Category Archives: Stocks

Will Alibaba raise its IPO price?

The demand for Alibaba IPO shares is going wild! So wild that they have decided to raise its IPO price range from $66 to $68. Alibaba is a step closer to its IPO as much as $21,8 billion. Yahoo! Inc and other backers plan to offer as much as 320,1 million shares.

alibaba logo

Alibaba`s Jack Ma have been on a roadshow, and told the investors that they will not seek too high a valuation, and they are offering the shares at a price-to-earnings multiple that`s below what other public traded Chinese Internet peers fetch.

Alibaba`s market value could be as high as $167,6 billion. China`s biggest search engine trades about 34 times estimates of this year`s earning. Tencent Holdings Ltd trades at 37 times, while Amazon trades to 133 times forecast 2014 earnings.

The average for similar Chinese Internet e-commerce companies trade at 43 times their earnings.

Alibaba will try to be a global company and plans to expand its business in U.S and Europe in addition to Asia. Ma said they will try to avoid a repeat of Alibaba.com`s failure which plummeted below its IPO price right after listing and ended up delisting the company in 2012.

Jack Ma listed the company at the peak of the Hang Seng in 2007 and delisted it at the bottom during the financial crises in 2008. The S&P traded at about 30 times earnings in 2000, but now it is trading at 18. The Alibaba IPO in 2007 was 257 times oversubscribed and we won`t see that kind again.

Jack Ma and Alibaba has been on the road for two weeks trying to meet investors and speak with them. They said they plan to set a final price for the shares on Sept 18. Trading start the day after, on friday 19.

Nasdaq rose to its highest since March 2000 this month. Is this the right timing for Alibaba?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Another Smartwatch to watch

Many IoT`s comes from California. So do Pebble. Apple Inc is not the first company on the market with a smartwatch. Pebble Technology have sold 400,000 units as of March 2014. Best Buy began selling Pebble in July last year, and sold out within five days!

Pebble_watch_trio_group_04

Pebble is designed on a concept by Eric Migicovsky. After raising venture capital for the product under their former name inPulse, the company failed to attract traditional investors under their new brand name.

The Pebble is a smartwatch wich is released in 2013, and they was funded via the crowd funding platform Kickstarter. It feature a black and white e-paper display, a vibrating motor, a magnetometer, ambient light sensors and an accelerometer, enabling its use as an activity tracker. Pebble raised $10,3 million trough Kickstarter, making it the most successful product funded through that company up until then.

Pebble is the first watch built for the 21st century. It’s infinitely customizable, with beautiful downloadable watchfaces and useful internet-connected apps. Pebble connects to iPhone and Android smartphones using Bluetooth, alerting you with a silent vibration to incoming calls, emails and messages. While designing Pebble, they strove to create a minimalist yet fashionable product that seamlessly blends into everyday life.

Apps bring Pebble to life. Cyclists can use Pebble as a bike computer, accessing the GPS on your smart phone to display speed, distance and pace data. Runners get a similar set of data displayed on their wrist. Use the music control app to play, pause or skip tracks on your phone with the touch of a button. Don’t worry about the rain, Pebble is water-resistant!

If you’re a golfer, feel free to bring Pebble onto the course. Pebble is working with Freecaddie to create a great golf rangefinder app for Pebble that works on over 25,000 courses world-wide. Instead of using your phone, view your current distance to the green right on your wrist. These apps will be the first, with more in the works!

Pebble can change instantly, thanks to its brilliant, outdoor-readable electronic-paper (e-paper) display. They have designed tons of watchfaces already, with more coming every day. Choose your favourite watchfaces using Pebble’s iPhone or Android app. Then as the day progresses, effortlessly switch to the one that matches your mood, activity or outfit.

If you need to stay on top of things, Pebble can help with vibrating notifications, messages and alerts. Dismiss a notification with a shake of your wrist. Don’t worry, it’s easy to disable all notifications.
Incoming Caller ID
Email (Gmail or any IMAP email account)
Calendar Alerts
Facebook Messages
Twitter
Weather Alerts
Silent vibrating alarm and timer
Android users can also receive Text Messages (SMS) on their Pebble. Unfortunately iPhone does not expose this data. Why? Probably because they have their own watch?
Want your watch to tell you when your next bus is leaving? Maybe you’re jonesing to see your compile status or recent github commits. Think push notifications, directly to your watch using the data connection on your phone. Want to check-in on your watch, or create an app that can monitor your sleep? Pebble can send data from the accelerometer and buttons back up to the internet.
Pebble can receive simple alerts and notifications from if this then that (ifttt.com) or their web-facing RESTful endpoint. More adventurous developers can use the Pebble SDK, with its Arduino-like abstractions and simple C structure, to gain full control of the watch. Multiple apps can run on Pebble, along side watchfaces and regular notifications.

