Posts Tagged ‘business’

TWTR’s Stock Value Shows Its Purpose

Posted: November 9, 2013 in Excess and Algorithms
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eanda logoby @anarchyroll
11/8/13

Twitter went public this week, successfully, take that Facebook! Sure the second day saw a slide of 5.8% but that is barely a drop in the bucket after going up by 73% in its first day of trading.  The lesson is clear, have Patrick Stewart ring the bell during your company’s IPO offering , it’s good luck.

But in all seriousness, TWTR (it’s stock list name) has shown staying and growing power as a company during its first two days as a publicly traded company.  Their IPO isn’t as similar to Facebook as one might think. Facebook had more market value/capital, revenues, and profits than Twitter going into its IPO.  Twitter is still yet to make a profit, which was not the case with Facebook.  So why is its stock performing so well it its infancy?

“We believe that the majority of the world’s 2.4 billion Internet users have great potential to find something or someone on Twitter that they are interested in,” he said. “Because of its critical mass, it should enjoy a competitive advantage for the foreseeable future.” Michael Pachter of Wedbush Securities, an investment firm that set the price of Twitter’s stock at $37 per share.

When I saw that quote my eyes popped, because in much simpler language with a more direct tone, that is usually how I pitch Twitter to my friends.  Pick a subject, topic, taste, hobby, or basically any kind of noun and you can find almost an infinite amount of information about it on Twitter.  The example I usually use is music; every musician in every band of every genre of 6every level of popularity along with their record label, fan club, and industry magazines all have the professional and/or personal Twitter accounts.

Understanding the business model of a product that you believe in then buying at a low price and selling at a high price is the corner stone of Warren Buffet’s model of investing. So if you “get” Twitter and have money to invest, buy now. Twitter is not going anywhere, it is as relevant a product as there is in the world.

Twitter’s slice of the social media pie is that it allows you to be anonymous and doesn’t chain you to your immediate friends and family.  Twitter can be used as an ego centric, gossip creating, social status machine like Facebook.  Unlike Facebook however, Twitter can be a legit breaking news source like the Bin Laden killing. It can connect revolutionaries who want to topple a dictator like in Libya.  Twitter can provide actual news and actual information that can have wide reaching effects on the world, not just on one’s social circle.

And that slice of the social media pie is directly correctly to its stock market value, invest accordingly.

Low Tax Rate = Collapsing Bridges

Posted: November 8, 2013 in Anarchy Journal Constitutional, Excess and Algorithms
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eanda logoajclogo1by @anarchyroll
11/7/2013

At some point during the 1970s the tax code in the United States of America was deliberately turned in a complex labyrinth of small typed font, subsections, exemptions, and  industry speak double talk.  It is not a coincidence that from 1970 until now, the infrastructure of the United States has been in consistent decline.  Parallel to this urban decay that all of us have seen that driving through any major metropolitan city has been a rise of gated communities and McMansions, again not a coincidence.

“Between 1946 and 1970, very prosperous years, the highest tax rate for the top earners was never below 70%—even under Dwight Eisenhower, whom no one called a socialist. We have so much deferred maintenance on roads and bridges and tunnels and ports. Money does not have to be raised, and the rich have never been as rich.” Robert Reich in the 10/7/13 issue of TIME magazine.

This is part of what the Occupy Wall Street movement is referring to with their 99% slogan.  The income/wealth of the top 1% is more than the rest of the 99% possess in combined.  There is no one reason why this is the case, however the fact that marginal tax rate for top earners is 39.6% leads one down a rabbit hole of simple math. If the top wage earners in America are playing 30% less in taxes, then what things can’t local, state, and federal government(s) able to do with that missing tax revenue?

Build bridges, pave roads, renovate schools, not have to privatize stuff because of massive budget short falls. Do you know any old people who talk about the good ole days? They’re referring to the years between WWII ending and Vietnam taking a turn for the worse. During that time part of what made things so good was everything felt new, fresh, safe, etc…a direct contributor to that was that local, state, and federal government(s) had money to pay for anything and everything. Police, post offices, highways, homeless shelters, etc, etc, etc, et f’n c…

Ask yourself, why can’t the rich pay more in taxes? Why haven’t they? Why would the rich rather pay lobbyists and politicians money to keep taxes low, rather than just use that money to pay more in taxes?

Innocent bystanders in public places will keep dying due to collapsing infrastructure until they do.  What do you think the breaking point body count is? I have my guesses, but this isn’t a long form piece.

Excess and Algorithms: Mission Statement

Posted: October 1, 2013 in Excess and Algorithms
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eanda logo

 

by @anarchyroll
August 26th, 2013

 

Economics is not complicated, it’s taxing, pun intended. Studying the subject at a novice level reveals that the entire field is nothing more than a simple field purposely hidden under a camouflage tent of complicated sounding language. One must become familiar with these terms because they build upon each other, layer after layer after layer after layer until it is believed that only computer algorithms can be used to do the work of insiders and professionals that are hired by normal people because they just don’t want to think about it. Why? Because the terminology is so complex looking and sounded it makes someone who spends forty hours a week or more working a “normal” “day” job believe that they need someone to do it for them. Putting computers in charge of making trades by the millisecond was not a victory for simplicity either.

 

Studying economics and writing about it is as fun as it sounds, in that there is reward for the time invested, that reward is of course knowledge. There is a flood of knowledge available for consumption in the field  of business and economics, and it is almost too easy for one to drown in it.  I personally do not have a background in economics, I did not formally study it, I have not worked for a hedge fund, a brokerage, in New York trading stocks, or in Chicago trading options. I listened to The Warren Buffet Way on audio book and became fascinated with the field. Several books later I found myself compelled to regularly check websites like Reuters, Business Week, Bloomberg, The Economist, and CNBC so that I could regularly bathe myself in daily economics and market terminology.

 

So what is Excess and Algorithms? It is the business/economics blog for me, @anarchyroll. My other blogs feature my writings on hard news/journalism, pro wrestling/mma, philosophy/spirituality, and sports. I originally wanted each blog to be a separate website, but I got mentally buried in concern of the aesthetics/design of each one and used that as an excuse to procrastinate. So I’m going to start writing and posting content online and go from there. Eventually I would like to combine all five blogs into one website and present the material like a digital newspaper/magazine akin to VICE, Uproxx, and Kinja.

 

I am passionate about each subject I blog about and aspire to be a professional reporter/writer of. I received my bachelor’s degree in media communications from Northeastern Illinois University this past May. I want to make sure that I am applying what I have learned, that I am keeping my writing skills sharp, that I am staying productive as a person, and that I am working towards my overall goal achievement desires. Writing about economics truly tests me as a writer. Presenting the information in an easy to read manner for anyone regardless of education level is difficult and time consuming. Researching the articles takes hours and sometimes days.

 

I will be writing an article on quantitative easing in the coming week. I started doing research and before I knew it five hours had gone by and all I had was a thesis statement. This both exhausted and excited me, because I knew that I was challenging myself as a writer. Writing about wrestling/mma is easy for me. Writing about sports and philosophy are both easy for me. Writing about hard news as a journalist isn’t easy but isn’t hard because I have so much formal training in it. Writing about economics is as challenging as investing. I hope to learn as much about the investment world as I learn about myself as a writer. I will be buying the knowledge and information with my time and energy, then selling it to you at a discounted rate of a thousand words or less. Fair trade?

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