Here are Doug Kass' top thoughts on some of the biggest stories of the week. Update on What's Up with P&G I placed Procter & Gamble ( PG) on my Best Ideas List as a short on Aug. 31 at $92.56. The shares closed Thursday at $88.23 and, as of this writing, are up $1.57 in premarket trading. Thursday, it was announced that activist investor Nelson Peltz may have won his board seat. Frankly, if the proxy results stand, and Peltz secures his seat on the P&G board, I suspect he will have little impact and that the relationship with Peltz will remain contentious. I am a short seller in PG today based on my negative consumer packaged goods thesis. Originally published Nov. 16 at 9:13 a.m. EST Doug Kass
Alibaba is rising after buying a major stake in a Chinese grocer. Shares of Alibaba are up 2.33% to $189.45 on Monday after the company bought a $2.87 billion stake in China's largest grocery operator. Alibaba said on Monday it would make an investment in Sun Art Retail Group, which owns 8.2% of China's total grocery market.
An electronic payment app that allows people to pay for goods and services in gold has been launched by fintech firm Glint. Released Monday, the app — also called Glint — allows users to link a Mastercard credit card to their phone, which then lets them buy physical gold bullion that is stored in a Swiss vault. Jason Cozens, the company's chief executive and co–founder, said Monday that quantitative easing policy and the collapse of some banks have made many realize that traditional accounts are not a risk-free option. "Since the financial crisis people are starting to understand that purchasing power of their money isn't safe," he said. On its website, Glint says that once either a currency
A shift in the bond market is giving investors and Federal Reserve officials pause about the economic outlook. Philadelphia Fed President Patrick Harker says the central bank must avoid inverting the yield curve, or allowing 10-year Treasury yields to slip beneath two-year rates. The Federal Reserve's plan to keep raising interest rates could soon run into a wall of its own making: low long-term borrowing costs that signal expectations for weak economic growth and anemic investment returns for the foreseeable future.
For all its technical complexity, Uber is a relatively easy-to-understand business. The company doesn't own physical assets or employ drivers. Instead, its software connects people who want rides with people willing to drive them, and Uber takes a cut of the fares. The mechanics and financials of this type of middleman business -- or a "two-sided marketplace," if you want to make small talk at Silicon Valley holiday parties -- is familiar thanks to eBay, Priceline, Apple's mobile app store and many other companies with similar foundations. But now Uber Technologies Inc. appears to be wading into owning physical assets, which calls into question what its ultimate business model will be. Yes, Uber
Warren Buffett and Bill Gates have both founded highly profitable companies, so it's safe to say that they've made quite a few smart business decisions. In a 1998 panel discussion with students at the University of Washington's business school, the two billionaires pinpointed the best business decisions they ever made. Buffett said his best business decision was simply starting a career in investing because he enjoys what he does. Luckily, said Buffett, this has worked out well for him. "You'll see plenty of times when you get chances to do things that just shout at you," he said. "When that happens, you have to take a big swing." Alluding to his own experiences as an investor, Buffett said that
MI Bitcoin hit a fresh all-time high of $8,222 per coin Monday morning, according to data from Markets Insider. Bitcoin has been on a tear over the last week as more traditional financial services firms dive into the nascent market for digital coins
Stocks recently featured in the blog include NVIDIA NVDA, Priceline PCLN, TripAdvisor TRIP, Intel INTC and Advanced Micro Devices AMD. Earnings season is drawing to a close with most of the S&P 500 having reported already, making NVIDIA easily the hottest earnings from last week. The online travel agents continued to disappoint, with both Priceline and TripAdvisor shares plummeting.
Thousands of traditional retail stores are closing down as more people shop online. A chart from T. Rowe Price shows that investors who stuck with the sector are most likely badly burned. Amazon's stock performance has far outpaced a basket of traditional retailers and the broader stock market.
announced on Monday that its cloud platform, Amazon Web Services (AWS), has attained authorization to operate workloads up to the Secret U.S. security classification level. "The AWS Secret Region is readily available to the U.S. Intelligence Community (IC) through the IC's Commercial Cloud Services (C2S) contract with AWS.
Consumers are getting the word that taxpayer-subsidized health plans are widely available for next year for no monthly premium or little cost, and marketing companies say they're starting to see an impact on sign-ups. "Free Obamacare Coverage in 2018," says an online pitch from insurance broker eHealth, showing a young woman with a big smile. HealthSherpa, a private website that focuses on signing people up for Affordable Care Act coverage, said nearly 1 in 5 of its customers thus far will be paying no monthly premium.