Load apps using Bluetooth
144 x 168 pixel display black and white e-paper
Bluetooth 2.1+ EDR and 4.0 (Low Energy)
4 buttons
Vibrating motor
3 axis accelerometer with gesture detection
Distribute apps via Pebble watchapp store

This is a great success story, which is all about entrepreneurship and most importantly about Risktakers. Kickstarter have solved that problem, and this is about the American dream, which is still alive!

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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SENSE is launched

Sleep is very important. No doubt about that, but how much sleep do you need? It`s very individual, but some people only need 5 hours, while some others need more than 8 hours. The key is to sleep well when you sleep.

Sense

(Picture: Sense)

If you sleep very deep, some doctors say you only need 3 hours. That`enough. On the other hand; if you sleep bad for 10 hours, you will feel tired. You know it is important for athletes to sleep, but it`s important for traders to sleep too.

But many people around the world have a big problem here. They can`t sleep. They do not have a good sleep, and don`t know what to do. Someone in this world wants to change that. Someone that have developed a brand new product. An IoT (Internet of Things).

The company is called Hello Inc, and they is about to disrupt «sleep disruption» and they want to give the people answers to people`s simple question that nobody has yet asked: Why?

There are a lot of things out there that tells you about your sleep activity and can give you a historical log, like Jawbone, Sleep Cycle, Fitbit, Sleep Genius and Dormio. They all can track your sleep and can tell you that you woke up at 4:00 AM.

But the right question is: Why? Why did you wake up at 4:00 AM? If you don`t know and have the right answer, how can you prevent it from happening again? Here is where Hello Inc comes in. They have developed a brand new product called «Sense».

«Sense» do not only tracks your sleep, but it can also monitors your surrounding environment and this product comes in two different parts which is The orb and The «pill».

The Orb goes on your nightstand. It listens for noise and monitors the lighting and temperature. In addition; it pics up what kind of allergic particles are in the air.

The «Pill» is placed on you pillow and tracks the activity og quality of your sleep and it`s all based on the motions you make during the night.

«Sense» assigns a Sleep Score for each night and gives you specific details that answer the question; «Why did I sleep so bad last night?»

Watt: «Sense`s» light sensor may note that you`re using 100-watt light bulbs instead of the 75-watt bulbs you typically use. If you change the watt, then it will disturb you sleep and Sense will track that and tell you.

Heat: Sense`s «Pill» tracks that you`re tossing and turning more than you normally do. It recognize that you`re sleeping in a stifling 80 degrees instead of your normal 75 degree range.

Groggy: If you feel groggy in the morning and don`t know why, you can simply check your Sense and discover from the playback that its microphone picket up some noise from some drunk students in your garden at 3:00 AM.

Sense is also a Smart Alarm that wakes you up according to your specific sleep cycle.

They use Kickstarter to gain funding and they have catapulted to over $2 million in under four weeks now. This is a small company with a smart product and so far they have about 17,000 backers. Not bad. Earlier this year they raised $10,5 million in funding in January after allotting about $18,2 million in shares to be sold.

Hello Inc is founded by James Proud and they are 16 employees with an office in San Francisco’s Potrere Hill neighborhood and a host of elite Silicon advisors from former PayPal head David Marcus to former Apple iPhone senior engineer Andy Grignon.

What a team! What a culture! This is what I call a good society!

An investment in Sense isn`t just investing in your well-being, but it`s also a thumbs-up to entrepreneurism and supporting innovative projects through crowdfunding. SMART!

Sence will be released in November 2014. Sleep well!

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The biggest IPO in history

I have been dealing with Alibaba for many years now, but for many other people, Alibaba is an unknown company. Alibaba is the unmatched e-commerce market leader in China. It holds about 95% of China`s C2C market (Taobao division) and more than 50% of the B2C market (Tmall division).

alibaba logo

Alibaba is set to trade under the new ticker symbol on NYSE; BABA, on friday, September 19th. I think that many will be shocked by Alibaba`s entrence in the West, because only a few investors have heard of the company.

