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Thursday, August 30, 2012

Eurozone bracing for long recession

Ateneo Professor on Entrepreneurship

From Yahoo news.  

Recession is a period for economy when economic activity shrinks for two consecutive quarters.

The contraction has come from the periphery to the center.

Spain contracted ( 0.4%);  Italy (0.7%); Greece (6.2%)

France managed 0.00 growth, Germany 0.3.%  Netherlands 0.2%  The whole Eurozone managed a just 0.2% contraction.   Eurozone would be lagging behind Japan who managed 3.6% and USA.  2.2%

Eurozone contracted as whole by 0.2% (which would be prediction until the end of the year)

What does this mean for the rest of the world?

For our electronics and exporters to Europe?

For our OFW in Spain, Italy, UK?

Yahoo news - Euroz0ne shrank 0.2%

Is this good news? PHL economy grew at 5.9% in Q2

Ateneo Professor on Entrepreneurship

From Yahoo News

The PHL economy grew at 5.9% in second quarter.  Compare that with 5.4% in Malaysia, and 0.3% in Germany. (France, has 0.00 growth) The growth was driven by strong services sector (BPO)

Let us work hard to sustain this. Congratulations entrepinoys

Saturday, August 25, 2012

Out of Patent Drugs could mean $170 billion loss for big pharma

Ateneo Professor on Entrepreneurship

This post is an invitation for subscription for private briefing - investment opportunity for only $5.00 per month

One of the opportunities is the expiry of drugs of large pharma.  The expiry would mean a potential loss of sales to the tune of $l70 billion.  For the pharmas to speed up the process, they will buy small pharma with blockbuster discoveries.  Would you what are those companies so that you can invest in them?

What are the top three currencies to invest in?

Ateneo Professor on Entrepreneurship

If you are a forex speculator/trader, what would be the top three best bet for currency trade?

They are:

l.  Canadia dollar  -  trades at par or below US dollar, has sound banking system and strong economy

2.  South Korean won -  trades at l000 won/US dollar;  has a 1 trillion economy, strong and stable government and economy

3.  Chilean peso - trades at 474.00 vs dollar, has strong exports (but hinged to Canada).

Chinese yuan  continues to be strong. From money morning

Will Grexit become a reality?

Ateneo Professor on Entrepreneurship

                    

If Greece exits the Eurozone, what would be cost?  The implications?

The European market and rallied and even gained after ECB President Mario Draghi announced that ECB would do everything to keep Greece within Eurozone.

Eurozone waits with baited breath the approval of the ESM (European Stability Mechanism) where Germany has committed to place 700 billion Euros ($820 billions)  That date is September 12 when the German constitutional court will decide as to wheter ESM is constitutional.

FDR president Joachim Gauch  would not sign the ESM until a full full legal review has been made.

Will he or will he not sign?

                                 

No one can stop big profile Ponzi scheme these days?

Ateneo Professor on Entrepreneurship

                           


By Chris Martenson

Are we aware of Ponzi schemes.  These are high payback schemes that pays back investors with investments of other takers.  When the last investor comes in, he is left with nothing, because his investment has been used to pay off others.

This is pervasive these days:   we have Bernie Madoff, Bear Stearns, the Libor scandal, the Eurozone crisis.

According to Warren Buffett, "It is only after the tide goes out when you learn who has been swimming naked" Paraphrased as, "it is when the pie stops expanding that you see a Ponzi scheme"

Expansion of credit, robust economy does not expose a Ponzi scheme;  bad times does.

The complaint is these are not discovered because the regulatorslook the other way around.

Thus investors, caveat.  Be wary, that in a card game or investment scheme, "the sucker there is you"  And according to P.T. Barnum, every minute more suckers are born.   Are you the one?

Bernie Madoff Ponzi scheme

Another look at Bernie Madoff Ponzi scheme

   

                               

                                             
                                 The originator of the scheme - Charles Ponzi

US Government spends hundreds of millions of dollars on SNAP

Ateneo Professor on Entrepreneurship
          


The US Dept of Agriculture, according to Liberty News Digest, has been spending millions of dollars on SNAP (Special Nutrition Assistance Program).  It went  to the extent of producing Spanish telenovelas, 10 series, flaunting the food stamp program.  More than 45 million Americans are on dole, one of the highest in the history.

