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Last week Brent crude prices briefly breached their all-time high as well, reaching $69.06 a barrel, before briefly retreating. As discussed in the article below, we are not concerned about how global supply and demand may affect the price of oil and we will not do any type of analysis on this topic until we hear fromNGL companies such as AGL about actual performance on the global oil market.

An oil refinery. An oil refinery. Photo Credit: K.D. Srinivasan, Reuters The U.S. Federal Reserve, whose interest rate hikes do not appear to be likely, is, at the very least, having a difficult time trying to balance its objectives of maintaining short-term borrowing costs and increasing inflation. This is a problem. Because a rise in the price of crude oil leads to lower prices for gasoline, it raises expectations of price increases even as they decline. At the same time, a fall in prices reduces demand for other goods and services, which further reduces real economic activity. The Fed has been reluctant to raise interest rates because it believes market expectations–or “forward guidance,” in Fed lingo–for the rate increase are too short term. The market seems to be anticipating a 10-8% rate hike sometime this year, which is considerably less than half of the rate hikes that Fed officials forecast in the spring of 2013, even though the economy was already in an impressive state of expansion. One thing that has caused Fed officials much consternation is the fact that the price of oil has dropped to a 30-year-low, from more than $108 a barrel in the middle of summer. The drop in the price of oil has exacerbated the U.S. problem. We have already been observing this effect since 2009, but did not take it to the market in large because it did not seem to matter to a large segment of our economy. At this point the problem may become increasingly difficult to solve. The U.S. economy is not dependent on oil sales–the U.S. runs a trade deficit with China of $400 billion annually. And while it is true that U.S. imports have declined significantly since peaking in 2007, they increased significantly since 2010.Because of that the dollar’s strength has led to massive budget deficits and to rising debt levels that we have not seen for over three decades. At the same time U.S. oil industry employment has fallen nearly 15% from 2010 to 2012, and unemployment remains above 6%.

A rendering of a crude oil barrel.A rendering of a crude oil barrel. Photo Credit: R. M. Brown,United States Energy Information Administration,January 25, 2013 Although we’ve long said that the U.S. government is better off with fewer workers in the oil industry, our current administration has decided to take an even stronger role in keeping oil industry jobs. The U.S. government’s budget is about $2.1 trillion for 2013 and its share of the U.S. oil industry is about 2.9%. This creates a situation where the government has a larger budgetary burden on the sector than we normally experience with oil producers. And the more the U.S. government promotes the U.S. oil industry, the more pressure there will be for the sector to improve performance. It appears that the Fed’s focus on inflation and future economic growth is causing this to happen. An important part of the Fed’s plan for “increasing economic activity in oil and gas exploration, production, and transportation” is to “increase production capacity.” That means increasing drilling and production rates, as well as increasing the size of well pads and onshore production rigs. The Fed and non-oil companies have been pushing a highly controversial plan for the past several years to have the government purchase oil leases on an open market, and the process of doing that started this week. After an intensive three-day conference chaired by Chairman Ben Bernanke, the Department of the Interior announced last Friday that the U.S. Department of the Interior issued a solicitation to purchase over 13.7 million acres of oil and gas exploration and production rights across the country, according to a news release .

A block of oil on a mountain, Photo Credit: Daniel Nocera, The New York Times. A block of oil on a mountain. Photo Credit: Daniel Nocera,The New York Times. A block of oil on a mountain. Photo Credit: Daniel Nocera,The New York Times.

A block of oil on a mountain Photo Credit: Daniel Nocera,The New York Times A block of oil on a mountain Photo Credit: Daniel Nocera,The New York Times.

A block of oil on a mountain Photo Credit: Daniel Nocera,The New York Times A block of oil on a mountain Photo Credit: Daniel Nocera,The New York Times.

This is still one of my least favorite ways of doing stuff, which is why I like it so much. So let’s go through the basics of drawing people and give you a few tips if you want to follow along with the process from start to finish.

When going through a drawing, we want to start making note of the size of the models in the drawing. This is probably the biggest number we will be checking as we start making note of the models, as it tells us how much the size of models/models can translate to the size of a particular area of the model. This is a very important number because if it’s too small, a lot of the information will be lost. Also, if it’s too large, a person will look like a giant, and won’t look as good as he/she could be as you draw their limbs and how they move.

