Ed’s Daily Notes for August 9th   1 comment

Fox News: iPhone sinks as Android seizes market share

Google’s Android software continues to steamroll the competition in smartphones, posing bigger problems for companies like Apple and BlackBerry.

New data Wednesday from research firm IDC found that Apple’s share of the global market slid to 13.2 percent in the second quarter from 16.6 percent in the year-earlier period. Handsets running Android, meanwhile, jumped to 79.3 percent from 69.1 percent.

The signs are particularly ominous for one-time market leader BlackBerry, despite some high-profile product announcements recently. Devices running its software accounted for just 2.9 percent of global smartphone shipments in the three months ended in June, compared with 4.9 percent for the same period in 2012.

…”You are seeing tremendous growth in the developing world,” said Steve Mollenkopf, president and operating chief of mobile chip giant Qualcomm Inc. Companies selling there are “picking up Android and driving that.”

Android_Picard(hat tip to Androidspin.com for the pic)

‘Nuff said…

CNBC: Marc Faber: Look out! A 1987-style crash is coming

Normally, I don’t post “sky is falling” or “Dow is going to 100,000” predictions, because they tend to be over the top. However, I found Marc Faber’s justification for his prediction intriguing:

The S&P has rallied 19 percent in 2013, which is impressive by any measure. But the market did far better in 1987, when stocks added more than 30 percent from the beginning of the year to Aug. 8. The problem?

The market ended up tanking in the second half of that year—dropping 36 percent from the Aug. 25 peak to the October low, before closing out 1987 nearly exactly where it began.

And Marc Faber, publisher of the Gloom, Boom & Doom Report, predicts that the very same thing will happen in the back half of 2013.

“In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became very overbought,” Faber said on Thursday’s “Futures Now.” “The final rally into Aug. 25 occurred with a diminishing number of stocks hitting 52-week highs. In other words, the new-high list was contracting, and we have several breaks in different stocks.”

Faber says that’s exactly where we find ourselves this August.

“If you look at the last two days,” Faber said, referring to Tuesday and Wednesday, “it’s remarkable. We are close to the all-time high, at 1,709 on the S&P, and yet yesterday and the day before, there were 170 new 52-week lows. That’s a very high figure.”

That means that the market has become very reliant on a very small number of companies.

“The only way this market can go up is if the 10 or 50 stocks that are very strong continue to drive the market higher, with the majority of stocks having actually peaked out,” Faber said.

…His year-end market call lives up to his “Dr. Doom” moniker. Faber expect to see stocks end the year “maybe 20 percent [lower], maybe more!”

I won’t say he is right with his prediction, but I think his reasoning behind it is flawless.

It is wise, as always, to avoid hugely overvalued stocks (hello Tesla and Netflix!). One bad earnings report can send the stock plummeting, and the rest of the market along with it. But if you have a stock with good value, you have some protection from a large market fall.

Washington Examiner: Tax agency is still targeting Tea Party groups

In a remarkable admission that is likely to rock the Internal Revenue Service again, testimony released Thursday by House Ways and Means Committee Chairman Dave Camp reveals that an agent involved in reviewing tax exempt applications from conservative groups told a committee investigator that the agency is still targeting Tea Party groups, three months after the IRS scandal erupted.

In closed door testimony before the House Ways & Means Committee, the unidentified IRS agent said requests for special tax status from Tea Party groups is being forced into a special “secondary screening” because the agency has yet to come up with new guidance on how to judge the tax status of the groups.

Basically, in spite of Obama’s faux outrage at this scandal, it is still happening.

CNNMoney: Did two guys from Philly just create the best fantasy football platform?

It is almost football season again:

Matt Papson and Stephen Wendell, who once shared an office at the Eagles complex, are trying to position Reality Sports Online as the fantasy football home for hardcore statistics wonks looking for a stiffer challenge than they can currently find at Yahoo (YHOO), ESPN (DIS), or CBS (CBS), the leading providers of fantasy sports games.

…The major innovation is a real-time free agency auction room that allows participants to bid on their favorite NFL stars for multiyear deals, with an algorithm acting as an agent for the players. The computer knows that Aaron Rodgers can do better than a one-year deal for $15 million, particularly when your best friend is offering three years at $50 million for the Green Bay signal caller.

If any of you are interested, here is the website. I wouldn’t mind running a fantasy football league for this site, if there is enough interest. Just let me know in the comments.


Posted August 9, 2013 by edmcgon in Market Analysis, News, Politics, Stocks

One response to “Ed’s Daily Notes for August 9th

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  1. Yes om ffl.

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