Posts Tagged ‘cloud computing’

Cloud: Barron’s Puts IBM, Cisco, Hewlett-Packard et al on Notice

Cloud: Barron’s Puts IBM, Cisco, Hewlett-Packard et al on Notice

Courtesy of Joshua M Brown, The Reformed Broker 

This weekend’s must-read is Mark Verveka’s cover story in Barron’s on the next phase of the cloud migration.

Veverka’s story Sky’s the Limit in January was my first exposure to the cloud investing theme and I’ve made an obscene amount of money riding the stocks he introduced me to all year.  In his latest missive on the topic, he looks at the downside of cloud adoption and what investors should watch out for.

Cloud computing for large enterprises has been successful – too successful – and now large enterprises want to take it even further.  By contracting out more and more of their IT operations, these businesses are eliminating their own internal need to buy a lot of the equipment that is baked into next year’s forecasts.

The ramifications for many large cap tech stocks may be huge.

The message of the article is that no one is really ready for this shift to happen quite this quickly, many companies will be caught flatfooted.  Large OEM equipment and IT vendors like Cisco, Oracle, Hewlett-Packard, Dell and IBM have the most to lose from this premature migration. Amazon, Microsoft and Google on the other hand look to extend their dominant positions in cloud services.

If you trade or invest in tech stocks, make sure to read this article this weekend.


A Private Party (Barrons) - sub req 

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Meaty With a Chance of Cloud Calls

Meaty With a Chance of Cloud Calls

Courtesy of Joshua M Brown, The Reformed Broker 

And the winner is…Cloud!  The tech industry sub-sector with perhaps this year’s meatiest move is undoubtedly cloud computing.  Names like Riverbed ($RVBD), Akamai ($AKAM) and 3Par ($PAR) have all been putting up insane numbers this year, performance-wise.

My awakening to the group’s potential back in January came courtesy of a kickass cover story in Barron’s (Sky’s The Limit)- ever since then the cloud computing stocks mentioned (and some that were omitted) have been nothing but fire – in a market that is unchanged year-to-date.

Here’s a peek at the majesty that is Cloud Stock-age thus far in the Twentyten:

Regular readers know that I’ve been hammering away at the cloud theme all year, even hoping for the advent of a Cloud Computing ETF at one point this past spring, albeit in a tongue-in-cheek sort of way (we still haven’t gotten one).

What’s next for the group?

* I have a hard time believing that Cisco has much interest in trailing behind Riverbed in market share for very much longer.  Riverbed’s Steelhead product suite speeds up transmission of applications and data from the cloud to the end user, this is a corporate IT Holy Grail as it allows for the efficient decentralization that global entities need.  I could see Cisco or one of its rivals making a move for this name as this would give them the number one offering in this crucial space instantly.

* Akamai’s global "private web" video serving solution will probably continue to be the delivery method of choice as Web TV becomes a reality and online streaming continues to be monetized.  The wake up call for me on Akamai was when I learned that it was their technology that was the backbone for NBC’s serving of Winter Olympics video to everyone’s mobile devices.

* The bidding war over 3Par (between Dell and H-P) kinda gilds Rackspace’s ($RAX) lilly a bit when you think about it.  Rackspace took over an abandoned shopping mall in downtown San Antonio and built an amazingly scaled-up cloud hosting center.  Their fanatical reputation for customer service to their cloud hosted customers is the heart of their story, however – anyone can build a server farm.

* Microsoft’s CEO Ballmer said a few months ago that he was "betting…
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Living in the Cloud

Living in the Cloud

Courtesy of Joshua M Brown, The Reformed Broker 

Businesswoman tearing up documents

The hippest of hipsters are slowly becoming "Techno-Nomads" or "21st Century Minimalists", the very antithesis of the old consumer materialism, and I find this very admirable.  The cloud computing revolution is making it so that we will all eventually be able to shed a lot of our proverbial baggage as more and more items can be stored online indefinitely.

