Published by clickbroker.blogspot.com.
Google (GOOG) fights for net neutrality and the right to index all of the world’s information for free. Verizon (VZ), AT&T (T) and content providers are out to slay the Google dragon. Microsoft’s (MSFT) Bing search engine fights to grab market share from Google. And News Corp (NWS, NWSA) is conspiring with Microsoft to take Google down a few notches.
The Associated Press (a cooperative) and its member publishers claim that original reporting is the root of the internet, from which all opinion is derived. Without original content there would be no internet. News Corp mogul Rupert Murdoch takes this further by saying advertising cannot support original content and rampant exploitation of original content by secondary sites such as search engines goes beyond the doctrine of fair use.
Google, Microsoft and News Corp. Fight while Consumers Remain Anchored on Free Content
Is America Ready for Assembly Line Medicine?
Published by clickbroker.blogspot.com.
While Cigna (CI), Humana (HUM), UnitedHealth Group (UNH) and WellPoint (WLP) are too timid to ask, The Wall Street Journal’s “The Henry Ford of Heart Surgery”, subtitled “In India, a Factory Model for Hospitals Is Cutting Costs and Yielding Profits” reports that foreign entrepreneurs have found success. The American model of one or more generalist hospitals in every two-bit town has given way to extremely large regional specialty hospitals in India.
Fed: Bubble Surgery must wait for Perfect Information
Published by clickbroker.blogspot.com.
Bloomberg’s "Bernanke Says ‘Not Obvious’ Asset Prices Misaligned" and The New York Times’ "Bernanke Worries About Weak Dollar" report that a very Greenspan-like Bernanke spoke before the Economic Club of New York Monday. After acting recklessly over the past year to save the world from depression two, Bernanke is too timid to act against the current stock market, Treasury and gold bubbles without perfect information.
At least Greenspan was clear in his objective – innovation creates bubbles and bubbles create innovation. So therefore benefit from innovative bubbles and cleanup afterwards.
Limits of a Knowledge-based Economy
Published by clickbroker.blogspot.com.
The Wall Street Journal’s “Tinkering Makes Comeback Amid Crisis” stirred my thoughts on the limits of America’s dependence on a knowledge-based economy. The article focused on engineering students at prestige universities wanting to actually create physical things. Students are migrating from the virtual world of software science to hobby-ing with computer controlled milling machines in their dorm rooms, school workshops and membership machine shop clubs.
Isis, Ligand and Vical: Core Biotech Holdings
Published by clickbroker.blogspot.com.
Isis (ISIS), Ligand (LGND) and Vical (VICL) have been my core biotech holdings since the mid 1990s and I have been steadily adding to these positions each time the market has lost faith. They share common themes and some differences. Isis and Vical have maintained consistent management throughout the years, whereas Ligand radically changed direction a few years ago when Daniel Loeb’s Third Point hedge fund took a stake. Now all three are focused on drug discovery; leaving the marketing to others.
Currency, Foreign Stocks and Dividends
Published by clickbroker.blogspot.com.
The popularity of foreign stocks ebbs and flows, but there’s always someone on TV touting them for either growth or diversity. I have owned a few large-cap foreign stock ADRs (American Depository Receipts) from time to time, but none presently. I would like to relate some of the nuances that I experienced. I never owned any foreign stock ETFs or mutual funds, but the discussion can easily be applied to them as well.
Wells Fargo Tries “Family Values” on Legacy Wachovia Pick-A-Pay Mortgages
Published by clickbroker.blogspot.com.
The Wall Street Journal’s “Wells Fargo Takes Chance With a Loan Exchange”, subtitled “Option ARMs Are Shifted to Interest-Only in a Recovery Bet” suggests that the bank is playing “kick-the-can down the road” with its Pick-A-Pay mortgages. Wells Fargo (WFC) is holding $107B in legacy Wachovia ARMs that have accumulated both negative amortization and substantial housing price drops, leaving the homeowners in unrecoverable positions. The bank is hoping that time will heal the wounds.
Bank of America, Citigroup, JP Morgan and Wells Fargo Stocking Up on Liquidity
Published by clickbroker.blogspot.com.
Geithner’s Treasury and Congressional politicians are telling banks publicly to expand lending and boost the economy. At the same time Bernanke’s Federal Reserve is telling banks to increase liquidity as the banks see little loan demand from qualified borrowers.
Adequate capital and adequate liquidity are two completely separate concepts as Bear Stearns and Lehman found out the hard way. Capital is purely an accounting concept, generally consisting of common and certain preferred equity. Liquidity on the other hand is the cash either available or that can be generated to meet funding obligations in the event of deposit withdraws or a freeze in short-term credit.
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