Tag Archives: stock market

Amazon Rules the World

Amazonisking

MDC says, Can you only imagine you’re good friends with Jeff Bezos, and you had a great day, and you can’t wait to tell him about it. So you email Jeff Bezos at Amazon to share the details, and then you ask him, politely: “Enough about me Jeff, how was your day?”

Jeff doesn’t want to upstage you-;but he can’t help it, if he’s being truthful:

“Not bad,” he’ll say. “I made more than $6 billion in five minutes.”

This is no joke. Amazon’s stock jumped 7.1 percent yesterday afternoon, on the news of its amazing third quarter earnings report.

At 4 p.m., as the market closed, it was trading at $972 a share; five minutes later in after hours trading, it popped to $1,041.15. And since Bezos still owns about 17 percent of Amazon’s common stock, if you do the math-;boom, $6.24 billion.

That puts Bezos’s total net worth at about $83.5 billion, and should return him to the top spot on the list of the world’s richest people .

He wasn’t the only master of the universe to see a giant leap Thursday. Larry Page and Sergei Brin picked up $1.2 billion and $1.15 billion each, after Alphabet’s stock surged on an earnings report. And Bill Gates is worth an extra $340 million based on Microsoft’s jump.

In closing; MDC states that Jeff Bezos of Amazon made as much in 5 minutes ,than Donald Trump claims he’s worth.

Meet Ray Dalio

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MDC shares the best line, “I remember my mistakes better than I remember my successes’

Bridgewater Associates founder Ray Dalio sat down with Business Insider CEO Henry Blodget to discuss his book “Principles: Life and Work.” Here Dalio explains the importance of learning from his mistakes.

“Principles: Life and Work” is the first of two planned books, and includes a short autobiography along with an expanded version of the “Principles” that all Bridgewater employees read when joining the company. Following is a transcript of the video.

Henry Blodget: And one of the other principles that you stress is this idea that you should teach your team to fish rather than giving them fish, but you gotta give ’em room to make mistakes. This is something that Jeff Bezos and many other incredibly innovate entrepreneurs have stressed again and again. We have to get over the fear of mistakes. This seems to be a key part.

Dalio: Well, you learn from mistakes and learn from pain. Like I say, you can scratch the car, but you can’t total the car. Okay. Mistakes is one of the best sources of learning, right. Successes mean you do the same thing over again, and okay, that’s fine, but mistakes that are painful stick. When I look back on my career, I think that the mistakes were the best thing that happened to me.

I remember my mistakes better than I remember my successes. Somehow there must be more of the successes to get me where I am, but I remember all the mistakes, and I remember the lessons. So that’s what I mean by pain plus reflection equals progress. So yeah, it’s okay for you to make mistakes. It’s not okay for you to not learn from those mistakes. That’s a principle in there, right. And so you have a culture that operates this way.

If you don’t have a culture that operates this way, it’s not gonna be self-reinforcing. And so the reason I’m talking about these types of principles rather than my economic and investment principles, which’ll come out in the next book is because these are the most fundamental principles, which are the basis of success. And they’re not just in investment, investment firms principles. It’s not just a hedge funds principles. It’s like life principles and how we’re gonna deal effectively with each other.

The Greek Debt 



MDC says, Greece has secured debt restructuring and medium-term financing. The deal with its creditors after seventeen hours of marathon talks with eurozone leaders will allow the country to stay in the eurozone. 

Greece will now have to rush legislation through parliament this week to to begin talks on a three-year loan.

“There are strict conditions to be met. The approval of several national parliaments, including the Greek parliament, is now needed for negotiations on an ESM programme to formally begin,” explained Donald Tusk, President of the European Council. “Nevertheless, the decision gives Greece a chance to get back on track with the support of European partners.

“Since the beginning of what’s been described as the “Greek case,” the [European]Commission never stopped to insist on the fact that we wouldn’t accept any kind of “Grexit.” There won’t be any “Grexit,” Jean Claude Junker, President of the European Commission, told reporters at a press conference after the talks.

The eurogroup president gave details of a privatisation fund of 50 billion euros to pay Greece’s debt.

“..and part of that agreement is that a fund will be set up which will … assets will be transferred to this fund, the fund will monetize these assets, either by privatizing or by running the assests and trying to make Jeroen Dijsselbloem. “That money will be used to deal with debt and to reduce debt. Also it will be used for repayment and recapitalization of banks.”

Analysts say Greece prime minister Alexis Tsipras has abandoned hope of the end to austerity he had promised Greeks when his Syriza party was elected in January.