Here’s an article on the BBC about this new "Cult of Less" movement.  As someone who is a former "Hoarder", I’m highly intrigued…

Let’s face it – digital files, applications and web services are replacing the need for many of the physical goods that pepper our homes, crowd our desks and fill our closets.

From online photo albums to virtual filing cabinets to digital musical instruments, hi-tech replacements are becoming ubiquitous.

But as goods continue to make the leap from the bookshelf to the hard drive, some individuals are taking the opportunity to radically change their lifestyles.

Meet Kelly Sutton, a spiky-haired 22-year-old software engineer with thick-rimmed glasses and an empty apartment in Brooklyn’s Williamsburg neighbourhood – a hotbed for New York’s young, early adopters of new technology.

Mr Sutton is the founder of, a website which has helped him sell or give away his possessions – apart from his laptop, an iPad, an Amazon Kindle, two external hard drives, a "few" articles of clothing and bed sheets for a mattress that was left in his newly rented apartment.

This 21st-Century minimalist says he got rid of much of his clutter because he felt the ever-increasing number of available digital goods have provided adequate replacements for his former physical possessions.

"I think cutting down on physical commodities in general might be a trend of my generation – cutting down on physical commodities that can be replaced by digital counterparts will be a fact," said Mr Sutton.

Can we all become Techno-Nomads overnight?  Of course not, there is a degree of unrealisticism here for grown ups with houses and families.  That said, going possession-less is a fantasy that may be closer than you think to being possible. 


Cult of Less: Living Out of a Hard Drive (BBC) 

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Gathering Clouds

Here’s a very good assessment of the Google-China conflict by Nicholas Carr writing in The New Republic.

Gathering Clouds

Cebit Technology Fair

Google is being widely hailed for its announcement yesterday that it will stop censoring its search results in China, even if it means having to abandon that vast market. After years of compromising its own ideals on the free flow of information, the company is at last, it seems, putting its principles ahead of its business interests.

But Google’s motivations are not as pure as they may seem. While there’s almost certainly an ethical component to the company’s decision—Google and its founders have agonized in a very public way over their complicity in Chinese censorship—yesterday’s decision seems to have been spurred more by hard business calculations than soft moral ones. If Google had not, as it revealed in its announcement, "detected a highly sophisticated and targeted attack on our corporate infrastructure originating from China," there’s no reason to believe it would have altered its policy of censoring search results to fit the wishes of the Chinese authorities. It was the attack, not a sudden burst of righteousness, that spurred Google’s action.

Google’s overriding business goal is to encourage us to devote more of our time and entrust more of our personal information to the Internet, particularly to the online "computing cloud" that is displacing the PC hard drive as the center of personal computing. The more that we use the Net, the more Google learns about us, the more frequently it shows us its ads, and the more money it makes. In order to continue to expand the time people spend online, Google and other Internet companies have to make the Net feel like a safe, well-protected space. If our trust in the Web is undermined in any way, we’ll retreat from the network and seek out different ways to communicate, compute, and otherwise store and process data. The consequences for Google’s business would be devastating…

Full article here.>>


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Zero Hedge

Will Next Week Be The Start Of The Crash Of The US Dollar?

Courtesy of ZeroHedge. View original post here.

Submitted by Secular Investor.

The year 2015 is coming to an end and we’ve seen a lot this year. Not only did we see a much stronger dollar, the gold price also weakened despite the dire economic situation in, well, everywhere in the world, terrorist attacks and additional tensions between a NATO member and Russia. Additionally, the Federal Reserve seems to be on track to increase the interest rate before the end of this year. In fact, as you can see on the next chart, gold has now almost reached a 6 year low, but two impor...

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Digital Currencies

The Bitcoin Universe Explained

Courtesy of ZeroHedge. View original post here.

As evidenced by the Greek, Chinese, and now Argentine 'jumps', the world remains increasingly aware of the inevitable worth of fiat currencies and fears the desperate acts of governments as the react to that reality (and is looking for alternatives).

This infographic explains the wide ranges of the Bitcoin universe, accompanied with quotes from some of its best-known business leaders.

