Greg Brown

Miscellaneous

Having trouble saving money? You’re supposed to!

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The unemployment rate is low… so that must mean people are earning money and saving money, right? Wrong. One in three Americas has less than $5,000 saved for retirement, and the average person is saving less than 3% of disposable personal income!

 

You’re workin’ hard… and you have no problem earning money, no problem spending money, but a serious problem saving money. But don’t worry – it’s not your fault. When given equal opportunities to earn or save, our brains do not prioritize saving. We all have an anti-saving bias that keeps us from saving money.

 

But you’re not a lost cause… because you can learn to change your mindset and start saving! Rather than imagining your future self-saving money, think about how saving money today will benefit your tomorrow. It’s not easy – but it is so worth it.

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Blue Chip

Elon Musk will pay Tesla’s fine out-of-pocket!

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Elon Musk is a standup guy… because he plans to right his wrongs by purchasing $20 million of Tesla stock with his own money to cover the penalty for his tweets. The CEO agreed to pay $20 million to settle a federal lawsuit stemming from tweets about taking the company private. As part of the agreement, Musk also must vacate his potion as chairman of the company.

 

This is unusual… but really, that is what we have come to expect from Elon Musk. It is rare for an executive to buy shares of their own company with their own money, to say the least. Musk will purchase the shares directly from Tesla (rather than the open market) so that the money will go to the company.

 

The company hasn’t said… that Musk is paying the fine with his purchase – but we’ll say it – he is paying the fine with his own money. The investment is relatively small, increasing Musk’s stake by 0.2% – but hey, it’s a nice gesture.

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Mid caps

Sears CEO Eddie Lampert the next Warren Buffett??

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Once a financial genius… Sears CEO Eddie Lampert purchased Sears back in 2005 through a merger with Kmart. However, not many people would use the term ‘financial genius’ for Lampert anymore – except maybe Lampert himself. The man once hailed as the “next Warren Buffett” has run Sears straight into the poor house.

 

Lampert made basically nothing… for being the CEO of Sears. The Sears CEO took a salary of $1 per year and received the rest of his compensation in entirely worthless company stock. Lampert’s hedge fund also made huge loans to the company, and believe it or not, Sears owes Lampert at least $1.3 billion.

 

And he didn’t make friends… because Lampert played the ‘absentee CEO’ roll to a T by running the company from South Florida. However, now, Lampert may be able to purchase the Kenmore brand through Sears bankruptcy auction (something he has always wanted). And he’s not done yet – Lampert could still sell Kenmore appliances, rent stores to other retailers (that are still in business) or develop the company’s real estate for alternative use.

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International

The rideshare BEAST of the Middle East

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The Uber of the Middle East… is called Careem and the company just got a big financial boost. Saudi Prince Alwaleed Bin Talal just invested $200 million in the Dubai-based rideshare company. And now, Careem is currently valued at over $2 billion, up from $886 million in 2017.

 

The timing is odd… because Saudi Arabia’s network of business and global tech investments has come under scrutiny after the disappearance of journalist Jamal Khashoggi. Khashoggi was last seen at the Saudi consulate in Istanbul, and Turkish officials believe he was murdered inside the consulate.

 

Murder mystery aside… Careem operates in over 120 cities in the Middle East, North Africa, Turkey, and Pakistan. The company is viewed as a “new and promising” technology in the Middle East, and investors continue to pile money into the company for that reason. Will we be calling for a ‘Careem’ soon??

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Blue Chip

Can Netflix be redeemed!?

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Let’s face it… Netflix didn’t produce last quarter – and they got crushed because of it. In case you forgot, Netflix reported 1 million fewer subscribers than expected in the second quarter. However, the company did manage to add 5.2 million subscribers in total. But that wasn’t enough for investors and the stock plummeted.

 

The stock is still down… 20% compared to before the “bad” subscriber growth results. But now, Netflix can make amends with investors upon third quarter earnings which will be released today. Analysts are expecting just under 5 million new subscribers – but most of those subscribers are expected to come from outside the United States. And for Netflix, having a global audience would be huge.

 

The results better be good… because streaming media is gaining new competitors by the second! Hulu, Amazon, AT&T, Walmart, and Disney all have streaming services one way or another. This influx of competition means that Netflix better keep coming with original content – and with great original content comes great subscribers…

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Miscellaneous

Landlords *rejoice* after Sears bankruptcy

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Sears is bankrupt… and the company’s landlords couldn’t be much happier. Sears plans to close 142 stores before the end of 2018. So it appears it will be out-with-the-old and in-with-the-new come 2019. And property owners agree – they are far better off without Sears and Kmart wasting their space.

