See here for a good primer on the term Kafkaesque.
“So disorienting and illogical”
Screening for guns but no screen if you’re packing at the state Capitol. WTF?
That’s less than a chip shot away from the logic of the three monkeys now taking place in the Nation’s Capitol.
https://twitter.com/Joe_Gerth/status/1223278777045856257?s=20
Tesla is gapping up 12% after hours after releasing earnings.
We know several shorts who have been destroyed over the past six months. The stock is up 270 percent from its June lows. Rather stunning.
This comes after the company reported positive net income in the Q3 earnings report.
Still, auto revenues grew by just 1 percent in 2019, but up 18 percent sequentially in Q4.
GAAP net income was down 25 percent on the year and 27 percent sequentially.
Vehicle deliveries climbed to over 100k for the time.
We are watching closely how these high fliers, including Apple, behave over the next few weeks.
The price action in Tesla, among others, is more of a macro thingy than micro, in our opinion. Very Bubblicious. We never learn.
Apple’s stock has been on a tear ever since the company’s quarterly year-on-year iPhone revenue growth went negative. Of course, the market had anticipated it and sold-off prior to the hard data coming out. As the following chart illustrates, Apple’s stock rose 88.9 percent as the iPhone revenues simultaneously experienced four quarters of y/y negative growth in its 2019 fiscal year.
Show most any stock jockey/algo the following chart and we bet they will deny it.
The iPhone still makes up over 60 percent of the company revenues. Wearables are on a tear, up 37 percent with services still showing strength, up 16.92 percent year-on-year.
As much as Wall Street wants to disbelieve, Apple is still a hardware company, deriving over 85 percent of its revenues from products that you can drop on your feet.
Interestingly, revenue growth was strongest in the region perceived to be the weakest economically.
Now that the company has reestablished revenue growth the question is: Is it priced?
Watch yesterday’s low $304.88.
P.S.. Since Tim Cook stopped reporting the data summary table and breaking out unit sales of its hardware, it’s much more difficult to analyze the numbers. It looks like it worked for him given the stock’s performance over the past year.
“No warning on earth can save people determined to grow suddenly rich.” – Lord Overstone
Coronavirus scare starting to hit big manufacturing cities and is definitely going to have a much bigger effect on the global economy. Shantou is one of China’s “Santa’s Workshop” with a huge toy manufacturing base in the Guangdong province.
Guangdong is the most populous province of China and the 15th-largest by area. Its economy is larger than that of any other province in the nation and the 6th largest sub-national economy in the world with a GDP size of 1.47 trillion US dollars (9.73 trillion Chinese yuan) in 2018. — Wikipedia
China is the world’s largest toy manufacturer, producing around 70 percent of the world’s supply. Most of China’s exported toys are produced by OEMs who manufacture for foreign brands. China has numerous toy industry clusters along its affluent east coast. Guangdong province alone produces over half of the world’s toys, with the cities of Dongguan, Foshan, Shantou, and Shenzhen leading the way.
Watch Hasbro and Mattel stock on Monday morning open.
The following is a good primer on the manufacturing clusters in the Guandong province, which includes Shantou.
The section on Shantou starts at about 7:40 minutes in.
The following Tweet is startling. Dr. Feigl-Ding is from Harvard.
Make sure to watch the video we posted earlier for background on defining R0.
https://twitter.com/drericding/status/1220919589623803905?s=21
By Taleb’s pure definition, the Coronavirus is a true “Black Swan.”
The first cases of the pneumonia-like coronavirus were reported in Wuhan, China on Dec. 31, 2019. Since then, the virus has spread to various other countries, including Thailand, Japan, the Republic of Korea and the United States.
Wuhan is one of China’s “Motor Cities” and home to numerous auto plants supplying the world’s largest market for cars.
General Motors (GM), Nissan (NSANF), Renault (RNLSY), Honda (HMC) and Peugeot owner PSA Group (PUGOY) are among several companies that have large manufacturing plants in Wuhan — ground zero of the outbreak. GM partners with SAIC and Dongfeng Motor Corporation, one of the country’s largest auto groups, with their 6,000 employee facility in Wuhan making up about 10% of GM’s total workforce in China.
Renault sold nearly 180,000 vehicles in China last year, or about 5% of its global car sales. It manufactures its SUVs — the Kadjar and Koleos 2 models — at the Wuhan plant.
Honda’s Wuhan JV contributed about 11% to the group’s revenue for the year to March 2019 and accounted for the majority of its Asian automobile revenue. The company opened a third plant in Wuhan in April, according to a press release.
Global Macro Monitor 