Investors believe ‘this time it’s different’ — that worries billionaire investor Howard Marks

Howard Marks, Co-Chairman, Oaktree Capital. David A. Grogan | CNBCBillionaire investor and Oaktree Capital Management Co-Chairman Howard Marks is worried to hear investors say “this time it’s different” or openly wonder if the historic bull market and economic success “can only get better forever.” Here is the full list of hypotheses Marks scrutinized as written in his letter: There doesn’t have to be a recession. “The nine propositions reviewed above all represent variations on ‘things can only


Howard Marks, Co-Chairman, Oaktree Capital. David A. Grogan | CNBCBillionaire investor and Oaktree Capital Management Co-Chairman Howard Marks is worried to hear investors say “this time it’s different” or openly wonder if the historic bull market and economic success “can only get better forever.” Here is the full list of hypotheses Marks scrutinized as written in his letter: There doesn’t have to be a recession. “The nine propositions reviewed above all represent variations on ‘things can only
Investors believe ‘this time it’s different’ — that worries billionaire investor Howard Marks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: thomas franck
Keywords: news, cnbc, companies, believe, howard, marks, different, investor, worries, billionaire, oaktree, longer, capital, economic, recovery, worrisome, success, investors, lead, wrote


Investors believe 'this time it's different' — that worries billionaire investor Howard Marks

Howard Marks, Co-Chairman, Oaktree Capital. David A. Grogan | CNBC

Billionaire investor and Oaktree Capital Management Co-Chairman Howard Marks is worried to hear investors say “this time it’s different” or openly wonder if the historic bull market and economic success “can only get better forever.” In a 12-page letter sent to Oaktree clients on Wednesday, Marks questioned nine financial theories he’s heard in recent meetings, including the notion that central banks policy can lead to evergreen market success and that economic recessions can be consistently delayed. Here is the full list of hypotheses Marks scrutinized as written in his letter: There doesn’t have to be a recession. Continuous quantitative easing can lead to permanent prosperity. Federal deficits can grow substantially larger without becoming problematic. National debt isn’t worrisome. We can have economic strength without inflation. Interest rates can remain “lower for longer.” The inverted yield curve needn’t have negative implications. Companies and stocks can thrive even in the absence of profits. Growth investing can continue to outperform value investing in perpetuity. “The nine propositions reviewed above all represent variations on ‘things can only get better forever,'” Marks wrote. “If they’re the ideas guiding investors today, that should be considered worrisome.” Though it’s always difficult to predict the timing of an economic downturn, Marks said that he’s always been confident that a recession is on the horizon at some point.

“We’ve always had economic cycles, and I believe we always will,” he wrote. “Eventually, favorable developments will lead people to engage in behavior premised on excessively optimistic assumptions, and eventually the over-optimism of those assumptions will be exposed and the excesses will correct in a period of negative growth.” “Very soon, the current recovery is bound to become the longest in U.S. history,” he continued. “However, I believe the odds are that it’s closer to the end than the beginning. … The recovery is likely to go on longer, but perhaps not much longer.” Marks, known for his prescient investment calls, correctly warned about the 2008 financial crisis and the dot-com bubble implosion. Oaktree Capital had $119 billion of assets under management as of March. Marks has a net worth of $2.1 billion, according to Forbes.

Do we want the Fed preventing recessions?


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: thomas franck
Keywords: news, cnbc, companies, believe, howard, marks, different, investor, worries, billionaire, oaktree, longer, capital, economic, recovery, worrisome, success, investors, lead, wrote


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Protests against Kazakhstan’s presidential election lead to violence in the capital

Though that may seem a sweeping victory for Jomart-Tokayev, the transfer of office has spurred unrest in the country’s capital Nur-Sultan and largest city Almaty. About 500 protesters were arrested by police, the BBC reported, citing local officials. The demonstration, decrying what protests called a “dictatorship” in the country, is the largest Kazakhstan has seen in recent years. As protest is not tolerated in the country, the demonstration led to violence in the streets. A BBC correspondent i


Though that may seem a sweeping victory for Jomart-Tokayev, the transfer of office has spurred unrest in the country’s capital Nur-Sultan and largest city Almaty. About 500 protesters were arrested by police, the BBC reported, citing local officials. The demonstration, decrying what protests called a “dictatorship” in the country, is the largest Kazakhstan has seen in recent years. As protest is not tolerated in the country, the demonstration led to violence in the streets. A BBC correspondent i
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Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: grace shao
Keywords: news, cnbc, companies, nearly, protests, protest, violence, capital, reported, bbc, largest, election, country, kazakhstans, jomarttokayev, lead, demonstration, yearsas, presidential, nursultan


Protests against Kazakhstan's presidential election lead to violence in the capital

Kazakhstan’s first president, Nursultan Nazarbayev, has stepped down after a nearly three-decade-long tenure.