The Obama administration is spending huge amounts on welfare:

$76 billion on food stamps and

 $115 billion on disability benefits

No wonder US Fed is broke.

Liberty News suggests that the President because of this great effort wear as a badge of honor the title Food Stamp President

What do you think of these stat?

Is it OK for US to be a welfare state?  Is it OK to actively promote a welfare program?

Liberty News




6 other reasons why Facebook is not a good buy?

Ateneo Professor on Entrepreneurship

WSD completed the 6 other reasons why FB is not a good buy (a good bye?)

l.  There are 8% fa(c)ke accounts?  That is huge.

2.  Fake advertising.  Bots are driving up clicks and FB executives cant be contacted on this

3.  No history of rebounds;

4.   A serious valuation problem (revenues, investment in core business etc)

Why is Dustin Moskovitz, FB co founder liquidating his shares?  The first 6 reasons mentions 5 key FB officials quitting/jumping ship?

Did facebook bottom out at $18.75?

Ateneo Professor on Entrepreneurship

Louis Basense, Wall Street Daily is bearish on the Facebook.  Money could not be made on FB on capital gains, but could be shorted.  At $18.75 last Monday, FB is 50% off the original selling price of $38.00@.

Not so good signs:

l.  Many stocks sell -out?

2.  Five key officials of FB jumped ship.  Why did they jump ship?

Does facebook have a bright future?  

Friday, August 24, 2012

Healthy Labs, a start up for people sick with colitis and Chron's disease

Ateneo Professor on Entrepreneurship

Healthy Labs, a start up by two University of California Sean Ahrens and Will Cole will connect some l.5 million people afflicted with colitis and Crohn's disease.

Their first project include the beta release of Chronology which monitor's treatment of Chron's disease. Ahren was diagnosed with Chron's at the age of  12.

They will have future project for Multiple Sclerosis and Cystic Fibrosis

Apple now has the biggest market cap at $623 billion

Ateneo Professor on Entrepreneurship

From Reuters

Apple, riding  on the success of its iPhone became last Monday the company with biggest market cap at $623.00 billion exceeding Microsoft capitalization peak at $62l.00 billion in its heyday in 1999.  Apple replaced Exxon in the number one spot.

Apple's market value rose by 54% in 2012;  with a cash hoard of $l00. billion,  It has entered the books as the biggest company in terms of market capitalization


7 Frugal Tips from Millionaire Entrepreneurs

Ateneo Professor on Entrepreneurship

From entrepreneur.com.

What saving tips from millionaires?  Precisely, they became millionaires because they were frugal.  No spendthrift ever became an millionaire;  is there?   Those who are millionaires who are spendthrifts would probably be COOs (children of owners)

Some of the tips:

l.  Use the credit card rewards (I know of one millionaire who used an Allied Bank rewards for PALsmiles to travel to US and elsewhere ( 35 miles for every Pl,000 deposits)

2.  Avoid fancy furniture

5 other frugal tips from millionaire entrepreneurs.

Pres. Candidate Romney calls for Fed Bank Audit?

Ateneo Professor on Entrepreneurship

Pres. Candidate Romney renews call for audit of US Fed Bank, a move that could spark more debate.  Romney thinks that the currency should not be debased.

However at the same time, the independence of such a body, a Reserve Bank must be maintained.

What do you think:   independence or audit?

US Fed bank must be audited?

Is Apple buying Netflix? Are you investing in Netflix to speculate?

Ateneo Professor on Entrepreneurship

One way of opportunity seeking, if you are an equity player is to target companies ripe for take over.

As there is an increase frenzy in take over, prices go up sometimes by a factor of two, and profits are made.  However, there is a downside. It could be an outright ruse or play to put the stock into play.  The ruse may be true or false.

If however, the suitor company changes its mind, then you the investor is left holding the proverbial empty bag.

Always target the companies that you think will make it, with or without the prospect of takeover.

Wednesday, August 22, 2012

Best wishes for President Obama

Jorge Saguinsin (jorge.saguinsin@gmail.com) came across this link and thought you would be interested in checking this out.


