Imagine you’re a time traveler who is on the back end of a 2001 space odyssey. You don’t remember much from the journey, but today, 22 years later, you have a pile of money that, thankfully, was invested in the price-weighted 30-stock index Dow Jones Industrial Average. You have no recall of the gut-wrenching volatility. You’re a time traveler, preparing for tomorrow. As you ponder the past from the flight deck, you think to yourself, “What’s all the fuss? That wasn’t that bad.” But today is always today, with no clear path to the unknown of 2045. Yet today, you have this pile of cash … [Read more...]
Archives for July 2023
Lithium Is Becoming a Geopolitical Leverage Point
Countries with lithium supplies and those who need them are finding a new geopolitical balance as the mineral becomes more important in global supply chains. Christina Lu reports in Foreign Policy: The quest for a global energy transition has sparked a frenzied scramble for the raw materials underpinning everything from electric vehicles to wind turbines—and the mineral-rich countries where they are found refuse to be left out of the race. In the coming decades, billions of tons of minerals such as lithium, nickel, and cobalt are going to be needed to power the clean energy technologies of … [Read more...]
CRASH AND BURN: Yellow Raises the White Flag to Bankruptcy
After putting up a fight, the 99-year-old trucking company, Yellow, has begun preparing for bankruptcy. Paul Page reports for The Wall Street Journal: Trucking company Yellow on Friday laid off a large number of workers and is shutting down regular operations, according to people familiar with the actions, as the company copes with a liquidity crisis and weighs options including an imminent bankruptcy filing. The company, one of the country’s largest trucking companies with more than $5.2 billion in revenue last year, is keeping its customer service workers in place, according to one of … [Read more...]
Authentic Brands Continues to Build Shoe Portfolio
Authentic Brands has expanded its portfolio further into shoes with the acquisition of the well known brand, Rockport. Shoshy Ciment reports in Footwear News: Authentic Brands Group has scooped up Rockport, adding another heritage shoe brand to its growing portfolio. The company behind dozens of brand and retailer acquisitions announced on Wednesday that the U.S. Bankruptcy Court for the District of Delaware approved the sale transaction of Rockport, a Newton, Massachusetts-based footwear label. Rockport said in June that it filed for Chapter 11 bankruptcy and would put itself up for sale. … [Read more...]
Investing Mistakes to Avoid: #3 Back 40 Back
Your Survival Guy and Gal saw Luke Combs on Saturday night at Gillette Stadium in Foxborough, Massachusetts. The song I can’t get out of my head is “Back 40 Back.” Combs didn’t play it (it’s not the song to keep a stadium on its feet), but it’s a reminder of the way life used to be—when there was a back 40 of land or open space that has too often now been replaced by a concrete jungle. I’ve been thinking about when I was a kid, going to Fenway Park to see Jim Rice, Dwight Evans, Carl Yastrzemski, and Fred Lynn. The old Boston Garden, where you could hear and smell the game. Memories of … [Read more...]
Oil Majors Looking for Deals
Big oil companies like Exxon and Chevron are looking for acquisition deals that can add value for shareholders. Collin Eaton reports in The Wall Street Journal: Exxon Mobil and Chevron collectively banked nearly $14 billion in second-quarter profits Friday, down from last year’s record-breaking levels but adding to their war chests as they eye acquisitions in the oil patch. Exxon said it earned $7.9 billion in the second quarter, extending its run of strong quarters though its profit was down from the company’s $17.9 billion haul in the same time last year, when Russia’s invasion of … [Read more...]
Swimming with the Sharks
Your comfort level as an investor should be like your comfort level sharing the water with sharks: somewhere between scared to jump in for fear of “Jaws” or cool as a cucumber like Ocean Ramsey. Look, our mind plays terrible tricks on us, whether it’s fear of sharks or markets. According to AccuWeather, the odds of getting struck by lightning are 1 in 500,000 versus the odds of being attacked by a shark, which are 1 in 3,750,000. But when you see the movie “Jaws” your mind doesn’t care about odds. Emotions set in, and forget it. Also, if you’ve ever been on a boat during a lightning … [Read more...]
What Happens When Your Favorite Store Goes Out of Business?
A number of big retail stores, including Bed Bath and Beyond, Tuesday Morning, Christmas Tree Shops, and others have recently gone out of business forever. These stores were heavy promoters and had loyal followings, but still couldn't keep the doors open. What will happen to the vendors and the sales generated by their advertising now that they're gone? Warren Shoulberg discusses the future of retail in The Robin Report, writing: As recently as just a few years ago, Bed Bath & Beyond did over $5 billion in annual retail sales. Tuesday Morning was doing close to $700 million a year before … [Read more...]
BREAKDOWN LANE: Major American Trucking Company About to Go Bankrupt
The major American trucking company, Yellow, is about to go bankrupt thanks to a lack of cash and a failure to reach a deal on a new contract with its union. The Wall Street Journal's Soma Biswas, Paul Page, and Alexander Gladstone report: Trucking company Yellow is preparing to file for bankruptcy, according to people familiar with the matter, heightening the threat that one of the nation’s largest freight carriers will shut down as customers abandon it amid a cash crunch and union negotiations. A bankruptcy filing by Yellow would put it at high risk of a liquidation since its … [Read more...]
SHARKTIVITY: Can You Have Too Much Information?
With all the surveillance technology, I don’t know if we’re safer or just more scared. The phone app “Sharktivity” tells you the latest shark sightings. Its Terms of Service agreement explains: “You should not rely on this app to determine if sharks are present or where it is safe to swim. The only way to avoid sharks is to stay on shore.” Great, just what we need, more disclaimers. Now, I’m no fan of swimming with sharks, but with all the hoopla, is it any wonder beachgoers are freaked out? Yes, if you see a seal, it’s probably a good idea to get out of the water. Same for an open wound. … [Read more...]
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