I am running a bit behind this morning, which is just fine, actually. Having more time to watch the market flow is quite helpful in terms of gauging market sentiment. It appears the price-action is listless, at least through this morning. I like that. It tells me the there exists a certain calm right now. My sense is the market is watching and waiting, trying to digest all of the positive global economic data. As well, the market is trying to get a bead on the (once again) positive earnings coming from corporate America.
- Some 75% of the 447 S&P 500 companies that have reported Q3 earnings results have beaten estimates.
The number above is decently above the norm of 67%, more or less. Remember, when the reporting started, the consensus from the breathless media was that this time (once again), earnings would fall. Okay …
- T-Mobile USA (TMUS) plans to offer 66.15M shares, which could bring in proceeds of $1.96B based on yesterday’s closing price of $29.67. The number four U.S. carrier intends to use the money for “general corporate purposes,” including capex and opportunistic spectrum purchases.
The take-away point from the above is the piece about spectrum purchases. Bandwidth is the word of the day. That reminds me of a movie, “The Graduate.” In one scene, the father of Benjamin Braddock’s girlfriend is advising him on the future. He says, “I just want to say one word to you. Just one word … plastics.”
Well, in today’s world, which is far removed from the evolutionary innovation of plastic in 1967, I just want to say one word to you … No, actually two words. No, maybe three, but one of them is bandwidth, for sure, which is the point I wanted to make a moment ago. With all of the streaming entertainment coming, bandwidth is the key to making it all work. Who has it, and who does not have it? Apparently, the laggard child in the telecomm world wants more of it.
Another word, well, actually two words, are renewable power. I spent some time this morning pouring over statistics that spell out exactly where all the power generated in the US comes from. Here is the summary for renewables.
- Renewable power sources like wind and solar were minuscule parts of the energy mix in 1993; though still small, their growth has been remarkable. Wind power now generates more electricity than petroleum. Between 1993 and 2011, solar generation has increased more than 2,600%.
Another word is, and it is not renewable … dang it! Again, it is two words – natural gas. Keep your eye out for opportunity in the verticals here. Natural gas is coming hard. Next to coal, NG is producing more power than any other energy source. And, coal, by the way, although still huge as an energy producer, is losing market share, so to speak.
- New fields opened by hydraulic fracturing has pushed the U.S. past Russia as the leading producer of natural gas. The boom has caused gas prices to plunge, making the fuel more attractive to utilities and pushing it past nuclear power as a source of energy in electric power plants.
Okay, so I have two more words for you – mobile devices. I know I am pounding this theme. My problem is, though, everywhere I look it is mobile this or mobile that. The ubiquity factor is huge.
- Viper Connect, for iPhone and Android, is an app that monitors homes and cars. The company supplies a do-it-yourself security system with motion sensors and video cameras, which can be placed around the home, and watched remotely.
It appears that every corner of the house is now a target for mobile device apps, which raises this question – with all of this innovation in the mobile device market, which verticals are ripe for big moves? Let me take a look and I will get back to you.
Trade in the day; Invest in your life …