His successor, Kassym Jomart-Tokayev, confirmed his position after taking nearly 71% of the vote in Sunday’s election against six other government-approved candidates, according to Foreign Policy. His closest opposition candidate trailed behind with 16.2%.

Though that may seem a sweeping victory for Jomart-Tokayev, the transfer of office has spurred unrest in the country’s capital Nur-Sultan and largest city Almaty.

About 500 protesters were arrested by police, the BBC reported, citing local officials. The demonstration, decrying what protests called a “dictatorship” in the country, is the largest Kazakhstan has seen in recent years.

As protest is not tolerated in the country, the demonstration led to violence in the streets. A BBC correspondent in Nur-Sultan reported people being dragged onto buses by riot police. Many journalists were also detained covering the protest, while social media platforms such as Facebook and Telegram were reportedly inaccessible in the country during that time.


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: grace shao
Keywords: news, cnbc, companies, nearly, protests, protest, violence, capital, reported, bbc, largest, election, country, kazakhstans, jomarttokayev, lead, demonstration, yearsas, presidential, nursultan


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Forcing ‘America First’ on others will lead to ‘America Alone:’ Chinese state-run media

General Joseph Dunford (L), chairman of the US Joint Chiefs of Staff, and Chief of the General Staff of the Chinese People’s Liberation Army General Fang Fenghui shake hands after signing an agreement at the Bayi Building in Beijing on August 15, 2017. In the wake of the new Mexican tariffs, Chinese state-run media said the U.S. is “bullying others for its own interests” and will end up “alone” in the global trading system. “Washington has also become more accustomed to abusing its super power s


General Joseph Dunford (L), chairman of the US Joint Chiefs of Staff, and Chief of the General Staff of the Chinese People’s Liberation Army General Fang Fenghui shake hands after signing an agreement at the Bayi Building in Beijing on August 15, 2017. In the wake of the new Mexican tariffs, Chinese state-run media said the U.S. is “bullying others for its own interests” and will end up “alone” in the global trading system. “Washington has also become more accustomed to abusing its super power s
Forcing ‘America First’ on others will lead to ‘America Alone:’ Chinese state-run media Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: yun li
Keywords: news, cnbc, companies, staff, chinese, forcing, interests, lead, bullying, america, media, world, wants, xinhua, staterun, general


Forcing 'America First' on others will lead to 'America Alone:' Chinese state-run media

General Joseph Dunford (L), chairman of the US Joint Chiefs of Staff, and Chief of the General Staff of the Chinese People’s Liberation Army General Fang Fenghui shake hands after signing an agreement at the Bayi Building in Beijing on August 15, 2017.

In the wake of the new Mexican tariffs, Chinese state-run media said the U.S. is “bullying others for its own interests” and will end up “alone” in the global trading system.

“Washington has also become more accustomed to abusing its super power status and bullying others for its own interests … Living in a globalized world, every country needs to cooperate with others to survive and thrive. But no one wants a partner that is arrogant, domineering and capricious,” state-run news agency Xinhua said on Friday in a commentary titled “Forcing ‘America First’ on others will lead to ‘America Alone.'”


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: yun li
Keywords: news, cnbc, companies, staff, chinese, forcing, interests, lead, bullying, america, media, world, wants, xinhua, staterun, general


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Saudi Arabia to lead a trillion dollar MENA investment splurge

The group says planned investments account for the majority of the spending at $613 billion while committed investments cover the remainder. Oil remains key, but gas is risingThe power sector accounts for the largest share of total investments at $348 billion. Iraq is second behind Saudi Arabia for committed and planned investments, followed by Iran, Egypt and the United Arab Emirates (UAE). The Emirates is the only country in the GCC (Gulf Cooperation Council) with committed investments up year


The group says planned investments account for the majority of the spending at $613 billion while committed investments cover the remainder. Oil remains key, but gas is risingThe power sector accounts for the largest share of total investments at $348 billion. Iraq is second behind Saudi Arabia for committed and planned investments, followed by Iran, Egypt and the United Arab Emirates (UAE). The Emirates is the only country in the GCC (Gulf Cooperation Council) with committed investments up year
Saudi Arabia to lead a trillion dollar MENA investment splurge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: dan murphy
Keywords: news, cnbc, companies, planned, dollar, trillion, investments, investment, billion, countries, splurge, sector, saudi, committed, lead, mena, arabia, oil, power, energy


Saudi Arabia to lead a trillion dollar MENA investment splurge

The energy sector in the Middle East and North Africa will amass almost $1 trillion in investment over the next five years, as countries build out energy capabilities and pivot to renewables, according to new research.

