Author Archive for markettamer

(Apple Earnings) * 2 = Facebook Valuation

Special thanks to Phil Davis for his contributions to this article.

Maybe a half trillion dollar market capitalization is the stumbling block, but it's sometimes hard to rationalize that Apple is truly valued at $508Bn today.

Delving into the details, some startling figures appear.

First, let's look to the widely cited metric of price-to-earnings. Apple has a forward P/E of just 11, which is by no means expensive.

In fact, digging into those earnings, we see a figure of $13,000,000,000. That's nine zeroes after the 13, and it's not a mistake, nor is it an annual figure. That's 13 billion dollars for a single quarter.

Now seasonality is a big factor in earnings but Apple is still projected to grow this year, which means the $45Bn EBITDA for the trailing twelve months should be substantially surpassed in the coming twelve months.

The story of Apple is not limited to Apple of course. It's massive market capitalization didn't just come from its own success, but also from cannibalizing competitors, most notably Research in Motion.

Remember when RIMM was valued over 6 times greater than what it is valued at today? That was just 24 months ago. $50Bn of valuation lost on RIMM. $50Bn of valuation gained by Apple.

Some might say the Apple story is ending. As iPod sales, the flagship product, just a few years ago dwindle, maybe the same will happen iPhones and iPads?

But wait.

iPod sales had just one connected recurring revenue stream: iTunes. The iPhone has more than iTunes; it has the addictive nature of cell phones in general which means the monthly charges Apple enjoys from the subscription service have greater lifetime value. And iPads don't necessarily cannibalize iPhones like iPhones cannibalized iPods. Statistics on iPad usage show a huge number of users rely on iPads for reading and game-playing at night while lying in bed, when phone usage is considerably lower.

And then there's Search. Siri is just the beginning of what Apple will do to fundamentally disrupt search. Each customer will be enabled with a virtual assistant through Siri. It's a game-changer in the world of search in years to come that Google is already threatened by.

And there's iCloud. The Dropbox founders didn't take the deal from Jobs to be bought out, and so Apple created iCloud, which is better. It's more than file-sharing and synchronizing. Imagine downloading a file…
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Can One Company Transform The Jobs Market?

The Bureau of Labor Statistics reported on April 1, 2011 that the unemployment rate was little changed at 8.8%. It is no secret that when factoring in underemployed and discouraged workers, the true unemployment rate is approximately twice the headline figure currently. Politicians will try to ignore the fact, media will try to sensationalize the fact, job-seekers will despise the fact, but one company might just be taking a pioneering and bold step by daring to improve labor market efficiency one person at a time.

A little-known company called SkillPages is threatening to become one of the most disruptive social media companies since Facebook. Facebook knitted the social fabric of the world by connecting individuals who share experiences. SkillPages is taking the concept of social connectivity a step further by transforming the way individuals with skills connect to individuals seeking skills. As an example of how SkillPages can improve labor market efficiency and put people back to work, think about the following example.
Imagine a plumber in your community who is unemployed. Now it is probably fair to say that somebody in the community needs a plumber but is unsure how to find a plumber on whom he can rely. LinkedIn wouldn’t really be the place to search because it’s tailored more for white collar professionals. Yelp or Yellow Pages might offer business listings but neither provide the trusted network on which you can have confidence in your hiring decision. SkillPages solves the problem of connecting the person with skills to the person needing those same skills in a trusted environment.
In so doing, SkillPages puts job-seekers back to work and creates value with each new connection that leads to a new job or employment opportunity. On a broad scale, the company has the potential to move the Unemployment Rate needle all by itself. Undoubtedly, a large number of unemployed job-seekers have skills that are needed by customers and employers in their communities who simply don’t know where to find them or how to connect with them. SkillPages solves that problem for both employer and prospective employee/contractor.
With the potential to create so much value, SkillPages could become one of the most disruptive social media sites conceived. Clearly, the power to create so much value in economic and social terms makes SkillPages one of the most exciting new start-ups on the social media horizon. Hundreds of thousands of people are joining Skillpages every month since it launched in January, making

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London Riots, Nuclear Meltdown, Euro Risk and Markets… Rally?!

Protests in London, Japan Nuclear Meltdown, Euro currency risk and the market is… rallying?

