Friday, January 29, 2016

Today's Market -- January 28, 2016

Wow, what a day for the market -- Thursday, January 28, 2016. These were the companies I was interested in:
What's the takeaway from all these reports?

1. The tea leaves suggest that in the oil and gas industry we can finally hit the re-set button and move on.
  • where are all the bankruptcies?
  • where are all the mergers?
  • Russia and KSA apparently talking about curtailing production; really?
  • the Bakken down to 46 active rigs; how low will they go?
2. Sometime ago, a Brit analyst/writer suggested American investors were greedy. Years ago, when we were stationed in England, I called a broker in London to open a trading account. He told me that their company already had about as much business as they wanted and did not want to add any new accounts. True story. I was reminded of that when I saw the 15% drop in Amazon's share price when it reported earnings of a dollar vs a forecast of $1.60 or thereabouts. The big story was not that Amazon missed by 40- 60%; the big story was the Amazon actually showed a profit, something I think it has done on only three times before. I don't own any shares in Amazon and doubt I ever will but I love the company. I don't think Bezos is concerned. There is no company that comes close to what it does. Americans are simply too greedy. Yes, I love Amazon -- it always delivers.

3. Microsoft is a pleasant surprise. I don't own shares in Microsoft and never will. But it is surprising, and pleasantly surprising, that Microsoft appears to be able to "re-invent" itself. I don't care for Microsoft, but if Microsoft can re-invent itself, so can others.

4. Ford's results speak for themselves.

Creekside

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