The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank with around $7 billion in total assets, provides an annual estimate for both planned and committed investments for 2019 to 2023.

“We are seeing growth in the total amount of investments going into the energy sector,” Apicorp CEO Ahmed Attiga told CNBC’s “Capital Connection” on Wednesday.

The group says planned investments account for the majority of the spending at $613 billion while committed investments cover the remainder.

Oil remains key, but gas is rising

The power sector accounts for the largest share of total investments at $348 billion. Of that, there are $90 billion worth of projects currently under execution.

“The power sector is really showing tremendous growth, and this is a direct outcome of the countries of the region diversifying their energy mix and also trying to rely on renewables as a major source of energy,” Attiga said.

“Most of the countries of the region are determined now to implement an energy transition regardless of the volatility of oil prices,” he added.

The report said the case for switching from oil to gas and renewables remains strong in countries with sizeable gas reserves, such as Saudi Arabia and Iraq, or where the share of liquids in power generation remains significant.

Total investments in the gas sector will amount to $186 billion over the five years, it said, which includes $87 billion of committed investment. Despite that, the oil sector (upstream, midstream and refining) is still a key investment driver at $304 billion, of which committed investments account for a little under 50% or $138 billion.

Saudi Arabia takes regional center stage

Saudi Arabia has the largest committed and planned investments in the medium term, worth more than $140 billion, as it looks to make renewable and possibly nuclear energy a bigger component of its supply mix.

Iraq is second behind Saudi Arabia for committed and planned investments, followed by Iran, Egypt and the United Arab Emirates (UAE). The Emirates is the only country in the GCC (Gulf Cooperation Council) with committed investments up year-on-year, with upstream oil investments set to reach $20 billion.

Except for Lebanon, all net-importers in the region experienced year-on-year growth in their five-year investment outlook, with Jordan, Iraq and Tunisia witnessing the largest percentage increase.

Paying for energy investments

Despite the growing figures, the report said the rate of transition from planned to committed investments has been poor, due to renewed uncertainty about growth and oil prices.

That means non-government lead investments are rising, particularly in countries with weaker fiscal reserves or a higher share of power sector projects. “We are seeing the trend considerably increasing,” said Attiga.

“It’s no longer the governments that’s shouldering the bulk of these investments, but rather an increase in the role of the private sector, and we think this is a very good development,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: dan murphy
Keywords: news, cnbc, companies, planned, dollar, trillion, investments, investment, billion, countries, splurge, sector, saudi, committed, lead, mena, arabia, oil, power, energy


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Polls show Joe Biden entering the Democratic primary with a significant lead

In the Reuters survey, Sanders’ support fell to just 15%, nearly 10 points below Biden. One place where Biden’s support appears to weaken slightly is in the key Democratic early voting states of Iowa and New Hampshire. So far, the few national polls that have pitted Biden directly against Trump appear to support the theory that Biden presents a very serious challenge to the president’s reelection. A Politico/Morning Consult poll released Monday showed Biden leading Trump by eight points in a hyp


In the Reuters survey, Sanders’ support fell to just 15%, nearly 10 points below Biden. One place where Biden’s support appears to weaken slightly is in the key Democratic early voting states of Iowa and New Hampshire. So far, the few national polls that have pitted Biden directly against Trump appear to support the theory that Biden presents a very serious challenge to the president’s reelection. A Politico/Morning Consult poll released Monday showed Biden leading Trump by eight points in a hyp
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Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: christina wilkie, fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, polls, bidens, primary, support, biden, joe, voters, lead, democratic, entering, points, trump, poll, significant, sanders


Polls show Joe Biden entering the Democratic primary with a significant lead

“But the bigger question will be what happens when those voters start taking a closer look at him on the campaign trail. It’s a long way to Iowa and a lot can happen,” Murray said Tuesday in a statement announcing the poll results.

A large Reuters/Ipsos poll released Wednesday had similarly good news for Biden, with 24% of self-identified Democrats and independents saying they would back the former vice president over the other 19 declared and potential candidates Reuters included on the list.