A very bold statement for President Obama. It says the president failed on all his promises. That is too bad

Newsweek Cover: Hit the Road Barack

And to think that Newsweek has become leftist.

Dick Young on US government and future

Ateneo Professor on Entrepreneurship

Richard Young started work as a runner, built his business from ground up.  Disgruntled at how some IB, financial advisory firm, he put up his own research and publishing company on finance and investment.  He wanted to help his customer to learn the true state of economy and make investments accordingly.

He terms the people from govt and other policy makers digging grave for the US society and economy. He believes that many of the data are manufactured if not entirely false.

The US is bankrupt

Monday, August 20, 2012

Views from a Geologist, Mining Exploration Engineer

Ateneo Professor on Entrepreneurship

I happened to be seated at 6b on the way to an Easter Visayan city.  I was next to a stout man in black.  He was Engr Araga, an exploration mining engineer, graduate of Mapua, has been in 39 countries, and worked both in oil and mining exploration.

He was visiting a partner in Leyte, then he will fly to Cebu and later to Davao.  They are into coal mining in Cebu (anthracite, the high quality, high temp kind)  precious metal in Cebu and Davao.

I asked him many questions on:

l.  oil fracking,

2.  gold fracking (where yields jump up by l000%.  He says that technology is at infancy stage)

3.  propane fracking in oil

4.  the Bakken in North Dakota phenomenon

5.  the NG gas reserves (he knows this is correct estimate of proven reserves while doing exploration work for Shell;   however there were easier to recover LNG elsewhere in the world that is why the Spratly exploration was not on top of the list)...

He said that NG is the way to go -  cheap and plentiful.

One hour was not enough to pick his brains.

He knew about the Mike de Guzman gold fiasco in Indonesia.  He even made some capital gains  -  he invested at $l7 and got at out at $233.00/share before the shares peaked at $300+

I wish him well.

Thursday, August 16, 2012

What is Fiscal Cliff and why it is hurting US already?


Hugh Johnson: Fear of 'Fiscal Cliff' Hurting Economy Already

The fiscal cliff means uncertainity. And uncertainity spooks investors.  The fiscal and policies are being watched by investors. And when they are unclear as today, in US, being a period of Fiscal  Cliff... (Fiscal cliff is happenning because the tax perks expired are expiring, and nothing is certain as to their replacement) 

Why Did Berkshire dump Intel Shares and buy Oil Stocks Instead


Buffett's Berkshire Dumps Intel Shares, Buys Oil Stocks

Berkshire investments are usually watched by many investors as foreboding of what is hot in investments.  They usually make such great hits.

Lately they dumped Intel shares and bought oil stocks instead.  Why?

What could be their reason?

Tuesday, August 14, 2012

Drought in US Pushes Prices of Gasoline Higher


 

What is the relationship of absence of corn/lack of it to the gasoline prices.
The severe drought caused shortage of ethanol, and hence the price increase in gasoline

Well, the use of ethanol (alcohol) has caused increase in prices of corn.

The drought brought about lesser corn production, and the same or increasing demand increased the price of ethanol;   thus driving prices of gasoline


Midwest Drought Helps Push Gasoline Prices Higher

Yahoo News on drought causing increase in petrol prices

Us Students are not spending more; think US is in recession





The students say US is in recession and thus are not spending more

US Back-to-school Shoppers in No Mood to Splurge

Are the students correct in thinking this way?

Is US really in a recession?  Are the graphs telling the truth?

Can the US recover with dampened demand?

Or is it because of the high default of US student loan (Sally Mae is bankrupt?)


                               

Friday, August 10, 2012

Great Stock picks for 2012

Ateneo Professor on Entrepreneurship These are golden opportunities to make money on some 10 stocks for 2012. Would Warren Buffet have made the same decision. Thinking independently, would you arrive at the same picks. By doing your research, you can make great stock picks too.

