Thursday, November 29, 2012

Oddly Relevant Nov-29-2012


The giants of the internet age and the alarms: (1) the winner takes almost all markets on the internet, and rivals fear exploitation of dominant status; (2) getting consumers hooked on their own “platforms” and increase cross-platform transition cost; (3) gobbling up promising firms to kill competition. But such concerns are hardly relevant, for the technology industry suffers/enjoys the “perennial gale of creative destruction” that sweeps through economies as innovative insurgents take on entrenched incumbents (Joseph Schumpeter’s comment). [Note: brutally competitive space that allows natural monopolies. There is absolutely nothing with these firms winning for now]…Source: http://www.economist.com/news/leaders/21567355-concern-about-clout-internet-giants-growing-antitrust-watchdogs-should-tread

The never ending demand for satellites: With television signals delivery at about 2/3 of operators’ revenues and fast growing mobile communications and broadband data transmission, Satellite operators grew by an average 9 per cent a year between 2006 and 2011 to $177bn last year. Growth slowed to about 5 per cent at the end of that period. There is more to come from emerging countries, but oversupply and maturing technology cast a shadow over this industry. [Note: Not worried about the prospect yet]…Source: http://www.ft.com/intl/cms/s/0/be1314f0-3263-11e2-916a-00144feabdc0.html#axzz2Dfs4EtOd

Could this be what Bill Ackman sees when he looks at JCP? (1) focused management with alignment of CEO interest ($50mm warrants strike price @ $29); (2) Still a strong brand portfolio enough to attract customers; (3) dramatic cost-cutting throughout boosts bottom line; (3) real estate ownership, if as much as book value, is worth about $15.75/share; (4) 10-year low with extremely negative sentiment. [Note: There’s gotta be more than this?]…Source: http://sumzero.com/headlines/consumers_and_retailing/JCP/142-this-is-what-bill-ackman-sees-when-he-looks-at-jcp

AIDS Diagnostics offers the best ROI for disease prevention currently: Typically underfunded even if it influences 60% of patient management decisions (as late diagnosis = 10x higher fatality), diagnostics has rapidly moved up the agenda thanks to (1) dramatically reduced cost of testing, (2) improved testing accuracy as well as earlier identification. More funding is coming this way. [Note: An ounce of prevention is worth more than a pound of cure]…Source: http://www.ft.com/intl/cms/s/0/ac625aee-3322-11e2-aa83-00144feabdc0.html#axzz2Dfs4EtOd

Win the lottery of life: Where to be born in 2013? In short, Switzerland comfortably in the top spot, with Australia 2nd, and Norway 3rd. Counting in geography, policies, state of economy, income-per-head, and growth outlook. Boring is best in their eyes. [Note: US is 16th, Japan 25th, and Hong Kong 10th. Nigeria, Kenya, and Ukraine are at the bottom]…Source: http://www.economist.com/news/21566430-where-be-born-2013-lottery-life?spc=scode&spv=xm&ah=9d7f7ab945510a56fa6d37c30b6f1709

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