Understanding the Big Picture

When considering a possible investment, it is important to understand the big picture as opposed to focusing on a single issue.  In general terms, business activity includes both supply and demand.  This translates into determining whether a product or service can be provided at a price that is profitable to the supplier and attractive to … Continued

Bait-and-Switch

In retail sales, as defined by Wikipedia, first, customers are “baited” by merchants advertising products or services at a low price, but when customers visit the store, they discover that the advertised goods are either not available or are not as good as expected, or the customers are pressured by sales people to consider similar, … Continued

Death Spiral Financing

Wikipedia defines death spiral financing as a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company’s stock to fall dramatically, which can lead to the company’s ultimate downfall. While generalization is fraught with risk, typically companies require multiple financings to … Continued

He Said, She Said

On June 5, 2017, Bloomberg News reported that, “China plans to halt issuing permits to produce electric vehicles because of concern that additional approvals may lead to a glut in the world’s biggest auto market, according to people with knowledge of the matter.” On June 19, 2017, Bloomberg News reported that, “Tesla, Inc. is close … Continued

Understanding Quarterly Progress

Investors typically look at quarterly and annual reported operating results on a year-over-year basis.  In other words, what was the percentage change compared to the prior year period. It is important to also consider sequential change.  That is, what was the change compared to the previous quarter.  Obviously this is not particularly helpful in looking … Continued