Courtesy of: Visual Capitalist ...

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Phil's Favorites

Fourth Turning - Social & Cultural Distress Dividing The Nation

Courtesy Jim Quinn of The Burning Platform 

I wrote the first three parts of this article back in September and planned to finish it in early October, but life intervened and truthfully I don’t think I was ready to confront how bad things will likely get as this Fourth Turning moves into the violent, chaotic war stage just over the horizon.

The developments in the Middle East, Europe, U.S., China and across the globe in the last months have confirmed my belief war drums are beating louder, global war beckons, and much bloodshed will be the result. Fourth Turnings proceed at their own pace within the 20 to 25 year crisis framework, but there is one guarantee – they never de-intensify as they progress. Just as Winter gets colder, stormier and more bitter as you proceed from December through February, Fourth Turni...

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Market News

News You Can Use From Phil's Stock World


Financial Markets and Economy

The Fed just tweeted a brutal chart showing the sorry state of US department stores (Business Insider)

It's Black Friday, which means American consumers everywhere are knocking down doors in their efforts to take advantage of what they perceive to be a good deal.

Oil prices fall more than 3% as dollar and oversu...

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Kimble Charting Solutions

Does Black Friday Matter For Gains The Rest Of The Year?

Courtesy of Chris Kimble.

We are entering one of the most bullish times of the year historically.  As we mentioned last week, the final 30 trading days of the year have been higher each of the last 12 years.


Getting to today, it is Black Friday – the official start to the holiday spending season.  We’ve seen many stats that show this day isn’t quite as important as it once was.  From many sales now starting on Thanksgiving, to Cyber Monday this coming Monday – there are other times people are looking for the best deals.  None the less,...

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Chart School

Greatest risk to the stock market is?

Courtesy of Read the Ticker.

Nope it is not interest rates, nope it is not Donald Trump, it is!

It is the CRUDE OIL crash, simple!

Jim Willie has good comments in the first 40 min of this pod cast.

Energy company ...
- Debt is blowing up (See energy element of HYG).
- Hedging at oil $100 is coming to an end.
- Iran coming back to the market, more supply.
- Saudi still providing massive supply.
- Oil tankers holding oil parked in the ocean are coming in to harbor to unload
- US dollar strength supports lower oil prices
- World wide DEMAND slump for energy or deflation.
- More oil being sold outside the US Dollar
- The Oil futures can not be manipulated easily as folks actually ...

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All About Trends

Mid-Day Update

Reminder: David 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...

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Sector Detector: Bulls wrest back control of market direction, despite global adversity

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

Courtesy of Sabrient Systems and Gradient Analytics

Some weeks when I write this article there is little new to talk about from the prior week. It’s always the Fed, global QE, China growth, election chatter, oil prices, etc. And then there are times like this in which there is so much happening that I don’t know where to start. Of course, the biggest market-moving news came the weekend before last when Paris was put face-to-face with the depths of human depravity and savagery. And yet the stock market responded with its best week of the year. As a result, the key issues dominating the front page and election chatter have moved from the economy and jobs to national security and a real war (rather than police ...

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Swing trading portfolio - week of November 23rd, 2015

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 ...

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PSW is more than just stock talk!


We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more! features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...

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Whitney Tilson On LL, EXACT, And Martin Shkreli


Whitney Tilson On LL, EXACT, And Martin Shkreli

Courtesy of Value Walk

1) The shares of one of my largest short positions (~3%), Exact Sciences, crashed by more than 46% yesterday. Below is the article I published this morning on SeekingAlpha, explaining why I think it’s still a great short and thus shorted more yesterday. Here’s a summary:

  • The U.S. Preventative Services Task Force’s Colorectal Cancer Screening Draft Recommendation issued yesterday is devastating for Exact Sciences’ only product, Cologuard.
  • I think this is the beginning of the end for the company.
  • My price target for the stock a year from now is $3, so I shorted more yes...

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Baxter's Spinoff

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

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...

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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 


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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

Thank you for you time!

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