For example, a woman with an even proportioned torso, a small head, and short legs. To get this look, I’d use a small eye, a large mouth and big breasts. In this first example, we’re going to make note of the torso size as 30cm (14 inches).

When it comes time to start filling in the models on the body, we also want to start using little dots. This is an easy technique to use because it’s simply using the line tool to draw a small line in the area that we want to be filled in. You can learn very quickly that you can fill in a very small amount of line using a line. In this example, we’re going to fill in just about two-thirds of the body. In another example, we would fill in only about one third of the body. Again, it’s very easy to just stop and wait for other things to fill in the space you made.

The next couple steps in drawing a character are called drawing folds or lines in the body. They’re all pretty easy, especially once you learn to use the line tool at first, and also get a feel for the process of drawing folds. They are the same basic procedure with how we draw the face. Again, we want to start with a rectangle in the body. While we’re at it, we want to draw in some folds around the torso and neck (in this first case it’s not so important who fills those spots, but it’s important for us to understand them). To bring up the drawing, press ‘Shift’. There will now be a large white rectangle at the top of the drawing that reads “WETTBL”.

We’re going to start drawing some tiny white lines in the folds and begin outlining them. In the second image, we’re going to start at the center of the body and cut down to the inside. This will give us less details since we want to be able to see most of the skin while we’re drawing.

We’re also going to start drawing in lines that go down the body toward the hips. The trick with these smaller lines is that they’re the same distance from an outside edge, but smaller than the lines we’re drawing through the body. It’s easier to start with shorter lines and cut off more from the inside of the body. In the next series of examples, the edges will be more detailed and cut off, and we’ll start at the center of the body. At this point, you can begin to fill the gaps in the lines. In the image above, we’re going to use a long line to cut of the shoulders in the center and extend over some of the body. In the image below, from the top, we continue cutting off lines along the top. We’re going to move the line around until we have something that looks like we’re drawing in the body from the neck down.

In general, the general technique here is that we’re going keep our drawings as crisp as possible and not bother with any big strokes or long lines, in most of the instances. We don’t want to be rushed, but we also don’t want to try to fill in areas we don’t need to fill in. We’ll just start with the outer skin, then the neck, then the legs and finally the face.

In these next two examples, we’ll start with drawing the lines we do want to go along. This is done by going to the Appearance tab of the main panel and selecting Stroke 1 on the left hand side. You can add some other types of strokes on the line tool to help in this process, but I’ve started out by just using the stroke. I also tend to draw in lines to see what will happen, and I draw in larger pieces that are less than a second big and small.

P/E 2.0 and P/E 1.0 are trading at around 12. And Apple’s stock has continued to grow ever higher, up about 45% in 2017. If P/E 2.0 is a mere 13, Apple’s stock will eventually crash off the cliff. This is like the time that Apple broke out of “disruption” and became the world’s main computer maker. It can happen again. 1:19 am on Dec 03, 2017 | Permalink

Jim Rogers said…

Jim, As you point out and as you would like to see, there’s probably some overlap in that I’ve covered some of it. I’ve never had a negative feeling about Apple. From the market perspective, Apple is a “monopoly.” Apple had the biggest share of market cap, in 2016, in the world. So there was a lot of pressure on them to be innovative, to be different. I understand that. But the one thing I wouldn’t have expected them to do in my lifetime that no-one else has done has been to make products that are fun to use and can be re-used long after they’re obsolete. Which is important, given the state of tech. I also understand that companies’ focus is never on one single item. So when one comes along, someone has to “make that happen.” This is one of the things that I remember about my first job back in 1998 was being told that an iPhone was going to come out in 2000. I was 24 and my wife was 32. We were in Silicon Valley, not New York. By the end of 2001, when it was clear that they would not have a working product, there were “too few” available to even start the project. I can only imagine what it would be like if people today have a whole lot of “innovation going on” every day. And I know a lot of people here believe that Steve Jobs would be more appreciative of that today than he would be if I got it with him in the 1990s. 2:33 am on Dec 03, 2017 | Permalink