Street Authority - stock picks for 2012

Neil Barofsky thinks Obama administration is too soft on too big to fail banks

Ateneo Professor on Entrepreneurship

Neil Barofsky, senior inspector of TARP (Troubled Asset Relief Program) which assisted troubled institution in 2008 recover through government/taxpayer money, thinks the present government is lax on too big to fail institutions (because of Tim Geithner, a former Wall Street veteran)

Even the Dodd - Wall Street Reform and Consumer Protection Act, is not addressing the problem of breaking up of too big to fail banks.

By not addressing the main problem, the US financial system is vulnerable to excess and financial shock again:


Video interview

Richard Branson's tips for business entrepreneurs

Ateneo Professor on Entrepreneurship

Richard Branson is writing for Entrepreneur.com where he gives advice to aspiring entrepreneurs.
He thinks that with economic uncertainities and rapidly changing technologies, it is difficult to achieve what Virgin has accomplished (  This is a little bit conceited on the part of RB, as all entrepreneurs are.  Anybody, or everybody, given the right passion, and just that one opportunity, one chance, one spark that one space could launch another great business and airline.  etc.  Just look at MZ and other young entreps)

Some of his advice, and they are like other truisms for entreps:

l.  Love what you do;

2.  Be innovative;  be differentiated;

3.  LBL  (not LOL)  Lead by Listening

More tips by Richard Branson

10 Great Olympians and their secrets.

Ateneo Professor on Entrepreneurship

Olympic champions and business entrepreneur share many things in common:   desire to succeed, excellence and determination.  Both want to overcome obstacles  and  exceed human limits of endurance, pain.  How to be a no limit person.

Everybody wants to be a champion - from Entrepreneur.com  

How to increase your value as an entrepreneur/sales person

Please find out how you can increase your value to  the market place.

Especially as a marketer/sales person

---------- Forwarded message ----------
From: Vita Koci <kocivita@gmail.com>
Date: Thu, Aug 9, 2012 at 8:45 PM



On last night's training call we covered
how to...
"Escape The Newbie Zone (for good)
and Become Irresistible In The Eyes
of Your Prospects"

(We also taught the simple, yet powerful
"sell your last results" formula)

You can download that recording -
plus watch a bonus video (just released)
that breaks the formula down "white
board" style - it's all yours, FREE.

Click here, and watch it now!

(video will start immediately...)

If you've been looking around, lately...

....wondering....

"why aren't I attracting more customers
and team members to my business?"

...this will give you that answer - plus,
a solid solution you can use right now
to fix it - for good.

It's yours - right here (click me)

(video will start immediately...)

Like it....

Tweet it...

And share it with anyone you
think could benefit from it.

Later :)
Vita


--
Jorge U. Saguinsin

www.cheapcures.blogspot.com

www.nuideashare.blogspot.com

www.twitter.com/nuideashare

www.twitter.com/cheapcures

www.facebook.com/Newideashare

www.facebook.com/cheapcures





"Be the best, do your best, expect the best"

Wednesday, August 8, 2012

New sites for posting/submission of assignment

Ateneo Professor on Entrepreneurship

Please submit your next assignments to: (group creative activities, special reports)

profjorge.entrep.ateneo@blogger.com

The assignments may be viewed at:

www.profjorgeentrep-jorge.blogspot.com


NU 12 shall be still sent to:  jorge.saguinsin.sentrep@blogger.com

Can be viewed at:                www.nuideashare.blogspot.com

Those who have not sent their inspirational video may send this to: (the link must be clica

profjorge.entrep.selfdev@blogger.com

The presentation will be viewed at the site:

www.profjorgeentrepdev.blogspot.com

Please input the email in your email contacts, and bookmark the website. That should be an
easy task.


Fwd: China's Latest Buying Spree (It's Big)

China is thirsty for energy and is investing in energy.  It has not mastered the shale oil drilling and increase of natural gas production .   It is looking at USA for investment and great opportunity for US oil companies...

---------- Forwarded message ----------
From: Wall Street Daily <wallstreetdaily@wallstreetdaily.com>
Date: Mon, Aug 6, 2012 at 6:30 PM
Subject: China's Latest Buying Spree (It's Big)




Wall Street Daily
Is This The Miracle America Has Been Waiting For?
An unbelievable phenomenon is quietly sweeping the nation. The railroad age... the steel age... the electronics age... the technology age - this phenomenon triggered them all. Now it's happening again! Watch this special, time-sensitive presentation now to find out how it could affect your job... your lifestyle... and your wallet.


