GE Chart
00:27:06 FTR
00:31:16 Checking on the Markets
00:32:13 GILD
00:40:25 TSLA
00:46:30 Pivot Points
00:49:25 SGYP
00:58:20 Big Chart
01:02:08 S&P 500
01:21:17 Watchlist update
01:38:19 NLY
01:47:13 Portfolio Review
01:51:38 GE Trade Ideas

Phil's Weekly Trading Webinars provide a great opportunity to learn what we do at PSW. Subscribe to our YouTube channel and view past webinars, here. For LIVE access to PSW's Weekly Webinars – demonstrating trading strategies in real time – join us at PSW — click here!

 





$450M Thursday – A Least It’s a Nice Frame

Image result for Salvator Mundi.$450,000,000!  

That's a lot of money to spend on a painting and yet another justification for my daughter to go to art school!  It just goes to show you how rich the rich are gettin as the previous record for a painting at auction was $300M for Kooning's "Interchange" 2 years ago and this painting was previously purchased in 2013 for "only" $127.5M – how's that for inflation?  So, on this trajectory, we're only a few years away from the first Billion-Dollar painting – just in time for Madeline to graduate with her art degree!  

The buyer is mystery but look for a guy with a 26" space on his wall – that's probably him.  That's right, this is a pretty small painting but it is cool that it was painted by DaVinci 500 years ago though how they prove that, I can't say.  There was a VanGough that went for "only" $81.3M that I liked better – and it's more in my price range.

This is an indicator of how drastic income inequality is becomming in the US.  There was a roomful of people yesterday, bidding hundreds of Millions of Dollars on a painting while their pet Congresspeople are screaming to the cameras that these art lovers need massive tax breaks in order to "create jobs".  In order to give the art lovers these tax breaks, we have to give up our nacent universal health insurance, we have to cut Medicare, cut Student Loan Funding and cut Farm Subsides – all while taking on $1,500,000,000,000 in additional debt (minimum), which is enough money to buy 3,000 more paintings!  

Going long Sothebey's (BID) might be the best way to play along at home because all this money we, The People are scrificing is going to just 3M of our fellow citizens in the Top 1% and this chart is old as they now control 50% of the wealth in this country – and guess where they took the other 10% from?

wealth3

That extra blob of green on the chart is what was cut off from the top of the top 90% and it belongs to the Top 97, 98 and 99th percentiles and yes, a
continue reading





How Silicon Valley industry polluted the sylvan California dream

 

How Silicon Valley industry polluted the sylvan California dream

Courtesy of Jason A. HepplerUniversity of Nebraska Omaha

File 20171027 2402 15ejnas.jpg?ixlib=rb 1.1

Aerial view of San Jose, California, 2016. Gordon-Shukwit, CC BY-NC-ND

On Labor Day 1956, a caravan of moving trucks wound their way into Santa Clara County, just south of San Francisco, carrying the possessions of 600 families and equipment for the missile and space labs of the Lockheed Corporation. One month later, Lockheed’s Sunnyvale campus opened for business. Many of the arriving families were relocating to Sunnyvale from the company’s facility in Burbank, in Southern California.

The draw included good jobs in the emerging businesses of electronics research and development, as well as manufacturing of semiconductors and other electronic components for machinery and computers. Affordable housing, a pastoral landscape and a pleasant environment proved very attractive for newcomers. Local boosters, corporate executives and new residents alike envisioned a modern future in stark contrast with the declining dirty urban industrial model of the Northeast and Midwest.

This type of industrial work and manufacturing didn’t need smokestacks, large warehouses, or other markers of the industrial age. The Santa Clara Valley’s promise for leading Northern California into a bright economic future quickly brought the area the nickname “Silicon Valley.” But in the book I am writing, I note that if this convergence of natural surroundings, suburban homes and high-tech industrialization represented a facet of the California dream, it also betrayed it.

