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318 Articles

Blue Chip

The USPS wants to start raking in the dough

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This is a big deal… because the US Postal Service (USPS) has proposed the biggest price increase on stamps in its history. So actually, this is only a big deal if you like to pretend you’re living in the 1800s and still send letters through the mail. Just kidding – it is important for other reasons (you know we wouldn’t waste your time).

 

The price increases… will hopefully provide the agency revenue and keep USPS competitive within the industry. You will also see more costly Priority Mail packages, which are expected to increase by around 5.9%. And they aren’t just hiking prices for the hell of it – USPS is required to pre-fund the cost of retiree health benefits which has put quite a dent in the agencies wallet.

 

And a mailing industry update… we are seeing letters being replaced by e-mail and online advertisements. Revenue from first-class mail has dropped from $28.4B in 2015 to $25.6B in 2017. On the other hand, package revenues are up $4.5B from 2015 to 2017. Meh, we’ll take the good with the bad.

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Blue Chip

WarnerMedia is prepared to entertain YOU for days

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Get ready for more streaming… because WarnerMedia, a division of AT&T, just announced plans for such a service yesterday. And in case you didn’t know, WarnerMedia owns HBO, Turner, and Warner Bros. The streaming service will launch sometime in late-2019.

 

Here are the plans… WarnerMedia will look to build off of the success of HBO Now, a service that streams live and on-demand shows. The company will also leverage Turner and Warner Bros.’ brand to reach diverse interests and mass audiences.

 

It feels like… we announce a new streaming service every other day here at Sanebull. There is already Netflix, Hulu, Prime Video, and the list goes on. Additionally, companies like Disney are planning to launch their own versions of what is essentially Netflix. But no worries – we just want to say good luck and let the best man win!

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Mid caps

Are you interested in why the market tanked?

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Go ahead and scroll up… yup, those are some serious market losses! And to think, a week ago the Dow was prepared to break 27,000. But not so fast – and even Amazon stock fell by 6%. So, why do bad things happen to good people (like yourself)? Well, let us explore the oddity that is the stock market.

 

Interest rates are rising… and to put it simply – low interest is good for corporate profits. Also, when rates are low, investors have more incentive to buy stocks over bonds because stocks can earn a significantly better return. But now, interest rates are going back up, which is bad for stocks but good for other stuff.

 

The Fed can’t stop, won’t stop… raising rates. However, it is a good thing because rising interest is a sign of a strong economy – so strong that we can’t let it get too strong!  So now, stocks are getting competition from bonds because bonds are producing returns that are worth a second look. The 10-year Treasury yield is at 3.24%, the highest its been in seven years. So what do you say – bonds anyone?

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Miscellaneous

Travelers really wants to be in your life

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Another company moves to the dark side… that company being Travelers and the “dark side” meaning Amazon. Travelers is one of the biggest insurance companies, and now, the company has launched an Amazon storefront where you can buy discounted home security equipment. The offerings include cameras, motion detectors, water sensors, and of course, Echo Dots.

 

Buy a kit, get a discount… on your home insurance policy. Oh, and you also get a free Echo Dot if you are an insurance customer of Travelers. This partnership also makes for an interesting one as Amazon has reportedly been interested in getting into insurance itself.

 

Travelers is winning… because if customers are taking better precautions with their homes, there should be fewer accidents, right? This program also gives the insurer a better way to connect with new and existing customers. Travelers will also integrate with Alexa and anyone can ask for property maintenance and home safety tips. Not too shabby for an insurance company, eh?

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Miscellaneous

2018 is the year of the EARNING$, baby!

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It’s time for Corporate America… to shine! Wall Street is getting ready for some crazy good earnings results over the next few weeks. Analysts have predicted earnings for the S&P 500 will go up close to 20% compared to last year. The fourth quarter is looking very promising, as well.

 

But don’t get too excited… because these blockbuster earnings may be short-lived. Bond yields are rising which means companies will be paying more to fund growth (and will have less money, as a result). There is also the looming “trade war” that seems to have no end in sight. And last, but not least, 2018 will leave behind tough shoes to fill.

 

Because of these reasons… earnings are expected to grow around 7% in the first half of 2019. Growth is growth, but 7% is a far cry from the expected 20% this quarter. That is what the “professionals” are predicting, anyway. But hey – who really knows – just be sure to enjoy the earnings while they last!

