May 9th, 2008 by tommy
Hi, this is Matthew writing to tell you that you should really investigate investing in China. Why China?
Great fortune to be made!
Come back for my upcoming thesis on investing in China. Coming to a theatre near you soon!
May 5th, 2008 by tommy
If I were still a share holder of YHOO, I would be royally irked. Remember a couple months back when this mismanaged company dropped to $18.00 a share? Well, somehow, they are too stubborn, proud, or delusional to accept an 80% premium. Yahoo claimed that the $33 / share offer ‘undervalued the company’. Is this to say then, that the collective intelligence of the market, which had recently priced Yahoo at $18.00 a share, was off by more than 80%? Yahoo: if you don’t want to do the deal with the devil, we understand. But don’t insult our intelligence, and really in the end, your own, by coming up with that statement as your reasoning.
This is one quote I am going to tuck away. I’m pretty sure this will eventually go down as one of those legendary quotes of stupidity. Rivaling the likes of Bill Gate’s infamous, “64K ought to be enough for anybody,” statement.
Guess what folks- what’s going to keep YHOO shares from dropping back down to $18.00, or even lower? Speculation that Google will buy them? I am willing to put my money on that never coming to fruition. As the market comes to recognize this over time, it could be expected that YHOO stock will slowly dwindle back down to it’s $18.00 a share price level. Steve Ballmer will do well to circle the waters for a while and let this happen. And then… anybody for a hostile takeover at a significant discount from the $33 a share last offered. YHOO better clear out some room at their board table soon…
April 30th, 2008 by tommy
Here goes an unpopular post for sure… it begins with me saying that I AM GLAD that gas is expensive. Finally. It’s about time. Dammit. I have long been a proponent of a significant gas tax. Taxes have two main purposes: to raise revenue, and to control behavior at mass. A heftier gas tax, such as what we witness in Europe, is long overdue in our country. And, unfortunately, a significant gas tax is almost an impossibility politically. Look at our friend Mr. Obama, and we see how much heat he is taking just by not taking an immediate accepting position on a summer gas tax hiatus. Sorry folks, but high gas prices are good.
So, the only real way for a similar consumption curb is to see the actual price of oil greatly appreciate. The absurd mass adaptation of SUVs and other gas guzzlers all through the 1990’s was abhorrent. Having lived many years in Europe, and seeing how high oil prices affect both driving (and carpooling) habits, and consumer decisions on what type of car to drive, I can attest first hand to the benefits of making gas more expensive. With the multitude of interviews in the media recently showing ‘average’ consumers being affected by gas prices, I continually see them being interviewed as they go about driving alone, not carpooling, not exploring public transportation, etc. Guess what folks: maybe it’s time for a little change in our habits.
April 26th, 2008 by tommy
Oil at $120 a barrel, consumer discretionary spending weakness, consumer awareness on the effects of non essential carbon emission output… it all looks like a perfect storm for the airline industry. Despite already battered stock prices, could there be still more downside left in the market? Will it take government bailout to save the beleaguered airline industry, or will market forces enact their natural forces towards correction towards a new balance point. Certainly if the latter occurs, we will witness the death of more airlines, following the macabre path of Aloha, Frontier, and other airlines that have gone down in 2008.
The day JetBlue is rumored to remove it’s TV service from flights, the long time marketing focus of their “Jet Blue Experience”, one has to wonder what type of death spiral we are continuing to witness. The airline has already managed to grasp at small incremental upselling tactics such as charging $10 for extra legroom seats, $20 for a second checked baggage piece, and selling headphones (starting June 1st) rather than giving them out complimentary.
Skybus is closing shop. ATA as well. Given the current state of affairs, it’s a given that we will be witnessing the death of more airlines in coming quarters.