Trailing immediately behind Biden in both the Monmouth and Reuters polls was Vermont Sen. Bernie Sanders, the candidate who likely has the most to lose from Biden’s entry into the race.

The Monmouth poll found support for Sanders at 20%. In the Reuters survey, Sanders’ support fell to just 15%, nearly 10 points below Biden.

Moreover, if Biden had chosen not to run, the percentage of Democrats who told Monmouth they would back Sanders as their preferred nominee would have shot up to 27%. That would have put Sanders 16 points ahead of his nearest rival, South Bend, Indiana, Mayor Pete Buttigieg, whose unexpected surge in the polls has caught the national Democratic establishment by surprise.

One place where Biden’s support appears to weaken slightly is in the key Democratic early voting states of Iowa and New Hampshire.

According to Real Clear Politics, which averages polling results, Biden leads Sanders in Iowa by an average of four points, a notably smaller gap than the seven and nine points by which Biden led Sanders in the two bigger national polls released this week. In New Hampshire, next door to Sanders’ home state of Vermont, Sanders has a slight advantage over Biden of 2.5 points, according to RCP’s average of recent polls.

Biden is expected to release a video Thursday morning announcing his official entry into the race. He is also expected to stake out positions that are more centrist than those of his Democratic primary rivals.

A big part of Biden’s pitch to Democratic primary voters is likely to be that he is uniquely positioned to win back large swaths of moderate Democrats who broke for Donald Trump in 2016. These voters helped the president to capture traditionally Democratic-leaning swing states such as Pennsylvania and Michigan.

So far, the few national polls that have pitted Biden directly against Trump appear to support the theory that Biden presents a very serious challenge to the president’s reelection. A Politico/Morning Consult poll released Monday showed Biden leading Trump by eight points in a hypothetical 2020 general election matchup.

This comports with the way many of Biden’s longtime supporters view the 2020 presidential race. “If we’re going to be pragmatic about this as a party, there’s only one person who can beat Donald Trump,” Democratic South Carolina state Sen. Dick Harpootlian recently told The Washington Post. Biden, he said, “can go toe-to-toe with [Trump] in states like Pennsylvania, Michigan, Ohio, and Wisconsin and take it to him on his own terms.”


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: christina wilkie, fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, polls, bidens, primary, support, biden, joe, voters, lead, democratic, entering, points, trump, poll, significant, sanders


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An emerging crisis in China could give US the upper hand in trade talks

“We are not sure if the market appreciates how a worsening epidemic of African swine fever for China’s massive pig population could further force China’s hand on a broader trade war compromise,” Gilardi said. The only commodity outperforming lean hogs is RBOB gasoline, which is up about 60% year to date. U.S. and Chinese officials have indicated recently that both sides are coming close to a trade deal. Earlier this month, Chinese Vice Premier Liu He said a new consensus has been reached in the


“We are not sure if the market appreciates how a worsening epidemic of African swine fever for China’s massive pig population could further force China’s hand on a broader trade war compromise,” Gilardi said. The only commodity outperforming lean hogs is RBOB gasoline, which is up about 60% year to date. U.S. and Chinese officials have indicated recently that both sides are coming close to a trade deal. Earlier this month, Chinese Vice Premier Liu He said a new consensus has been reached in the
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Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: fred imbert
Keywords: news, cnbc, companies, lead, gilardi, chinese, hand, war, pressure, upper, negotiations, crisis, pork, swine, trade, talks, emerging, chinas, china


An emerging crisis in China could give US the upper hand in trade talks

This could lead to even higher hog prices, which are already putting pressure on the Chinese consumer and could force China to make concessions in its negotiations with the U.S., analyst Ross Gilardi wrote in a note to clients.

“We are not sure if the market appreciates how a worsening epidemic of African swine fever for China’s massive pig population could further force China’s hand on a broader trade war compromise,” Gilardi said. “The growing threat is rampant pork price inflation for the masses, which puts more pressure on China to lift 62% import tariffs on US pork even though US pork imports are already up sharply versus pre-trade war levels.”

Lean-hog futures have rallied 52.4% this year and are among the best-performing commodities of 2019. The only commodity outperforming lean hogs is RBOB gasoline, which is up about 60% year to date. Meanwhile, the S&P 500 is only up about 16.4% this year.