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Fang

Facebook: stop stealing our failures, Google!

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Well, goodbye, Google+… actually, most of us probably used that phrase within the first five seconds of using the social media platform. Created in 2011, Google+ attempted to rival the increasingly popular Facebook at the time. Seven years later, Google is finally putting this thing out of its misery.

 

But wait, there’s more… because the reason Google is shutting down Google+ is a recently discovered security bug that exposed as many as 500,000 accounts full of personal information. Oh, and Google didn’t mention that little detail until six months after the fact.

 

This issue is classified as… pretty much the same one that plagued Facebook. And Google basically followed Facebook straight into the crapper with this move. However, luckily for Google, hardly anyone used Google+, and the breach was far smaller compared to that of Facebook. See, things always work out for the best…

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Mid caps

Is Papa John’s really going private?!

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If you wanted Tesla to go private… sorry, that ain’t gonna happen. However, if you want a company to go private for the sake of going private – Papa John’s may provide that fix for you (you weirdo). That’s right – shares of the pizza chain were up 8% after the Wall Street Journal reported that Trian Fund Management is considering taking the company private.

 

But not so fast… because there are no promises (or tweets) that have confirmed this is actually going to happen. Trian contacted Papa John’s to gather information about possibly making a bid. But with all of the controversy surrounding the company, one has to wonder if they won’t seriously consider the offer.

 

Papa John’s is still feuding… with Papa John Schnatter himself. If you can believe it, Schnatter still owns nearly 30% of the company’s shares. And interestingly enough, whenever news about this guy getting the boot gets reported, shares of the company surge. Maybe this guy should take a hint?

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Miscellaneous

No one is perfect – so give yourself some credit!

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We usually talk about the stock market… here at Sanebull. However, you will have to hit it big (really big) in the market to avoid having to worry about that credit score of yours. But today we have excellent news – you don’t need a perfect credit score, or even a high credit score – all you really need is a ‘meh’ credit score to thrive in this world!

 

Just make it to 760… and really, you have made it. Once your credit score hits 760, you will be eligible for the best interest rates, according to Greg McBride, the chief analyst at Bankrate. It’s essential to get started building credit – and make on-time payments so you don’t become some schmuck with a sub-650 credit score – but no need to go above-and-beyond.

 

The bare minimum really pays off… because a score of 760 compared to 680 could save you over $10,000 in interest over a 30-year home mortgage. A good credit score can also get you better insurance rates and qualify you for the best credit cards (points, points, points).  So let’s recap: pay your s#!% on time and don’t be a hero. BOOM.

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Blue Chip

This startup will turn your lawn into a space heater

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Google presents a cooler way… to cool your home. This not-so-new innovation is brought you by ‘Dandelion,’ a spinoff company and startup of Google. Dandelion uses energy from the ground to heat and cool your home. The product is called ‘Dandelion Air,’ and it uses heat from the ground to heat your home in the winter and moves heat from your home into the ground in the summer.

 

The concept isn’t new… however, the idea of geothermal technology also hasn’t been very accessible in the past. Now, Dandelion aims to give all homeowners the opportunity to use the technology by automating the manufacturing process. Dandelion Air is four times more efficient than furnaces and nearly twice as efficient as an air conditioning system.

 

But it will cost you… so, no surprise here, geothermal systems cost around $20,000 depending on the size of your home. On the bright side, the system could save you about 20% annually on heating and cooling. Maintenance on the system is minimal, and you could be known as the “guy who heats his house with his lawn.” Any takers?

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Start-up

How the startup ‘Billie’ is saving women money

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It’s the Dollar Shave Club… but for women. The idea came about when Georgina Gooley found herself frustrated with the cost of women’s razors. In fact, women pay an average of 13% more for personal care products, which includes razors, compared to men. So in 2016, she joined Jason Bravman to change this pointless pricing discrepancy.

 

And ‘Billie’ was born… an online subscription service, much like Dollar Shave Club that delivers low-priced razors and other body care items. The starter kit is $9 and comes with a razor handle, magnetic holder, and two five-blade razor cartridges (all with free shipping!). It’s a good deal, too – a comparable product in-store would cost $20.

 

They are cruising… with 13 full-time employees and an impressive celebrity backer. Along with $6 million raised in seed money, Serena Williams also invested in the start-up. Now, the company is focusing on meeting the booming demand, which is a blessing and a curse.

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