My first reaction to the huge market sell-off this morning was disappointment. I know, I know, one should not be emotional about the market; yet, there I was, somewhat disappointed that my “read” of yesterday’s market suggested the market might be stabilizing. Now, how disappointing is that? I guess my inability to gauge the market one day in advance clarifies my point from yesterday – predicting the market movement seven years in advance is, well, along the lines of casting bones to see the future.
Apparently, I am not the only one disappointed today. The “reason” for today’s move to the red is Walmart’s reported earnings. But hey! What is the big deal? Walmart has been sliding for some time now. One cannot and should not conclude that if the largest retailer’s sales are falling, the US economy is on the fritz. Sure, it is an intuitive leap, but not a logical one. For example, is it possible that folks are spending their money in other places other than Walmart?
Wow! The market is taking Walmart’s earnings hard. As of this moment, the DIJA is down some around 200 points and the S&P is right around 1865. I guess we are still in the same old, same old rut – the market is confused. Today, the bears have the better hand.
In my reading from MIT this morning, I came across something unusual – information that is useable in the market now. Check this out.
- Haptic styluses and similar hardware have been used for years for niche applications and for high-end 3-D design and medical training—for example, to allow students to practice a complex procedure using a simulation system that feels as realistic as it looks. More broadly, “haptics”—technologies that add physical sensation—is a common feature in products like computer mouses that vibrate and game joysticks that shake, and even touch screens that vibrate, making you feel like there’s a sharp edge on a flat surface.
Although I found the medical training application interesting, and there just might be some opportunity in that, it is the latter applications I think just might provide near term, broad-based opportunity. Here is why.
- The new haptic stylus, due out next month from 3D Systems in Rock Hill, South Carolina, will cost just $649, down from a range of $2,400 to $13,000 for existing devices.
Holy moly! That is quite a price drop and it does raise the question, what will that mean for electronic game industry? Manufacturers can now affordably create more sensual games and retailers can sell those games for a lower cost. Electronic games are no small part of the overall retail industry.
Perhaps the more immediate question is what will happen to 3-D Systems (DDD), a company whose stock has experienced a precipitous fall from over $95 six months ago to $47 and change today? Is it a buy?
Well, the company’s fundamentals look good, save for its year-over-year quarterly earnings growth and its price-to-earnings ratio. Other than that, it has lots of cash, less debt, and the stock is not diluted. One factor that might also be a reason to get into this stock is the short sellers have a firm grip on the stock (short % of float = 31%). Those folks could be looking to bail if the stock experiences a bump in sales after the release next month. Just thinkin’ out loud here.
- The Federal Communications Commission is due to vote today on a proposal to formally allow some “commercially reasonable” deals that would enable Internet content companies to pay fees so that their traffic receives priority on the network.
The last thing we need now is to set up a ticket gate for the Internet. The end result will be higher costs for everyone, as those who control the flow will incrementally raise prices over time, as they continue to collude, the same collusion that is forcing Netflix and other such providers to pay higher fees for bandwidth so their customers will stop complaining about the lags, reloads, and buffering.
In short, giving corporations the “right” to pay off the “blackmailers” for faster bandwidth allows for more control of the Internet to slip over to what seems to be a budding oligarchy.
- Advocates of net neutrality fear that pay-for-priority will lead to “fast lanes” for corporations that can afford it and slower traffic for others, and some even want Internet providers to be reclassified as utilities, as is the case with telephone operations.
Yup … aside from electricity and water, can you think of any utility more necessary than the Internet in today’s highly connected technological world?
We have seen what happens when you give the power of gatekeeping over to a corporation. Back in the 1950s and 1960s, all the smaller phone companies had to “pay off” AT&T for trunk lines, which resulted in higher prices and poorer service for the consumer. The once omnipotent ticket-gate operator for the telephone utility had to be broken up. This resulted in better service and lower pricing for everyone.
Just say no.
Trade in the day; invest in your life …
