Just in case you were wondering, it’s official…this is NOT Steve Jobs Apple anymore.
Things are definitely going to get interesting in the tech/media/telecom space in the next few years.
Well, how are we going to quantitatively ease our way out of this one?
It’s like we never learn. What could go wrong when investors pile into an asset class that performed well historically and, in the process, completely change the underwriting characteristics of the loans going forward?
SHANGHAI—China cut the capital-reserve requirement for securities firms and expanded the range of financial products they may invest in, as the government works to boost the sector amid a sluggish domestic stock market.
Lowering your risk cushion by 50% and being able to buy more illiquid products? What could possibly go wrong with that?
Sunny times ahead. Please pay no attention to the man behind the curtain.
(Source: The Wall Street Journal)
Amazon.com passed many milestones in 1997: by year-end, we had served more than 1.5 million customers, yielding 838% revenue growth to $147.8 million, and extended our market leadership despite aggressive competitive entry.
But this is Day 1 for the Internet and, if we execute well, for Amazon.com. Today, online commerce saves customers money and precious time. Tomorrow, through personalization, online commerce will accelerate the very process of discovery. Amazon.com uses the Internet to create real value for its customers and, by doing so, hopes to create an enduring franchise, even in established and large markets.
Amazon’s 1997 Letter to Shareholders (emphasis added)
Going back through the archives of annual reports has not dimmed my view of Jeff Bezos as one of the most visionary CEOs around. I’m constantly in awe of Amazon’s ability to go off in random directions almost haphazardly only to find them tying it back to their core business foundation years later.
The ceiling test requires the Company to use tax effected discounted cash flows using a present value technique. The sales prices used for the ceiling test were $103.52 per barrel for oil and $4.54 per thousand cubic feet of natural gas. Based on the calculations under the first step of the ceiling test, the Company determined that its oil and gas interests are recoverable.
Just a little tidbit in the footnotes of a random annual report I was reading. As of today WTI crude is hanging at ~$90/barrel, and Henry Hub’s natgas price can be obtained for around $3.39/Mcf and dropping.