I've got at least a couple new names that I've been working hard on and I am getting closer to adding to the portfolio. So stay tuned for that. But in the meantime, here are some things to think about over the long holiday weekend. Happy holidays to you all.
According to a New York Times piece, it's not unusual for employees to be wiped out while venture capitalists make money. "Not unusual?" It's standard for private equity investors to make money while employees get wiped out, that's for sure. VCs, not as much.
Americans are slowly abandoning broadband just like they did with landlines: Interesting developing new trend. Broadband is the only thing that's keeping the cable companies from shrinking, and if home broadband is now about to go into secular decline, the cable companies are really gonna be in trouble.
"Lifting Oil Export Ban Carries a Cost": The problem with thinking that the end of the oil export ban would create a turnaround in energy is that there's no shortage of oil out there floating on boats and stored up in containers and so on, all over the world right now. Oil/energy is a global market, and if anything, allowing U.S. firms to export their oil would probably put more pressure on the price of oil as it creates more competition and eases artificial unbalances/marketplace friction globally.
This Is a bottom-fishing rally: I wouldn't be shocked to see oil bottom here in the $30s for the near term and even make a move back above $40 at some point. But I wouldn't want to try to game such a move. And unless oil can get and stay above $40 for a few weeks or months, there's still going to be a lot of pain in the oil and natural gas stocks. There's so much debt in the energy sector and companies from all up and down the supply chain are not going to be able to pay all their bills and meet all their inter-company financial obligations. I still say we stay away from oil/nat gas and oil/nat gas stocks and bet on truly revolutionary companies instead.
"Akamai in Contract Talks; Apple, Facebook, Microsoft Shift Eyed": The balance sheet of Akamai (AKAM) isn't as great as I'd like it to be as its debt nets out with the cash to a slightly negative value. The company is very well-positioned as a cloud services company with its optimized network for delivering securing online content and business applications. Earnings should grow from $2.40 to $2.70 this year on 10% earnings growth. That gives the stock a price-earnings ratio of 20, which isn't bad, but it's not a screaming buy, either. I've had this on the Trading With Cody Watch List for a month now and would like to buy it near $40 if we ever got a chance too.
Pandora's shifting box: If Pandora (P) can figure out how to successfully become a streaming on-demand music platform and compete with Spotify and Apple Music head-on, this stock could really take off. I'm doubtful the company can pull it off, but I will be all over the company as it tries.
Boosting my Twitter long: I like Doug Kass' contrarian bullishness on Twitter (TWTR) here, but I removed Twitter from my screens since I sold the remaining shares I had for a loss recently, as I'd mentioned on Real Money. I needed a fresh break from Twitter, as I'd gotten to know and really like some of the people in the company and wasn't feeling like I was being objective about the stock lately. I'll have a fresh take on it in January after letting it breathe a little bit more.
A miracle baby continues to astound: Here's a write-up about my miraculous littlest baby girl from the local newspaper. My little baby Amaris sure is cuddly and giggly and curious and growing. Her little left eye doesn't quite open fully and she obviously does still have a tracheostomy tube and a gastrointestinal tube and we still have to be near/watch her 24/7. She has been such a little Princess Warrior fighter and, quite frankly, it's inspirational on many levels to watch and see her grow and heal. When she was first born almost six months ago, her skull was not fully formed in the back and on top and the skin around those areas wasn't there, either. In the first couple months, we watched the skin in the back and on top of her head grow and close and in the next couple months we watched/felt her skull do the same. She now simply has a soft spot on top of her head like any other baby. Her older sister is almost 2 years old now and healthy, happy and a ball of fire. My wife is exhausted but working when she can and being a wonderful mom to both girls. Thanks to all of you from Real Money and TheStreet who have sent along nice words, prayers and well-wishes.
"2 Real Investments for the Virtual Reality Revolution": I'm starting research for a book called "Stocks for the Virtual Reality Revolution" and I'd like to hear from you if you know of more ways to invest in this burgeoning movement. Please reach out to me on Twitter or in the comments area below with any VR-related stocks you follow. You can get my coming Virtual Reality Revolution book along with all my other investment books as part of your subscription to Trading With Cody, which is 30% off for the holidays, so be sure to check it out.