U.S. and Chinese officials have indicated recently that both sides are coming close to a trade deal. Earlier this month, Chinese Vice Premier Liu He said a new consensus has been reached in the negotiations, according to China’s state news website Xinhua. In March, Treasury Secretary Steven Mnuchin said the two countries had “constructive” trade talks.

Still, the African swine flu crisis is “seemingly weakening” China’s hand and “could also lead it to relax US soybean restrictions, which would be helpful to the US farmer, and be good for equipment demand,” Gilardi said.

—CNBC’s Michael Bloom contributed to this report.

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Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: fred imbert
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Trump’s NAFTA changes would lead to modest boost in growth and jobs, report says

The report comes as President Donald Trump pushes Congress to ratify the revised trade deal despite reservations from both Democrats and Republicans. Even some Republicans in Congress have called the USMCA more of a tweak to NAFTA than a major overhaul. A separate report from the U.S. Trade Representative, part of the executive branch, projected the deal would have bigger effects on the auto industry specifically. While the ITC estimated 28,000 job gains in the auto sector, the USTR thinks the t


The report comes as President Donald Trump pushes Congress to ratify the revised trade deal despite reservations from both Democrats and Republicans. Even some Republicans in Congress have called the USMCA more of a tweak to NAFTA than a major overhaul. A separate report from the U.S. Trade Representative, part of the executive branch, projected the deal would have bigger effects on the auto industry specifically. While the ITC estimated 28,000 job gains in the auto sector, the USTR thinks the t
Trump’s NAFTA changes would lead to modest boost in growth and jobs, report says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: jacob pramuk, chris kleponis, pool, getty images
Keywords: news, cnbc, companies, jobs, nafta, changes, deal, auto, growth, modest, itc, trump, lead, trade, trumps, congress, revised, boost, report


Trump's NAFTA changes would lead to modest boost in growth and jobs, report says

The report comes as President Donald Trump pushes Congress to ratify the revised trade deal despite reservations from both Democrats and Republicans. The president has spent his time in office trying to rework trade relationships with major partners, saying changes such as the ones made to NAFTA will encourage American manufacturing and job creation in the U.S.

While the ITC study shows the deal would have positive benefits for jobs and economic growth, it underscores that the deal is hardly the “largest” trade agreement ever as Trump has boasted. Even some Republicans in Congress have called the USMCA more of a tweak to NAFTA than a major overhaul.

“The miniscule projected gains in this long-awaited official government assessment of the revised NAFTA contradict Donald Trump’s grandiose claims that it will lead to ‘cash and jobs pouring into the U.S.’ and reinforces congressional Democrats’ views that absent more improvements, the revised deal won’t stop NAFTA’s ongoing damage,” Lori Wallach, director of Public Citizen’s Global Trade Watch, said in a statement to CNBC.

A separate report from the U.S. Trade Representative, part of the executive branch, projected the deal would have bigger effects on the auto industry specifically. While the ITC estimated 28,000 job gains in the auto sector, the USTR thinks the trade deal would create 76,000 auto jobs in the next five years, a roughly 7.5 percent increase for the industry.

Some industries cheered the ITC report — both the National Association of Manufacturers and the Computer & Communications Industry Association encouraged Congress to approve USMCA following its release.

Democrats — who hold the House and the power to slow ratification of the deal — have raised concerns about labor and environmental provisions contained in the deal. Some GOP lawmakers have also pushed Trump to drop tariffs on steel and aluminum imports from Canada and Mexico before moving forward with the agreement.

The deal would not come without its downsides for consumers. Under the provisions of the agreement, auto costs would rise and sales would fall, the ITC estimated.

— CNBC’s Mary Catherine Wellons contributed to this report

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Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: jacob pramuk, chris kleponis, pool, getty images
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Cramer: Overvalued stocks like Pinterest, Zoom could lead to a market peak

The debuts of Pinterest and Zoom Video Communications on public markets also came with froth, which could lead to a market peak, CNBC’s Jim Cramer said Thursday. On the Nasdaq Composite, Zoom is trading even higher — 46-times fiscal 2019 sales, not earnings, Cramer said. Cramer rehashed his argument that an oversupply of high-priced stocks could put a dagger in the longest bull run in stock market history. “The lack of an effective lock-up crushed buyers, and I had hoped would quell enthusiasm f


The debuts of Pinterest and Zoom Video Communications on public markets also came with froth, which could lead to a market peak, CNBC’s Jim Cramer said Thursday. On the Nasdaq Composite, Zoom is trading even higher — 46-times fiscal 2019 sales, not earnings, Cramer said. Cramer rehashed his argument that an oversupply of high-priced stocks could put a dagger in the longest bull run in stock market history. “The lack of an effective lock-up crushed buyers, and I had hoped would quell enthusiasm f
Cramer: Overvalued stocks like Pinterest, Zoom could lead to a market peak Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: tyler clifford
Keywords: news, cnbc, companies, overvalued, zoom, peak, sales, stocks, stock, trading, lead, money, pinterest, deals, market, cramer


Cramer: Overvalued stocks like Pinterest, Zoom could lead to a market peak

The debuts of Pinterest and Zoom Video Communications on public markets also came with froth, which could lead to a market peak, CNBC’s Jim Cramer said Thursday.