Where in the World is Louis Basenese?

I'm testing a new technology this week that promises to impact every person on the planet. It concerns one of our five senses. Although it's early in the week, I can already tell you that this is one of the most compelling discoveries I've ever seen. I'll report my key findings throughout the week, as I'm scheduled to continue testing for several days. By virtue of that, I'm turning the reins over to Wall Street Daily's energy expert, Jason Simpkins, today. He's breaking a story about China's latest buying spree.

If you'd like to know the details regarding the discovery, click here.

China's Latest Buying Spree (It's Big)
By Jason Simpkins, Contributing Editor

CNOOC Ltd. (NYSE: CEO) just made some serious waves in the energy market with its $15.1 billion bid for Canada's Nexen Inc. (NYSE: NXY). But that takeover - the largest overseas acquisition ever made by a Chinese company - is just the beginning.

Expect plenty more takeovers and partnerships in the months ahead, especially after Beijing's mandate that state-owned energy companies stock up on foreign technology and expertise.

You see, China has the world's largest deposits of shale gas, equal to about one-fifth of the world's total reserves. But it lacks the ability to exploit them.

China has drilled only 50 shale gas wells in the past year, compared to 1,300 drilled in the United States each month. And while the United States pumped 142 billion cubic meters of natural gas in 2010, China's on track to produce just 6.5 billion cubic meters per year by 2015.

Still, the Red Dragon is determined to narrow that gap, having set a goal of producing more than 60 billion cubic meters of natural gas - about 10 times the current amount - by 2020. To achieve that goal, China's central government has instructed its state-run oil companies to aggressively pursue foreign targets.

CNOOC has been among the most active participants, along with Sinopec Group and China National Petroleum Corp., which often uses PetroChina (NYSE: PTR) as its proxy.

Together, these companies accounted for more than two-thirds of the $100 billion of overseas energy assets China targeted over the past four years.

So where will they strike next?

Well, there are only so many companies with the kind of reserves and expertise China's looking for. So the next time a Chinese oil major makes headlines with a huge acquisition, it's bound to involve one of these two companies.

Takeover Target #1: Chesapeake Energy (NYSE: CHK)

Chesapeake makes for a prime takeover target because it has a huge portfolio of choice assets and its stock has tumbled 46% in the past year. Furthermore, investors may welcome a change in leadership, since Chesapeake's management has proven somewhat dubious.

The company has proven reserves of 3.13 billion barrels of oil equivalent. It's also the largest onshore leaseholder of shale oil fields in the United States, with approximately 14 million net acres of land under lease. That includes a top two position in some of the country's largest shale formations, including Barnett, Haynesville, Marcellus, Wolfcamp, Bone Spring, Eagle Ford and Utica.

That creates a very enticing situation for any Chinese company looking to develop expertise in shale gas drilling.

Not to mention, two of China's Big Three - PetroChina and CNOOC - already have existing relationships with Chesapeake.

For instance, PetroChina CEO, Zhou Mingchun, recently told Bloomberg that while there has been "no contact with Chesapeake in terms of mergers and acquisitions... both sides have paid attention to each other."

And CNOOC has already paid Chesapeake nearly $3 billion for several assets, including a one-third stake in the Eagle Ford shale formation in Texas. That deal was spurred by Chesapeake's need to raise capital after taking on more than $13 billion in debt to acquire assets at a time when natural gas prices were much higher.

Chesapeake has said that it could face a cash shortfall as early as next year if natural gas - which accounts for 83% of the company's reserves - doesn't bounce back soon. So there's a good chance it would be open to Chinese interests.

Granted, it may be difficult for a Chinese company to get the takeover approved by regulators in the United States. But seeing our neighbors to the north reap the spoils of Chinese investments is certainly a huge incentive to cooperate.

Takeover Target #2: EnCana Corp. (NYSE: ECA)

Speaking of Canada, the country has rolled out the red carpet for Chinese investors. Besides CNOOC's acquisition of Nexen, PetroChina has sunk $4 billion into Canadian shale plays.

The next likely target is EnCana.

