Amazon Murders Wal-Mart $WMT, $AMZN

Wal-Mart is fighting to maintain an on-line presence and fight off Amazon.  The Walton family should be worried. I’m expect some of the youngins might be wanting to sell.

Wal-Mart does rule bricks and mortar for now in selected parts of the world.  They are buying technology to catch up. Highly unlikely this configuration of Board Directors and executives really know how to manage technology and on-line.

Quite simply Amazon does and so do several other companies.

Oh and another thing Wal-Mart has about $7.7 Billion in cash and alike. Amazon has a private ATM with $16.5 Billion and no obligations to family trusts and dear old aunts.

Strategic things are sometimes that simple.

Another Trump Stupidity

The Donald is taking time to promote his new hotel in Washington DC. So in Washington the land of the political and government expense account let’s think about this. 

If Hilary wins which is starting to look very probable Democrats and savvy non denominational civil servants will not spend a nickel there. 

Angry Republicans will not spend any of their money as well. Lots of other neutral hotels to pick from. 

Trumps base of uneducated white males who are out of work don’t have the cash. 

Some badass will be planning a scandal in the hotel just to help with the branding. 

Crash and burn baby. Crash and burn. 

Pig’s Lipstick. Wells Fargo So Far! $WFC, $XLF

OK So Wells Fargo is changing the bath water and the PR machine wants applause. The big bad wolf has been chased off with tens of millions. A close friend of the big bad wolf is now in charge of the hen house. So it’s all good right. Well the new guy has no applicable experience. That’s not good. Earnings are coming out and you know they couldn’t possibly have everything accounted for. The lawsuits have barely started. Instead of chasing deals and making money the new wolf and the new pack will be chasing their tails with vexatious lawsuits and problems. 

Nervous clients along with clients who know they have been screwed are and will be leaving. Hard to replace. Marketing and client satisfaction costs will increase and stay high. Not good for profits. Much internal re-organization to come which is never good for profits. 

So if a pig with lip stick wants to kiss you, should you wet your lips and open your mouth a little. Not just yet. Some times bears make money. Sometimes bulls make money. Pigs always get slaughtered. 

Trump May Pick Sanders as VP $SPY $DJX, $QQQ

So the Donald is neck and neck with Hillary. Hillary cannot shake off Bernie. Donald needs something to shake off Hillary. Consider this: Pick Sanders as the VP. It ties up the angry vote which is rebelling against establishments left and right. Many Sanders supporters like the Trump message.

Trump has been opportunistic. Sanders is not disliked by the NRA. Both claim to want to bash Wall Street. Sanders is independent. Trump can ignore his VP if he gets in but it gets him the White House.

In a war you need to get strategic advantage. This would create a new dynamic which none of the existing strategists has even considered.

Beats an independent ticket.

George Gutowski writes from a caveat emptor perspective.

Coming Political Disaster Credit Cards $DFS, $COF, $XLF, $AXP, $V, $MA

OK so it’s probably Donald and Hillary; both from New York. Hillary needs to keep riding the Bernie Sanders wave of blame Wall Street for everything. Trump needs to keep his disgruntled base alive. No one likes their credit cards company. No one likes to pay. No one likes the sneaky rules that entrap many credit card users. Frequently intelligent people as well.

Credit Card companies have been doing quite nicely. They would be easy bashing for both Donald and Hillary. No re-election worries for four years so let’s kick the crap out of them before the lobbyist reminds you of stuff.

But in the the mean time it will look bad for credit cards. Just remember bulls markets are born on pessimism.

George Gutowski writes from a caveat emptor perspective.

Starbucks Debases It’s Currency $SBUX Not Really

Recently many financial news outlets were appalled that Starbucks had debased its currency. For the non Starbucks user that’s the star rewards system for the frequent user.

Major change yes. The olde system revolved around beverages mainly coffee. The new system is more rapaciously capitalist and revolves around dollar volume tweaked to profit margins and under-utilized time slots when the baristas are not busy enough.

Good move Starbucks. You are moving away from the breakfast model into an all day bakery with selected liquor licenses.

The true genius of the system is the prepaid float that Starbucks is developing. Every business loves it’s free cash. Just ask banks that offer no interest chequing accounts.

George Gutowski writes from a caveat emptor perspective.