Showing posts from October, 2016

Escaping The Faction In Politics - Federalist Papers No. 10

Sam Wang at the New York Times wrote a spectacular article October 29th. His his article: "Why Trump Stays Afloat" explores Trump's basis of support, but more importantly it mentioned: "the founders thought that a physically far-flung Republic would avoid such “mischiefs of faction.” In The Federalist No. 10, James Madison suggested that the slowness of communication between distant states would prevent the formation of organized factions inflamed “with mutual animosity.” But modern communication has rendered Madison’s point of view obsolete."

That of course led me to pick up my copy of The Federalist Papers and read No. 10. James Madison has a simple but concise definition of a "faction" by stating it is a group who is against the permanent group inside the political field or establishment. Madison stated: liberty is to faction as air is to fire.
So there is always a friction, there was then and there is now.
The slowness of communication between dis…

Yeti Holdings, Inc. Consumer IPO

Ideal consumers: hunters, chefs, cooks and other food professionals, serial killers who dismember bodies and black market organ salesmen. Does this market equate to going public?

Yeti Coolers: The Wall of Dreams

YETI Holdings, Inc.

Ok my thoughts on this: great product, but easy to replicate. Think GoPro without the electronics.

The items are premium coolers and branded products. Their coolers are at the highest price point for the product in their category. They call this a premium. This is what everyone is banking on, unless they are getting fees on the deal. Despite impressive growth and market penetration, Yeti is only focused on domestic sales and they depend on indepedent retailers to a fault. Upmarket lodging, safari and expeditions need to be targeted, verses assuming they will continue this growth track by charting forward alone.

One thing many are not talking about...Yeti has serious competition. They have competition all around, and while competition is not a bad thing in…

TIME WARNER DEAL - Ripples In The Water

Blood is in the water, now it is time for the media guys to be devoured by our mobile carriers (wha?)...Comcast and T-Mobile? AT&T and Time-Warner? Why not Bloomberg and Blackberry? This is a lateral bulge bracket play that is very unique. Mass Mutual owns Concord Music Group, so diversification to such a degree is not surprising. The surprise element here is how the business operates and if net neutrality becomes an issue due to the vast content hoards. For instance if Mass Mutual also sold you all of your music, and if that was not weird enough, say Mass Mutual only delivered your music digitally if you were a customer of another of their businesses, otherwise you received compact discs in the mail? Regardless, content is 👑 king. Make that super king. It doesn't even matter if it's worth it (this is when they over pay).

“We think the likelihood of a Fox bid for Sky now rises,” said Tim Nollen, an analyst at Macquarie Capital, referring to the pan-European satellite telev…

Chapter 15

Just in case...Link below - 
Chapter 15 - Bankruptcy Basics Ancillary and Other Cross-Border Cases
Chapter 15 is a new chapter added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It is the U.S. domestic adoption of the Model Law on Cross-Border Insolvency promulgated by the United Nations Commission on International Trade Law ("UNCITRAL") in 1997, and it replaces section 304 of the Bankruptcy Code. Because of the UNCITRAL source for chapter 15, the U.S. interpretation must be coordinated with the interpretation given by other countries that have adopted it as internal law to promote a uniform and coordinated legal regime for cross-border insolvency cases. The purpose of Chapter 15, and the Model Law on which it is based, is to provide effective mechanisms for dealing with insolvency cases involving debtors, assets, claimants, and other parties of interest involving more than one country. This general purpose is realized throu…

70% of Russian GDP is now in the public sector

"According to the expert, right now Russia is trying to apply orthodox market economy methods - a strict budget, strict monetary policy. "But these methods should be applied to market players, to private companies, but we applied them to state-owned companies, which basically don't care about rates and budgets - they have a very different way of achieving their economic goals. Market management methods are applied to non-market economic structure, 70% of GDP of which is provided by the public sector. That is why such methods will have effect only on the background of large-scale privatization and increase of the number of market players."

Petroleum is king in Russia. Gazprom, Rosneft and Transneft are state owned cartels and interests. Russia is the globe's largest natural gas exporter, has the largest natural gas reserves and produced 10+MMbbl of oil per day in December 2015 alone. Gazprom essentially owns the natural gas industry in Russia.  If you want to know…

Samsung Numbers In Despite Recent Issues

You do not know where it (the equity stock price) is gonna land. Despite the tremendous news - including eyewitness accounts of burning phones, and major activist funds calling for executive changes and special dividend payouts - Samsung posted better than expected numbers. 
Good for Samsung. Good for Korea. - Chad
By Jungah Lee (Bloomberg) -- Samsung Electronics Co. posted better-than-expected earnings as demand for its high-margin memory chips and displays limited the impact of a global recall of its marquee Galaxy Note 7 smartphone. Operating income rose 5.5 percent to 7.8 trillion won ($7 billion) in the three months ended September, the world’s largest maker of phones and memory chips said in preliminary results released Friday. That compares with the 7.58 trillion- won average of analysts’ estimates compiled by Bloomberg. While the recall has dominated headlines since it was announced last month, Samsung worked to contain the fallout from exploding smartphones and insulate its com…

North Korea May Be Building Largest Missile Submarine Yet

Pressure cooker alert.Increased defense by NK circa 2013 was a possible chess move by Russia or China, but not in this case. NK is attempting to build out infrastructure. See, when the ballon is squeezed at one end the other end still jets out, this inflation happens to be the submarine- launched ballistic missile end. - Chad

By Julian Ryall (Telegraph)
Satellite images indicate that North Korea is starting work on a submarine that will be larger than anything it can presently deploy, with analysts suggesting the vessel may be used as the platform for Pyongyang's newly developed submarine-launched ballistic missiles. 
Images captured by commercial satellites in September show components compatible with the construction of a submarine stockpiled at the Sinpo South Shipyard, according to the 38 North web site, operated by the US-Korea Institute at Johns Hopkins University . "While there is no direct evidence that the program is for a boat to carry the ballistic missile currently u…

Housing Economics

Housing stocks and housing starts, permits, etc. as economic indicators need to be greatly understated. Case-Schiller is different, that is pricing. The market share of housing equity stocks and supply is much more commodity based then one likes to admit. The housing stocks that are up this year are entry-level builders. Millennials are not buying entry-level homes, so this leads thought to people downgrading and buying the homes, or speculation.
I must admit I do not agree with the concept of new construction without regulated supply and demand. I believe it is waste. It applies pressure to sell and perpetuate debt, debt inside a commodity investment hat is not always a sound investment and not guaranteed to appreciate. 
- Chad 

Atlanta SEC Aaron W. Lipson Named as Associate Regional Direct...

Atlanta has a new rock star SEC head...and for the local / regional market this is very good. With the deregulation of capital financing laws you have to be concerned about shell games and start ups that never seem to take off but yet still get funded...Not counting flat out fraud.
The Securities Law Blog: Aaron W. Lipson Named as Associate Regional Direct...: The Securities and Exchange Commission today announced that Aaron W. Lipson has been named the Associate Regional Director for enforcement i...