Author Topic: Stocks  (Read 1180327 times)

Offline fc

  • Dansdeals Gold Elite
  • ***
  • Join Date: Dec 2011
  • Posts: 238
  • Total likes: 1
  • DansDeals.com Hat Tips 7
    • View Profile
  • Location: USA
Re: Stocks
« Reply #260 on: December 17, 2013, 02:58:53 PM »
might be worth checking out OLIE

Offline Centro

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2012
  • Posts: 2935
  • Total likes: 8
  • DansDeals.com Hat Tips 33
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #261 on: December 17, 2013, 03:23:45 PM »
might be worth checking out OLIE
Whooooooo

Offline peroneustertius

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Feb 2012
  • Posts: 259
  • Total likes: 6
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Queens, NY
Re: Stocks
« Reply #262 on: December 17, 2013, 04:20:12 PM »
Anyone here trade options?

Offline eli1571

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2009
  • Posts: 2448
  • Total likes: 28
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #263 on: December 18, 2013, 04:55:59 AM »
might be worth checking out OLIE
WOW. thats what i was lookiong for but before it shot up like that

Offline MAJ

  • Dansdeals Platinum Elite
  • ****
  • Join Date: May 2012
  • Posts: 486
  • Total likes: 6
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: NY
Re: Stocks
« Reply #264 on: December 18, 2013, 07:43:40 AM »
WOW. thats what i was lookiong for but before it shot up like that
lol arent we all

Offline ckmk47

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 7963
  • Total likes: 1044
  • DansDeals.com Hat Tips 3
  • Gender: Female
    • View Profile
  • Location: brooklyn
Re: Stocks
« Reply #265 on: December 18, 2013, 10:14:40 AM »
My favorite cause: cssy.org

Offline fc

  • Dansdeals Gold Elite
  • ***
  • Join Date: Dec 2011
  • Posts: 238
  • Total likes: 1
  • DansDeals.com Hat Tips 7
    • View Profile
  • Location: USA
Re: Stocks
« Reply #266 on: December 18, 2013, 11:27:15 AM »
am i the only one that bought OLIE ?

Offline fc

  • Dansdeals Gold Elite
  • ***
  • Join Date: Dec 2011
  • Posts: 238
  • Total likes: 1
  • DansDeals.com Hat Tips 7
    • View Profile
  • Location: USA
Re: Stocks
« Reply #267 on: December 19, 2013, 01:07:49 PM »
What are we buying today?

Offline Centro

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2012
  • Posts: 2935
  • Total likes: 8
  • DansDeals.com Hat Tips 33
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #268 on: December 19, 2013, 01:13:32 PM »
am i the only one that bought OLIE ?
I hope so, why would you play with penny stocks ???

Offline Centro

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2012
  • Posts: 2935
  • Total likes: 8
  • DansDeals.com Hat Tips 33
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #269 on: December 19, 2013, 01:16:42 PM »

Offline Ergel

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Jun 2010
  • Posts: 12818
  • Total likes: 905
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Stocks
« Reply #270 on: December 19, 2013, 08:30:42 PM »
Very interesting


The new thing put out by Amazon.com (AMZN) a couple of days ago, is how it's setting up this new service called Pantry. Pantry is a service where Amazon.com provides you with a box and a weight limit, and you can use it to buy bulk grocery items. This service is supposed to bring the fight to Costco (COST).

The whole thing is deeply unrealistic

It's not that Amazon.com can't make it work. But people seem to be wildly unaware of just how uncompetitive Amazon.com is, when faced with Costco. Uncompetitive in terms of cost. Costco has cut cost to the bone, massively beyond anything Amazon.com can reach. This is entirely obvious to anyone familiar with the Profit & Loss statements of both companies. Here are just a couple of facts taken from these statements (last 12 months):

Amazon.com

Gross shipping costs are 10.5% of product sales (the category where this new program would fit in);
Fulfillment costs (pick, packing, paying and warehousing) are 11.3% of revenues (this includes both product sales and service revenues);
Technology costs plus marketing plus G&A are 14.2% of revenues.

