Anyone else been keeping tab on Hurricane Irene? So glad it's slowly unwinding now... It's left millions of families and businesses powerless, along with billions of dollars in damages. The New York stock exchange almost didn't open today because of the weather, flood, and the carnage on the street. Luckily, it was just clear enough to start everything up as usual and continue operations.
And even more luckily, the damage was much less than previously estimated. My thoughts are with the peoples, families, and businesses who have been affected by this massive tormentor...
Tuesday, 30 August 2011
Wednesday, 24 August 2011
Bank of America
I'm not a very close follower of the stock markets, but wow, Bank of America stock is up almost 11% this morning! This is huge news because yesterday, the damn thing looked ready to bankrupt - that's how poor investor outlook was on the U.S. economy.
I think at some point yesterday, BAC stock was trading at less than its cash on hand. That basically means that for every $1 of stock you bought, you were holding a company with more than $1 in cash. That doesn't even include any of its buildings, and its receivables, or its businesses... All of which would increase its intrinsic value!
Anyway, this morning we're seeing a lot higher investor confidence, with the VIX index of volatility down 4%. Everything is looking at the strong Durable Goods order report for July and home prices - both better than expected. We're also seeing a lot of positive hope for the Federal Reserve speech on Friday.
I think at some point yesterday, BAC stock was trading at less than its cash on hand. That basically means that for every $1 of stock you bought, you were holding a company with more than $1 in cash. That doesn't even include any of its buildings, and its receivables, or its businesses... All of which would increase its intrinsic value!
Anyway, this morning we're seeing a lot higher investor confidence, with the VIX index of volatility down 4%. Everything is looking at the strong Durable Goods order report for July and home prices - both better than expected. We're also seeing a lot of positive hope for the Federal Reserve speech on Friday.
Sunday, 21 August 2011
Group is poised for collapse
Hey guys,
Here's a mindblowing article I read about Groupon.
http://techcrunch.com/2011/06/13/why-groupon-is-poised-for-collapse/
Essentially, Agrawal argues that Groupon operates as a loanshark, preying on other small businesses to stay afloat. They offer an enticing upfront cash payment (the principal) in exchange for large portions of the revenues (interest payments), while the company is forced to practically give away its goods (repayment).
Don't get me wrong, as a consumer I think Groupon is brilliant - who doesn't want 50 - 90% discount on meals, entertainment, goods, and services? And on the surface, it seems wonderful because it drives customers to spend more, yields clients to small businesses, etc etc etc. Unfortunately, all of that comes at the expense of the business.
Nevertheless, there have been some places that I have made repeat purchases thanks to an introduction from Groupon. Qoola, the frozen yogurt favourite in Vancouver, immediately comes to mind. I have gone back multiple times for their regular priced product simply because it tastes delicious, and is healthier than ice cream or gelato. Granted, it does take an outstanding business to benefit from Groupon. My argument would be that not every rundown shop can post a Groupon and expect an overnight turnaround. Customers aren't going to return if the food is bad, or the perceived price-value relationship is not enough. But for the companies that are suitable for this type of marketing, then Groupon can be a major boost to traffic.
Here's a mindblowing article I read about Groupon.
http://techcrunch.com/2011/06/13/why-groupon-is-poised-for-collapse/
Essentially, Agrawal argues that Groupon operates as a loanshark, preying on other small businesses to stay afloat. They offer an enticing upfront cash payment (the principal) in exchange for large portions of the revenues (interest payments), while the company is forced to practically give away its goods (repayment).
Don't get me wrong, as a consumer I think Groupon is brilliant - who doesn't want 50 - 90% discount on meals, entertainment, goods, and services? And on the surface, it seems wonderful because it drives customers to spend more, yields clients to small businesses, etc etc etc. Unfortunately, all of that comes at the expense of the business.
Nevertheless, there have been some places that I have made repeat purchases thanks to an introduction from Groupon. Qoola, the frozen yogurt favourite in Vancouver, immediately comes to mind. I have gone back multiple times for their regular priced product simply because it tastes delicious, and is healthier than ice cream or gelato. Granted, it does take an outstanding business to benefit from Groupon. My argument would be that not every rundown shop can post a Groupon and expect an overnight turnaround. Customers aren't going to return if the food is bad, or the perceived price-value relationship is not enough. But for the companies that are suitable for this type of marketing, then Groupon can be a major boost to traffic.
