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Why you’ll be paying more at the pump

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Why you’ll be paying more at the pump

One step forward, one step back… as crude oil prices were up more than 3% on Tuesday. This jump coming on the heels of the US State Department announcement that companies will be required to cut all oil imports from Iran by November. Interestingly enough, OPEC and other producers agreed to raise output to prevent this exact thing (price increase) from happening.

The United States is committed… to completely isolating Iran. This includes cutting Iranian crude imports. This is significant because Iran is OPEC’s third-largest oil producer, exporting more than two-million barrels per day. Companies, such as Total and Shell, have also committed to avoid Iranian oil. Other oil companies may follow suit in order to maintain relations with the US.

We seriously want gas… to stay under $3 a gallon in the United States. Other big users, such as India and China, would also appreciate some increased oil production to keep prices from rising too high. Saudi Arabia is planning to increase output to record high next month – from 10 million to 10.8 million barrels per day. We may also see more demand for US oil specifically to cover the shortage.

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Welcome to the Dow, Walgreens

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Welcome to the Dow, Walgreens

A company that needs no introduction… unless you live under a rock – it’s Walgreens! Otherwise known as Walgreens Boots Alliance, they are the new kid on the block. If you’re wondering what a ‘Boots Alliance’ is, it is referring to the company’s acquisition of Alliance Boots in 2015. Boots is a drugstore retailer and Alliance a drug wholesale distribution company.

And they are growing… after purchasing more than 1,900 Rite Aid stores last March. Thanks to their recent deals, analysts expect Walgreens’ earnings per share to increase by an average of 12% over the next few years. And while they are the newest, they are not the smallest, coming in as the 23rd largest company in the Dow based on stock price.

So why Walgreens… and not CVS? A spokesman for S&P Dow Jones Indices went with the classic “no comment” response to that very question. However, there is an argument for CVS, which has generated more revenue, is worth more, and has about the same weighting compared to Walgreens. Not to mention that CVS may be acquiring insurer Aetna in the near future for $67 billion. Actually, maybe it should be CVS – but that’s none of our business.

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GE shares surge (not a typo) after it reveals plan to spin off health-care, exit oil services

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GE shares surge (not a typo) after it reveals plan to spin off health-care, exit oil services

GE wants you to know… that they are an aviation, power and renewable energy company now. GE Healthcare will be spun-off (it will be independent of GE, in other words) and they will exit their stake in oil services in the next two to three years. The company’s famed quarterly dividend will be maintained until the health-care unit is effectively separated. At that point, the dividend will likely be lowered.

It’s not all gloom and doom… as GE shares rose 7.76% on Tuesday – their best day in over three years. For the record, they’re still way down over the past year, at -54%. But hey, they are making strides and actually improving their situation instead of wallowing in a pile of burnt-out lightbulbs.

And that’s all folks… as the CEO stated that the company is finished making restructuring moves. The company plans to reduce their mountain of debt by $25 billion by 2020. However, they are sitting atop the Mount Everest of debt mountains, and that is only a fraction of their $70+ billion debt-load.

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Love the underdog? Check out this coffee company that is taking on Starbucks

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Love the underdog? Check out this coffee company that is taking on Starbucks

It’s the business form of “rope-a-dope” … as made famous by the late Muhammed Ali. The Coffee Bean & Tea Leaf is ready to go on the offensive against their fatigued, but still very formattable opponent, Starbucks. John Fuller, the CEO of The Coffee Bean believes that people may be growing tired of Starbucks and would welcome an alternative option.

Who are the guys, anyway?… The Coffee Bean is a company that serves high-quality coffee in a cozy atmosphere. They offer “third wave coffee” which likens high-quality coffee to fine wine, rather than simply a commodity. If you haven’t heard of ‘em, we’re right there with ya. The company has just 311 stores in the United States, mostly in the SoCal area.

Just like Fort Minor… you will remember the name. In five to ten years, the coffee company hopes to turn their 311 stores into 1,000. A far cry from Starbucks’ 15,000 stores, but you have to start somewhere, right? So, if you happen upon the ambitious coffee-maker, give them a try – and be sure to let us know if they’re legit or if we should just stick to Starbucks.

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Tech is taking over the advertising and media industries

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Tech is taking over the advertising and media industries

If you haven’t heard… the Cannes Lions International Festival of Creativity is the who’s who of the advertising and marketing industries. But lately, tech companies have been showing up in full force. The most successful companies seem to sponsor the most impressive things at the festival, including actual beaches on the coastline of Cannes, France.

Not just keeping up with the Joneses… because they are the Joneses. Google, Facebook, Pinterest, Twitter and Spotify all sponsored the most prominent beaches at the festival. Facebook and Pinterest splurged on their own piers and Google had way more moving boats than the Wall Street Journal. While advertising agencies were in attendance, it became clear that these companies have been cutting back.

