Tuesday was Bruise-Day

February 28, 2007

That was quite a day! The market movement on Tuesday was not what we usually expect during a day of limited news. Sure, the Chinese Markets swooned 8%, but that was on the heels of the 20+% return over the 6 preceding sessions. That market had also seen amazing gains during the 2006 year and some correction was inevitable.

Yet, it was not the response to that, or even the fact that markets were perhaps a bit jittery over the close call for Vice President Cheney that was a concern to me. It was the swift move that the Dow Jones Industrial Average ( DJIA ) had midday that caused a fearful reaction to what was occurring. Simply. The fact that the index moved down over 250 points in a matter of seconds (yes seconds) is not normal.

In order for that to occur, there was an had to be an amazing coordination of selling and buying change which was randomly timed…which just happened to occur all at once OR, there was a problem with the underlying trading systems that created the errors. Just think about what happened…250 points for the 30 stock average within seconds.
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Banks in Florida

February 27, 2007

From: Seeking Alpha: Herb Greenberg (MarketWatch) submited a recent story about BankUnited Financial (BKUNA), best known for ARM loans in Florida, apparently has had it with critics.

Andrew’s Reply to the post: You have to know that something is going terribly wrong in Florida when we hear about crazy tax plans to eliminate the property Taxes in favor of increasing sales tax by 2.5%. This is just one more political game to create a stir and give some lesser know representative a bit of press. At least that is what it seems to be.
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Chinese Internet Stocks

February 24, 2007

Recently on a post from the blog Seeking Alpha, there was a discussion about the upcoming earning from NetEase ( NTES ). The author, Daniel Vlad, fet that there is a chance that the company may post good numbers in its Feb 26th, 2007 announcement. Here is my reply:

Have you seen that there seems to be a problem in China? The Chinese government is resorting to electro shock therapy to get youngsters off of their internet addiction! What does this say for the future of companies like NTES, SNDA, BIDU and SINA? The fact is that while there has been a great amount of interest surrounding all things China, I question how many of thee companies will survive with such meager profits.
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The High Cost of Inkjet Printing

February 19, 2007

So, you want a printer? Do I have a deal for you! Here it is:

A full color printer with either 2 or 3 ink jet cartridges that will give you amazing color for your pictures as well as great black and white for your documents. Ink comes in 7 and 14 milliliter sizes that will last you for 500 or so pages for the black and about 300 for the color.

Here is the rub though; the cartridges cost between $15-$30 depending on the actual printer model. Newer ones are cheaper as they have more colors although each ink refill holds only 14ml or so. If you were to look at the actual cost of the ink it will be much clearer why manufacturers are happy to give away printers.

Inkjest burn money

A gallon is the equivalent of 3,785 milliliters. Simple multiplication then tells us that the approximate cost for each milliliter is:

$14/14ml or about $1 per milliliter (for newer inks)

For another real example, let’s use an old favorite, the HP 45 black inkjet cartridge. This has a much larger volume, holding 42 ml and sports a cost of around $30. This would change the overall cost of our ink assumption to about ($30/42ml) $.71/ml.

Therefore, a gallon of inkjet ink will cost somewhere between $2,687 – $3,785.

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Thin is in and Stout is out!

February 17, 2007

Well that is a catchy headline but in all truth, the brewers have been on a tear for the year ending Feb 15, 2007. The headline should probably read:
“A Cheer for Beer; No Grin for Thin”. While most Americans are dieting on a regular basis (especially beginning on Mondays and the required week long January “New-Year” diet) the fact is that they are much more hooked on the long term relationship they have with a cold one after a long day. While we usually see a cyclical return to the brewers in the months approaching summertime (for obvious reasons) they have not seen any significant slowdown at all over the past 12 months. Investors have been rewarding these stocks by pushing their share prices through the ceiling and outpacing both the broad S&P 500 as well as the NASDAQ by quite significant margins. Beer Companies that Trade in markets On the other hand, the companies that have the grand plans to help the human race lose unwanted, unsightly excess fat have been shedding some weight for themselves. Mainly the awful heaviness of high share prices. There is a much shorter list of companies that trade n the public markets within this sector. Perhaps the difference is the fact that most of these miracle plans just don’t work. AND come to think of it, the brewers have a much better track record with their product’s efficiency.Much of the reason for gains has been the extraordinary cost savings that have been achieved by the recent merger of Adolph Coors and Molson Brewing Company.
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