The Chat Thread

[North Star]

I rate it as high.

Which one? Tolkien's, for sure. The one that was reviewed, debatable, apparently.

[mn dave]

Which one? Tolkien's, for sure. The one that was reviewed, debatable, apparently.

Oh, I misread your post.

[Todd]

I have to wonder if the standards at the BMJ are slipping.

[Cato]

A type of Ponzi scheme: while reading about how "Twitter" is supposedly worth almost more than Scrooge McDuck, but has not shown one penny of profit, the article reminded readers about another company on the Internet, which depends on investors' money pouring in every year, because after 20 years it has not made one penny of profit!

http://www.thedailybeast.com/articles/2013/10/25/amazon-stock-may-be-up-but-the-company-still-doesn-t-make-any-money.html

[Karl Henning]

Some of these dot-com bubbles, you wonder just how it is they've managed to avoid bursting . . . .

[Karl Henning]

Story from 25.ix.2013:

After an ugly 15 months of trading, the Facebook stock price (Nasdaq: FB) has not only passed its $38 initial public offering (IPO) price, but it has more than doubled over the last two months and is up an astounding 85% year to date.

Shares of the social networking giant have done a stark about-face since hitting a low of $17.55 in September 2012.

Some 135,723,000 shares changed hands Tuesday, making FB the day's most actively traded stock. Shares finished the day at $48.45, up 2.67%

Facebook stock was trading above $49 a share Wednesday.

[Todd]

A type of Ponzi scheme: while reading about how "Twitter" is supposedly worth almost more than Scrooge McDuck, but has not shown one penny of profit, the article reminded readers about another company on the Internet, which depends on investors' money pouring in every year, because after 20 years it has not made one penny of profit!

http://www.thedailybeast.com/articles/2013/10/25/amazon-stock-may-be-up-but-the-company-still-doesn-t-make-any-money.html

Percentage margins are not one of the things we are seeking to optimize," Bezos said in an interview with the Harvard Business Review posted online Jan 3. "It's the absolute dollar free cash flow per share that you want to maximize. If you can do that by lowering margins, we would do that. Free cash flow, that's something investors can spend.

Whether you support his approach or not, at least he's been vocal about it.  I don't think the company's financials support its valuation, but it does have a more sound business model than, say, Pets.com.  I just hope that Amazon doesn't sink too much into online groceries, because while regular retail has slender margins, grocery chains have almost no margins.

[Cato]

Story from 25.ix.2013:

What concerns me more and more - and my banker son as well - is that long-term investing in companies producing tangible goods is done less and less even by institutions like banks.

Instead, we have the "services" of e.g. Twitter, which can be fun, but just wait until they start charging you a penny per syllable or more!  Or start placing pop-up ads!  Will the "customers" tolerate that?  I suspect some will, but will even they be enough for an actual profit?

[Todd]

What concerns me more and more - and my banker son as well - is that long-term investing in companies producing tangible goods is done less and less even by institutions like banks.

But is that really the case?  Looking at the largest companies by market cap, one sees a lot of oil companies, car companies, drug companies, phone companies, banks, consumer goods companies, and some tech companies.  Looking at the largest bond offerings, one sees phone companies and drug companies heading the list.  Twitter and Facebook are overvalued and overhyped, perhaps partly to boost IPO performance (which didn't work for Facebook), and there are other companies like that, but I would view that as something of a good thing.  Put capital to work where the market sees fit, and if the company or companies flounder or die - and most companies do - that's okay.  The trick is to prevent damaging bubbles, I suppose.

[Cato]

But is that really the case?  Looking at the largest companies by market cap, one sees a lot of oil companies, car companies, drug companies, phone companies, banks, consumer goods companies, and some tech companies.  Looking at the largest bond offerings, one sees phone companies and drug companies heading the list.  Twitter and Facebook are overvalued and overhyped, perhaps partly to boost IPO performance (which didn't work for Facebook), and there are other companies like that, but I would view that as something of a good thing. Put capital to work where the market sees fit, and if the company or companies flounder or die - and most companies do - that's okay.  The trick is to prevent damaging bubbles, I suppose.

True: people are still so far investing in companies with tangible products, but the concern is that more ephemeral service companies (FaceBook, Twitter, SnapChat, etc.) may cause a drain, and therefore more damaging bubbles.

[ibanezmonster]

I just heard on the radio that Florida has the highest burden of rent in the country (meaning that it has the highest percentage of people who spend 1/2 or 1/3 of their earnings on rent). Orlando and Kissimmee rank among the highest. I would guess it has to do with the lack of good jobs here and the plethora of low wage service jobs.

I would be spending at least 70% of my income on rent if I moved out, so yeah, that's why I still live with my parents... 

[North Star]

I can't believe it's a word thread

[Karl Henning]

Believe it, baby.

[Karl Henning]

Chap at the office gave me a Dunkin Donuts card.  That's nice, and all.

I go to the website to enquire about the card balance (one wants to know).  Really, Dunkin Donuts?  You don't let me know anything about this card that I was given, unless I create an account with you, and give you my email address?

Definitely throwing this in the trash.  After using it up.  However much has been loaded onto the card.

[Szykneij]

Chap at the office gave me a Dunkin Donuts card.  That's nice, and all.

I go to the website to enquire about the card balance (one wants to know).  Really, Dunkin Donuts?  You don't let me know anything about this card that I was given, unless I create an account with you, and give you my email address?

Definitely throwing this in the trash.  After using it up.  However much has been loaded onto the card.

Doesn't really make sense to re-load those babies. Proper DD card etiquette is to either include the sales slip inside the little folder or write the amount of the card on the outside when giving them as gifts. As a teacher, I get quite a few of those around the holidays. Way better than apples!   

[Karl Henning]

Well, no blame to my co-worker, who only meant a nice gesture.

[Mirror Image]

Well, no blame to my co-worker, who only meant a nice gesture.

Well, you sure did make a big deal out of a supposed 'nice gesture.' Have you ever heard of going to the actual store and ask the cashier how much is on the card? Really not a big deal.

[Szykneij]

Well, no blame to my co-worker, who only meant a nice gesture.

Very true.

[ibanezmonster]

My Christmas gift, and a fine one. 

I only have one other effects pedal (Dunlop Crybaby Wah), so this was almost a necessity. 
Anyways, this is a seriously awesome pedal. The amount of effects that are possible are much more than what you'd think, from the ability to sound like multiple guitars to the ethereal stuff created by very short delay.

[ibanezmonster]

I need to find other stuff that affects me in the same way as watching the ending of Final Fantasy 8...
hard to describe, but pretty much the feeling of being in shock for several minutes after it's over. Something emotionally extreme... yeah, before it was Mahler or anime... hmm... what next?


Any suggestions?