Archive for January, 2018

Ambassador Says Russia Shouldn’t Limit Oil Shipments To North Korea

Courtesy of ZeroHedge. View original post here.

One would hope that, after President Donald Trump declined to impose sanctions against a host of Russians with purported ties to the government earlier this week, he would at least receive a temporary reprieve from any provocative behavior.

Korea

Unfortunately, that couldn’t be further from the reality. As Reuters reports, Russia’s ambassador to North Korea said Wednesday it was better not to cut deliveries of oil and oil products to North Korea, according to the RIA News Agency. Continuing oil shipments to North Korea would of course violate international sanctions passed by the UN Security Council – sanctions that Russia agreed to at the time.

In recent months, US spy satellites have caught ships with ties to Russia and China delivering badly needed oil to North Korea via ship-to-ship trade.

According to RIA, the ambassador said cutting oil deliveries to the North would be interpreted by Pyongyang as a declaration of war and lead to serious problems, including of a humanitarian nature.

In recent months, Russia has kept up its low-pressure policy of confrontations with US military planes in international airspace. Yesterday, we published a video of Russia’s latest attempt to recreate a scene from the movie “Top Gun”: The video showed a Russian Su-27 fighter jet reportedly performed an “unsafe intercept of a US Navy P-3 Orion surveillance plane” while it was flying in international airspace next to Russia, over the Black Sea Monday. The Su-27 reportedly came within five feet of the US plane.

While most observers labeled the Treasury’s “Oligarch’s List” as little more than a rehashing of a Forbes’ list of wealthy Russians, Russian President Vladimir Putin has denounced its release as a “hostile” act.

While the remarks haven’t made much of a splash outside the Russian media, we imagine this suggestion will warrant some kind of a response from the US, or the UN.

Despite this, Reuters reported Wednesday that Russia will send home all migrant workers from North Korea by the end of 2019 in compliance with the UN sanctions.





RETURN ON INVESTED CAPITAL IS WHAT MATTERS WHEN INVESTING IN THE STOCK MARKET (ROIC)

By Akhlaqahmed9941. Originally published at ValueWalk.

Return on invested capital is one of the most important investment tools according to Charlie Munger. In this video I show how to calculate return on investment capital (ROIC), show two examples and how those affected stock market returns and individual stock returns. ROIC is more than just another financial metric, it is a financial performance indicator that really helps in the value creation of a company and for long term investment returns. ROIC is what made Buffett and Munger billionaires. I explain how you can become a billionaire or just millionaire too by using the roid.


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Is Facebook’s Ban On Crypto Ads In Anticipation Of A Litecoin Integration

Courtesy of ZeroHedge. View original post here.

Authored by Dennis Consorte via Cryptosumer,

In early January rumors started spreading about whether Facebook would either adopt Litecoin or create its own cryptocurrency. On Tuesday, Facebook announced that it would block all cryptocurrency and ICO advertising on its platform.

Coincidence? Let’s look at the details.

Between December 6th and 17th of 2017, Litecoin (LTC) tripled in value, from $102.93 to $360.66 according to CoinGecko. Three days after it started to decline from its all-time-high, Charlie Lee, the founder of Litecoin announced that he sold off all of his LTC. Since then, Litecoin has been on a mostly downward trend and currently sits at $159.50.

There has been some speculation about whether Lee’s sell-off had an impact on the prices of Litecoin, and there have even been accusations of insider trading, given that he was the Director of Engineering at Coinbase. He denies these allegations and explained that his decision to dump his LTC was to remove any sort of conflict of interest between his influence and any potential gains. Taking the financial gains out of the equation, it stands to reason that Lee may now tweet more freely about his thoughts while focusing on his skills as an engineer.

At the time that Lee sold off his LTC, Coinbase announced the appointment of Facebook executive, David Marcus to their board of directors. David Marcus is the Head of Messenger at Facebook, with expertise in mobile-first products. Prior to that, he was President of PayPal, where he accelerated the overall growth of the company. The appointment of Marcus to the Coinbase board of directors sparked some speculation.