EnCana is a giant Canadian energy player with a market value of about $16 billion, but it's been hit hard by the fall in natural gas prices. The company posted a $1.48 billion loss in the second quarter and warned it could face additional impairment charges due to the weak natural gas market.

EnCana also has significant U.S. holdings, including the Tuscaloosa Marine shale stretching across Mississippi and Louisiana, the Utica/Collingwood formations in Michigan, the Eaglebine play in East Texas, and the Mississippian Lime in Oklahoma and Kansas.

PetroChina has already shown interest. The company was prepared to dish out $5.4 billion in June for a 50% stake in EnCana's Cutbank Ridge shale gas play. But the two companies couldn't come to terms on an operating agreement. I'm convinced that another deal will soon be in the works.

Again, there could be some political complications. But if it's technology and know-how that China's after, it'll have to target major players. Smaller firms just won't have the fracking expertise that Chesapeake and EnCana offer.

Bottom line: Investors should keep a very close eye on both of these companies, as mergers and acquisitions offer terrific opportunities for huge gains in a short period of time.

Nexen shares, for example, have soared 45% in just two weeks after CNOOC's bid.

To see another way to profit from the activity in the natural gas market, check out this month's issue of WSD Insider. Our Senior Correspondent, Karim Rahemtulla, is issuing a new recommendation that allows investors to cash-in even if natural gas prices drop. It will post on Wednesday, so go here to upgrade your subscription today.

Cheers,

Jason Simpkins

What Your Broker Doesn't Want You to Know
The Wall Street elite aren't going to be happy... because we're revealing every detail on the "secret" investment they don't want you to know about. Even better, we've come up with a way for you to exploit profits to the max. This might seem a bit mysterious - or secretive - but in a minute, everything will be crystal clear. To discover how this simple and proven wealth-building strategy could make you a small fortune month after month, check this out.
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--
Jorge U. Saguinsin

www.cheapcures.blogspot.com

www.nuideashare.blogspot.com

www.twitter.com/nuideashare

www.twitter.com/cheapcures

www.facebook.com/Newideashare

www.facebook.com/cheapcures





"Be the best, do your best, expect the best"

Gold to hit $1,900@ounce by year end?

 For those who are interested  in getting wealthy it may be worthwhile reading this prediction on movement of gold.  Many currencies, as eg, dollar is dumped as international reserves, many are accepting gold, gold certificate as trading currency, the gold price may rise.


HSBC: Gold to Hit $1,900 an Ounce by Year End

Why Not You? Are you into energy business?

Are you keen on energy?  If we are going to have energy problems, then energy investment would be 
way to go.

"Invest in areas where there is blood (or oil) on the street."

-
From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Tue, Aug 7, 2012 at 1:39 AM
Subject: ☞ Why Not You?




header (images are being  blocked)

Having trouble viewing this issue? Click here.
Refer a Friend to Energy and Capital.
Why Not You?
By Nick Hodge | Monday, August 6th, 2012
You've been an Energy & Capital reader for quite some time. And by now, I'm sure you've seen plenty of promotions for our premium newsletter, Energy Investor, by Keith Kohl.
You passed on the chance to get a piece of Alberta's last and largest great oil reserve and profit from new shale production techniques...

You didn't act when we told you about the fortune that could be made in fracking — before the topic was mainstream news...

You sat on the sidelines as Energy Investor readers who followed our recommendations saw gains like:
  • 574% on Brigham Exploration
  • 103.5% on Northern Oil & Gas
  • 103.3% Petrobank Energy
  • 92.13% on Crescent Point Energy
  • and 67.57% on Petrohawk Energy
And we're still riding gains of 51.76% and 46.84% on two top Bakken stocks that just keep on giving.
We've racked our brains, talked to Keith, and even called meetings with our marketing and Customer Service departments... and we can't figure out why you wouldn't want to be part of this.

It must be the price.

Until now, the lowest price we've offered for the Energy Investor is $49. That's more than 50% off the retail price. But still, you've let this incredible opportunity pass you by.

We've decided to give you one last chance.
For a limited time, we're offering you a special discount good for an additional $20 off our lowest price.