Froth is a trading environment that usually precedes a market bubble.

“The top of the market always comes when there is tremendous euphoria, and today we saw that euphoria in the two deals that went off hot,” the “Mad Money” host said.

After a $19 IPO, Pinterest closed its first day of trading at $24.40 — more than a 28% gain. Zoom originally priced its shares at $36. It settled at $62 at the end of the day — a more than 72% run.

Pinterest is selling at 21-times 2018 sales, not earnings, on the New York Stock Exchange. On the Nasdaq Composite, Zoom is trading even higher — 46-times fiscal 2019 sales, not earnings, Cramer said.

The host said he likes the prospects that each of these companies have, but the stock prices could be running in worrisome territory.

“Now that investors or traders or flippers are beginning to pay outrageous multiples to sales, not earnings, but sales, beware,” he said. “That’s a train that is headed to overvaluation hell and you will have to jump off it before it crashes.”

Cramer rehashed his argument that an oversupply of high-priced stocks could put a dagger in the longest bull run in stock market history. Lyft’s IPO bust, he said, was powered in part by the shareholders that were allowed to sell the stock instead of adhering to a lock-up period that could have ranged from 90-180 days.

“The lack of an effective lock-up crushed buyers, and I had hoped would quell enthusiasm for further deals,” Cramer said. “That, however after today, is clearly not the case. So we are going to bring a whole new class of unseasoned investor[s] into this market who are gaming the IPOs and that kind of investor usually arrives after the easy money is made.”

Cramer also said he’s concerned that there isn’t enough money available in growth-focused mutual funds to buy into the IPOs that are in the pipeline. The majority of new money being invested in the market has gone toward index funds, he pointed out.

“That means they can’t be buyers as these new stocks of courses aren’t in indices,” he said. “What will happen is growth funds will have to sell some of their holdings in order to buy these new holdings and, by the way, that happened all morning today.”

Furthermore, there has been a limited amount of supply on Wall Street, which means “there isn’t a lot of excess stock flying around,” Cramer said. Buyback programs have also shrank the volume of stocks available to trade, which could be counterproductive because stocks have rallied so much this year, he added.

That could create dangerous investing scenarios for the anticipated deals in Slack, Uber, and Palantir, he said.

“If you heard about the first-day gains in stocks like Pinterest and Zoom and you haven’t been in the racket, you are going to go to the gaming tables and hope to get some stock on the next deals,” Cramer said. “I am talking about the worst kinds of holders. Holders that are your enemy if you are in a stock that they dominate.”

There’s no need to panic yet — Thursday was just day one, he said.

“As these deals flood the market though, you will see across the board pressure as existing stocks are liquidated to buy the new ones,” Cramer said. “Selling cheap to fund expensive, like Pinterest, like Zoom, is a loser’s game, but may will end up playing it.”


Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: tyler clifford
Keywords: news, cnbc, companies, overvalued, zoom, peak, sales, stocks, stock, trading, lead, money, pinterest, deals, market, cramer


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‘Shark Tank’: Why Mark Cuban invested six figures in this water filter

The companies that appear on ABC’s “Shark Tank” often solve quirky problems like keeping beer cold or solving under-breast sweat. That got him thinking: Different cities have different contaminants in their water, so why were water filter companies creating one-size-fits-all systems? The average sale price for the filter, Roy says on the show, is $190, with a filter lasting six months. Don’t miss: ‘Shark Tank’: Mark Cuban invested $100,000 in this invention that turns a pickup truck bed into a p


The companies that appear on ABC’s “Shark Tank” often solve quirky problems like keeping beer cold or solving under-breast sweat. That got him thinking: Different cities have different contaminants in their water, so why were water filter companies creating one-size-fits-all systems? The average sale price for the filter, Roy says on the show, is $190, with a filter lasting six months. Don’t miss: ‘Shark Tank’: Mark Cuban invested $100,000 in this invention that turns a pickup truck bed into a p
‘Shark Tank’: Why Mark Cuban invested six figures in this water filter Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: sarah berger, source
Keywords: news, cnbc, companies, lead, shark, cuban, water, roy, tank, mark, marketing, company, filter, invested, thinks, figures