Tom Luongo published the story on December 20, which was later picked up by Zero Hedge and various other publications. According to Luongo, Charlie’s announcement prompted a big sell-off in the wake of Coinbase adding Bitcoin Cash (BCH) to its platform. He saw the negative response from the market as temporary, though Litecoin is still on a decline.

From a technology standpoint however, it’s a promising coin. It’s lighter, faster and cheaper than Bitcoin, is fully capable of…
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Vetr Crowd Bearish On Tesla, Downgrades To Sell

Courtesy of Benzinga.

The Vetr community on Wednesday downgraded Tesla, Inc. (NASDAQ: TSLA) from 3 stars (Hold) to 2.5 stars (Sell). Crowd confidence was trending negative, with 66.7 percent of Vetr users giving the stock a Sell rating, 28.9 percent a Buy and 4.4 percent a Hold.

See how crowdsourced ratings could help you time the market

At time of publication, Tesla shares were trading at $352.12. The Vetr crowd’s sentiment is bearish, setting a price target of $336.07, implying a 5.41 percent downside. Analyst consensus was varied but leaned bearish with an average recent target price of $337.80.

Posted-In: VetrDowngrades Analyst Ratings





6 Analysts React To The PayPal-eBay Split

Courtesy of Benzinga.

6 Analysts React To The PayPal-eBay Split

PayPal Holdings Inc (NASDAQ: PYPL) and eBay Inc (NASDAQ: EBAY) are headed in opposite directions after eBay announced it will switch to a new payments processor starting in 2020.

A number of Wall Street analysts weighed in on the two stocks following the report.

Voices From The Street

◘ Baird analyst Colin Sebastian said eBay’s strong U.S. Marketplace growth and StubHub performance offset weaker international performance. “eBay should begin to earn significant revenue and operating profit as the payment intermediary ($2 billion/25-percent margin targets), and as such, we view the change as a logical and strategically prudent decision,” Sebastian said of the PayPal announcement.

Sebastian said noise over the eBay announcement overshadowed a strong quarter for PayPal. “While eBay is making a strategic decision to gain more control over its marketplace payments, we assume PayPal will continue past 2020 to fund the majority of transactions.” 

◘ William Blair analyst Robert Napoli said PayPal will be just fine without being eBay’s processor. “The 12-percent selloff after hours driven by investor concerns over adjustments to the eBay agreement in 2020 is unsurprising given strong price gains recently, but we believe the thesis remains intact and long-term investors will be well rewarded,” Napoli said. 

◘ Bank of America analyst Justin Post said eBay’s growth outlook is improving and it now has a payments earnings bump coming in 2020. “Our positive view is based on eBay’s attractive valuation and potential for multiple expansion on improved Marketplace growth,” he said. 

◘ D.A. Davidson analyst Tom Forte said investors shouldn’t hesitate to buy eBay stock, even after Thursday’s big move higher. “While we believe there is no denying eBay has got its groove back


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Facebook’s Q4 Earns A ‘Like’ From Some, But Not All Of Wall Street

Courtesy of Benzinga.

Facebook's Q4 Earns A 'Like' From Some, But Not All Of Wall Street

Shares of Facebook Inc (NASDAQ: FB) hit a new all-time high of $195.32 Thursday despite some concerning metrics in its fourth quarter earnings report.

Here is a roundup of what some of Wall Street’s top analysts are saying after the print.

Morgan Stanley: Early Stages Of Growth

Facebook’s fourth quarter ad revenue came in 1 percent better than analysts were expecting, while GAAP EPS was 13 percent better than expected, Morgan Stanley’s Brian Nowak said in a note. The company is also working to improve and refine the quality of engagement on the platform, rather than the quantity of engagement. The decrease of 50 million engagement hours on the platform came at the expense of low quality viral videos.