James said…

This is an interesting analysis. Do you think Apple “oversold”? I think there may be some room for some overvaluation on the shares. In my view, what Apple needs to do is look to lower the “asset” part of P/E to a more reasonable level. This would go against a lot of shareholder philosophy that we’ve seen from Apple. For example, I think that the current P/E of 13 implies that Apple is looking at its stock price as not being very reliable as a measure of the long-term performance of its stock. If P/E falls further, Apple will have to make some changes to its asset allocation in order to be in a better position to raise more stock. But that may not be easy. To illustrate, let’s say Apple raises it P/E to 10 with no dividend cut. And let’s say we’re still at the end of our ten-year tenure. If Apple doesn’t increase its P/E by that amount, it may be the only company in history to do so. A fall in asset prices could result in a lower return on a share of Apple stock than an increase in P/E: a 10-year tenure of at $140 million, to $135 million, and an increase of $10.80 billion or 4 percent in stock price, versus the same ten-year stint priced at $85 million.

2:54 am on Dec 03, 2017 | Permalink

Jim Rogers said…

James, I don’t think that raising the asset allocation would do anything to increase the market value of Apple stock in the eyes of investors. It may increase the “rebuttable presumption” that Apple is a high-quality company that will continue to be a top-tier company in the years to come, in comparison to other tech stocks. In any case, with the way that P/E is calculated the share price will probably be more volatile over the next several years, especially in relative terms to the “asset value” of Apple. It is, however, pretty safe to say that the value will continue to rise. 4:28 pm on Dec 03, 2017 | Permalink

John Chown, said…

“I know a lot of people here believe that Steve Jobs would be more appreciative of that today than he would be if I got it with him in the 1990s. That could be a little inflated, but the core market value of Apple is in about line with the value from 1995 on. If they can do exactly what they started doing in 1997, then they should all be doing great. The market only seems to have an interest in Apple at that stage in time, and a year or two later is

“We’re able to increase revenue and bring more jobs to the Shenzhen area.” ,

“What we are seeing now is just the tip of the iceberg,” Li says. “For Nio, this is just the beginning of the work to become a leading global automaker.” He says the company is investing heavily in electric vehicles in order to reduce costs and make them more competitive on the global stage. “We do not have financial constraints on the size of the investments we will make,” he adds . “We can do it faster and without financial burden.”

While he is still waiting for China’s annual emissions cap in 2020, Li says the company is in the process of designing its electric car technology. “We already have several models in development,” he says. “Last year’s technology was designed to serve the local car market.”

Li says Nio is already in talks with Chinese manufacturers to explore partnerships with them and has recently been in discussion with China’s biggest car maker, Geely. In addition, Nio is doing research on autonomous driving, he says.

It has also recently won a contract to supply its electric car to a leading Chinese battery supplier. “We have a deal with an individual with a major supplier of batteries, and we want to expand our relationship because of our close relationship with Nio.” China is a key market and Nio has already seen positive reaction from local car manufacturers. It is also looking to expand that relationship further, in order to continue to move in the same direction. In addition, Chinese consumers are increasingly demanding battery powered vehicles, which is why Nio has been selling its electric roadsters in China.

In addition, Li says Nio’s plans for electric cars are still far off in terms of scale, but it is already making significant investments to get there. “We are planning to create 200 new electric vehicles by 2020 using our existing equipment. We plan to make electric cars at the same level as internal combustion engines.”

Nio is also looking to expand into the country’s most populous cities where it says it is struggling to compete, and has been working on an ambitious plan to become a global car manufacturer within 10-15 years. I think this is true. As far as the US goes, Nio will be in a position of learning from the massive success of China’s electric car pioneers in Nio and China’s homegrown electric car manufacturers. They will be able to adapt and adopt a more innovative car technology that can compete against existing car manufacturers globally, including Toyota, Tesla, GM, Ford and Mercedes. Nio hopes that its electric car technology will do so by providing the equivalent of a small pickup truck to the Chinese market, and has reportedly been in discussions to buy Toyota’s factory. The Japanese automaker, while it is an independent corporation, has been accused of purchasing the factory while it was still listed on Hong Kong’s stock exchange and is accused of having a secret stake in the future of electric cars within Nio. While the Tesla Model S P85D represents the pinnacle of innovation and the electric car market is flooded with great new electric car brands, Nio isn’t willing to settle for a few products. That’s why it’s not even afraid to partner or directly invest in the companies that are already pioneering the field of EVs.