'Shark Tank': Why Mark Cuban invested six figures in this water filter

The companies that appear on ABC’s “Shark Tank” often solve quirky problems like keeping beer cold or solving under-breast sweat. But some are in the business of tackling bigger issues, like helping provide access to clean drinking water. That was the case for Eric Roy, a PhD and chemist who pitched his customized water filters on Sunday’s episode, ultimately scoring a six-figure deal with Mark Cuban.

“The response to the segment has been overwhelmingly positive. The experience on the show was amazing. The ability to get feedback from the Sharks (positive and constructive) is something that we’ll take to heart as we move the company forward,” Roy tells CNBC Make It of his experience on the show.

The idea for Roy’s company, Hydroviv, and its customized water filtration system, was sparked by the water crisis in Flint, Michigan, during which thousands of children were exposed to lead-contaminated water. At the time, Roy was working on technology for the Department of Defense.

“I set up in my studio apartment in Washington, D.C. and just started building high-capacity lead removal filters and donating them to people in child-centric organizations in Flint,” he explains on the show.

That got him thinking: Different cities have different contaminants in their water, so why were water filter companies creating one-size-fits-all systems? Roy set about creating something different — an under-the-sink water filter that is customized to each customer’s needs.

Hydroviv researches water quality data for each customer’s area and then builds a water filter system to match, whether that requires removal of lead or of arsenic or other myriad of things. The average sale price for the filter, Roy says on the show, is $190, with a filter lasting six months. Customers can then subscribe to receive replacement cartridges for $55.

While Roy says lead and arsenic levels in drinking water are a problem in many areas of the United States, guest judge Rohan Oza says he thinks it will be hard to build enough awareness around the issue, so he’s out.

Roy — who is seeking a $400,000 investment in exchange for 10 percent of his company — explains he wants to use the money from the deal to hire marketing and advertising specialists. Lori Greiner says she also thinks the marketing is too complicated.

“Your product is not a water filter. Your product is trust,” Mark Cuban chimes in, adding he doesn’t think that Roy needs a marketing person to sell it. In fact, he thinks Roy should get out there himself.

“We want to get you out there,” Cuban says. “We want to get you scaring the hell out of people, and getting you on the shows and just saying, ‘I’m here to answer all of your questions.’ That’s what I used to do with technology. I never spent a nickel on advertising.”

Cuban adds that he likes businesses that do good and offers $400,000 for 20 percent of the company, which Roy eventually accepts.

Don’t miss: ‘Shark Tank’: Mark Cuban invested $100,000 in this invention that turns a pickup truck bed into a pool

Like this story? Subscribe to CNBC Make It on YouTube!

Disclosure: CNBC owns the exclusive off-network cable rights to ABC’s “Shark Tank.”


Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: sarah berger, source
Keywords: news, cnbc, companies, lead, shark, cuban, water, roy, tank, mark, marketing, company, filter, invested, thinks, figures


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Killer hog disease now a ‘dire situation’ in China that could lead to higher global prices

As African swine fever continues to ravage China’s hog herd, the impact may be far worse than Beijing is conceding. The government official also was quoted by state media as insisting the production of live pigs and pork supplies is generally stable. According to Shanghai-based consultant JCI, China’s pork production is forecast to fall nearly 16%, or 8.5 million metric tons in 2019. China is believed to have a large reserve of pork supplies and significant supplies in cold storage. “The consens


As African swine fever continues to ravage China’s hog herd, the impact may be far worse than Beijing is conceding. The government official also was quoted by state media as insisting the production of live pigs and pork supplies is generally stable. According to Shanghai-based consultant JCI, China’s pork production is forecast to fall nearly 16%, or 8.5 million metric tons in 2019. China is believed to have a large reserve of pork supplies and significant supplies in cold storage. “The consens
Killer hog disease now a ‘dire situation’ in China that could lead to higher global prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: jeff daniels, christilaliberte, getty images
Keywords: news, cnbc, companies, global, million, pork, higher, supplies, situation, swine, disease, china, meat, dire, fever, killer, lead, chinas, hog, prices, production


Killer hog disease now a 'dire situation' in China that could lead to higher global prices

As African swine fever continues to ravage China’s hog herd, the impact may be far worse than Beijing is conceding. The crisis could lead to significant shortages of the country’s staple meat and drive up global prices of protein, experts said. The situation also increasing fear among U.S. pork producers of spreading contagion.

