Sanebull


Blue Chip

You’ll never guess where Netflix is going next

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Netflix is buying a production studio… and that studio will be located in Albuquerque, New Mexico, of all places. At any rate, the company just announced that they are in the final stages of purchasing ABQ Studios. This is particularly exciting news because this is Netflix first purchase of a production studio!

 

Netflix is all about the original series… so this move seemed to be inevitable. As a matter of fact, Netflix will be spending $8 billion on original content this year alone. And the following original shows created by Netflix will be calling ABQ Studios home: Chambers, Messiah, and Daybreak.

 

Good news for Netflix… but even better new for Albuquerque. The city will see up to $1 billion in production over the next ten years while creating an additional 1,000 jobs per year. The city’s mayor and governor are calling this move and “economic win” for Albuquerque. And now that Netflix has their own studio, we’re expecting even better shows. Get your popcorn ready!

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Mid caps

Why does Best Buy care about the elderly?

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Don’t forget about the old people… because Best Buy certainly hasn’t. The electronics retailer announced its plan to buy GreatCall for $800 million. Who is GreatCall? They are the company that makes Jitterbug cell phones – you know, the ones with the large buttons and bright screens. GreatCall also makes medical alert devices that detect falls (but don’t confuse them Life Alert).

 

Here’s why this is a good move… because the health and eldercare markets are bound to explode with all of these soon-to-be geriatrics walking around. In fact, GreatCall has nearly 1 million subscribers and $300 million in annual sales. GreatCall products come with medicine reminders, fitness trackers, health tips, and personal operators to help with daily tasks.

 

As much as old people resist technology… it could help them live independently for longer. And Best Buy believes this trend is something others have entirely ignored. The company even launched Assured Living, a home monitoring system that allows caregivers to track a person’s day. Cheers to keeping mom and dad out of the nursing home for a little while longer…

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Miscellaneous

Is it ‘goodnight’ for Mattress Firm?!

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We don’t test products… we let other people buy them, and then we read their reviews on the internet. This makes online reviews one reason why Mattress Firm is filing for bankruptcy – because no one wants to drive to the store to lie down on a mattress. However, the company isn’t going anywhere – not yet, anyway.

 

Here’s the plan… the company has filed for Chapter 11 bankruptcy that will get them out of about 700 bad leases. Mattress Firm will close 200 of those stores and is debating on what to do with the other 500. Still, that figure represents only a fraction of the company’s 3,300 locations in the United States.

 

Too many stores… because Mattress Firm acquired Sleepy’s in 2016 and Mattress Giant in 2012. Now, there’s a freakin’ mattress store on every corner (which we don’t need). Having so many locations is not a great look, especially considering Casper and Amazon are killing it online (where all the action is at) and looking to expand a little into brick-and-mortar. But we will see in the coming months if the one-time mattress behemoth can wake up and smell the coffee!

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Miscellaneous

Here’s where we separate the BULLS from the BEARS

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Despite the booming economy… three long-running companies are getting left behind. Those companies are General Motors, General Mills, and General Electric. General Motors has lost $1.5B in market value since 2010. General Mills isn’t selling much of anything. And General Electric hasn’t had a smaller market cap since the Great Recession.

 

General Mills has been getting killed… by changes in American preferences for healthy breakfast alternatives. General Motors profit has been going nowhere since its IPO in 2010, and now the company is facing rising costs for steel and aluminum.

 

And as for GE… the company is having difficulty recovering from years of bad deals and a mountain of debt. The company has lost nearly $500B in market share over the last 18 years. It just goes to show that even the most iconic companies are fair game for disruption and hardship in the markets they once dominated. It’s time for a change or to suffer the consequences!

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Blue Chip

Apple and Samsung are bitter rivals, right?

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Believe it or not… Apple and Samsung are ‘frenemies,’ so to speak, in the never-ending smartphone battle. However, such a relationship has proved to be a profitable one as far as both parties are concerned. And now, the South Korean electronics maker is expecting to make as much as $15.6B in operating profit from June to September from its business with Apple.

 

Here’s how Samsung help Apple… Samsung provides the flexible screens that Apple is using in its new iPhones. In fact, Apple is one of Samsung’s largest customers in this space, accounting for 25-30% of display division sales. The display division itself accounts for about 10% of Samsung’s total sales.