Lie to the Top

Wall Street titan Gary Cohn, the president and chief operating officer of Goldman Sachs, last week celebrated his 25th anniversary at the bank.

Cohn, 54, actually has an incredibly inspirational backstory, which is detailed in Malcolm Gladwell’s best-seller “David And Goliath.” And because the summer interns have just arrived, we thought we’d share it again.

As a kid growing up in Cleveland, Cohn found out he had dyslexia, a reading disorder. He struggled in school. By the time he was in sixth grade, he had attended four different schools. Teachers and classmates had written him off as an “idiot.” Cohn has even said publicly that he was a “horrible” student.

What’s more is his teachers were unsure of his trajectory in life. One teacher even told his parents if they were really lucky, he might grow up to be a truck driver.

Cohn graduated from high school. He also graduated from American University in 1982.

After college, though, Cohn didn’t immediately have a job or any interviews lined up. He did have “passion for financial markets,” but that was pretty much it. By July he took a job “to appease” his fatherselling window frames and aluminum siding for the home-products division of United States Steel in Cleveland.

Around Thanksgiving, he went on a work trip to the company’s offices in Long Island. Cohn persuaded his manager to give him Friday off to visit New York City for the first time. There he headed for Wall Street and the commodities exchange at Four World Trade Center. From the observation gallery, he watched the action in the trading pits with other Wall Street hopefuls.

AP ImagesThat’s when he came up with a clever plan to make an introduction to one of the brokers. He left the visitors’ gallery and waited by the security entrance to the trading floor for a few hours. Nothing happened. He was about to give up.

“And then literally right after the market’s (sic) closed, I see this pretty well-dressed guy running off the floor, yelling to his clerk, ‘I’ve got to go, I’m running to LaGuardia, I’m late, I’ll call you when I get to the airport,'” Cohn told Gladwell in the book. “I jump in the elevator, and say, ‘I hear you’re going to LaGuardia.’ He says, ‘Yeah,’ I say, ‘Can we share a cab?’ He says, ‘Sure.’ I think this is awesome. With Friday afternoon traffic, I can spend the next hour in the taxi getting a job.”

It was truly a brilliant move, one most people wouldn’t have the guts to make.

It turned out the man Cohn was sharing the cab with was also running the options business for one of the big brokerage firms. Cohn didn’t know what an option was, but he pretended as if he did.

“I lied to him all the way to the airport,” Cohn told Gladwell. “When he said, ‘Do you know what an option is?’ I said, ‘Of course I do, I know everything, I can do anything for you.’ Basically by the time we got out of the taxi, I had his number. He said, ‘Call me Monday.’ I called him Monday, flew back to New York Tuesday or Wednesday, had an interview, and started working the next Monday. In that period of time, I read McMillan’s “Options as a Strategic Investment“book. It’s like the Bible of options trading.”

(By the way, Gladwell notes, it still takes Cohn about six hours to read 22 pages.)

After a few years working on the floor of the commodities exchange, Cohn was contacted by Goldman Sachs. In 1990 he accepted a position in Goldman’s commodities trading unit, J. Aron. In 1994 he was made partner — one of the most coveted titles on Wall Street.

Now he holds one of the top spots at the Wall Street investment-banking giant. He has even said he wouldn’t be there without his dyslexia.

“The one trait in a lot of dyslexic people I know is that by the time we got out of college, our ability to deal with failure was very highly developed,” Cohn told Gladwell. “And so we look at most situations and see much more of the upside than the downside. It doesn’t faze us. I’ve thought about it many times, I really have, because it defined who I am. I wouldn’t be where I am today without my dyslexia. I never would have taken that first chance.”

Bottom line: You have to take risks.

Source: businessinsider


Under Armour

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Under Armour (NYSE:UA), a developer and distributor of athletic apparel, footwear, and accessories, is scheduled to report its Q4 2014 results on February 4.

It has recorded over 20% top line growth during the last 18 quarters. We believe the company will be able to continue its growth momentum in the fourth quarter, as it is still scratching the surface of its various growth drivers, including the women’s, international, direct-to-consumer, and footwear businesses.

Our profitability outlook for the third quarter is also positive as we think the operating margin could rise on an annual basis due to lower input costs in Q4, resulting from low oil prices, a downward trend in cotton prices, and a strong inventory position.

