Category Archives: Stocks

by | May 1, 2018 · 4:00 am

More than 50% of Apple`s revenue comes from the iPhone sale and Service is a growth sector

More than 50% of Apples revenue comes from the iPhone sale, but for how long will that last? Its dangerous for a company like Apple to think it will last for the next hundred years, and that`s probably why CEO Tim Cook have targeted service as a growth sector.

Iphone is still a very important product for Apple and therefore it will be much talked about, but other products are also good and should be one the plan. Service revenue from iCloud, the App Store and Apple Music can all grow in the future.

We know the evolution of the mobile phone industry. The Swedish company Ericsson was hot during the 90s, before Finlands Nokia took over the throne, but it didn`t last forever. As you may know, Apple launched iPhone and have since then been the king of Smartphones.

Smartphones won`t last forever, and once those phones are “out”, Apple must be prepared and think fast. The way we use our phone as we know it today will change.

Apple`s market cap is $848,35 Billion and so far it has been a great ride for the last ten years. Their multi-hundred billion cash stockpile gives them a great opportunity to spend money on M&A, but also R&D.

Morgan Stanley thinks the company could increase the capital return program by $150 Billion. Earlier this year, Apple said it expects to pay $38 Billion taxes on what it plans to repatriate, implying it will bring back nearly all of its $250 Billion in overseas profits.

The Street are concerned about the iPhone X sale and total revenue based on higher selling prices. Service are growing about 20% YoY, but the revenue from iPhone X can be worse than investors like to think.

The newest generation of iPhones is not as good as the iPhone 7 has a year earlier. Maybe it is because of a stiff price or maybe consumers go for a cheaper phone?

Shares of Apple are flirting with 200 MA and after a jump of nearly 2 percent on Monday it will be interesting to see if the results on Tuesday will send the stock in the bullish territory or down again.

Apple Inc is expected to report earnings on 1 May 2018, after market close, and the report will be for the fiscal Quarter ending March 2018. Earnings for the quarter is $2,69 which is better than last years $2,1.

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 | April 25, 2018 · 8:00 pm

Porsche will celebrate the 70th anniversary of its first sports car in June 8, 2018

Porsche is a nice and sporty car and the brand will celebrate the 70th anniversary of its first sports car in 2018. From June 8 – 10, 2018, it`s finally time; Porsche is celebrating its 70th birthday with its first international Sportscar Together Day.

The day will be celebrated with a number of Porsche events around the globe and with sports car drivers, enthusiasts and fans worldwide. Those who are interested can follow the shows and activities at first hand via live stream on Facebook.

Porsche AG is a German automobile manufacturer specializing in high-performance sports cars, SUV`s and sedans. Porsche AG is headquartered in Stuttgart and the brand is owned by Volkswagen AG, which is itself majority-owned by Porsche automobile Holding SE.

I really like Tesla because of its battery capacity and it seems like European automotive has been sleeping when it comes to electric vehicles. They cant fully compete with Teslas capasity right now, so in the meantime they are launching hybrids.

Just look at Teslas Model X and compare it with Porsches Cayenne. Teslas sales and production goes straight up while Cayennes production and sales is declining. Cayenne sales dropped sharply in 2014.

82,000 were produced in 2013 while the number last year dropped to 59,000.

Porsches Panamera sale was up 73% to over 19,000 vehicles. Since April last year, Porsches stock chart has gone straight up.

European automotive has no choice. They must come up with a better battery solution. Hybrid is not the solution in the long run and Tesla will still be a leader with its solution. Nor is a new emission-cheating scandal the future.

A senior executive at Porsche was taken into custody by German police in a raid related to Volkswagen`s emissions scandal, but Porsche denies any wrongdoing at the company in relation to the emissions cheating allegations.

If Porsche will challenge Tesla it must be with their new crossover concept variant called the Mission E Cross Turismo. A concept revealed at the Geneva Motor Show, but it is just a concept model while Tesla`s Model X are already being made.

The Cross Turismo has a range in excess of 310 miles per charge and has been tested out at a 0-60 mph time of less than 3,5 seconds. Porsche said the new vehicle can be charged at a rate of 250 miles driving range per 15 minutes.

Porsches1Q Europe sales rose 8% to 20,601. Their Q1 China sales is up 3% to 18,672. Q1 sales in the U.S rose 10% to 16,698. All in all, the sale is up 6%. Porsches growth is driven by German, U.S and the European market.

Porsche`s Panamera and 911 saw most successful Q1 in company history.

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 | April 19, 2018 · 4:00 am

Netflix`s 43 percent jump in streaming revenue was its best in history

What investor on this planet didnt like Netflixs Q1 2018 revenue growth of 43 percent? Netflix has been one of my favorite stocks in many years and is still a favorite. But what investors are concerned about is their amortization of streaming content that is not keeping pace.

Netflix`s amortization of streaming content is up «only» 33 percent which is still very good, and their earnings growth is up 60 percent YoY. This is absolutely impressive. Despite the fact that their revenue growth is astonishing, CEO Reed Hastings has sold 8 percent of his stock.

 

Netflix is still expanding and according to Financial Times, the company will raise its investment in content across Europe and plans to spend about $1 billion on original productions this year. The revised budget will be more than double that of last year.

Netflix also unveils ten new European projects, and second season of «Glow» which will be released on June 29. Those who criticize their spending should be quiet, because the growth is unbelievable for a tech company that has been on the market for more than two decades.

Netflix added 7,4 million more streaming subscribers with 5 million of them outside the U.S, and higher subscription prices on top of their growing customer base gave them a huge boost for their revenue.