That means you can get a full year of the Energy Investor — including access to our entire portfolio of investment recommendations, in-depth monthly briefings, and continuous portfolio and market updates — for just $29.  
That's more than 70% off the regular price.

We've never offered Energy Investor for this low price before — and we may never again.
But I want you to see exactly what you've been missing out on...

Just $29 for all Keith's expert recommendations, his best special reports and investment opportunities, and access to every pick in his portfolio.

In addition, you'll get all his Special Reports:
  • Energy Investor Report #1: 3 Bakken Stocks Under $10 for Triple-Digit Gains
  • Energy Investor Report #2: Protect Your Wealth from Peak Oil
  • Energy Investor Report #3: Tapping into Alberta's Trillion Barrel Oil Stock
  • Energy Investor Report #4: The Future of Fracking: How to Maximize Petroleum Profits
To have access to these reports immediately including the 3 Bakken Stocks and Future of Fracking reports that are still being sold elsewhere for full price all I ask in return is that you take a no-risk trial subscription to Energy Investor.
Sign up now. We're certain you could make over 100 times the purchase price in the first six months alone.
But I simply can't afford to offer this forever, or to everyone.
Your special discount is only good for the next five days. That's it.

So, if you've looked at our promotions in the past and thought, "maybe later" now is the time to act. You'll never have a better opportunity.

Go here to claim your discount now.

Sincerely,
Nick Hodge  Signature

Nick Hodge
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Did you buy Facebook stock? He thinks it is only worth $7.50@ not even $22.00@

Do you agree?

His article is litany of Facebook negatives (the harsh reality)  Are they correct?

What do you say about the Facebook business model?"

---------- Forwarded message ----------
From: Money Morning <customerservice@moneymorning.com>
Date: Tue, Aug 7, 2012 at 6:38 PM
Subject: The Clever Folks are the Ones Who Already Sold




You are receiving this email as a part of your subscription to Money Morning. Your ability to alter your subscription information can be found at the bottom of this email.
Money Morning E-letter Money Morning
August 7, 2012 Sorry... Facebook is Still Only Worth $7.50
a Share


By Keith Fitz-Gerald, Chief Investment Strategist
The technorati took me to task. So did Wall Street.

They were agitated by an article I wrote in May explaining why the world's most hotly anticipated IPO, Facebook (Nasdaq:FB), was worth a mere $7.50 a share at best.

"Out of touch," one of the critics said. A "luddite" charged another.

"Doesn't grasp the significance of so many users," one Wall Street insider opined--who happened not coincidentally to work for one of Facebook's investment bankers.

Since then the social media darling has fallen another 31% to nearly $22 a share. Ten weeks later, Team Hoodie hasn't done much to merit an upgrade either.

Sorry guys...Facebook is still only worth $7.50 a share - likely less.

Here's why.

The Cold, Hard Facts for Facebook

At the time I reasoned that Facebook's valuation simply didn't merit the 100 times earnings IPO price of $38 a share based on comparable figures from Google (Nasdaq: GOOG) and Apple (Nasdaq: AAPL).

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But there were a host of other factors as well.

I cited falling revenues, a lack of control over the mobile market channel, increasing distrust from customers who were voting with their feet and the concurrent departure of major advertisers like GM which will cost Facebook an estimated $10 million a year in revenue alone.

I also posited the assumption that Facebook would be unable to maintain the 100% plus growth that many investors believed was baked into the proverbial cake.

Google couldn't. Apple couldn't. And both of them are real businesses.

That's the key...real businesses.

Fact is, Facebook still hasn't figured out what it wants to be when it grows up.

Despite the fact that CEO Mark Zuckerberg does have some excellent advisors, the company isn't going to be able to hide the fact that its "business" is nothing more than a colossal time-wasting collection of personal interest items for much longer.

Other problems abound, too. All of them point to a lower share price.

For instance, Team Hoodie seems more intent on creating new applications than they do on making money from customers. There seems to be a disconnect between what's cool and what actually makes money.

Take the recently unveiled tablet-based Facebook application for example.

Sure, it gets Facebook on a mobile device but there's no plan I can discern for how the application creates a different experience nor how it will generate money from all those eyeballs.