At its core, Nowak said Facebook is a $40 billion annual ad business and making changes to its News Feed is a smart move as it balances any potential impact on society, while simultaneously delivering better than expected advertising monetization.

Bank Of America: ‘Sigh Of Relief’

Facebook’s user growth metrics came in short of expectations, including a 14 percent growth in daily active users (DAUs), Bank of America’s Justin Post said in a note. At the same time, the company showed an acceleration in ad pricing trends and Instagram’s momentum remains “solid.”

Some investors will continue to be concerned with changes to the News Feed, but Facebook’s management team offered commentary that suggests its financial trajectory is “on an even stronger path.”

Tigress Financial: Strong 2018 Ahead

Despite a miss in DAUs, mobile advertising revenue continued to grow, Tigress Financial’s Ivan Feinseth said in his morning newsletter. As such, the social media company will likely see a strong performance throughout 2018, especially at a time when it is expands video advertising and increases embedded ads in Instagram and Messenger.

Related Link: Facebook’s Q4: Were News Feed Fears Overblown?

Baird: Ignore The Headline Risks

Facebook’s ongoing headline risk of “fatigue”


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15 Stocks To Watch For February 1, 2018

Courtesy of Benzinga.

15 Stocks To Watch For February 1, 2018

Some of the stocks that may grab investor focus today are:

  • Wall Street expects Alibaba Group Holding Ltd (NYSE: BABA) to report quarterly earnings at $1.61 per share on revenue of $12.02 billion before the opening bell. Alibaba shares gained 0.59 percent to $205.50 in after-hours trading.
  • Analysts expect Apple Inc. (NASDAQ: AAPL) to post quarterly earnings at $3.77 per share on revenue of $86.23 billion after the closing bell. Apple shares fell 0.34 percent to $166.86 in after-hours trading.
  • Before the markets open, Time Warner Inc (NYSE: TWX) is estimated to report quarterly earnings at $1.45 per share on revenue of $8.43 billion. Time Warner shares rose 0.95 percent to close at $95.35 on Wednesday.
  • Facebook, Inc. (NASDAQ: FB) reported better-than-expected fourth quarter earnings. December monthly active users were up 14 percent year-over-year to 1.4 billion. Facebook shares rose 1.40 percent to $189.50 in the after-hours trading session.
  • Analysts are expecting United Parcel Service, Inc. (NYSE: UPS) to have earned $1.66 per share on revenue of $18.19 billion in the latest quarter. UPS will release earnings before the markets open. United Parcel Service shares fell 0.21 percent to $127.05 in after-hours trading.
  • After the markets close, Alphabet Inc (NASDAQ: GOOGL) is estimated to post quarterly earnings at $10 per share on revenue of $31.85 billion. Alphabet shares rose 0.49 percent to $1,188.00 in after-hours trading.
  • Microsoft Corporation (NASDAQ: MSFT) reported stronger-than-expected second-quarter results. Microsoft shares rose 0.12 percent to $95.12 in the after-hours trading session.
  • Wall Street expects Amazon.com, Inc. (NASDAQ: AMZN) to post quarterly earnings at $1.84 per share on revenue of $59.81 billion after the closing bell. Amazon shares gained 0.83 percent to $1,463.00 in after-hours trading.

Find out what’s going on in today’s market and bring any questions you have to Benzinga’s PreMarket Prep.

  • Before the opening bell, McKesson Corporation (NYSE: MCK) is expected to report quarterly earnings at $2.92 per share on revenue of $52.03 billion. McKesson shares declined 1.67 percent to close at $168.88 on Wednesday.
  • QUALCOMM, Inc. (NASDAQ:


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Charlie Munger Commencement Address – USC

By Akhlaqahmed9941. Originally published at ValueWalk.

