Author Archives: Ket Garden

by | February 21, 2014 · 2:31 pm

Social Media Future

Robert Murdoch bought MySpace in 2005. One year later he incorporated it into Fox Interactive Media. It all peaked out in 2008, and MySpace was getting 76 million visitors a month. In 2009 they brought in about $470 million. This revenue came from advertising.

facebook logo

Suddenly, MySpace was not so cool anymore. The new #1 Social media choice was Facebook. MySpace lost 50% of the monthly visitors and revenues has plummeted to only $34 million. It can change very fast in this business.

 

People thought that MySpace was a website where spam and crime were rampant. MySpace was losing market shares and Facebook became the new winner. MySpace gave up its user experience and Facebook was better and more secure and clutter free with ads on the sidelines of the user experience.

 

Facebook celebrated its 10th birthday a few weeks ago, and I`m impressed of what Facebook has been doing so far despite all the negative critics from people who said the company is doomed. We have seen what have happened to others like MySpace. Is Facebook just a part of a social media evolution? The stock is now trading at $69,63%. Up +2,31% yesterday – after WhatsApp news.

 

Reports today:

 

10:00AM ET Existing Home Sales

 

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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by | February 20, 2014 · 2:14 pm

Facebook to buy WhatsApp

The world largest social network Facebook (FB), agreed to purchase WhatsApp inc. The price: $19 billion. Facebook will pay with cash and stocks. Yesterday, Facebook said in a statement that they will buy WhatsApp for $4 billion in cash, $12 billion in stocks and $3 billion is restricted shares.

facebook logo

CEO Mark Zuckerberg bought Instagram in 2012 for $700 million. Not so much money compared to WhatsApp, but this is Facebook`s biggest acquisition so far. According to Bloomberg this is the largest internet deal since Time Warner`s $124 billion merger with AOL in 2001.

 

With WhatsApp you can send text messages for free. WhatsApp is free for the first year, and then it costs 99 cents a year. Other competitors are WeChat (China), Kakao Talk (Korea) and Line (Japan) to name a few of them.

 

But who have not sent text messages for free? What about Skype, MSN, ChatON and Facebook messenger? You can also chat on Google. Do you remember ICQ? How difficult is it to start a new one? Take a look at all the text messages around the world. It`s massive!

 

Facebook`s market cap is now $170 billion, trading at $68,06. Up +1,13% yesterday, but down -3,47% AH. With this valuation you know that investors value Facebook for the future, and not today. This looks like the tech bubble in late 90`s, so be careful and think about the peak potential for Facebook in the future.

 

Reports today:

 

08:30AM ET Consumer Price Index
08:30AM ET Jobless Claims
08:58AM ET PMI Manufacturing Index Flach
10:00AM ET Philadelphia Fed Survey
11:00AM ET EIA Petroluem Status Report

 

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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by | February 19, 2014 · 1:35 pm

Tesla +422,1% (1YR)

Coca Cola`s (KO) Global volume rose 1% during Q4, they told us in their reports yesterday. They have a solid growth for its Powerade brand in North America. Beverages are still doing it well. Coca Cola is still a dominant consumer beverage company, trades at a forward PE of 15,4 and offers a dividend yield of close to 3%.

 

Market cap of $167B with revenues of $48B and a gross margin in excess of 60%. Net income of $9B. They have a massive distribution network and are able to distribute products globally to any corner of the world.

 

Zynga (ZNGA) was trading at $14,39 in March 2, 2012. It jumped +5,75% yesterday, now trading at $5,15. Zynga said they will cut their workforce by 15%. On top of that, they are buying NaturalMotion for $527 million. Is this the year Zynga makes a comeback?

 

Remember in 2012 when the company bought OMGPOP. The rival game maker slowly died and Zynga shut it down only one year after buying it. Will the latest purchase of NaturalMotion share the same fate?

 

There ain`t no doubt that 2013 was the year for Tesla (TSLA) and Elon Musk. They had a massive stock growth, media coverage, and everybody was talking about the «new» car. Elon Musk is often compared to Steve Jobs due to his innovation.

 

The Model S is an incredible success with their technology, safety, luxury and EV. When you look at the stock price for Tesla compared to the company’s true value, I belive 2014 will be something different from 2013.

 

Don`t get me wrong. I like the car and I am bullish in the long run, but sometimes in the long term bullish trend channel, we will see some corrections. The price of the stock has outpaced the progress that the company has made.

 

Reports today:

 

8:30AM ET USD Housing starts
8:30AM ET USD PPI-FD
2:00 PM ET USD FOMC Minutes

 

tesla

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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by | February 18, 2014 · 2:18 pm

Earnings reports

Nikkei rose 3,13% today. What a jump! This jump is based on good news for Bank of Japan (BOJ). The BOJ kept monetary policy steady and maintained its upbeat assessment on the economy. It also decided to extend three special loan facilities.

It is mixed in Europe and it seems like the U.S markets will open up today. Gold is trading down -0,34% at $1314,50. Silver is down -0,03%, trading at $21,41. Copper is up +0,32%, trading at 327,50.

Earnings reports to follow today: Coca cola (KO) is reporting for the quarter ending December 31, 2013. Consensus earnings per share is $0,46. This is a 2,22% increase compared to the earnings for the same quarter last year.

Norwegian Cruise Line Holdings Ltd (NCLH) is reporting for the quarter ending December 31, 2013. The companies consensus earnings per share forecast is $0,17. This is a 1600% increase compared to the same period last year. Price to earnings for NCLH is 26,90, while the industry ratio is 22,10, which means NCLH have a higher earnings growth than their competitors.

I look forward to the earnings report from Tesla (TSLA) tomorrow. The report will be for the fiscal Quarter ending December 2013. Consensus Eearnings per share forecast for the quarter is $0,04. EPS for the same periode last year was $-0,78. A great jump!

tesla

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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by | February 17, 2014 · 12:10 pm

What goes up must come down

It`s all up today. Asia is up. Europe is up. Commodities like gold, silver and copper is also up. It`s all green. We`re at the top in the Stock market. The commodities has declined and are at the bottom. It looks like we are in the beginning of a new bull market in the commodities.

Many times you will see stocks rising up day after day, year after year. You might think you can`t buy this stock now, because it is already up 200%. You can lose a lot of money when you think like that. The point is to know that the stock price is a reflection of the company.

Stocks and indices often goes up within a trendline, but within that trend line, it is normal to see some corrections. Think about Warren Buffets company Berkshire Hathaway. That stock went up from $455 to $7250 per share in only five years.

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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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