Costco
All selling, general and administrative costs are 9.6% of revenues.
See the problem? Amazon.com has more than 3 times the selling, general and administrative costs of Costco. Just shipping the product out to the customers exceeds Costco's entire cost base. And the picking, packing, paying and warehousing the products also exceeds Costco's entire cost base. And technology plus marketing plus general and administrative costs also exceeds Costco's entire cost base.

The two companies' pictures are at extremes to each other

While Amazon.com trades for 1411 times past 12 months' earnings and 531 times 2013 earnings estimates, Costco trades for 25 times past 12 months' earnings estimates and 24 times FY2014 earnings estimates.

This valuation chasm is in place though it is obvious that Costco is a massive cost leader over Amazon.com, as seen previously. Thus, while Amazon.com will remain challenged to increase profitability, Costco will continue chugging along in its low-cost, decent-margin strategy.

It's thus evident that Costco is structurally sounder to Amazon and has nothing to fear from Amazon's possible entry into its market. Yet Costco - the superior company - trades cheaper both on a P/E basis as well as in absolute market capitalization. Costco is worth $51.5 billion, whereas Amazon.com towers at a massive $180 billion in spite of its earnings and cost challenges.

Conclusion

In short, Amazon.com has no chance of competing with Costco on cost. It might try convenience or something else, but in terms of cost Amazon.com is a world apart from Costco. There seems to be the feeling that online retailers are somehow most cost-efficient. They aren't. Sure, online retail might menace niche retailers due to concentrating demand from a wide area and from cost being less of a driver, but when it comes to general high-volume merchandise, online retail doesn't stand a chance.

There's a reason why general merchandise mail-order catalogs (Sears Catalog, Montgomery Ward) lost out to bricks & mortar retailers long ago, while niche catalogs survived. The reason is economics. The reason is cost.
Life isn't about checking the boxes. Nobody cares.

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67601
  • Total likes: 16913
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: Stocks
« Reply #271 on: December 19, 2013, 08:36:02 PM »
Very interesting


The new thing put out by Amazon.com (AMZN) a couple of days ago, is how it's setting up this new service called Pantry. Pantry is a service where Amazon.com provides you with a box and a weight limit, and you can use it to buy bulk grocery items. This service is supposed to bring the fight to Costco (COST).

The whole thing is deeply unrealistic

It's not that Amazon.com can't make it work. But people seem to be wildly unaware of just how uncompetitive Amazon.com is, when faced with Costco. Uncompetitive in terms of cost. Costco has cut cost to the bone, massively beyond anything Amazon.com can reach. This is entirely obvious to anyone familiar with the Profit & Loss statements of both companies. Here are just a couple of facts taken from these statements (last 12 months):

Amazon.com

Gross shipping costs are 10.5% of product sales (the category where this new program would fit in);
Fulfillment costs (pick, packing, paying and warehousing) are 11.3% of revenues (this includes both product sales and service revenues);
Technology costs plus marketing plus G&A are 14.2% of revenues.

Costco
All selling, general and administrative costs are 9.6% of revenues.
See the problem? Amazon.com has more than 3 times the selling, general and administrative costs of Costco. Just shipping the product out to the customers exceeds Costco's entire cost base. And the picking, packing, paying and warehousing the products also exceeds Costco's entire cost base. And technology plus marketing plus general and administrative costs also exceeds Costco's entire cost base.

The two companies' pictures are at extremes to each other

While Amazon.com trades for 1411 times past 12 months' earnings and 531 times 2013 earnings estimates, Costco trades for 25 times past 12 months' earnings estimates and 24 times FY2014 earnings estimates.

This valuation chasm is in place though it is obvious that Costco is a massive cost leader over Amazon.com, as seen previously. Thus, while Amazon.com will remain challenged to increase profitability, Costco will continue chugging along in its low-cost, decent-margin strategy.

