Oil-Vey! Glut Messing with Global Economies; Apple Sets its Sights on India; Who Will Represent the “World’s Most Hated Man”?

Dow-n and out…

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The Dow took a nasty 400 point fall today fueled (a little pun intended) in large part because of the oil glut that’s got barrels of the not-as-hot commodity trading at about $27.50 a pop – a very low low price. The S&P also fell as stocks were trading much lower. In fact, more than 1,000 New York Stock Exchange stocks hit 52 week lows, while on the other side of the pond, European and Asian markets followed suit, performing just as badly on seeing oil hit thirteen year lows. Experts (I am not one of them) are thinking we’re on the threshold of bear market territory – a nasty fiscal phase where market index prices are falling so much that people just want to sell off what they’ve got. Considering that the MSCI All Country World Index (which is basically a global market index mash-up) fell 2.4%, that just might be the case. China’s flailing economy and the United States’ strong dollar aren’t helping matters. Even Royal Dutch Shell is expecting profits to tank 42% to around $1.6 billion – a brutal cry from the $3.3 billion it reported last year at this time. But box-office fave Leonardo DiCaprio isn’t crying for Shell, or any other oil producers for that matter. At the World Economic Forum in Davos, Switzerland, where the A-lister was receiving some award, he graciously lashed out at big oil and corporate greed calling them, “Those entities with a financial interest in preserving this destructive system…covered up the evidence of our changing climate.” Hey! Maybe he’ll use that in his Oscar acceptance speech…

An Apple a day…

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It took awhile but Apple is now working to bring its tech magic to India where the Cupertino, California-based company finally finally filed an application with the Indian government to set up shop there. No word yet on how many stores it plans on opening or even how big of an investment it’s going to be. Of course, Apple products are already available in the country that boasts the second largest telecom market in the world. But in order to buy those products, consumers purchase the merchandise through a network of Indian-owned distributors. There are some who feel that Apple had been willfully ignoring India since it took this long to make the leap there. But Apple argues otherwise saying that restrictions on foreign investment in the retail sector weren’t exactly winning them over. India typically requires a single brand  – in this case, Apple – to locally procure 30% of its goods sold in the country. But rumor has it Apple brass had a little conversation with the Indian authorities to ease up on things.  Also India, unfortunately, doesn’t have the boffo spending power of say, China, where people pounced on iPhones from day one. In India, cheaper alternatives dominate the smartphone market while Apple only has about a 2% market share on the devices.  Apple, however, had been trying to make its products more affordable by offering buyback programs, installment programs and giving discounts on older phones. And then something wonderful happened – Apple sales in India crossed the $1 billion mark back in March and the tech company presumably began to see things differently.  The fact that India has the fastest growing smartphone market and is poised to take over the number two spot from the United States (China is first, duh) in 2017 might also have something to do with the change of heart.

Dumb and dumber…

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Martin Shkreli aka “Pharma bro”is switching lawyers though, why exactly remains a mystery. Marcus A. Asner, an attorney at the soon-to-be-ex firm of Arnold & Porter did not give an explanation as to why the change was being requested but he was probably not broken up that he will no longer represent what many call the world’s most hated man. Shkreli, 32, by the way, takes exception to that moniker, as he mentioned in a recent interview. But considering he raised the price of a life-saving drug by 5000% – well, what else are you gonna call him?  Perhaps we should give him the benefit of the doubt and assume he needed the extra cash so that he could buy the only known copy of a Wu-Tang Clan Album for $2 million. Just kidding. He has multiple accounts at multiple brokerage firms. Shkreli says that the lawyer switcheroo has nothing to do with the interview he did with The New York Times and called the explanation  a “dumb theory.” But you know what’s really dumb? Raising the price of a single pill from  $13.50 to $750.00. Shkreli, who is charged with blowing investors’ cash on some bad trades and then taking money out of his pharmaceutical company to pay for those trades said “the government’s case is fictitious.” He has pleaded not guilty to securities fraud and conspiracy.

Waffle House: For All Your Shipping Needs; Home Deport Improves Earnings; Fed Chairwoman Ponders Millenials

Can you expedite that waffle?  

Image courtesy of rakratchada torsap/FreeDigitalPhotos.net

Image courtesy of rakratchada torsap/FreeDigitalPhotos.net

What do you get when you cross a restaurant chain known for its waffles with a delivery app? Roadie, of course. Haven’t heard of it yet? That’s probably because it’s only been up and running for a few weeks. However, it’s already got $10 million worth of funding with some of that cash coming from Google’s Eric Schmidt. The app is also being touted as the “Über of shipping.” The idea, created by founder Marc Gorlin is so simple yet so genius. It matches up people who need to ship something with other people who are already driving to that location, often for much less than what the usual shipping companies charge. And just where do the waffles come in? Enter Waffle House and its 1,750 locations which will serve as the meeting points for shippers and insured drivers. The cost to ship an item  – and yes it has to be legal! – with a “Roadie” could range from $12 – $200. First time “Roadie” downloaders are eligible for a free waffle. Get a free beverage to take along with you every time you make a delivery.  While it’s only available in 25 states , primarily in the southeast, there’s no need to fret. With 7,500 downloads and counting all signs point to some major expansion plans sooner rather than later.

Where can I find nails?

Image courtesy of zole4/FreeDigitalPhotos.net

Image courtesy of zole4/FreeDigitalPhotos.net

Home Depot had a particularly fabulous fourth quarter pulling in a 36% profit. Net income came in at $1.38 billion at about a buck per share Analysts only predicted Home Depot would gain 89 cents per share. A year earlier the company gained 73 cents per share. So what gives?  It seems the retailer earned some major cash from its website and its big push to improve customer service has paid off quite nicely for the world’s largest home improvement retailer. If you are lucky enough to be one of Home Depot’s esteemed shareholders , then congrats to you as you just earned 12 cents per dividend, which is now up to 59 cents per share. The company even has big plans to buy back $18 billion in shares. In the market for some gainful employment?  You might want to check out Home Depot’s job board. The company is looking to fill 80,000 jobs for the spring, the store’s busiest season. Unfortunately, the retailer’s forecasts for the year are tinged with a bit of disappointment as it is convinced that the exchange rate and that especially robust dollar of ours is going to put a 6% ding in the stock this year.

Everyone likes a good mystery…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Fed Chairwoman Janet Yellen is taking fiscal center stage today before the Senate Banking Committee.  The Fed Chairwoman gets to enjoy two days of back to back congressional testimony where she will be grilled on a loooong list of complaints, courtesy of the Republican controlled House and Senate. Among the questions with which she will be peppered is when exactly does the Fed plan on hiking those interest rates, an answer that has been eluding the American people and its elected officials for quite some time.  Not exactly the stuff that Oscar nominated movies are made of. But on Capitol Hill that testimony could give Game of Thrones a run for its money. Ms. Yellen also wondered aloud about that mysterious lot born in the eighties and nineties, a.k.a. Millenials. The Fed Chairwoman finds them to be a bit of a mystery and is unsure how the economy is going to affect them. If that’s what she’s wondering about them then I’m guessing she doesn’t get to Chipotle very often.