Charlie Munger at the USC Law School giving a Commencement Speech on May 13, 2007. Charlie’s speech centers around ideas. Ideas that have helped him to become successful and what ideas to avoid.

Charlie Munger’s Commencement Address at USC. What a way to start the commencement speech. Lots to learn.

How much control do you really have over your happiness, and how effectively are you pursuing it? American Enterprise Institute President Arthur Brooks distills.

He’s an American business magnate, lawyer, investor, and philanthropist. He’s Vice-Chairman of Berkshire Hathaway Corporation, the diversified investment corporation chaired by Warren Buffett..


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Taiwan Holds Live-Fire War-Drills Amid Fears Of China Invasion

Courtesy of ZeroHedge. View original post here.

As the Trump administration has maintained its focus on the North Korean threat, there is another, potentially more severe, crisis unfolding in the Taiwan Strait between China and Taiwan.

Relations between China and Taiwan have deteriorated since President Tsai Ing-wen took office in May 2016, Beijing cut off communications with Taipei, stripped it of its democratic allies, and even conducted naval and air operations around the island in a show of force to ensure the island had minimal participation with international organizations.

In 2017, the Trump administration signaled the traditional U.S. commitment to Taiwan in multiple gestures. For instance, the president allowed for a massive $1.42 billion arms deal, which infuriated Beijing. Another gesture by the Trump was Taipei’s entry into the Global Entry, a U.S. Customs and Border Protection (CBP) program that allows expedited clearance for pre-approved travelers to the U.S.

While Taiwan shifted closer to the United States in 2017, Chinese diplomat Li Kexin informed U.S. officials in early December that the moment one of its warships visits Taiwan, Beijing will launch an invasion on the island.

Tensions have once again deteriorated this week as Chinese airlines have canceled hundreds of flights to Taiwan as disputes over aviation routes continue. Two major carriers, China Eastern Airlines and Xiamen Airlines, announced Tuesday they canceled the flights because Taiwan’s government refused to approve them.

In conjunction with hundreds of canceled flights before the Lunar New Year, Taiwan troops staged a massive live-fire war drill to simulate an invasion by China on Tuesday.

The military simulated an attack on the island using reconnaissance aircrafts to surveil incoming warships, followed by tanks firing rounds at the “mimicked enemy” landing around the Port of Hualien in eastern Taiwan.

In the air, attack helicopters and F-16 fighter jets launched assaults, supporting ground troops who battled the simulated enemy wearing red helmets.

Taiwan’s ministry did not outright define who the simulated invasion was by, but it is pretty clear with the chart below who that is.

Further, the ministry said the annual drill was to “show determination to safeguard peace in the Taiwan Strait and national security.”

The Taiwan Strait is the waterway that divides the island from China.

According to the AFP,

Cross-strait relations have turned frosty since the inauguration of Tsai, who refuses to acknowledge self-ruling, democratic Taiwan is part of “one China.” The drill on Tuesday takes place


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How Long Before Artificial Intelligence Makes Humans Redundant?

Courtesy of ZeroHedge. View original post here.

Authored by Daisy Luther via The Organic Prepper blog,

With all of the recent advances in artificial intelligence, are you starting to get worried? You really have to wonder how long it will be before human beings become redundant.

Maybe you should be concerned. In many cases, robots can easily replace humans in the manufacturing industry, the medical system, and even food service. Some theories suggest that offering universal basic income is the first step toward ushering in a world in which robots have all the jobs and humans live off the goodness of the government…for as long as that lasts. (Check out this documentary for more information.)

But losing job opportunities isn’t the only reason for concern. Not only is today’s AI extremely advanced, but it also has the capability to learn. Recently, many people were alarmed when an AI called Alpha Zero learned how to play chess in 4 hours, then beat world champion human chess players using moves never seen before.

It’s almost like the people developing these robots have never seen any of the Terminator movies, in which artificial intelligence overtakes its creators and declares war on the human race. Should we stop worrying about nuclear war with North Korea and worry about the robot apocalypse instead?

