DOW Plunges In Early Morning Trading -- April 17, 2015

We'll hear pundits all day long and read stories all day long explaining the plunge in the Dow today.  For me, this is the explanation: profit-taking.

Disclaimer: this is not an investment site. Do not make any investment or financial decisions based on anything you read here or think you may have read here.

GE lost almost $14 billion on finance unit sale. Too many story lines.

The Labor Department said on Friday its Consumer Price Index increased 0.2 percent last month after a similar gain in February. Price increases were fairly broad-based in March, suggesting the recent disinflationary trend had run its course. Okay. Economists polled by Reuters had expected the CPI to rise 0.3 percent from February and be unchanged from a year ago. Link here.

There's a nice article on Sempra over at Seeking Alpha today. I had pretty much forgotten about this company. I certainly did not realize it was hitting new highs.

Sempra Energy, an energy services holding company, is a solid growth story available at a reasonable price in today's overheated market. The stock price of the company created a 52-week high of $116.30 and a 52-week low of $95.88, which implies that the stock is not so volatile. I believe this is relatively a safe stock with reasonable upside left over the next one year.

Sempra's five-year growth plan is really interesting. Sempra is one of the few companies that have successfully built liquefaction facilities in North America. I'm particularly optimistic on its three liquefaction projects that are currently being developed, which are (1) the Port Arthur LNG, (2) the proposed expansion of Cameron LNG with trains No. 4 and No. 5, and (3) the liquefaction facilities at Energia Costa Azul in Baja California, Mexico. Sempra is working to prepare FERC pre-filing for Port Arthur. Octavio M. Simoes, president of Sempra LNG, said:

We have gained valuable experience working with the FERC during the permitting process for the Cameron LNG liquefaction project in Louisiana...If we are successful, this project would provide long-term economic benefits and create new jobs in the region, while strengthening America's role as a global energy leader.

On the Sabine-Neches Ship Channel, Sempra has nearly 2,900 acres of property along with 3 miles of waterfront. It also owns 1.25 miles of waterfront on the Intracoastal Waterway. The Port Arthur, Texas project will utilize a portion these properties. The proposed LNG plant and export facility in Port Arthur will consist of two natural gas liquefaction trains capable of producing 10 million tons of LNG per year, along with facilities for marine vessel berthing and loading.

Much, much more at the link. 

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Apple Page

Apple may have sold another 60 million iPhones in most recent quarter. 24/7 Wall Street is reporting:

If Apple discloses that it sold anything less than 60 million iPhones, shares may drop substantially. For some, a figure less than 70 million would disappoint.

Traditionally, Apple management guides low. If that trend continues, Apple’s revenue ought to be close to $60 billion. iPhone sales will need to reach 60 million to support that level of sales.

For Apple, it is iPhone sales of 60 million or the quarter will be considered a disaster. The impression that the iPhone has made Apple invincible will get stripped away.

Apple Watch goes on display in Milan, Italy.

Apple Watch spotted in England; unique folding UK plug.