Friday, July 25, 2014

Facebook Is Now Worth More Than......

Facebook is now worth more than Coca-Cola, Disney, Intel and closing in fast on IBM. I am not an expert on social media or Facebook's plans for future products and revenue, but on the surface it appears this is not going to end well for those buying Facebook shares this afternoon.

Wednesday, July 23, 2014

The Incredibly Massive Revenue For Apple's Two Products

Apple is essentially a company composed of two products; the iPhone and iPad. That simple fact makes me very nervous as a buyer of Apple stock because I feel there are fairly easy barriers to entry in both categories.

However, when you take a look at just how powerful those two products are today it is breathtaking. The following two graphs from Slate show how big the iPhone and iPad would be if they were their own companies. Incredible....

Corn & Wheat Prices Destroyed: Buying Opportunity?

It has been a horrible few months for the agriculture grains. Corn has been in free fall for weeks (down over 30% since April) while wheat has also been slammed. Corn is now selling for $3.68 a bushel. It costs $4.50 to $5.00 to grow a bushel of corn when you include tractor fuel, seeds and inputs such as fertilizers and herbicides. Farmers have an oversupply of corn and they are switching more of their crop to soybeans.

I am buying corn and wheat right now (symbols CORN & WEAT). With 7 billion hungry people on the planet, and the population of the earth growing exponentially, I think it is possible that the price of a bushel of corn will move above the cost to produce it at some point over the next few years. Prices can (and probably will) go lower in the short term because sentiment is at extreme lows and the traders are pummeling the price daily on the exchange.
The following is an interview last night with with Marc Faber on CNBC who is bullish on agriculture and sees relative value in Chinese and Hong Kong shares in relation to other stock markets around the world. He notes, as I have many times here over the past few months, that the U.S. stock market is currently the most expensive in the world.