Lună: Noiembrie 2014

OPEC has ushered in QE4

It’s hard to imagine a “more wide-reaching and effective stimulus measure than to lower the cost of gas at the pump for everyone globally,” says Alpari U.K.’s Joshua Mahoney. “For this reason, we are effectively entering the era of QE4, with motorists able to allocate more of their money towards luxury items, while firms are now able to lower costs of production thus impacting the bottom line and raising profits.”

The impact of that could be “bigger than anything that has come before,” says Mahoney, who expects that theory to be tested and proved, via sales on Black Friday and the holiday season overall. In short, a consumer-spending explosion as we race to the malls on a full tank of cheap gas.

via OPEC has ushered in QE4, and how investors should play oil now – MarketWatch.

The Consequences of the Economic Peace | Things That Make You Go Hmmm… Investment Newsletter | Mauldin Economics

“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

– John Maynard Keynes

via The Consequences of the Economic Peace | Things That Make You Go Hmmm… Investment Newsletter | Mauldin Economics.

If this guy is only 10% right, we are all sooo f_cked…

Scaling out of AAPL LEAPs with good profits

I just sold 80% of my AAPL 2016 100 calls, for which I placed the buy order 45 days ago at $11, at an average price of $18.80, for a +71% profit.

The rise in Apple, fueled by amazing demand for the amazing new iPhones, has been as close as possible to a perfect line up since the slump in mid-October. I guess it has to stop at some point, as valuation has become more rational and as expectations will be harder to meet. Also the iPad, the second business of Apple, will suffer in the next period. And the watch is still about 6 months away.

I keep the remainder 20% of the calls and intend to add in any pullback shorter-term calls (February or April 2015) that I will sell in January. Go AAPL!

How Apple, Inc. went thermonuclear on Samsung, erasing Androids primary profit center

Samsungs profit collapse was not principally due to Chinese phones flooding the market. IDC just reported in its smartphone market estimates that Samsung still leads the world in shipments and market share by a large margin, having shipped 78.1 million units, a YoY decline of just 8.2 percent.Samsung itself reported a sequential „slight growth in shipments” in its earnings release, but explained that „earnings declined QoQ as ASP decreased due to weak smartphone product mix and sales decrease put pressure on the cost structure.”

In other words, profits were down because average selling prices were down, because it was selling less profitable phones and because it was becoming even more expensive to build its most expensive phones due to a reduction in economies of scale. Removing any remaining mystery, Samsung flat out stated that its phone shipments in the quarter were „driven by mid to low-end products.”

via How Apple, Inc. went thermonuclear on Samsung, erasing Androids primary profit center.