Recap of Q3 2014 Results

Under Armour posted another very strong quarter in Q3 2014 with a 30% net revenue growth to $938 million. The company maintained its solid growth momentum as it reached an 18th consecutive quarter of an over 20% increase and a 4th consecutive quarter of over a 30% increase in its top line. We believe the company will continue to show strong growth in the future as consumers continue to respond to the strength of its brand and as the company’s efforts to lure in women customers are successful.

Gross margins improved by 120 basis points to 49.6% in Q3 2014. The expansion in margin was driven by the favorable comparison to last year’s margin, which was suppressed due to high import cost duties, and a favorable year-over-year sales mix. Selling, general, and administrative expenses as a percentage of net revenues, increased by 230 basis points to 34% in the third quarter of 2014, as the company’s expenses related to marketing, supply chain enhancements, and selling costs, rose over the quarter. Following these results, the company has raised its revenue guidance for 2014 to net revenues of $3.03 billion, representing growth of 30%.

Various Growth Drivers Could Help the Company Maintain its Growth Momentum

MDC says, Under Armour is poised for continued strong growth in the future, owing to its key growth strategies of expanding the women’s line, footwear, international, and direct-to-consumer businesses.

MDC will predict a $74.65+ possible closing price after the bell on Wednesday.

Source: the above financial comments are opinions by MDC. MDC encourages everyone to seek proper financial guidance before investing. #underarmour $UA

Goldman Sachs Secrets

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Goldman Sachs said it’s now barring its investment bankers from trading individual stocks and bonds, a source told Bloomberg News.

Goldman employees were notified on Friday of the change, which takes effect immediately, the source said. They also aren’t allowed to invest in activist or event-driven hedge funds, the person said. Previously, bankers needed approval before they could invest in individual stocks.

The change came on the same day that a former employee at the New York Federal Reserve Bank released examiner’s recordings of her ex-colleagues’ dealings with Goldman Sachs.

The former examiner, Carmen Segarra, sued the New York Fed last year, alleging that she was fired in 2012 because she refused to change her finding that Goldman didn’t have a conflict-of-interest policy. Her case was dismissed in April and she’s appealing.

Public radio’s “This American Life” released a transcript of the show that includes excerpts of conversations it said were secretly recorded by Segarra. In the transcript, Segarra described how she felt that her Fed colleagues handled Goldman Sachs with kid gloves. “What I was sort of seeing and experiencing was this level of deference to the banks, this level of fear,” she said.

The New York Fed said it “categorically rejects” Segarra’s allegations.

MDC says , this will have zero affect on Goldman Sachs since they have an advantageous position throughout the legal and lobbying sectors. In her recordings a Goldman employee says that “consumer laws don’t apply” to their wealthiest clients, for instance, and that she should pretend she didn’t hear incriminating statements.

MDC restates, the game is different and you will never really see the true players behind the curtain .

Source: Bloomberg

Buy Alibaba ?

Most of the hype surrounding Alibaba comes from Wall Street. A slew of banks, including Goldman Sachs, JPMorgan Chase and Morgan Stanley, are busy selling 368,122,000 Alibaba shares to investors at a price between $66 and $68 a share.

MDC says, $baba is a complete copy of amazon, take a closer look at the logo to see the, “amazon smile.” MDC is just informing on the oblivious and encourage our audience to enhance further research at the financials and distribution channels.

If they succeed, Alibaba will raise a whopping $25 billion — more than Visa’s $19.7 billion IPO and Facebook’s $16 billion share sale. At that range, Alibaba will be worth a whopping $160 billion, more than Amazon’s $155 billion market value but below Facebook’s $200 billion.

Of course, owning Alibaba stock carries unique risks. One of the biggest is that US investors can’t directly own the entity that operates Alibaba, Taboa and its other e-ecommerce websites.

Instead, they must invest in a Cayman Islands holding company, known as Alibaba Group Holding, which has contractual rights to profits from the Chinese businesses.

MDC says, invest at your own risk levels and always pay attention.

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Trader Deaths Popular

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A Manhattan trader was killed Tuesday morning by a speeding Long Island Rail Road commuter train, marking at least the seventh suicide of a financial professional this year.
Edmund (Eddie) Reilly, 47, a trader at Midtown’s Vertical Group, jumped in front of an LIRR train at 6 a.m. near the Syosset train station.
He was declared dead at the scene.
Reilly’s identity was confirmed by Salvatore Arena, an LIRR spokesperson, who said an investigation into the incident was continuing.
Passengers on the west-bound express train told MTA investigators they saw a man standing by the tracks before he jumped in front of the train, Arena said.
“Eddie was a great guy,” Rob Schaffer, a managing director at Vertical, told The Post in an email. “We are very upset and he will be deeply missed.”
The divorced father of three had rented a house around the corner from his ex-wife, Michelle Reilly, in East Norwich, NY.
One family friend, who said he spoke to the trader on Sunday, told The Post that Reilly “didn’t look good.”