 

Despite these sales… analysts are expecting Samsung to report disappointing smartphone sales. Competition from companies like Apple is putting pressure on the world’s largest smartphone maker to remain competitive in the high-end market. Hm, maybe this relationship is more one-sided than we thought?

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Blue Chip

Ford is cutting back

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Ford is cutting jobs… and the company is planning to overhaul its entire business. In fact, the automaker plans to reorganize its global salaried workforce. The big picture of these job cuts, unsurprisingly, is to cut costs and restructure for the future.

 

Where Ford is cutting… depends on the team and location. The second largest automaker in the US declined to comment on which jobs are going or when they will be going. However, the company currently employs around 200,000 people around the globe, and 70,000 of those are salaried workers (so take your best guess).

 

Tough times ahead… because in July, the company lowered its earnings guidance for the rest of the year. Ford cited slow sales in Europe and Asia for the lowered guidance but maintained that sales in North America are doing well. Shares of the company are down 26% on the year and were down slightly upon the announcement.

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Mid caps

Barnes & Noble stock is finally up!

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Here’s what it took… it took the company’s board announcing that they would consider selling the bookstore. In fact, the board just appointed a special committee to review offers. Shares of Barnes & Noble were up 20% on the announcement.

 

This sale proves to be… the latest twist in the long-running bookstore’s tumultuous recent memory. The company is currently looking for a new CEO which marks the fifth one in five years. And if you recall, the latest former CEO is suing his former employer in federal court for defamation and firing without cause. Good times…

 

As for now… Barnes & Noble still has over 600 stores and 23,000 employees; but sales for the company have been declining for four straight years. Additionally, attempts to win back shoppers have been falling flat, to put it mildly. And to complicate things further, local and independent bookstores (not large chains) are all the rage these days. Yeah, we think it’s time to sell.

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Miscellaneous

We can’t afford affordable healthcare

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Health insurance is expensive… but how expensive? Try $20,000 for family health insurance coverage in 2018 expensive. That figure marks a 55% increase since 2008 which outpaces workers wage growth by double. However, one thing to be grateful for is that your employer pays for most of it – spending $14,100 on average. But we workers still pay around $5,500, as well.

 

Employers are trying… to make things cheaper, but that usually involves higher deductibles. But really, people are going to be pissed either way. 85% of workers are already subject to deductibles so the increased deductible will likely be very unwelcomed.

 

Other ways employers are “trying” include… limiting networks to high-quality providers which could lower costs. Other companies are offering coverage for telemedicine visits with providers. However, employees are also not too fond of the idea – only 0.51% in those plans reported using a telemedicine visit. It looks like it’s back to the drawing board for our healthcare system…

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Hustlin'

Toys ‘R’ Us is comin’ back, baby!

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As you know… Toys ‘R’ Us closed all United States locations in June as part of a bankruptcy liquidation. However, the owners of the company’s remaining assets are looking to re-start the once-thriving toy retailer along with the Babies ‘R’ Us brand. Up to this point, the names were on the chopping block to be auctioned off to someone else.

 

There was plenty of interest… in the auction, but that doesn’t mean the store would be restored to its old glory. Instead, some evil company looking to destroy the remnants of your childhood would buy the name to ensure it would never be used by a competitor ever again. However, today marks encouraging news for the brand to come back.

 

They filed for bankruptcy… just a year ago and had plans to reorganize the business and pay off debt. However, a less-than-merry holiday season forced the company to close its remaining 800 US stores and go out of business. But now there are plans to create “a new, operating Toys ‘R’ Us and Babies ‘R’ Us branding company.” And if this doesn’t brighten your day, then there is something wrong with you.

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Mid caps

GM and Honda: Two bitter rivals join forces

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GM and Cruise… have been working diligently on self-driving versions of the Chevrolet Bolt EV electric car and are planning to deploy them for public use in 2019. And now, Honda has decided to join the party. With Honda’s investment of around $2 billion over 12 years, Cruise will build a vehicle we have never seen before!

 

This car… won’t have any controls – because you won’t need them (you know, until you do need them – then you’ll really need them). However, this vehicle will be “free from constraints of vehicle design and having a driver at the wheel.” There is currently no timeline for when exactly these bad boys will hit the road, but safety is [obviously] imperative.

 

Honda and GM… go way back. The companies have been working on electric car battery technology and hydrogen fuel cells which can extract energy electricity from hydrogen (whatever that means). GM stock went up 2% on Wednesday with the news.

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