Baidu (BIDU) is presently going through a bearish phase, mainly due to: i) The trade war, ii) Macro slowdown in China, iii) Mounting competition in the Chinese internet sector. That has led to an increase in short sellers, which resulted in a price slump. Graph 1 – Percent of shares outstanding short (Source: YCharts) Baidu’s… Read More Baidu in a glance
Photo credit: Richard Mortel After World War Two, the US was the chief creditor nation of the world. Before the war, the country had a minor role in establishing the world order. However, after the war, the US enjoyed a stable political landscape, the most advanced technology, intact infrastructure back at home, and an enviable… Read More Trump’s trade war isn’t a sign of strength, it’s the opposite
As I’ve written before, stability in the economy, and in the financial markets, breeds instability. That screenplay has been used over and over again throughout history. We might say that one specific event changed everything, but that was just the match, the barrel of gas was already there, ready to burn. 2017 was the year… Read More Minsky Moment: The instability is accelerating
(Photo credit: Mike Mozart) For investors used to follow this stock, it might seem unbelievable, but the share price of the home company for the Coach brand is nearing its decade lows. Graph 1 – Tapestry stock price (2009 to present) (source: Yahoo Finance) For those keeping track of the company’s affairs, it seems both… Read More Time to be greedy: Tapestry is nearing its lowest level in a decade
I have recently written about Proto Labs for SeekingAlpha. Making a long story short, I see Proto Labs (PRLB) as a cloud manufacturing company. It has a huge amount of manufacturing capacity concentrated in its locations, and it uses a digital thread to allow customers to manage the production process. That allows small companies, without… Read More The competition has just made Proto Labs cheaper
Last year, I wrote an article where I argued that to understand the chances of Tesla surviving the production hell, you had to look at previous Musk ventures. The idea revolved around the fact that Elon had, in the past, used a common play-book where he re-engineered processes and products in order to drive costs… Read More Elon Musk’s play-book has lost its shine for Tesla investors
Gold (GLD) is seen, by the investment community, or even by society’s common sense, as a great hedge for uncertain times. However, the reason why this happens is not entirely understood. People tend to see gold as a safe-haven. Something that never loses its value, and however, that has not been the case during several… Read More How does Gold really work?