Friday, 19 August 2011
Couponing
Hey all, been away for a bit and just enjoying my summer...
Took a 3-week trip to Ottawa to visit family, and the weather is beautiful over there! Unfortunately I don't have any pictures to show you guys. But it's so much nicer than cold, cold Vancouver =(.
And I broke my favourite Ray-Bans! Those things cost me like $150, and they were new too... Damn. Guess it's time to shop for a new pair.
Anyway, updates are in order!
Recently I saw an episode of Extreme Couponing on TLC and my mind was freaking blasted. Just.. blown away. Wow. Some woman walks out with $600 worth of stuff... And she walks out with $40 of store credit in hand (yes, she got PAID to take merchandise basically). In my mind, that begs two questions...
1) What kind of store would allow that? I guess you can say that the store actually doesn't mind, because they can and will redeem all of those coupons with the manufacturer for money. At least, that's how the manager explained it - he even seemed pleased with this one avid shopper. But seriously though, she took up like an hour of the cashier's time just scanning the damn coupons. Everyone around was crowding to watch the spectacle.
2) Who the hell needs that much stuff? I caught a glimpse of her grocery bill and shopping cart... For instance, she has enough men's deordorant to last at least 4 years by my estimate and daily usage. She could feed a family of 7 for a year, solely on Pringles. And what does she do with this stuff? She stockpiles it in her goddamn basement. That's just incredible, even built racks and stuff to display her prized "trophies". I mean seriously, why not donate them to the food bank or something, to people who actually need this stuff? Instead you're going to hoard it all and let it go to waste? Just utterly incroyable.
Anyway, I would love to take up on the sport (who wouldn't want to get paid cash to get groceries?). But these people are basically full-time employed when it comes to finding coupons. That's simply the type of commitment that I can't make, and not just because I'm a student... Because I have a life. And for those kind of hours, even at minimum wage I'm sure I could pull in that kind of money working a decent job.
Alas, Canada's couponing scene is not anything like that of the US. For one thing, noone here duplicates your coupons (i.e. some US retailers will double an outsider's coupon). Another thing, is many stores don't allow you to use multiple coupons on one item. And lastly, many stores will STRAIGHT UP deny "coupon stackers" as we call them here (the except to this, I believe, is London Drugs).
Go figure.
Took a 3-week trip to Ottawa to visit family, and the weather is beautiful over there! Unfortunately I don't have any pictures to show you guys. But it's so much nicer than cold, cold Vancouver =(.
And I broke my favourite Ray-Bans! Those things cost me like $150, and they were new too... Damn. Guess it's time to shop for a new pair.
Anyway, updates are in order!
Recently I saw an episode of Extreme Couponing on TLC and my mind was freaking blasted. Just.. blown away. Wow. Some woman walks out with $600 worth of stuff... And she walks out with $40 of store credit in hand (yes, she got PAID to take merchandise basically). In my mind, that begs two questions...
1) What kind of store would allow that? I guess you can say that the store actually doesn't mind, because they can and will redeem all of those coupons with the manufacturer for money. At least, that's how the manager explained it - he even seemed pleased with this one avid shopper. But seriously though, she took up like an hour of the cashier's time just scanning the damn coupons. Everyone around was crowding to watch the spectacle.
2) Who the hell needs that much stuff? I caught a glimpse of her grocery bill and shopping cart... For instance, she has enough men's deordorant to last at least 4 years by my estimate and daily usage. She could feed a family of 7 for a year, solely on Pringles. And what does she do with this stuff? She stockpiles it in her goddamn basement. That's just incredible, even built racks and stuff to display her prized "trophies". I mean seriously, why not donate them to the food bank or something, to people who actually need this stuff? Instead you're going to hoard it all and let it go to waste? Just utterly incroyable.
Anyway, I would love to take up on the sport (who wouldn't want to get paid cash to get groceries?). But these people are basically full-time employed when it comes to finding coupons. That's simply the type of commitment that I can't make, and not just because I'm a student... Because I have a life. And for those kind of hours, even at minimum wage I'm sure I could pull in that kind of money working a decent job.
Alas, Canada's couponing scene is not anything like that of the US. For one thing, noone here duplicates your coupons (i.e. some US retailers will double an outsider's coupon). Another thing, is many stores don't allow you to use multiple coupons on one item. And lastly, many stores will STRAIGHT UP deny "coupon stackers" as we call them here (the except to this, I believe, is London Drugs).
Go figure.
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