Category Archives: Stocks

by | March 12, 2018 · 4:00 am

The world`s biggest oil producer Aramco are struggling to arrive at the $2 trillion valuation and their IPO is being delayed

Aramco is planning to go public, and it has long been talked about it. But when will Aramco be listed on an international stock exchange? The FT stated that advisors are struggling to arrive at the $2 trillion valuation sought by Saudi`s crown prince, Mohammed bin Salman.

Aramco (formerly Arabian-American Oil Company) is the worlds biggest oil producer. Its market value has been estimated at about $2 trillion, making it the most valuable company in the world.

Aramco is one of the largest companies in the world by revenue. Aramco has both the world`s second-largest crude oil reserves, at more than 260 billion barrels, and second-largest daily oil production.

Aramco is owned by Saudi Arabian government and have about 65,266 (2016) employees. Their revenue in 2011 was $311 billion. Its 2013 crude oil production was 3,4 billion barrels, and it manages over one hundred oil and gas fields in Saudi Arabia, including 288,4 trillion standard cubic feet (scf) of natural gas reserves.

The company was founded in 1933 as California-Arabian Standard Oil Company. Ten years later they changed the name to Arabian-American Oil Company, and in 1988 they changed to Saudi Arabian Oil Company/Saudi Aramco.

If the right price for Aramco is $2 trillion, it is more than 6 times the value of Exxon Mobil. But Saudi Arabian government is not planning to sell everything. «Only» 5 percent of Aramco will be listed on the stock exchange.

Aramco has made all the preparations for the IPO to take place this year, but it seems like it could be delayed. Maybe next year will be the right moment to enter the market.

Aramcos valuation of $2 trillion is more than Exxon, Shell, BP and Chevron combined, and proposed $100 billion sale dwarfs Alibabas record $25 billion offer.

According to FT, people briefed on the negotiations say London was a prime contender to land the actual listing. The battle between where Aramco`s stock would list is seen as a horse race between the New York Stock Exchange and the London Stock Exchange.

Saudi Aramco are looking at New York, London and other exchanges around the world.

 

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 1, 2018 · 4:00 am

On February 28th 2018, Spotify filed for direct listing on the New York Stock Exchange

Spotify is a music-streaming service that changed the music industry. The Swedish company was founded in April 2006, and on 7 October this year, the company has been on the market in ten years. It is developed by startup Spotify AB in Stockholm and now they want to sell shares to investors.

According to Spotify`s filing yesterday, the opening public price of its ordinary shares on the NYSE will be determined by buy and sell orders collected on the day of the listing. CEO Daniel Ek owns 9 percent of the company. Martin Lorentzon has 12 percent, but they will have full control over the company. Together they have 80 percent of the voting rights.

Spotify has so far been a bad business, but they changed the music industry with its new business model, and the industry`s revenue are growing for the first time since the CD was their «milk cow.» Spotify have 140 million users and 70 million are paying for their service.

Their revenue in 2015 was $2,18 billion. According to the filing, Spotify paid about 88 cents for every dollar in revenue in fees to record labels in 2015. It seems like it goes in the right direction for the company as those costs has declined to about 79 cents.

On top of that, Spotify has stopped burning cash and their free cash-flow margin is 2,7 percent. At the end of last year, the company had about 1,5 billion Euros in cash, cash equivalents and short-term investments.

Spotify as a company doesnt sell stocks in the non-IPO, but their stockholders will try to sell their shares to the public stockholders. According to Spotifys not-an-IPO filing, their value was as low as about $6 billion and as high as $23 billion in private stock transactions since the start of 2017.

You can ask yourself why they are doing it this way instead of raising money from a conventional IPO. Spotify`s existing shareholders can sell their shares to public stockholders, and it would be a win-win if record labels could buy a stake in the company. They will help each other.

Spotify operates under a freemium business model which means basic services are free, while additional features aer offered via paid subscriptions. Spotify makes its revenues by selling premium steaming subscriptions to users and advertising placements to third parties.

In 2013, the company launched a new website called «Spotify for Artists,» and they pay copyright holders royalties for streamed music. Spotify for Artists states that the company does not have a fixed per-play rate, instead considers factors such as the users home country and the individual artists royalty rate.

Rights holders received an average per-play payout between $.006 and $.0084. Spotify encourages people to pay for music, and their subscriptions are their main revenue source.

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, 2018 · 4:30 am

Smartphone apps with a new navigation system was a big disrupter for Garmin

Garmin Ltc is a classic innovative company that met competiton. They were early out with its awesome GPS navigation and wireless devices and applications. I can`t remember how many Garmin devices I have bought to use in my car, but it is many.

Garmin`s in-car GPS navigation was so useful about ten years ago. I used the system nearly every day, but unfortunately, everything comes to an end. So is it for Garmin. All of my old devices took the trip to the garbage, and the stock price followed the market trend.

 

 

Garmins old GPS devices is out, and now weve got portable navigation devices (PNDs), in-dash GPS systems, and GPS enabled smartphones. What you need about GPS is already installed in a Tesla for instance. So is it for many other cars.

You got voice-enabled navigation as the average PND price are getting lower and lower. So is it for the apps that is available on the smartphones. Google`s system Android and the smartphones on that system comes with free Google Maps with driving direction.