It's thus evident that Costco is structurally sounder to Amazon and has nothing to fear from Amazon's possible entry into its market. Yet Costco - the superior company - trades cheaper both on a P/E basis as well as in absolute market capitalization. Costco is worth $51.5 billion, whereas Amazon.com towers at a massive $180 billion in spite of its earnings and cost challenges.

Conclusion

In short, Amazon.com has no chance of competing with Costco on cost. It might try convenience or something else, but in terms of cost Amazon.com is a world apart from Costco. There seems to be the feeling that online retailers are somehow most cost-efficient. They aren't. Sure, online retail might menace niche retailers due to concentrating demand from a wide area and from cost being less of a driver, but when it comes to general high-volume merchandise, online retail doesn't stand a chance.

There's a reason why general merchandise mail-order catalogs (Sears Catalog, Montgomery Ward) lost out to bricks & mortar retailers long ago, while niche catalogs survived. The reason is economics. The reason is cost.
Meh. Amazon is cheaper than Costco for electronics and other items because they're perfectly happy with near-zero margins.
Why can't they compete in any other category?
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline jj1000

  • Administrator
  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • **********
  • Join Date: Jun 2008
  • Posts: 13472
  • Total likes: 6096
  • DansDeals.com Hat Tips 29367
    • View Profile
  • Location: The value of a forum such as this one is not in that one can post a question and receive an answer, but in that the question has most likely been asked before, and the answer is available to him that will but only use the search function.
  • Programs: 1. Search on google. 2. Search in the right board of DDF with a general word or two. 3. Read the wiki. 4. Read the thread. 5. Ask away.
See my 5 step program to your left <--

(Real signature under my location)

Offline Ergel

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Jun 2010
  • Posts: 12818
  • Total likes: 905
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Stocks
« Reply #273 on: December 19, 2013, 08:42:38 PM »
Meh. Amazon is cheaper than Costco for electronics and other items because they're perfectly happy with near-zero margins.
Why can't they compete in any other category?
The question is how is that sustainable
Life isn't about checking the boxes. Nobody cares.

Offline Ergel

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Jun 2010
  • Posts: 12818
  • Total likes: 905
  • DansDeals.com Hat Tips 3
    • View Profile
Life isn't about checking the boxes. Nobody cares.

Offline Yeki89

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Mar 2011
  • Posts: 3845
  • Total likes: 19
  • DansDeals.com Hat Tips 5
    • View Profile
Re: Stocks
« Reply #275 on: December 19, 2013, 10:25:47 PM »
Try S they have been up as of late, I was eyeballing them about a year now. I have seen then grow from under $6.
today they are over $9 over a $1 gain since this post.

Offline eli1571

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2009
  • Posts: 2448
  • Total likes: 28
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #276 on: December 20, 2013, 05:42:04 AM »
am i the only one that bought OLIE ?
no. and prob still worth buying

Offline eli1571

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jul 2009
  • Posts: 2448
  • Total likes: 28
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #277 on: December 20, 2013, 05:43:23 AM »
maybe worth looking in to HSCO being aquired by OLIE which usually makes price jump at least for a little while

Offline fc

  • Dansdeals Gold Elite
  • ***
  • Join Date: Dec 2011
  • Posts: 238
  • Total likes: 1
  • DansDeals.com Hat Tips 7
    • View Profile
  • Location: USA
Re: Stocks
« Reply #278 on: December 20, 2013, 10:36:27 AM »
http://qz.com/157404/how-you-could-have-turned-1000-into-billions-of-dollars-by-perfectly-trading-the-sp-500-this-year/

im pretty sure this was written by a homeless guy that once trading in stocks and lost all his money. hes probably blaming his stock broker...

Offline Centro

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2012
  • Posts: 2935
  • Total likes: 8
  • DansDeals.com Hat Tips 33
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #279 on: December 20, 2013, 10:57:24 AM »
BBRY!!