Month: August 2009

Categories
Business

IS blockbuster busted?

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Last Updated on August 31, 2009 by stlplace

VHS:blockbuster vs. DVD:Netflix

This is the GRE (Graduate Record Exam) analogy I would use for movie rental companies Blockbuster (NYSE:BBI) and Netflix (Nasdaq:NFLX). The popularity of VHS tape made the success of Blockbuster, as I read from Wiki, the first Blockbuster movie rental store was established in Dallas in 1985 (24 years ago). By similar token, the popularity and technology bring huge success to the “all you can eat” DVD by mail service provider Netflix.

Blockbuster logo

Blockbuster did not stand still. They got rid of the infamous “late fees”, replaced all the good old VHS tapes with much slicker DVDs, even tried the Total Access (combining DVD by mail and at store), but it appears they are still losing a lot customers to Netflix. More recently, the Redbox and Movie Box, those help-yourself (a dollar per rental) kiosk show up in McDonald, Walgreens, grocery stores, and people like it because it’s both cheap and convenient. But they also add salt to the injury of Blockbuster.

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Categories
Economy

The reasons behind China crazy real estate market?

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Last Updated on September 18, 2009 by stlplace

Some thoughts after reading Wang Jiansuo’s Craziness of Real Estate Market.

1) Fundamental: demand, new household forming, and demand to live better (more space). In the US (according to Buffett) 1.3 million household forms every year, while in the booming years they are building 2 millions houses per year. I don’t have China’s number. Note in China there is this urbanization theme: people in rurual areas migrated to cities to find better paying jobs, and then settled down as they are looking for better opportunities for their kids. Vanke (leading Chinese developer, source: teasmoker, link broken, full article attached below) thinks migration will create housing need for 7.5 millions householding. But most of them can not afford it new apartments in cities.

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Categories
Web

How to use Scottrade Gainskeeper(tm)?

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Last Updated on August 23, 2009 by stlplace

Gainskeeper ™ is a little program keeps tracks of stock cost basis, and the profit and loss. Scottrade provides this service to its customers. This program is not without problems (for me), such as mess up positions and long/short term profit/loss. It seems to me the program improved quite a bit lately, or it could be that now I learned how to use it. Another interesing program (or web site) is cakefinancial, which can keep track of your 401k, IRA and stock brokrage accounts from various financial institutions. Walt Mossberg did a good introduction on this lately.

Back to Gainskeeper. The main thing I pay attention to is: big gainer and big losers. Here is how I used it. Go to Realized Selling Acitivity (Summary), select year (2008). Last year, we all know it’s a terrible market. Here is my big losers (loss > $1,000):

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Categories
Chinese articles Shanghai Composite

China real estate market

Reading Time: 3 minutes

Last Updated on August 23, 2009 by stlplace

炒房揭秘内幕(translation by Google translate below). Let me summarize because Google translate did not do a good job. The guy was in pawn business. He used little own money to buy a house (he borrowed the money from bank). When the one year loan is due, he was very worried because his money is stuck in his business. The bank loan officer tell him not worry, just sell his house to his wife for a higher price (let his wife get a larger loan to pay off his first loan), in the process the loan officer will get a cut.

This seems just like the zero down payment, ARM rate in the US housing market a few years ago. All the hope was based on the rise of housing price. If the housing price plummet, obviously the banks will be left to hold bags (in China the mortgages are not securitilized).

Here is text generated by Google translate:

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Categories
IPO

Emdeon: reading its IPO prospectus

Reading Time: 8 minutes

Last Updated on September 16, 2009 by stlplace

(Update 16Sept09) Brean Murry is out with a selling rating with Emdeon (source: StreetInsider). Quote:

While investors may be focusing on the potential benefit from healthcare reform, we view the benefit as a potential one-time boost to the growth rate in claims that will revert back to the low-single digits after the anniversary of enrollment…We apply a 13x multiple to our 2010 cash EPS estimate, which we believe may prove overly generous, to arrive at a fair value of $13 per share.

(Original) First heard about Emdeon (NYSE:EM) from Cramer on Mad Money before its IPO. I watch Mad Money from time to time, mostly for entertainment (not for ideas or education). But this healthcare bill processor IPO sounds interesting especially at this time. And to make it more interesting, the stock did not get huge pop post IPO. Hm. So I went ahead and looked at its IPO Prospectus.

Emdeon logo pic

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Categories
Economy

Healthcare reform likely outcome

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Last Updated on August 22, 2009 by stlplace

Healthcare (excuse me, Health Insurance) reform debate has heated up lately, esp. in those contentious townhall meetings. One hot issue in debate is the Public Option (not the stock option, but rather a public choice for general public to buy). It seems to me this is losing steam recently, because of a mistake made by President Obama. This thing goes sour like this.

Suppose, you are a college student, and you want to ask $5,000 from your father for college. Suppose your father loves you but he is a thrift person (like Buffett). So what would you do? You ask $10,000 or $8,000 and if your father refuses, then you can go the lower number (5,000). What did President Obama do when he wants the public option?

He asked for public option. It’s a mistake. I think he should have asked for single payper system (like Medicare), make conservatives and insurance companies really nervous, then he can back up, and offer the public option.

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Categories
Travel

Back to STL

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Last Updated on September 8, 2009 by stlplace

I got all the fun of driving in Boston traffic during rush hour. It took me more than an hour driving from Waltham to Boston Logan, and my Garmin 755T GPS helped this time.

One thing I noticed in Boston is driving is a lot more hectic than in the River city. People won’t yield to let me slip in, they will honk at me when I drive too slow, those kind of thing. Also, keep in mind Boston is a very old city, the roads are usually narrow, and they are not aligned very well, there are a lot cross intersections in 30/150 degree rather than 90/90 degree. It’s a little confusing to me. The good thing is I survived. Until at Hertz returning the rental car, the Hertz car locked the car before I took out my bag from trunk. So I had the opportunity to see unlocking a car using the tools.

Reading Psychology book


(“Influence” Chinese version cover)

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Categories
Travel

Pros, Cons and Tips of GPS

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Last Updated on August 18, 2009 by stlplace

I am using a Garmin 755T GPS to nagivate Boston. This is my 3rd trip using GPS. The first one was Chicago trip before July 4th.

Pros
Recalculating when I took the wrong road;

Cons
Dependency on GPS, so I will not read maps in the future?

One more thing to pay attention besides road and traffic;

Sometimes the number could be off (I metioned it on Hilton Garden Inn, this could caused by the rapid development);

Tips
Pay attention to the road to turn to, and the “pink” road which means I should take (I had to admit I am not very good at this);

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Categories
Travel

Harvard Square

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Last Updated on August 16, 2009 by stlplace

Went to Harvard Square this evening, took some pictures (the quality is not as great as I liked, but you know it’s Harvard).

IMG_7022
(Harvard Theater)

IMG_7024
(Harvard Square, Sumner’s statue)

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Categories
Travel

Going to Boston today

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Last Updated on August 16, 2009 by stlplace

That would be exciting thing 10 years back, when I was still a college junkie. It still will be interesting, at least I plan to visit Harvard Square, where Paul Allen met with Bill Gates (in 1976?) and said:

“We got to start this (computer business), this thing (computer revolution) is happening without us.”

We all know what happened in last 30 years (hint: we all become Bill’s “slave”, in a way).

Interestingly, I read from Yahoo that Harvard has the most billionaires.

I will back to the River City on Thursday night. Time to look for authentic Chinese restaurant now. I already find it’s a challenge task esp. visiting small towns. Boston should offer more choices.