Sovereign bonds rose the most in a year in India after the central bank scrapped a debt sale due later this week that was designed to reduce banking liquidity. The Reserve Bank of India won’t proceed with a 100-billion-rupee ($1.54 billion) auction under its open-market operations on Thursday after a review of liquidity conditions, it said after the market closed Friday. The central bank has auctioned 900 billion rupees of the securities since the start of July. India’s government bonds have slumped since August due to a potential end to monetary easing, concern about rising supply and possible fiscal slippage. They jumped at the start of trading on Friday when Moody’s Investors Services upgraded
A majority of Americans of all incomes will benefit from the Tax Cuts & Jobs Act that House Republicans have just passed. A distribution analysis from the Joint Committee on Taxation also found that at every income group, taxes would decline, with the biggest percentage-point decline for millionaires, who would see their average tax rate fall to 30.7% from 32.4%.
Value investing is easily one of the most popular ways to find great stocks in any market environment. One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short.
CNBC's Eamon Javers reports on Senate tax provisions that could impact stock investors.
Amazon is steamrolling the retail industry, but old-line Wal-Mart is hitting back — and producing impressive numbersBloomberg, iStockphotoWal-Mart’s online sales in the third quarter jumped 50% from a year earlier. The Bentonville, Ark.-based company’s investments in its employees, its online offerings and delivery, and its stores are paying off in a major way. Investors in Seattle-based Amazon should pay attention.
The holiday season is kicking off this week with Thanksgiving Day and Black Friday in the spotlight. Per Kensho, a group of S&P 500 retail stocks, on average, has generated 5% returns in the period spanning one week before to one week after Black Friday since 2007. This is compares favorably with average returns of 3% for the S&P 500 and 4.5% for consumer discretionary stocks (see: all the Consumer Discretionary ETFs here).
Apple Inc AAPL loyalists may have to wait a little longer to bring home Siri-integrated HomePod. Per a statement, an Apple spokesperson was quoted by TechCrunch saying, “We can't wait for people to experience HomePod, Apple's breakthrough wireless speaker for the home, but we need a little more time before it's ready for our customers. Apart from Home Pod, the report added, Apple has also delayed the launch of Apple Pay Cash.
It has been more than a month since the last earnings report for Alcoa Corp. AA. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Alcoa saw higher profits on a reported basis in third-quarter 2016 on gains from its aggressive productivity actions, but its adjusted earnings and sales fell short of expectations.
Tencent shares hit a record high Monday, bringing its valuation to over $500 billion. The technology firm is the first from China to reach the landmark valuation as it closes in on the likes of Facebook and Amazon. The Hong Kong-listed internet giant, known for its WeChat messaging app and online games, saw shares rally to 420 Hong Kong dollars ($53.76) on Monday. Its market capitalization, or total value of all the shares in circulation, stood at 3.99 trillion Hong Kong dollars ($510.7 billion) at the market close. Tencent's market cap is above Chinese e-commerce giant Alibaba, which stands at $474.15 billion, and Baidu at $82.97 billion. It is closing in on U.S. technology firms including Facebook,
The Boeing Company BA has secured an order from Avolon — the international aircraft leasing company — for 75 of its 737-MAX airplanes. Following the signing of memorandum of understanding at the Paris Air Show in June, the deal has been finally awarded during the 2017 Dubai Air Show. The agreement comprises an order for 55 MAX 8 and 20 MAX 10 airplanes — the newest and largest member of the 737 MAX family — including purchase rights for 20 additional MAX 10 jets.
Many of these suppliers' stocks have posted mixed results so far in 2017, failing to match the tech icon's breakout to an all-time high while highlighting growing risk if iPhone X sales fail to please shareholders. Analog Devices CEO Vincent Roche is quick to point out that the company is more than an Apple supplier, manufacturing a variety of innovative products that include autonomous driving chip sets, but market players understand that the Cupertino connection has a major impact on Analog Devices' share price.
Marvell Tech (MRVL) is buying rival Cavium (CAVM) for $6 billion. Alibaba (BABA) is taking a deep dive into brick-and-mortar. The Chinese e-commerce giant will pay nearly $3 billion dollar for a 36% stake in Sun Art Retail Group, China’s top hypermart operator.
Internet giant Alibaba Group Holding Ltd said on Monday it would invest HK$22.4 billion ($2.87 billion) for a major stake in China's top hypermart operator, Sun Art Retail Group Ltd, part of a wider push into offline retail. As part of an alliance with Auchan Retail S.A. and Ruentex Group, Alibaba would buy the stake from Ruentex while Auchan Retail would boost its stake, the three companies said in a joint statement. The alliance would target opportunities in China's $500 billion food retail sector, as Alibaba races to build big-data capabilities in the offline retail market where roughly 85 percent of sales are made.