Alibaba`s business is more profitable than Amazon and eBay put together, and the U.S`s dominance in the e-commerce sector is poised to fall with the air apparent to Amazon set to IPO. Alibaba`s IPO may herald the end of U.S E-commerce dominance.

When Alibaba enters the market in the West, the competition will increase and standardize prices around the world, which means Apple Inc can`t sell their iPhone 6 for one price in Europe and another in the U.S.

Ebay didn`t have chance to compete with Alibaba, so the decided to stop their business in China. Jack Ma said it was primarily because they wasn`t effective enough and couldn`t deliver so fast as Alibaba does.

Jack Ma is a great business man. In a letter to his shareholders he said in it, this single sentence about Alibaba`s culture, may revolutionize the way other companies do business. «I have said on numerous occasions that we will put customers first, employees second, and shareholders third».

Don`t forget those words by William Feater: The primary asset of any business is its organization, but as you already know; the customer is the God. Without any customers, you are completely dead. So, what will happen to Amazon and eBay`s customers is the big question now. Price and service are key factors now.

For every dollar in sales, Alibaba makes $0,43 in gross profit. In contrast, Amazon only manage to squeeze just $0,01 gross profit for every dollar in sales. Operating income in the three months ended June, was 42% more than the combined profit of Amazon and eBay for the same period.

Many people talk about bubbles, but this is not like what we saw in the dot-com boom in the late 90`s. Take a look at these Chinese companies which is not revenue-starved; Alibaba founded in 1999, Q2 2014: $2,54 billion in revenue. Up 46% Y/Y. Valuation; $155 billion.

Tencent founded in 1998, Q2 2014; $3,21 billion in revenue. Up 37% Y/Y, and last but not least; Baidu which is founded in 2000. Q2 2014: $1,93 billion in revenue. Up 58,8% Y/Y. This the best tech companies in China and all those three founders are the three richest in China, with Jack Ma on the top.

Ebay is out of the market in China along with Google, which was very profitable for Baidu. Of course the Chinese government is supporting their own companies, so it is not easy for the companies in the West to penetrate the Asian markets. It`s hard to say how well Baidu would be doing if Google hadn`t pulled out of China in 2010.

A report from China Internet Network Information Center said in June that China had 632 million Internet users and 527 million mobile Internet users. This is about the numbers of China`s middle class.

It is expected that this number of middle class in China will grow by 500 million over the next decade, and reach a whopping three billion by 2030, which mean a huge market for many start-ups in the west, but the big question is the Chinese government.

They have a habit of favoring state-owned or state-connected companies. An Internet startup with total potential revenues of $10 million in the U.S might achieve revenues of ten times more in Asia. It can be lucrative to expand in Asia, but sometimes not so easy.

WhatsApp is popular in Hong Kong, but WeChat dominates in China. Kakao Talk is the big thing in Korea, while the most popular chat app in Japan is Line. As you may know; Asia is not only China. What might work in China can be a flop in Korea, Japan, Singapore or Hong Kong.

Alibaba will change the Chinese corporate giant`s diverse range of business lines, from e-commerce marketplaces to logistics to financial services. A overseas IPO could prompt the firm to reassess its strategy for these business categories as well as the countries where it operates.

The West are protecting their companies just like the Chinese government. It was not so easy for Baidu, VIPShop or Youku Tudou in the overseas markets like the U.S, as they all are focused on the Chinese market. But Baidu is a search engine, while Alibaba is something different. Peope want to buy things cheap and Alibaba can fix that.

As Jack Ma said; «China is the main course, while developed markets like the U.S are merely dessert».

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Who is Jack Ma?

Jack Ma or Ma Yun is a Chinese entrepreneur born in October 15, 1964. He is one of the most powerful people in Asia, and among the most influential people in the world. He is also selected by Forbes as one of Asia`s Hereos of Philanthropy for his contribution to disaster relief and poverty.

Jack-Ma-in-the-shadows

(Picture: Jack Ma, founder of Alibaba)

He is the Executive Chairman of Alibaba Group, a family of highly successful Internet-based business. One of them is Alibaba.com which is going public friday next week.