The June lean hog futures contract on the Chicago Mercantile Exchange is up more than 50% in the past month as speculators wager that China’s outbreak and apparent progress in U.S.-China trade talks will increase U.S. pork demand. China consumes about 28% of the world’s meat, including 49% of pork, so it’s a significant factor in the world market.

“Assuming China’s tariffs on U.S. pork are reduced in the not-so-distant future, U.S. pork exports could pick up considerably,” according to David Maloni, executive vice president of analytics at ArrowStream, a Chicago commodity researcher for the restaurant industry. He also wrote in a newsletter Tuesday, “Longer term we are concerned that U.S. chicken and beef exports could rise as well.”

On Tuesday, China’s agricultural minister said African swine fever is now “under effective control” and the number of cases is slowing down. The government official also was quoted by state media as insisting the production of live pigs and pork supplies is generally stable.

But not everyone agrees with that assessment and some suggest Beijing maybe under reporting the severity of the killer disease’s impact on pork supplies, to save face or perhaps maintain a position of strength during negotiations to resolve the U.S.-China trade war.

“What our people there in China find is a far different story where the disease is continuing to spread,” said Arlan Suderman, chief commodities economist with INTL FCStone in Kansas City, Mo. “China just doesn’t want the rest of the world to know what the situation is.”

The economist termed it “a very dire situation” and estimates hog feeding in China has fallen at least 40% and in some larger swine producing regions plummeted more than 50% in response to the disease. He said the decline is directly attributable to infected pigs dying and producers afraid of the disease and liquidating herds to salvage some value.

“If we’re down 40%, that would mean on an annualized basis that they’ve lost more pork production capacity than what we produce in all of North and South America together on an annual basis,” said Suderman.

At least 122 cases of African swine fever have been reported in China in both its domestic pigs and wild boars since the first case was confirmed last August and the incurable disease has spread to other parts of Asia, including Vietnam where it accounts for about three-quarters of the total meat diet.

There is fear the highly contagious and deadly virus could spread beyond Asia and reach the U.S.

On Wednesday, the National Pork Producers Council announced it would cancel its 2019 World Pork Expo in Des Moines “out of an abundance of caution” given the current situation. The annual event in Iowa usually draws about 30,000 people and includes hundreds of pigs for judging contests.

The U.S. government recently announced increased measures to prevent the disease from entering the domestic livestock supply, including a renewed focus on “strict on-farm biosecurity” measures and other steps.

In Beijing, meantime, the government has indicated the number of hogs culled to help prevent the spread of African swine fever is about one million, or a fraction of the China’s roughly 700 million pigs.

Regardless, Suderman estimates China will ramp up poultry production about 8% to try to offset some of the lost pork supplies but still be left with a net deficit of about 16.2 million metric tons of meat that they will need to get from suppliers on the world market to maintain their current food supply. To put it in perspective, that is about six times the amount of pork the U.S. exported in 2018 to all markets.

Another estimate from a report recently published by a Chinese agriculture consulting firm shows the deficit in pork supplies will be less than half of the amount projected by INTL FCStone.

According to Shanghai-based consultant JCI, China’s pork production is forecast to fall nearly 16%, or 8.5 million metric tons in 2019. The Chinese firm sees a “pork supply-demand gap” of as much as 7 million metric tons this year, even compensating for other proteins such as chicken, beef and fish.

China is believed to have a large reserve of pork supplies and significant supplies in cold storage. Still, Suderman said the Chinese could start seeing product shortages in final quarter of 2019 and “a more significant problem in 2020.”

Last year, China slapped retaliatory tariffs on American pork that resulted in the import taxes of about 70%, or about five times higher than other major global suppliers such as the European Union, Brazil and Canada.

“Right now it’s hard to say how much China’s need for imports will increase due to African swine fever,” said Joe Schuele, a spokesperson with the U.S. Meat Export Federation, a trade group. “The consensus is that it will, but we’re not sure to what degree it will affect China’s production.”


Company: cnbc, Activity: cnbc, Date: 2019-04-10  Authors: jeff daniels, christilaliberte, getty images
Keywords: news, cnbc, companies, global, million, pork, higher, supplies, situation, swine, disease, china, meat, dire, fever, killer, lead, chinas, hog, prices, production


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