Nio has already announced plans to start exporting its electric cars to China. It has partnered with Daimler Group, where the Mercedes-Benz S-Class Electric Roadster has already won the Pirelli World Challenge and the “World’s Best Electric Vehicle” award, and is working closely with China’s three national EV regulators, the China Automobile Vehicle Development Association, China Association of EV R&D, and China National Automobile Association, who all announced the same goal of launching 100,000 electric cars into the domestic market by 2020. Nio hopes that its partnership with Daimler will enable it to go even further to develop its own and other Chinese EV manufacturers, and ultimately export their products across the globe. The first Nio electric car has been revealed, the P85D and will be fully electric from the start, but it will soon be preceded by more models like the Nio Plug, which will be an electric version of the company’s iconic, sports car, the Plug-in Hybrid. Nio is already on its way to winning approval for production of a plug-in hybrid vehicle. As a brand, it has the momentum to take their car to a new level and set the tone for the future. I have an eye for the future as it is that type of thing that gets me excited, so there’s no better time than today with all eyes on them. Even if the company is only building a few cars for Europe and Korea there are some huge opportunities to grow as both a brand and as the next big thing in mobility.

The company said most of the victims appear to be in North America and in the U.S. there were some similar incidents across Europe, Australia and Switzerland. It appears their attack was limited to North America.

“To date, we have only identified security camera companies that have been affected globally,” Wyze Labs said in a blog post. “Our customers did not have their camera feeds publicly viewable on YouTube nor on Facebook, so we believe this is the first time that anyone from our customers have been identified through a global security incident involving our cameras and security footage.”

The security cameras are connected via Ethernet (usually WiFi), with a wireless router plugged into a power source. With any connected device, users can connect to other networks via an Ethernet wire. There’s no indication what kinds of cameras were affected in an ongoing investigation. The website says it’s now working on a fix for the issue, and that the company is offering a free 30-day trial period. The website asks for any camera owners and others that are worried about their video feed on social media to email [email protected]. While it’s not clear what type of hardware the breaches were at, other reports state that security cameras connected over USB had been hacked and video was posted to the Internet. Security researchers have been tracking the hacking attack that began last night in the U.S., and this is the first known incident of a local cyberattack.

Update at 11:50: Bloomberg reports that the vulnerability has been fixed – and that Wyze Labs has notified users. “We had only been contacted once by a customer and were in contact shortly after the incident was discovered,” Wyze Labs said.

Update at 11:50 another security researcher who works on the Wyze Labs platform, Adam Caudill, told Ars Technica that the incident has been fixed. He says this is the first known incident in which users have their video feeds on the Internet. “This is not an update for today, but it’s just the first confirmed incident,” Caudill told TechCrunch.