Then there's the Facebook phone. First it's happening, then it's not. This suggests that Team Hoodie may have serious internal strategy battles and be fraying around the edges.

Facebook's "Fiscal Cliff"

Call me crazy, but I think Facebook's numbers reflect this already.

One quarter into its public life, Facebook's net income dropped by $295 million to a loss of $157 million.

The cost of customer acquisition is going up so that's clearly digging into its bottom line.

So is the way the company chose to account for stock-based pay in adjusted earnings. Had management not chosen to exclude stock-based pay, the loss may have been orders of magnitude worse.

And finally, Facebook has its own fiscal cliff of sorts.

The 91-day lock up period imposed on employees and company insiders following Facebook's IPO expires later this month. That means another 268 million shares could come up for sale further depressing the value of the 2.1 million shares already outstanding.

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With the stock now off $16 from its $38 IPO price there's definitely an incentive to sell. A large number of employees are probably anxious to get out before the markets destroy their windfall gains. I know I would be.

As the chart below shows, former employees have already hit the dislike button and sold.



Figure 1: Source: SecondMarket, Inc.

Call me a skeptic but I find it especially convenient and more than a little coincidental that 79% of the total Facebook-related market volume comes from former employees and 86% of the total Facebook-related transactions come from the same group.

Investors are the next biggest group of sellers by total dollar volume accounting for 12.4% of the total and 4.8% of the number of sellers. Perhaps they haven't given up the ghost yet.

Either way, the chart is kind of scary when you consider the exponential growth associated with Facebook stock sales because the old adage certainly applies. What goes up, must come down.

Don't get Zuckered again. The clever folks are the ones who already sold.

Best Regards,

Keith Fitz-Gerald,
Chief Investment Strategist
Money Map Press
Further Reading...

On the heels of the Facebook IPO fiasco, many investors we left to wonder how they could find the next big thing and avoid getting "facebooked" in the process. In this article Keith offers five ways to separate the winners from the losers.

The Real Story Behind the Knight Capital Trading Fiasco

By Shah Gilani, Capital Wave Strategist
Oh, you are going to love this.

That whole Knight Capital fiasco last Wednesday, when a software glitch caused them to flood the market with thousands of unintended orders, it ain't exactly what you think it is.

Sure, they tripped over themselves in the dark pool where they were trying to compete.

But somewhat interestingly (okay, a LOT interestingly), the competitor that drove them to "upgrade" their trading software, which malfunctioned and caused them to actually bid-up share prices erroneously and then buy them at inflated prices, was none other than, wait for it...

The New York Stock Exchange.

That's not the whole story, or even the good part. Oh, it gets better. A lot better

Knight claimed a $440 million trading loss on Wednesday resulted from their computer glitches and sunk the company (at least for now; I'll get to that).

Well, according to Nasdaq (this was on its site: nasdaq.com), it wasn't a trading loss at all. Knight paid Goldman Sachs a $440 million fee (commission?) to take the errant shares Knight had bought on Wednesday morning off its hands.

Now, I don't know what Goldman did with those shares, but my guess is they held most of them and sold them on Friday when the market soared a few hundred points. Of course, that's not a "prop" trade. Knight is a customer of Goldman's (it is now...).

But who cares?

Goldman Sachs ripped a customer for a $440 million fee, virtually bankrupting it in the process, flipped the shares it bought from Knight to "help" them (and first of all, probably overly hedged itself... as in enough to be net short... the large stake it holds in Knight's convertible preferred) for a tidy profit, and then probably shorted the stock (before "helping" them, and themselves to their little fee) before the stock collapsed, then probably gave it its "lifeline" (that's a guess, and I'm being sarcastic, but it's possible). And maybe we'll find out where that lifeline Knight got on Friday really came from) before buying a ton of Knight's shares back on Friday before hearing (of course... before) that several big firms were looking at buying Knight.

What's my point in the above LONG sentence? Who cares! That's all business as usual at the Golden Vampire Sachs.

That's after-the-fact stuff.

What's more interesting is why all this happened in the first place.

Here's what you probably don't know...

To subscribe to Shah's free newsletter, Wall Street Insights & Indictments and continue reading click here....


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