Separately:
■  Autumn Radtke, the CEO of First Meta, a cyber-currency exchange firm, was found dead on Feb. 28 outside her Singapore apartment. The 28-year-old American, who worked for Apple and other Silicon Valley tech firms prior to founding First Meta, jumped from a 25-story building, authorities said.
■  On Feb. 18, a 33-year-old JPMorgan finance pro leaped to his death from the roof of the company’s 30-story Hong Kong office tower, authorities said. Li Junjie’s suicide marked the third mysterious death of a JPMorgan banker. So far, there is no known link between any of the deaths.
■  Gabriel Magee, 39, a vice president with JPMorgan’s corporate and investment bank technology arm in the UK, jumped to his death from the roof of the bank’s 33-story Canary Wharf tower in London on Jan. 28.
■  On Feb. 3, Ryan Henry Crane, 37, a JPM executive director who worked in New York, was found dead inside his Stamford, Conn., home. A cause of death in Crane’s case has yet to be determined as authorities await a toxicology report, a spokesperson for the Stamford Police Dept. said.
■  On Jan. 31, Mike Dueker — chief economist at Russell Investments and a former Federal Reserve bank economist — was found dead at the side of a road that leads to the Tacoma Narrows Bridge in Washington state, according to the Pierce County Sheriff’s Department. He was 50.
■ On Jan. 26, William Broeksmit, 58, a former senior risk manager at Deutsche Bank, was found hanged in a house in South Kensington, according to London police.

Apple IPO

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MDC says, history was made, 33 years ago . On December 12, 1980, the business Steve Jobs co-founded and eventually cultivated into the world’s most profitable company, went public.

Commemorating Apple’s Wall Street debut, EDN has published a comprehensive look back on the 33-year history of Apple’s historic run as a publicly traded company.

4.6 million shares of AAPL (priced at $22 per share) were sold on the first day of trade. The shares, EDN reports, sold out almost immediately. In fact, the IPO generated more capital than any IPO since Ford Motor Company (1956).

Instantly, about 300 millionaires, some 40 of which are Apple employees and investors, are created. That is more millionaires than any company in history had produced at that time. Steve Jobs, the largest shareholder, made $217 million dollars alone.

Three decades later, Apple is still going strong, having appreciated by more than 15,000 percent.

Volcker Rule

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MDC asks the hard question;’Curious how much the various banks who stood to be impacted by or, otherwise, benefit from either a concentration or dilution of the Volcker rule?

According to OpenSecrets, which crunched the numbers, here is how much being able to continue prop trading meant to some of the largest US banks and lobby groups:

Not bad considering the loophole-ridden Volcker Rule will effectively permit “hedge” books (where an army of lawyers paid $1000/hour defines just what a hedge is) to continue piling on billions of dollars in wildly profitable, Fed reserve funded trades.

From OpenSecrets:

Regulators approved the Volcker rule yesterday, a central piece of the Dodd-Frank bill that limits the ability of banks to engage in high-risk trading. Their decision comes in spite of heavy lobbying from the rule’s main opponents: the banks themselves.

The American Bankers Association, which represents the interests of banks of all sizes, spent nearly $6.5 million on lobbying in the first nine months of 2013, with much of that money going to lobbying on behalf of “Dodd-Frank issues.” Wells Fargo and Citigroup each spent just over $4 million, while the Independent Community Bankers of America, another organization that represents banks, spent nearly $3.6 million. All three lobbied on the Dodd-Frank legislation.

Bank of America, meanwhile, spent just under $2 million on the Volcker rule and other issues, while JPMorgan Chase spent more than $4 million and listed “implementation and interpretation of the Volcker Rule” as one of its concerns.

The final rule is seen as a defeat for the commercial banking industry, which has already voiced its unhappiness with the decision.

Congrats on the math, alas completely flawed conclusion: obviously the banks wouldn’t spend tens of millions not to achieve their goal, which they have – cover up a Rule which is only superficially named for Paul Volcker (even he admitted he had zero contribution in its drafting), and which was almost certainly penned by the banking lobby, in a way that allows banks to continue their prop trading status quo, only this time with the implicit blessing of the government. And since everyone knows how this movie ends, can we just please fast forward to the bit where one after another bank has to once again be bailed out on the taxpayer dime.

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