Netflix`s 43 percent jump in streaming revenue was its best in history.

Netflix reported $290,1 million in net income for the first quarter and that alone is more profit in three months than the streaming company had for the entire year of 2016.

Whats really funny is to see how Netflix in their own earnings report every quarter in a shareholder letter are describing their competitors. Netflix has been in the market for a couple of decades, but the competition has changed in the past year.

Last year, they were talking about «skinny bundles» and Amazon.coms sports ambitions, but new they mentioned Amazon, Apple, Facebook, Alphabets Google, YouTube and Walt Disney. Netflix are talking much about the iPhone maker and predicted how Apple will incorporate original content it has begun to purchase.

«Apple is growing its programming, which we presume will either be bundled with Apple Music or with iOS,» Netflix said. More companies are entering the market. Apple has reported that they will invest about $1 billion on original video content.

Netflix pointed out that it doesn`t seem to think Facebook and YouTube are truly competitors, as they are supported by ads instead of subscriptions.

Their biggest competitor may be former partner Disney. They split with Netflix last year, and started its own streaming services. Disney acquired 21st Century Fox and Hulu will also be owned by Disney after the deal with Fox.

Netflix`s market cap is $132 Billion.

 

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by | April 13, 2018 · 4:00 am

J.P Morgan will see more competition from corporations like Google, Apple and Samsung

I pointed out how cheap bank stock was a couple of years ago, and J.P Morgan is one of them. The stock is up over 100% since I wrote about the bank stocks and J.P Morgan is still a good stock. J.P Morgan is one of the best in the class with a Market Cap of $386,64 Billion.

Chairman and CEO Jamie Dimon is one of those who hate Bitcoin and said he will fire his own employees trying to trade Bitcoin. But Mr Dimon should take “data capitalism” seriously because it is about to change how business is done throughout the economy.

Information technology and artificial intelligence (AI) will change the way banks do business as we know it today. Just take a look at Alibaba and its new bank. Furthermore, J.P Morgan will also see more competition from corporations like Google, Apple and Samsung.

They will all change the way we pay, but they will also change the financial business. Just take a look at Goldman Sachs Group and how they changed to their information technology platform in addition to their commercial banking.

JPM took a $2,4 billion hit to earnings due to the impact of the Tax Cuts and Jobs Act and when one adds this back into the bank`s earnings, the return on tangible common equity, the bank produced a 13,6 percent result.

Economic growth is up 3% for the last quarters in a row and business investments has increased og only that should lead to increase in demand for working capital. That should lead to banks like JPM will lend more and receive more deposits.

On top of that you have the Feds policy and rising yields. Its like the stock market; it won`t go straight up of course, but in the long run, all this cases are profitable for the banking sector, and JPM is one of them.

Next target for the stock is $120, and slow growth is expected while much of the major run last two years is based on future growth based on increased global economic activity and rising rates.

JP Morgan Chase & Co is expected to report earnings on Friday 13, 2018 before market open, and the report will be for the fiscal Quarter ending March 2018. EPS forecast for the quarter is $2,28 and that is above last years EPS of $1,65.

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 | March 14, 2018 · 4:00 am

Pilotless flying car called Cora is planned to be launched in the next three years

We have long been talking about flying cars. For some people it sounds crazy. Those who are laughing at flying cars are also scared of the coming self-driving cars. A car without a driver. And it is just around the corner.

You don`t need a pilot. The new self-flying car has three independent flight computers and can continue to navigate if one fails. The rotors on the self-flying car works independently and if all of them fails, the vehicle has a parachute for landing in a pinch.

 

 

Kitty Hawk is the name of the company developing the new self-flying car called Cora. The company is founded by Alphabet and Google CEO Larry Page.

Last year, Kitty Hawk released footage of a prototype aircraft that flew over water, and yesterday they unveiled its commercial plane. They are now working with the New Zealand government to commercialize its air taxis. Just like Uber, but in skies.

Cora is autonomous and can travel at 150 kmh. Not only that; it is all-electric with a range of 100 kilometers. On top of that; it takes ofF and lands vertically which means you dont have to worry about building thousands of runways. Its like a helicopter, so you just need a rooftop or so.

Cora is self-piloting, so you don`t need a pilot license, and unlike cars on the road, it travels in a straight line and it will never have to stop at a traffic light.

Minister for research, science and innovation for New Zealand, Megan Woods, said that Cora fits in with New Zealand`s aim of having net zero emissions by 2050. Kitty Hawk is operating in New Zealand as Zephyr Airworks.

Kitty Hawk is one of two self-driving-car companies Larry Page have invested in. But they are not alone on the market. Uber is collaborating with NASA to make its flying cars, and Chinese company Ehang is developing an all-electric passenger drone.

Smaller start-ups targeting pilotless passenger aircraft include Lilium, Terrafugia and Joby. At the end of last year, Munich-based Lilium raised $90m from Tencent and venture firms including Niklas Zennstroms Atomico and Evan Williams Obvious Ventures.

According to a poll by Reuters/Ipsos, two-third of Americans are uncomfortable with the idea of self-driving cars. It sounds scary, but Axa, the insurance company, carried out a crash test on autonomous vehicles.

Axa said in a report that about 90 percent of car accidents recorded in Switzerland were caused by the driver. So, if you remove the driver from the car, you could potentially remove 90 percent of the accidents.

We are just a few years away from self-driving cars and self-flying cars being part of the major traffic. Kitty Hawk are planning to launch its fleet of flying taxis in the next three years.

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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