Market(Tamer) Sunday Snapshot

Long In The Tooth Rally

Asia down overnight, futures down, euro rate hike…. rather than rehash it all, let’s get to the bottom of line of picks and performance!


Was Friday’s Price Action a Fool’s Bounce?

The indexes are currently forming a "Bear Flag" bearish continuation pattern and although Friday’s price action was very bullish, I don’t feel that we are done moving down. Watch for the indexes to test support 5-6% below the recent high.

Bullish But Cautious

We continue to move higher and I continue to be bullish. We are currently at a key resistance level in the Compq and we are testing the closing high from October 2007 at 2834. We are also about 29 points away from the trading high at 2862 in that index. The levels that we need to take note of on the DOW, the SPX and the Compq are the 20 simple moving average and the prominent trend line that has been in place since September. If those key areas are breached, that could be significant and the beginning of a possible short term pullback. Stay nimble and it wouldn’t be a bad thing to consider a hedge


Phil's Favorites

Legal cannabis celebrates its first anniversary in Canada: What's next?


Legal cannabis celebrates its first anniversary in Canada: What's next?

Montrealers hold up a Canadian flag with a marijuana logo on it outside a government cannabis store in the city Oct. 17, 2018. THE CANADIAN PRESS/Graham Hughes

Courtesy of Michael J. Armstrong, Brock University

This week marks the first anniversary of Canada’s recreational cannabis legalization. It’s an appropriate time to review what happened last year and consider what’s coming next.

Legalization brought big changes for some folks. About 9,200 employees now work at cannabis producers, with ...

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Zero Hedge

Pork-Panic Sends China CPI To 6 Year Highs As Factory Deflation Deepens

Courtesy of ZeroHedge View original post here.

China's producer prices deflated for the 3rd straight month, slumping 1.2% YoY - the biggest deflationary impulse since July 2016 - but, thanks to the explosion in pork prices (as 'pig ebola' spreads), Chinese consumers are facing the worst inflation since 2013.

  • China Sept CPI +3.0% YoY (2.9% exp and 2.9% prior)

  • China Sept PPI -1.2% YoY (-1.2% exp and -0.8% prior)


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Chart School

Review of Andrew CardWell RSI with Wyckoff price waves

Courtesy of Read the Ticker

RSI measures relative strength of price action of a set period versus prior set periods. It helps review the price swings or waves, the power of each price thrust into new ground, or lack of it. Price thrust like many things relies on energy, and energy is not a constant, it has a birth, a life and a death and relative strength helps us see that cycle. 

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Kimble Charting Solutions

Banks Should Send Critical Message To Stocks This Week!

Courtesy of Chris Kimble

Bank earnings could go a long way to impacting the broad market in a big way this week. Wells Fargo, Goldman Sachs, Bank Of America, JP Morgan, Morgan Stanley all announce earning the next couple of days.

As these earning announcements are to take place, the Bank Index (BKX) finds itself facing a key breakout test.

The index remains inside of bullish rising channel (1), as it has created a series of higher lows and higher highs over the past 8-years.

The index has little to brag about over the past 20-months, as it has created a series of lower highs and lower lows inside of falling chan...

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The Technical Traders

Daily Market Analysis and Trade Setups

Courtesy of Technical Traders



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Insider Scoop

22 Healthcare Stocks Moving In Tuesday's Pre-Market Session

Courtesy of Benzinga

  • Reata Pharmaceuticals, Inc. (NASDAQ: RETA) stock surged 45.2% to $146.07 during Tuesday's pre-market session. The market value of their outstanding shares is at $2.8 billion. The most recent rating by Cantor Fitzgerald, on October 15, is at Overweight, with a price target of $180.00.
  • Aphria, Inc. (NYSE: APHA) stock increased by 18.6% to $5.16. The market value of their outstanding shares is at $1.8 billion. According to the most recent rating by CIBC, on July 26, the current rating is at Underperformer.
  • ... more from Insider

Digital Currencies

Zuck Delays Libra Launch Date Due To Issues "Sensitive To Society"

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via,

Facebook is taking a much more careful approach to Libra than its previous projects, CEO Mark Zuckerberg has confirmed. 

“Obviously we want to move forward at some point soon [and] not have this take many years to roll out,” he said. “But ...

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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...

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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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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:


·       How 2017 Will Affect Oil, the US Dollar and the European Union


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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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