The smart phone apps was a big disruptor for Garmins business. A company that flooded the market by the mid-2000s with standalone GPS devices along with their competitors like Mio, TomTom, Magellen, Navigon and others.

The first ever GPS navigation system for a vehicle was GMs Guidestar system for the 1995 Oldsmobile Eighty Eight, and two of the most famous early models are Fords Microsoft-based Sync, and BMW`s iDrive.

Garmin ran some form of proprietary software on top of a readily available OS like Embedded Linux or Windows Embedded CE. Now, some of their models are sold for under $100. The cell phone apps killed the business.

The market have changed, and the most important changes over time relate to map data and the POI (point-of-interest) database. The most attractive and well-integrated are the new In-car navigation systems.

Manufacturers like QNX which supplies the underlying GPS systems for many of today`s auto companies are working to improve the system. So are open-source software like Linux and HTML5 code. They are all coming into play.

Microsoft has developed their own tech demo: A Windows 8-powered Ford mustang with integrated Microsoft Kinect, an Xbox 360, 4G LTE, smart phone connectivity, and several built-in projectors and cameras for use inside and outside the vehicle.

Garmin operates through five segments. It offers a range of auto navigation products, as well as a range of products and applications designed for the mobile GPS market. It offers products to consumers around the world, including Outdoor handhelds, Wearable devices, Golf devices, and dog tracking and training/pet obedience devices.

Garmin`s market cap is 12,23B, and the company is expected to report earnings on Wednesday 21, before market open. The report will be for the fiscal Quarter ending December 2017, and earnings forecast for the quarter is $0,75.

 

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 | January 30, 2018 · 4:00 am

The king of social media is still Facebook with its 2 billion user base and Snapchat need growth

There is not doubt that the king of social media is still Facebook. But Facebook is not only Facebook. In addition, you have Instagram, WhatsApp and Messenger which means that Facebook accounts for four of world`s largest social media and messaging services.

But what about Snapchat? The stock has declined since it went public and the value of the company is only half of what it was from start. Not only that; Snapchat is far away from its competitors when it comes to MAU`s.

Snapchat has problems. The company is not growing and that will in the long run affect the workers. Some will be frustrated and quit, and that`s the fact right now. The company is laying off employees in one of its most important divisions.

Snap lost high-level executives last year and one of them was Tom Conrad who came from Pandora to join Snap back in March 2016 where he was the music-streaming company`s chief technology officer.

Engineering chief Tim Sehn was resigning the same day that Snap reported dismal third-quarter earnings results. The stock fell more than 5% in one single day when the company announced that their vice president of product is leaving Snap.

On top of that, their competitor Twitter announced they were working on a Snapchat-like video sharing app to compete with Snapchat. Having competitors like Twitter and Facebook with the same core business in a market like it is today is heavy.

So far in their short-lived life, they have faced a lot of challenges. Having executives leaving the company in early stage is one thing, but their redesign has also been negative, and the feedback from their own customers have so far been very negative.

Snaps redesign has made it harder for people to view Stories and that means fewer Snap Ad impressions. Snapchat has «only» 178 million MAUs and thats far away from the social media king. In comparison; Twitter have 330 million MAUs and Pinterest have 200 million.

Snap developed a self-serve platform for buying Snap Ads and that resulted in lower average ad prices. Marketers can now bid what they see as fair value for Snap Ads. At the time when Snap announced the app redesign, Spiegel said, «There is a strong likelihood that the redesign of our application will be disruptive to our business in the short-term.»

Facebook`s giant user base of more than 2 billion enables it to fend off any competition. They continue to expand in North America, Europe and Asia and the rest of the world, so future are still looking bright.

Facebook is set to report fourth-quarter 2017 results on January 31, 2018, and the strength in online and mobile advertising revenues, in addition to expanding Instagram user base will drive top-line and earnings growth.

Snap is expected to report earnings on February 6, 2018 after market close. Earnings forecast for fiscal quarter ending December 2017 is $-0,33.

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 | November 10, 2017 · 4:00 am

Black Friday is the best time of the year to make a great deal

Black Friday is the best time of the year to make a great deal. You can make a great deal on everything from toys to tech. It is also a great day for many to do most of the shopping on net instead of running around on the streets from shop to shop and waste a lot of time.

Thanksgiving is a big day and it has always been, but there are many good reasons to avoid the hectic crowds it draws. You should be prepared and make a checklist of stores and what you want to buy before Black Friday sets in.

Those who are smart will check out prices on the products they want to buy. They will do some research and compare prices with each other, and that will in return give them big savings.

Black Friday falls on Friday Nov 24 this year, and that is a day earlier than last year, which means you have one extra day to do your Christmas shopping if you have to. You can already now see some retailers leaking their ads for Black Friday.

We have seen what madness it is on this day. People are going crazy, and we already now know what will happen this year. Last year was a record year for e-commerce and there is no reason to belive it will slow any time soon.

44% of consumers were shopping online and it will continue. The online sales will continue to grow and the online deals will be bigger and better than ever before. And again; people will go crazy. This is madness.

Some retailers are already out with their ads and it is from now the show is beginning. Next week it will be even more ads and more great deals. This is funny and the trend will continue, so you better mark the day on your calendar as soon as possible.

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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$125.00

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