According to Wikipedia, dynamic scoring is a forecasting technique for government revenues, expenditures, and budget deficits that incorporates predictions about the behavior of people and organizations based on changes in fiscal policy. A dynamic scoring model may include expectations as the population adapts to the new policy. Alternatively, static scoring makes simpler assumptions regarding behavior … Continued
The importance of corporate governance and shareholder rights has recently made headlines with the implosion of the proposed initial public offering (IPO) of WeWork. We discussed this issue in our blog, “Corporate Governance/Shareholder Rights,” posted 15 Mar 2017. It is evident that investors have now become somewhat more discriminating in evaluating potential IPOs. While governance … Continued
“You Need to Calm Down” is the title of a recently released song by singer-songwriter Taylor Swift. While this is probably good advice for all of us, it is particularly appropriate for investors. With a constant drum beat of conflicting investing and political commentary, markets tend to be subject to frequent, short-term, and often ill-advised, … Continued
With the October 31 deadline for a Brexit withdrawal rapidly approaching, it is increasingly clear that there is no political consensus for the terms under which the United Kingdom would exit from the European Union. It has been suggested that, while 52% of British citizens voted in favor of Brexit in June 2016, increasing awareness … Continued
“Flygskam” is Swedish for “flight shame,” a rising headwind for the airline industry that is particularly strong in Sweden and Scandinavia. Climate studies show that airlines are a major factor in the increase in greenhouse gases. A European Commission study noted that someone flying from Europe to New York, and back, generates roughly the same … Continued
The global auto industry is scrambling to meet carbon-emission mandates and, currently, EVs appear to be the solution of choice. Unfortunately, advances in battery technology and cost are not cooperating. Cutting the cost of batteries is probably the industry’s most urgent challenge. Batteries are estimated to account for 35%-45% of EV total costs. Unless EV … Continued
In light of British Prime Minister Boris Johnson’s move to suspend Parliament for several weeks, it might be helpful for investors to review our blog of 30 Apr 2019; Understanding Brexit. Understanding Brexit In Great Britain you can bet on almost anything through authorized bookmakers. Currently, the odds on Brexit happening are now, for the … Continued
Beta testing is generally defined as external pilot-testing of a product before commercial quantity production. At the beta test stage, the product has already passed through first-level, internal pilot-testing (alpha testing) and glaring defects have been addressed. Beta testing puts a new product through “real world” testing by selected customers under normal, everyday conditions. Investors … Continued
Matt Krantz, in an article recently published in the Investor’s Business Daily, pointed out that six companies that commanded market values of more than $1 billion at the start of the decade (12/31/2009), were now penny stocks. Without attempting to analyze the underlying fundamentals of each of the companies in question, (J.C. Penney, Frontier Communications, … Continued
One of the few things that investors can absolutely count on is that there will be a next recession. Currently, recession talk has completely taken over the discussion on Wall Street and CNBC. Economists and other prognosticators seem to be constantly competing with each other to be the first to predict the next downturn in … Continued
Near record unemployment rates and an increase in help wanted signs would suggest that there is a labor shortage. If this is the case, we should be seeing the signs of a tight labor market, with wage growth and inflationary pressures. Surprisingly, wage growth has been modest and inflation has been relatively benign. What is … Continued
According to Wikipedia, survival of the fittest is a phrase that originated from Darwin’s evolutionary theory as a way of describing the mechanism of natural selection. In the corporate world, perhaps an appropriate corollary would be, survival of the lowest costs, and the probable fate of high cost producers as an industry develops excess capacity. … Continued
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