A bright illusion of the future

A promising advertisement for homes in San Jose. San Jose Mercury, January 18, 1956

In addition to jobs in electronics and aerospace, the emerging suburbs of Silicon Valley promised newcomers a countryside experience. David Beers, whose father worked at the Sunnyvale Lockheed campus, remembered the chamber of commerce brochures claiming an “all-year garden” and “the most beautiful valleys in the world.” Such advertisements were common, assuring home buyers “good living,” the “calm of the country” and “a beautiful walnut and cherry orchard” that “the builder is leaving … for your enjoyment.” The white-collar workers of high tech could make their homes in what…
continue reading






 
 
 

Phil's Favorites

Why it matters when big tech firms extend their power into media content

 

Why it matters when big tech firms extend their power into media content

Courtesy of David HesmondhalghUniversity of Leeds

Shutterstock

A major shift is taking place in global media. Until recently, tech corporations were mainly involved in distribution rather than production. But now, instead of simply delivering TV shows, music and films onto our devices and screens, major firms are sinking huge amounts of money into the content itself.

The herald of this change was Netflix. Here was a tech company ...



more from Ilene

Biotech

The two obstacles that are holding back Alzheimer's research

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

The two obstacles that are holding back Alzheimer's research

Courtesy of Todd GoldeUniversity of Florida

Family members often become primary caregivers for loved ones with Alzheimer’s disease. tonkid/Shutterstock.com

Thirty years ago, scientists began to unlock the mysteries regarding the cause of Alzheimer’...



more from Biotech

Zero Hedge

Back-To-Back Hindenburg Omens

Courtesy of ZeroHedge. View original post here.

About a week ago, we warned about the infamous bearish stock market pattern developing in US equities coined by some as the ‘Hindenburg Omen’. The pattern is known for its bearish tendencies developed after the Hindenburg disaster of 1937. The key understanding is breadth deterioration, when more stocks hit 52-week lows than 52-highs. Since the warning, a liquidity gap has developed in stocks thwarting any attempt at new all time highs.

...



more from Tyler

Digital Currencies

The blockchain does not eliminate the need for trust

 

The blockchain does not eliminate the need for trust

Courtesy of Dirk BaurUniversity of Western Australia and Niels Van QuaquebekeKühne Logistics University

Central authorities are still important to create legitimacy in a cryptocurrency. Shutterstock

A common idea about the blockchain, the technology that powers Bitcoin and other cryptocurrencies, is that it can “...



more from Bitcoin

Chart School

When does this all end - Update2

Courtesy of Read the Ticker.

To buy or not to buy: The US 10 year versus high yielding utility stocks.

Previous Post: When does this all end - Update

The US 10 year yield is at 2.34%

And compared to utility dividend stocks ...

American Water Works (Dow Jones Utility: AWK) dividend @ 1.87%
NI Source (Dow Jones Utility: NI) dividend @ 2.58%
American Electric Power (Dow Jones Utility: AEP) dividend @ 3.25%

The question is, which asset class do you trust to provide a return for 10 years? Of course your ability to judge future inflation expectations (see TIP for iShares TIPS Bond ETF) and how extende...

more from Chart School

Insider Scoop

10 Stocks To Watch For November 17, 2017

Courtesy of Benzinga.

Related AMAT 8 Stock's Moving In Thursday's After-Hours Session 12 Stocks To Watch For November 16, 2017 ...

http://www.insidercow.com/ more from Insider

ValueWalk

Robert Mugabe Under House Arrest, Military Takes Control Of Zimbabwe

By Andjela Radmilac. Originally published at ValueWalk.

Zimbabwe’s head of state, 93-year-old Robert Mugabe, has been placed under house arrest after what seems to be a military coup took place in the nation’s capital.

By U.S. Navy photo by Mass Communication Specialist 2nd Class Jesse B. Awalt/Released [Public domain], via Wikimedia CommonsRobert Mugabe is safe

Following numerous reports on social media late Thursday night about the increased military presence in Harare, the capital of Zimbabwe, the country’s military took...



more from ValueWalk

Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



more from Our Members

Mapping The Market

Puts things in perspective

Courtesy of Jean-Luc

Puts things in perspective:

The circles don't look to be to scale much!

...

more from M.T.M.

OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



more from Promotions

Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



more from Kimble C.S.

All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David



FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>