He was born in Hangzhou, Zhejiang Province in China. He is married to Zhang Ying and they have one daughter and one son who is currently an undergraduate student of California, Berkeley. At an early age, Jack Ma developed a desire to learn English, although he failed the entrance exam twice. He attended Hangzhou Teacher`s Institute (Hangzhou Normal University).

Ma graduated in 1988 with a bachelor`s degree in English. While at school, Ma elected student chairman. He later became a lecturer in English and International Trade at the Hangzhou Dianzi University.

Jack Ma started building websites for Chinese companies with the help of friends in the US. He founded China Yellowpages in 1995, widely believed to be China`s first Internet-based company. From 1998 to 1999, Ma headed an information technology company established by the China International electronic Commerce Center, a department of the Ministry of Foreign Trade and Economic Cooperation.

He founded Alibaba in 1999, which is a China-based business-to-business marketplace site which currently serves more than 79 million members from more than 240 countries and territories. Jack Ma`s Alibaba is planning to raise 20,1 billion in an IPO on friday next week.Alibaba`s mission is «To make it easy to do business anywhere».

Jack Ma serves as Executive Chairman of Alibaba Group, which is a holding company with nine major subsidiaries; Alibaba.com, Taobao Marketplace, Tmall, eTao, Alibaba Cloud Computing, Juhasuan, 1688.com, AliExpress.com and Alipay.

Alibaba`s online transaction volume exceeded one trillion yuan in November 2012, and Ma was thus labeled «trillion Hou», meaning literally «Trillion Yuan Marquis» in Chinese.

Alibaba launched Yuè Bao in 2013, which is a money market fund that users can invest in directly using Alipay. With $80 billion, it is the fourth largest in the world and is sending shock waves through China`s ossified banking system.

Alibaba is expanding into a dizzying array of fields, including cloud computing, messaging, mobile, mapping, TV, ride-sharing, taxi services, media and crowd-funding. Many of their investments have been with American companies like Amazon rival Shoprunner, ride-sharing service Lyft and Tango, which is a popular messaging app.

In 2009 at a shareholders Meeting, he encouraged those in attendance, including shareholders, customers and students from two Hong Kong universities, to take into their own hands and take action in the form of starting businesses to cope with the economic downturn rather than waiting for government of business to help them.

He reminded everyone that the great fortunes of the world were made by people who saw opportunities that others didn`t, and he noted that the aftermath of the recent global recession would be no different in terms of exposing new ways of doing business.

Jack Ma is a board member of Japan`s SoftBank and China`Huayi Brothers Media Corporation, and became a Chairman of the Board for the Nature Conservancy`s China Program after he stepped down from Alibaba as company CEO last year.

Alibaba`s IPO is the biggest U.S IPO in History!

The price range will be between $60 and $66 per share, which could value the company at well over $150 billion. The Alibaba IPO would make its offering the biggest U.S IPO on record, beating out Visa and Facebook.

Jack Ma is among the three richest in China. Which is Jack Ma ($11,2 billion), Ma Huateng ($15,6 billion), and Robin Li ($16,3 billion). They are all Internet entrepreneurs, but this is just the beginning. By the end of this year, 45% of the world`s Internet users will be from the Asia-Pacific region.

You can read more about Alibaba on this site. Search for Alibaba and read more about this amazing conglomerate company.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Apple`s iPhone 6 live today

Today is the day for all Apple fans in the world. Apple is going to release a brand new product live at 10 a.m PDT (Pacific Daylight Time) today. Right now, it is only 5 hours left to the big Apple live event, and this is a big and important day for CEO Tim Cook.  No one knows what the news is, but rumours are that Apple will release a brand new iPhone 6.

Think different

If you want to see the video live, you can simply go to this link: http://www.apple.com/live/

It is a countdown on this site and you can see all the great news from Apple on this live show. Some people say that Apple will launch a brand new iWatch in addition to their new iPhone 6. That sounds strange to me. Anyway; I am waiting for Apple`s Wallet.

What`s so special with the new iPhone 6? Rumours suggest upgrades on battery, camera and processor. According to Digi Wo, Apple will use the Sony Exmor RS IMX220 sensor in the next generation iPhone.