Photo: Jason Koebler

The same band would later give the same account of the Christmas night in 1969, just after being called off during rehearsals due to a fatal motorcycle accident. Their account was provided shortly before the pair were scheduled to perform in Las Vegas at the same stadium, and in that incident they suffered a severe neck injury. Also, in the 1990s, there was a case of a teenager having a near-death experience after one of The Killers. In 1998, musician Ben Klee died after he fell from his motorcycle , leaving a suicide note , on the night of the tour opener with The Scorpions . A coroner was asked to investigate, which confirmed his death to be an accidental fall while riding home after a concert. In 2011, guitarist Jimmy Chamberlin of The Offspring was arrested by the police for having a gun in the hotel room of a friend to kill someone as a prank . During the 2015 tour, drummer Ronnie Vannucci accidentally shot his wife with an accidental shotgun blast, ending their marriage. When he was initially interviewed about the incident by US media, his response was “I’m a grown man and I’m in my own fucking room.” In 2015, the New York Times reported on the death of an Indian engineer and filmmaker who was murdered by members of a “skinhead” gang on a beach in South Carolina after a dispute with a friend. The details were reportedly as follows: “When the gunman was finished with the photographer, another man came from behind and opened fire. The man who was shot, who had taken the body bag from the shooting, was killed when a bullet ricocheted off an incoming boat.” According to a 2014 New York Times report, a police superintendent said “as much as 90% of the time when we get a report, we don’t know anything.” In addition, there were three reported incidents at the Las Vegas show, as reported by The New York Post . According The New York Post, “After gunshots were fired into the crowd by a man dressed in an all-black outfit, several people dove for cover around the stage. When the man took his head off and a young boy fell to the ground, the gunman sprayed the crowd with bullets, the report said.” Following the event, reports appeared online alleging “gangsters” were in possession of weapons at the show , and that the gunman’s apparent motivation was to “shoot up the building.” In addition, police, after reviewing security footage, believed the gunman was “inspired” by the recent violence in Chicago , which saw at least three men shot and killed during one Friday night of violence by three different factions of the Muslim community. The Post reported “according to investigators with the Metropolitan Police Department, there is not enough evidence to say that a gang was involved.” In addition, A video posted on Facebook also claims that “one of them” was seen on the video carrying a gunon the floor in the back of a black SUV. The video, purported to be of the gunman , who allegedly killed six people and injured others before himself being gunned down, shows multiple gunmen firing shots toward the crowd near the Las Vegas Strip exit. One person even is seen on a microphone saying “fuck you, we’re taking your guns” on one of the gunmen while another man is seen firing at a fleeing suspect as they appear to be aiming at them. In response to criticisms, the Post added “After reviewing the videos it has confirmed the gunman is not affiliated with any gang or criminal organization.” In the meantime, another gunman wearing the same type of red bandana as the suspect wore during the concert and firing at the crowd is said to have been captured by police on film .

Posted by Stuff Black People Don’t Like at 12:25 PM

Anon said…

This is just another excuse from the MSM to put every black person in the world in one category without the benefit of empathy or self judgement. It does not matter how often a victim of crime is not given the opportunity to defend themselves, and when the victim of crime cannot defend himself when a police officer is present and the police officer initiates the physical beating or other acts of police brutality, this is not a “race” issue. It is an issue of a police officer in uniform terrorizing an individual, then punishing the victim instead of doing their job. How many of you think this type of behavior is “justifiable” in a world where “everywhere is colorblind” while it is unacceptable to make a victim of a crime, and take away the very reason you are targeted even more. No one is defending any of this type of assault by police officers. No one is defending the police. I’m all for the victims of crime. I’m all for equal justice for all. However when the state, or at least a portion of the state, becomes enamored of a group of individuals and criminalizes their lives, this makes a real change. I live in a state where the state has the power to remove you

It’s possible that by the early 2020’s, the boom may be in the dust… but it will be a long time before real interest rates rise again.

The following will be interesting, and highly illuminating: (2) Inflation, which was already dropping before the downturn began - and with it, employment - was not only low during this period, but was still - at least in some respects - at 2.8 percent - the lowest level in over 20 years. And I quote: “The official unemployment rate had ticked back up to 5.2 percent… The labor force participation rate, the percentage of the population working or actively looking for a job, had fallen back under 70 percent, the minimum level seen since 1981.” (3) The jobs market remained soft at best, with median hourly earnings still lower than they were earlier this decade. And: “The jobless rate for Americans 25 and older fell from 8 percent at the end of the 2007-08 recession to 5.7 percent in January 2012, before climbing back to 5.9 percent this month.” (4) The Bureau of Labor Statistics reported in early February that: “The number of nonfarm employers increased by 22,000 in February compared with a year earlier, while the number of employed persons declined by 28,000. The employment change was also slightly better; with the number of employed persons increasing by 26,000 and the unemployment rate dropping to 4.9 percent.”And “During the second quarter of 2013, the number of Americans in the labor force increased by an estimated 235,000. That was the highest number on record in the first half of the year, surpassing the previous record of 221,000 people added in the first quarter of 2008.”

