Gardena distibution facility; workers urge other facilities to join. If this spreads, could really crimp deliveries.
You have to hand it to them, the weeks before Christmas maximize their bargaining power.
Int, rate differentials don't matter when your economy is slowing & the "fer'ners" want out.
Just as an example of the big slowdown in the U.S., sales of big ticket machine tools were down an amazing 83%! Recesssion may be coming, led by (guess what)....the strong dollar. Dollar needs to weaken.
Article by Jesse Felder, a yahoo Fin. contributor, can be viewed in "headlines" section. Felder focuses on the retail aspects of Amazon, where margins are razor thin. He questions the profit growth assumptions, saying that if they try to raise margins others will swoop in. I would also add that the "Cloud services" part of Amazon is, in my opinion, becoming increasingly commodity-like, and competitor Mr. Softy has lots of buckaroos.
If you haven't read it, DO! Bulls too.
Sentiment: Strong Sell
He compares the current mania for "FANG" with the doomed "Nifty 50" stock craze in the early 1970s.
That didn't end well, & doubt this ends well either. Remember when FANG used to be "CANSLIM"? The reduced number of letters reflects the narrowing of the list.
Do you just pull facts out of the air? On;ly 1.77% of Amazon float is short..tiny! As far as the "Nifty 50s" not being shorted..they were, more than 1.77% of float. Low short interest in Amazon tells me the plunge could be brutal, whenever it starts.
Also, many of the "Nifty 50s" had trailing PE ratios in the 40-60 range when they started to plunge, miles below Amazon's nosebleed trailing PE above 900. Get your facts straight.
This is important, because "commodities" rarely commander "economic profits", or "rents" in economic jive talk. I see lots of competitors, MSFT, Oracle & others. "Cloud" is fancy talk for outside data storage.
data storage (& computation), of course. Worth something, but not a 900 PE (& retail sure not worth above a 20 PE). At best, If you assign a 20% growth rate to Amazon (lates figure is below this), maybe you can make a case for a twice growth valuation....not 900+. I'm from Missouri. Show me the profits.
Pe/g ratio (using a forward PE est. of 200) are now over 10 I believe, nosebleed level. Normal pegs should be at best 3, or below. Ideally under 2. This could be worse if the growth or profits don't materialize as expected.
Good chance of explosive move up.
AG-related stocks could be very hot in 2016, what with the huge el nino impacts---massive need for food relief worldwide as crops fail. I see POT at or above $30. That means a $1 call goes to $500, a gain of 50,000%. That would be nice.
Expect to see this on the evening news show soon. Massive need for food aid, drawing down crop stockpiles, raising commodity prices & fertilizer prices. Boys & girls, I'm telling you, the entire agriculture sector could have a big up move soon. Tax loss selling is juts about over. Buy the fertilizer stocks, buy JJG, buy DBA, buy CORN etc etc.
If you doubt, Google "drought in Africa and Indonesia 2015".