 

According to Kimco… a real estate investment trust that has leases for three Sears locations and eleven Kmarts it has been a long-time coming. In fact, the average rent for the 14 stores is just $5.25 per square foot – compared to the average $15.95 per square foot of other Kimco properties. Sears signed these leases a long time ago, and those lease terms were greatly benefitting the now-bankrupt retailer.

 

And apart from unfavorable leases… landlords are probably going to be happy to get tenants that can actually pay their rent. Washington Prime Group is another real estate owner that received just 1% of rent from Sears in the third quarter. Really, Sears?  One percent!?

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Miscellaneous

Here’s how a massive PIPE can clean the OCEAN

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There is an enormous pipe in the ocean… and it’s not trash – in fact, its duty is to remove debris in the middle of the Pacific Ocean. The Ocean Cleanup foundation just launched the first ocean cleanup system to combat the “Great Pacific Garbage Patch.” The Giant Pacific Garbage Patch is a pile of trash that floats between California and Hawaii and is double the size of Texas.

 

Here’s how it’s done… the pipe is U-shaped and carries a 3-meter deep net underneath to catch plastic beneath the surface. Every few months, a boat (basically an ocean garbage truck) will come by, collect all of the crap that the net traps, and bring it to shore. Then, we have plastic that can be recycled (like it should have been in the first place!).

 

But you still need to recycle… because this net isn’t going to catch everything. And actually, some question if the pipe will do much good at all. Apart from the fact it could break down (and add to the “garbage patch”), it may not be enough to make much difference.  But hey, at least someone is trying, right?

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Blue Chip

Co-founder of Microsoft, Paul Allen, dies at 65

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We usually talk business… but today, it’s important we note an incredibly impactful man’s death. Paul Allen, the co-founder of Microsoft, died Monday at the age of 65. Allen founded Microsoft with Bill Gates all the way back in 1975; however, Allen left the company in 1982 after being diagnosed with Hodgkin’s disease.

 

But he didn’t stop there… because Allen continued on Microsoft’s board of directors and even went on to establish his own philanthropic foundation. From there, he founded the investment firm, Vulcan. Allen also purchased two professional sports teams: the Portland Trail Blazers and the Seattle Seahawks.

 

Everything around today… probably wouldn’t have been possible without the help of Paul Allen. Allen was a great businessman, influencer, and a role model for many. So today, we honor and thank an impressive man for all of his achievements!

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Blue Chip

Tech billionaires are arguing about the homeless

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And they are… Salesforce CEO Marc Benioff and Twitter and Square CEO Jack Dorsey. The two are in a contentious debate about how to help the homeless in San Francisco – evidenced by one another’s tweets. So, we’ll lay out both POVs and let you decide who is right…

 

Benioff wants to see companies… raise money to help the homeless. The Salesforce CEO is even spending money to promote ballot Proposition C, a tax of around 0.5% on businesses gross receipts above $50 million per year. The proposed tax would raise up to $300 million annually which would contribute to housing, mental health treatment, and shelter beds. And to put that figure in perspective, $300 million is double what the city currently spends on homelessness.

 

Jack Dorsey wants to see the mayor… figure out how to deal with homeless people. The mayor is also against the proposition – basically saying that throwing money at the problem won’t help. Thus, Dorsey is not a heartless sociopath; he thinks there are better ways to solve the problem. What do you think about homelessness in San Francisco?

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Blue Chip

A BIG opportunity for retailers…

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There is a $21 billion industry… that has mostly been ignored in years past. That industry is plus-sized women’s clothing, and it is here to stay! In fact, over half of the women in the United States between the ages of 18 and 65 wear a size 14 or higher.

 

Interestingly enough… “plus size” clothing makes up just one-fifth of women’s overall clothing sales. Retailers have realized this opportunity and are racing to capture these customers and meet the demand. For years, various brands, fashion designers, and retailers have all neglected the market – not just plus-size in general, but trendy plus-size clothing.

 

Walmart has already… purchased a plus-size clothing brand called Eloquii last week. The company has also launched Terra & Sky, its private label plus size brand and bought Modcloth who also sells extended sizes. Yes – what was once a niche is becoming the norm – and retailers are taking notice.

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