Finally, the employment outlook seems grim on the national level: “The unemployment rate remained unchanged at 4.9 percent in February, while the labor force participation rate increased slightly, to 80.3 percent.” But: “Income has grown little in the past year, with median household incomes remaining flat, and median annual family income has remained flat for nearly two years. In contrast, the consumer price index, which includes food, energy, and other commodities, grew at a robust 12.9 percent pace in October.” And, finally, that this chart from Bloomberg’s “Economic Calendar” is especially important:

I’ll be publishing a series of posts every other Monday summarizing the news of the day. Check back each week for the latest developments. As always, my goal in doing this is not just to be correct. My goal is to be honest and accurate. I hope you’ll listen and take action as we go.

I’m not 100% sure why he’s pulling this stunt, it’s hard to tell. And I don’t think anyone can be fully confident that the stock will continue to rise.

The problem with Warren Buffett is that he will happily take any situation and exploit it for profit. And that’s exactly what this company is doing, selling their core asset, the company and its employees, for the money it will take to get out of the deal. After all, they need to pay their $5 million rent in August.

It will be extremely hard for Amazon to even come close to closing out the year with $55 billion in cash. It will likely be some kind of a record year, after all, so much of its valuation isn’t actually cash.

If they do end up finishing with a profit, it’s going to be at a rate far below a company with similar cash flow metrics. But I don’t believe that they will. I’m not sure what Warren Buffett will do in a year where the “growth strategy” is working so well. If I had my way, Amazon would exit this deal in the second quarter of 2015.

It is far from yet clear if Tesla, which made a stunning profit in 2014, has regained an edge as many investors and analysts believe they will struggle to turn a profit amid record-breaking revenues. Despite losing two-thirds of their shareholder base and its founder, Elon Musk, and his financial advisor, Peter Renton, fleeing a messy divorce, Tesla is still raising money. The firm on Monday raised $150 million from Beijing-based fund Man Group, and over the weekend it also announced that it would be taking “smaller investment rounds” from a total of eight companies. These include Chinese e-commerce giant Alibaba’s $2.36 billion, and venture capital firm Andreessen Horowitz, which took a $200 million equity stake in Tesla in May.

The problem that has to be dealt with is that the Tesla shares have doubled in price over eight months. That’s pretty impressive for an electric car that no doubt can go 300 miles on a charge with the motor running at roughly 70 percent, and at one-tenth the cost. What it also illustrates is just how much Tesla is dependent on the U.S. and China markets, both of which it is in some ways an outsider in, having originally come to market through a joint venture with Japanese technology firm Toyota in 2011. This all makes Tesla pretty much an outlier among the mainstream automakers, with many other carmakers in the same boat. What it also illustrates is just how difficult it will be to sell this technology to the end-user once consumers start to appreciate what all the hype is about.

A look at some of the challenges surrounding EVs will be interesting. The company, based in Palo Alto, California, only produces about 100 cars a year for the Model S and Model X electric sedan, with the Model X coming in less than two months. Tesla says that will increase to about 300 by the end of this year as vehicles are added to its production line. Tesla says that is because it’s working on the manufacturing technology for that, and adding at least one Model 3 electric car to its Model S line. That will be an estimated 25,000 vehicles to be sold this year. Of those, the company says roughly 750 will be the Model 3, and the rest “will be for Model S, X, convertible and other vehicles”. The company says it’s adding 300 vehicles a week now, with each model receiving a second batch of 200 more vehicles per week, so the full production line is expected to run until 2020.

There is some truth that an electric car that can go 200 miles in 45 minutes or less on a full charge is probably just a generation away and something that doesn’t need major tweaks to be viable. In other words, if the Model 3 is as excellent as Model S and X, then Tesla’s margins will continue to improve as more customers demand the technology. Indeed, the Model 3 is expected to cost a little less than a BMW 6 Series and Audi A4, or a Ferrari 458 it is said could make 200 miles of range on just a single charge in just 20 minutes. This, of course, would be completely impractical, as a Model 3 would cost $35,000 plus, just like the others, and its range would be likely far from a practical range. The company on its earnings call in May said that it may increase the price of the Model 3 to around $35,000, but said it still expected to achieve a profit of more than $14billion in the first six months of 2017. All the same, Musk said that Tesla was being careful to not oversell the cars to the public and that the biggest challenge for the company will be in making people realize the technology is all there and not just something for wealthy people. Indeed, the company has been criticized for selling so many cars that it makes it difficult for consumers to see the value for money they’re getting from owning one, and for selling so many SUVs as well as Model S and X that it only makes sense to sell them as a one-stop shopping option as it’s clear that Musk’s personal views on what he and his team have created are in conflict, and that it is best for the company to focus on selling cars, not on building a sustainable sustainable company. And this means that there’s clearly going to be a lot of pressure on the company to meet that goal.