Spotify was a huge beach… to the competition. In addition to their beach, they brought in Miguel, The Killers, Travis Scott (yes, Kylie was there, too) and Chvrches to perform. It is safe to say Spotify was the life of the party and made other companies feel a little left out. It is probably also worth noting that Snapchat (SNAP) cut back on their beach-sponsoring ways as a means to save money. This caused some executives to question the state of the company. If you think this all seems a little petty – I am right there with you.

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Amazon is taking over the world

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Amazon is taking over the world

Without breaking a sweat… AmazonBasics killed it in the battery market. Now, they are selling around 100 private label brands, including: kids clothing, men’s underwear, dog food, and home furnishings. So yes, Amazon will be making and selling their own stuff to compete against everyone else’s stuff. Analysts believe nearly half of all online shopping in the US will be on Amazon in the coming years – creating the perfect storm for massive sales of the company’s private label offerings.

Home-field advantage… is exactly what Amazon has because they have the ability to lead shoppers toward their brands and away from competitors. If you type the word “batteries” into Amazon’s search bar you will get a screen filled with AmazonBasics batteries. Energizer actually pays [a fortune] for ‘sponsored’ advertising on the site to be listed above AmazonBasics on the Amazon website.

Or is it an unfair advantage… because Amazon could eventually be looking at antitrust charges. Although, we have yet to experience the market power of a tech giant like Amazon which makes for some unchartered territory. If there is a case for antitrust, there has to be proof that Amazon is harming the consumer with either higher prices or lower quality. However, as you or I can probably attest – Amazon is cheap and usually freakin’ awesome.

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Why it is not time to give up on bitcoin

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Why it is not time to give up on bitcoin

Fidget spinners, the dab, the man bun… are all casualties of a cringe-worthy 2017. Fortunately, bitcoin is not in the same category.  It may seem that way, though; bitcoin came crashing back down to Earth from a $19,500 high to hovering around $6,000, currently.

It’s not so bad… especially if you consider that bitcoin was priced around $2,500 just a year ago. When you look at the price decline, it includes tax selloffs, multiple exchanges getting hacked and $10 billion funding in initial coin offerings.

It’s a work in progress… and Japan just stopped multiple crypto exchanges from having new accounts come in. This caused bitcoin to drop further Friday morning. This may hurt bitcoin in the short run, but really, they are just trying to clean up and improve the system. So sit back and relax – because bitcoin is not done yet.

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Too lazy to walk? Too cheap to Uber? Try an e-Scooter.

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Too lazy to walk? Too cheap to Uber? Try an e-Scooter.

Why Uber… when you can LimeBike, Jump, and Bird around your city? These are three electric scooter companies that provide a quick, convenient and environmentally friendly way to get from point A to B. They are becoming a big deal to investors, too. In fact, LimeBike and Bird have made over $100M in funding and Spin was acquired by Uber earlier this month.

And it’s really easy… just one tap of an app and you can pick up a nearby scooter; and when you’re done, just leave it. Although “just leave it” has been met with complaints from people tired of seeing the scooters unattended on just about every corner of their city.

But not so fast… because San Francisco stopped the e-scooters…for now. This has not deterred investors, however, and these companies have supported efforts to regulate the e-scooters. This includes finding places to park the scooters and working with public transit. I hope it works out – it’s 2018 for god sake, we shouldn’t be walking anywhere.

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It’s official: Toys “R” Us is closing down for good

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It’s official: Toys “R” Us is closing down for good

 

So long, another part of my childhood… because Toys “R” Us is officially going out of business in the United States, closing their remaining 200 stores on Friday (the company will be open for business in other countries, such as Canada). I know you are probably thinking Amazon is to blame – but that is only partially true. The toy company also had an unsustainable amount of debt stemming from a 2005 transaction that took the company private.

Employees are also protesting… because they were not paid severance after, well, being severed from the company. The remaining employed employees will be helping to close up shop. The remaining unemployed employees will be staging another round of protests next week.

You may think ‘who cares?’… and Toys “R” Us closing was a long time coming. However, both Hasbro and Mattel lost tens of millions in sales due to the closings. While toy companies do sell their product to large retailers, their full line of products could always be found at the famed toy store. From 90s kids, and probably many others, farewell and thank you Toys “R” us, you will be missed.

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Not exactly calm waters ahead for Carnival Cruise

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Not exactly calm waters ahead for Carnival Cruise

What more do you want… other than revenue that was up 10.4% for the quarter? Apparently much more because Carnival shares still closed down 7.85% on Monday. This coming after the company cut its full-year earnings outlook from between $4.40 and $4.20 to between $4.25 and $4.15. Carnival cited something that may be near and dear to even your wallet – rising fuel prices, as the reason for the correction.

But there’s hope… and Carnival is doing their best to offset the increased fuel costs. They believe the demand for their cruise offerings, along with increased ticket prices will offset the pesky fuel costs. It is worth noting that advanced booking for the cruise line are on pace with last year, but at higher prices, so their claims do have merit.

They’re not alone… with Norwegian Cruise Line dropping 7.2% and Royal Caribbean Cruises also down 5.1%. If you plan to take a cruise in the near future, expect to pay just a little bit more.

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