It comes with 108op video recording and has a 13MP, 1/2.3-inch sensor. This is the same sensor since Iphone 4S. Apple is not the first with 13MP+ cameras. Sony, LG and Samsung have been using cameras with 13MP+ since last year. Nokia`s Lumina 1020 has the highest megapixel count among smartphones. They have 41MP!

The next generation A8 processor chip will be smaller in size and much faster, which is to be seen on the new iPhone 6. The new processor will be more energy-efficient compared to iPhone 5S.

Rumours say that the battery capacity of the 4,7-inch iPhone will increase. It will run a 1,810mAh battery. That`s much better than iPhone 5S`s 1,56mAh battery and iPhone 5`s 1,44 omAh battery, but it doesn`t mean a better battery life for iPhone 6, because the smart phone require more capacity to run with the extra screen size.

Iphone 6 is said to have a sapphire glass display, redesigned looks, 6,2mm thickness, solar charging and NFC.

Other rumours say they will release an iWatch, in addition to the two new iPhones (a 4,7- and 5,5-inch iPhone 6). That`s probably why Apple have invited fashion journalists to their brand new iPhone 6 launch event.

Apple are not pioneers to the wearable game as Samsung and Google are just a few names already pumping out smart watches and glasses of every shape and size, so Apple are relatively late to the wearable game.

History tells us that Apple has being a latecomer in the name of getting a product right, and such could be the case with the iWatch. I wrote about it last week. Nor is Apple the first to launch a brand new wallet. Google have been on the market for years with their Google Wallet, but Apple is probably the right company to make a real take off?

It`s not the smartest thing to be the fist on the market sometimes. Being nr. 2 is cheaper and sometimes better. Timing is the key. Apple is a smart company with smart products.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Your Phone is your wallet!

It is a nightmare to walk around with all this physical cards in the wallet, like debit cards, credit cards and all the gift cards. What if we can store all this things in a phone? What about all the paper money and coins that is growing in your wallet like a balloon in your pocket? Do we need this?

Google giftcards

Google and Apple is one of my favorite companies in this universe, with high degree of innovation. Google demonstrated the new Google Wallet at a press conference on May 26, 2011, but it was released for the U.S market only on September 19, 2011.

Google Wallet is a mobile payment system that allow its users to store debit cards, credit cards, loyalty cards and gift cards among other things, as well as redeeming sales promotions on their mobile phone.

The integration of Google Wallet and Gmail allows users to send money through Gmail attachments, and this reminds me like PayPal. You can simply send money to your friend with a simple email address. It can`t be more easy.

I`m not in doubt, this wireless payment solution is a product for the future, but so far it`s not a big hit in the U.S. The service works with the 300,000 plus MasterCard PayPass merchant locations, with Visa licensing their Visa PayWave system to Google for use in Wallet as of September 20, 2011.

Google is probably not the right company for this business? It is a great business in China, so we know it works out there. Apple is probably the right company to do something with that. They are the right company to fix it.

Apple will launch its new iPhone 6 on September 9, and it will feature NFC (Near Field Communication), according to rumors. Apple`s biggest post-PC rival Google is already implementing NFC for wireless payment.

There is a huge difference between Google and Apple. First of all; Apple has much more phone users than Google, and they already hosts millions of credit cards and processes billions of dollars worth of transaction through its mobile application and content store.

Apple can implement the new wireless system on its hundreds of brick and mortar stores and give users a big reason to sign up for the new system. They can lauch some promotions in the stores to attract more NFC transactions.

Apple have a big opportunity as a marketing platform by generating advertising revenue from customer brands wanting to reach shoppers while in a store. Itunes accounts have been used in Apple`s marketplace, but is very tiny compared to the vast retail market.

Tesla`s CEO Elon Musk`s «baby» and now eBay`s Paypal and Square will be challenged. PayPal is still very popular, many thanks to a large pool of merchants that supports the system. Square which recently introduced money transfer through text messaging will probably lose some market share in the future.

The U.S consumers has not yet adopted the Google Wallet, and Apple`s success with their wireless transaction system will largely depend on the acceptance of the retail industry. A group of chains has formed a company in 2012. One of them is Wal-Mart Stores Inc, and they will try to build a mobile-payment system which is not yet released.

Apple seems to cooperate with Visa, MasterCard and American Express, but this is still rumors. I will wait for some more news on September 9. Anyway; wireless money transaction is a lucrative business. The whole world is built on money transactions.

 

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