On Friday, the U.S. has its own Supercharger location to help set the Model S and X apart. The first is expected to open in San Diego in 2014. Tesla says it hopes to build around 3,500 stations on U.S. roads by the end of the year, with more to come over time. That leaves Tesla to try and persuade people to buy electric. That’s going to be hard. The Model S and X have yet to really gain traction with consumers, and those

A short term focus doesn’t - even though a well-funded investment firm would be better than a penny stocks with poorly managed management. I also don’t buy in too much to cover, but most importantly, I am constantly trying to look for better stocks than the stocks I am buying… which means that I am constantly improving the price/earnings to reflect how attractive those investments are now as well.

We did this a couple of weeks ago with the investment I just made in QCOM: I was sold by a mutual fund - and even though I can’t remember which one - I sold about a pound of it at $3.25 per pound… and it went through to trade at $9.5 the next day. Then yesterday, we did the same with Vodafone - and it had a similar effect (although maybe it’s more like that, rather than a penny stocks strategy at work). It sold at $2.99 on the day, and it trades at around $1.99.

But we had a real good morning on the trading floor, because the prices of the individual stocks have been steadily rising all day around that - which made it much, much easier to get the price of each individually priced on the page and to see what was up and what was down - which we did a few times before opening trading today.

We have been following the price of one of these listed stocks (but not the other) since early yesterday afternoon, when it started rising in price. And we think (again, this was a fairly large investment) that there are at least two reasons for this - one for this afternoon, because it went from a very modest price of 1.50 per share to a very very expensive 4.50 per share just a fortnight ago; but also the price of the whole FTSE all morning:

QNX is a telecoms sector company, with revenues of about $20 billion a year and a 10% share of the U.S. telephone market, and QXC Pharmaceuticals (the third/fourth company on the page) is a life sciences and biotechnology pharmaceutical company.

QXC Pharmaceuticals is trading at about $14.5, or $15 from the minute we found out it was listed this morning, and the price is about $14 from that point. That is a huge, and quite good, price increase for the stock - and QC has seen something very interesting go on. (You may have noticed QXC doesn’t have an online page, so this page is a nice place to see the market-moving and day-by-day events.) Q-com is a retail health care company and it has been gaining traction in the U.S. market due to a strong marketing (and sales) strategy. Their website has been online for a while and many people are already familiar with its business strategy, but if you want to see a much more detailed view then you can see it here .

The company is also making significant revenue gains in a number of countries that can have an influence on a stock’s price. A look at all the countries Q-com has recently been active in is here .

Another element is that QXC Pharmaceuticals seems to be gaining a lot of traction with the FDA, and the regulatory agency has apparently not had a problem with this. The U.S. Food and Drug Administration has approved the products of QxC Pharmaceuticals in its first series of trials as of today, the company says, and it is expected to be the first new pharmaceutical introduced by the FDA in almost four years.

These kinds of high-growth and high-tech companies aren’t immune too - I also saw some QXC Pharmaceuticals stocks on the floor recently. This one had a higher price just minutes after we started trading - and the price jumped very quickly from a little under $18 to slightly above $20 (after we published, anyway). And it has continued rising very quickly since then - a lot of the times above its $19 per share price!

Of course, this wouldn’t work if these stocks were not under a great deal of pressure - because if we weren’t concerned about the price then there wouldn’t be so much pressure to sell. (As an aside, QXC Pharmaceuticals isn’t under a lot of pressure, just to make sure that you know. :P)

However even with this much pressure, and QXC Pharmaceuticals rising a lot, the value of the company still remains relatively undervalued. It has a market cap of about $1.5 billion - that is quite a lot of money - but if we add in the revenue it generates from healthcare and the other companies it has been active in, we can project a total market cap of well over $2 billion within a couple of years. And it is quite clear that the value of

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