It goes even further. Some experts believe that sex between humans and robots could complete replace sex between two humans by 2050. Maybe that is how the human race ends – no one wants to procreate with another human being anymore, so babies just stop being born. And honestly, in this recent age of sexual harassment McCarthyism, you can kind of see why some folks would feel like robot sex is safer than flirting with someone. (Chill out. I’m not suggesting you go purchase a sex robot.)

The video below gives us a glimpse of some of the rapid advancement of artificial intelligence that has occurred just over the past year.

Could this become one of the biggest threats we face in our generation?





 
 
 

Zero Hedge

Explosion Hits Russia's Largest Virus Lab Which Houses Plague, Smallpox, Ebola And Other Deadly Viruses

Courtesy of ZeroHedge View original post here.

A sudden explosion at a Siberian virus research center on Monday reportedly left the facility engulfed in flames, according to several Russian news outlets. 

Firefighters and other emergency personnel were dispatched to the "Vector Institute" located several miles from Novosibirsk - an emergency which was upgraded "from an ordinary emergency to a major incident," a...



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Phil's Favorites

The future of work will still include plenty of jobs

 

The future of work will still include plenty of jobs

Even though the future is unknown, Canada’s employment rate has risen steadily from 53 per cent in 1946 to more than 61 per cent today. (Shutterstock)

Courtesy of Wayne Simpson, University of Manitoba

There is now widespread anxiety over the future of work, often accompanied by calls for a basic income to protect those displaced by automation and other technological changes.

As a labour economis...



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Lee's Free Thinking

Is The Drone Strike a Black Swan?

Courtesy of Lee Adler

Pundits are calling yesterday’s drone strke a “black swan.” Can a drone strike on a Saudi oil facility, be a “black swan.”

According to Investopedia:

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the practice of explaining widespread failure to predict them as simple folly in hindsight.

I seriously doubt that no one expected or could have predicted a drone strike on a Saudi oil facility.

Call Me A B...

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Insider Scoop

New Relic Cuts 2020 Sales Guidance, Announces Changes In Management

Courtesy of Benzinga

New Relic (NYSE: NEWR) has reaffirmed its second-quarter guidance and cut its sales guidance for fiscal year 2020 from $600 million-$607 million to $586 million-$593 million.

The company’s chief technology officer, Jim Gochee, and chief revenue officer, Erica Schultz, have resigned. New Relic also named board member Michael Christenson as its chief operating officer. Christenson joins from his ...



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The Technical Traders

Metals are following downside sell off prediction before the next rally

Courtesy of Technical Traders

It is absolutely amazing how the precious metals markets have followed our October 2018 predictions almost like clockwork.  Our call for an April 21~24 momentum base below $1300 followed by an extensive rally to levels above $1550 has been playing out almost like we scripted these future price moves.

Now that the $1550 level has been reached, we are expecting a rotation to levels that may reach just below the $1490~1500 level before attempting to set up another momentum base/bottom formation.  And just like clockwork, Gold has followed our predictions and price is falling as we expected. Just look at our October 2018 chart where we forecasted the price of gold...



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Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

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Kimble Charting Solutions

Bond Yields Due For Rally After Declining More Than 1987 Stock Crash

Courtesy of Chris Kimble

U.S. Treasury Bond Yields – 2, 5, 10, 30 Year Durations

The past year has seen treasury bond yields decline sharply, yet in an orderly fashion.

This has spurred recession concerns for much of 2019. Needless to say, it’s a confusing time for investors.

In today’s chart of the day, we look at a longer-term view of the 2, 5, 10, and 30-year treasury bond yields.

Short to long term bond yields are all testing 7 to 10-year support levels as momentum is at the lowest levels in a decade.

A yield rally is likely due across the board after a recent decline that was bigger than the stock crash in 1987!

If yields fail to ral...



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Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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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...

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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.

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