Thursday , April 25 2019
Home / Tag Archives: Companies & Markets

Tag Archives: Companies & Markets

Tesla Reports Another Doozie

The ruse that helped shares jump 20%. It would be a joke for a small niche automaker, specialized in luxury cars, with a global market share of less than 1% to get this kind of global attention. But Tesla is unique because of its extraordinarily ludicrous stock price. Though that price has come down by about 32% from its peak in June 2017, it’s still ludicrously high. More on that in a moment. We’re going to skip over all the glossy stuff and go straight to the financial statement,...

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Stock-Market Margin Debt, after Plunging in Q4, Has Not Bounced Back Despite S&P 500 Historic Surge

Leery investors? During the ugliest October in the stock market that anyone could remember, a nasty November, and a brutal pre-Christmas December, margin debt plunged by $94 billion, the deepest three-month plunge since Q4 2008, after Lehman Brothers filed for bankruptcy. That’s how it usually happens, whether out of fear or forced selling via margin calls: When the stock market plunges, margin debt plunges with it, either resulting from the stock market plunge or adding force to the...

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Retail’s Existential Threat? Private Equity Firms

A “bust out” is a fraud tactic used in the organized crime world wherein a business’s assets and lines of credit are exploited and exhausted to the point of bankruptcy — Wikipedia. By John E. McNellis, Principal at McNellis Partners, for The Registry: Bleeding badly, Debenhams, a 200 year old British department store chain, died last week. The coroner trotted out the usual suspects — the internet, the oversupply of retail, rising rents, tighter margins and, at the end of the dreary...

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Here Are Sears Holding’s Five “Fraudulent Transfers” and Why “Culpable Insiders” Lampert, Mnuchin, et. al Got Sued

Greed and scheming. The team that is picking through what is left of bankrupt Sears Holding Corp. has filed a lawsuit today against former CEO Eddie Lampert, his hedge fund ESL, Seritage Growth Properties, Bruce Berkowitz of Fairholme Capital Management, and various directors of ESL and Sears, such as US Treasury Secretary Steven Mnuchin, who was an executive at ESL and a director of Sears Holding, serving on its Finance Committee. The lawsuit (110-page court document) alleges that...

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More Airlines Collapse: Jet Airways India, Alitalia, WOW Air

And the 217 planes that Jet Airways has ordered from Boeing? By MC01, a frequent commenter, for WOLF STREET: Today, another major airline collapsed. Jet Airways, India’s largest private airline, announced “with immediate effect” that it was “compelled to cancel all its international and domestic flights.” It suspended operations on a “temporary” basis. It said: “Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel...

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What J.B. Hunt Just Said About the U-Turn in Trucking

Largest US Trucking Company: “Volume, or lack thereof, is obviously the main story.” The inventory pile-up hurts. And the driver shortage is ending. J.B. Hunt, the largest trucking company in the US by revenues, and a barometer of the goods-based sector of the economy, reported late Monday that revenues rose 7.3% on higher freight rates and fuel surcharges, that net profit inched up only 1.2% despite those price increases, and that Intermodal revenues ticked up 2% while Intermodal...

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China EV Manufacturing Bubble Faces Getting Bludgeoned

There are now 486 EV manufacturers in China, triple from two years ago. Most will disappear. New vehicle sales in China plunged 14% in the first quarter from a year earlier, according to the China Association of Automobile Manufacturers today. For the whole year 2018, new vehicle sales had dropped 4.1%, the first such drop in modern data going back to 1990. Despite this historic slump, sales of “electrified” vehicles (battery-electric EVs, plug-in hybrids, and fuel cell vehicles)...

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THE WOLF STREET REPORT

The Biggest Risk for Stocks: The moment share buybacks get slashed. A stock market that is so uniquely dependent on corporations buying back their own shares in record amounts is in a very fragile position because share buybacks have a history of suddenly getting slashed when times get tough. And then, who’ll be the buyers? (11 minutes) Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can...

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What’ll Happen to Home Prices in Silicon Valley & San Francisco after the Mega-IPOs? Last Two Times, We Got a Housing Bust

Here’s how it works. Meanwhile, the media is busy publishing real-estate industry hype. This is a shorter, less angry version of my podcast last Sunday (as many have found out, I’m freer when I talk than when I write). It’s now a standard theme in San Francisco and Silicon Valley conversations, and it’s everywhere in the media: The wave of mega IPOs – including Lyft’s IPO last month and the forthcoming IPOs of Uber, AirBnb, Palantir, etc. – will cause the Bay Area to drown in...

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Whole Foods’ Existential Threat?

“Amazon’s plunge into the $800 billion US grocery industry posed an existential threat to rivals”: CNN, August 2018. So let’s see. By John E. McNellis, Principal at McNellis Partners, for The Registry: A couple questions remained in the wake of Whole Foods’ announcement last week that it was dropping prices on over five hundred items by twenty percent. Is this Amazon’s long-awaited spring offensive or is the grocer playing defense, treading water, simply trying to keep its market...

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