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Blue Chip

Good news for at least one airline

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High oil prices and lousy weather… were no problem for Delta Air Lines. Much to everyone’s delight, the airline overcame these obstacles by hiking fares. And, somehow, the company managed to sell more seats on its plane in the third quarter.

 

But can you blame them… because airline fuel cost the airline $655 million more compared to the same quarter last year. Fuel prices were up 37% and to add to that, Hurricane Florence cost the company another $30 million. Despite these obstacles, Delta’s profit was up $127 million for the quarter.

 

The details on how they did it… passengers paid an average of 4% more to fly per mile. The increase alone gave sales an $892 million bump which more than covered the fuel costs. Delta is the first airline to report its third-quarter earnings, and the result is a good one for investors (but not so much for passengers).

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Fang

What to do about these crazy tech stocks…

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You may want to… part ways with the popular Facebook stock sooner than later. The company has been scrambling, and spending, to fix its past privacy and security mistakes which are coming at the expense of growth. Additionally, most tech stocks have shown vulnerability lately as interest rates continue to rise.

 

For nine long years… tech has been leading the charge for the broader market. Investors have been throwing money at companies that make little or no profit. But if we can’t blindly throw money at tech stocks, what do we do now!?

 

Maybe consider a new strategy… such as investing in value stocks that pay dividends. Many investors have been taking this approach and investing in health care, consumer staples, and utilities – things we can’t live without. However, this isn’t to say that tech stocks are through – they may very well be your best bet – but maybe have a backup plan. Or calm the hell down and buy-and-hold your stocks like a good little investor.

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Blue Chip

eBay is taking Amazon to court!

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If you can’t beat ‘em… you should sue ‘em. eBay is filing a lawsuit against Amazon alleging that the company fraudulently led high-value sellers away by using an internal messaging system called M2M. eBay also stated the Amazon is “unwilling to fairly compete for third-party seller business.” In a nutshell, Amazon is [allegedly] a big cheater!!

 

Here’s how they got caught… eBay monitors its messaging system for unauthorized use. However, eBay only caught Amazon a few weeks ago when a seller informed the company about the Amazon reps. From there, eBay discovered messages from a “large number” of Amazon representatives.

 

eBay also emphasized… that their company is a “pure open marketplace” that doesn’t compete against its sellers. Amazon can’t claim the same thing because they make their own products that compete directly with other sellers; but something is making customers switch over to the dark side. Maybe it’s the two-day shipping?

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Miscellaneous

Is it possible that MoviePass lied about finances???

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We haven’t heard from these guys… in quite a while. And by “these guys” we mean MoviePass, of course. The New York attorney general is investigating the parent company, Helios and Matheson, of MoviePass for possibly having misled investors about company finances.

 

If they were misleading us… they weren’t doing a good job because all we can recall is MoviePass constantly almost running out of money. The company had outages due to cash shortages and continued to see its stock price drop.

 

A far cry from… last October when MoviePass was trading for $39 per share! Today, the stock is trading at 2 cents per share after a 250 to 1 reverse split. Stockholders have also filed two federal class-action complaints against Helios and Matheson stating that the company made “materially false or misleading” statements. Looks like another company is ready to bite the dust..

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