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WHY FACEBOOK FORCING ITS EMAIL ON YOU IS BRILLIANT

June 27, 2012

Facebook (FB) took a brilliant step in the right direction by making the visible email on a person’s profile @facebook.com by default. Long ago I learned that change has unintended consequences. The unintended consequence of the change that Facebook has made is that media has blown up with extreme negative reaction. Some outrage is understandable because Facebook made the change without user’s consent. In my view the change is brilliant because it is good for the users, the marketers, and Facebook. I write about investments, this change is good for potential Facebook investors. There have been a lot of privacy

APPLE BETTER OFF WITH LICENSING THAN PATENT WARS

June 27, 2012

Apple has been pursuing a scorched earth litigation strategy using its patent portfolio againstGoogle and its Android mobile operating system. Shareholders and gurus almost universally support this strategy. Either there are not many who see Apple’s strategy as flawed or those who see the strategy as flawed are hiding under a rock. I do not blame anyone for not voicing an unpopular opinion. Who needs the hate mail? I distinctly remember the amount of hate mail I received after I wrote an open letter to Tim Cook on December 29, 2011, pointing out the flaws in Apple’s strategy and suggesting an alternative

JUDGE TOSSES APPLE’S CASE AGAINST MOTOROLA, APPLE MANAGEMENT MESSES UP

June 27, 2012

Apple and Motorola have been vigorously fighting patent lawsuits with each other. Motorola Mobilityis simply a proxy for Google because it is now owned by Google. A federal judge in Chicago has formally dismissed a patent case brought by Apple against Motorola with prejudice. ‘With prejudice’ means that neither side can refile the case, however they can appeal the judge’s decision. In my opinion, this is a big loss for Apple in the long run as it will allow Google to compete more effectively against Apple. Apple has a reputation for doing everything very well. The irony here is that Apple doomed its case by its own

DOWNGRADE A POSITIVE FOR 3 BANKS

June 27, 2012

On Thursday, Moody’s downgraded 15 banks. On the surface it seems counterintuitive, but the downgrade is positive for JP Morgan (JPM), Morgan Stanley (MS) and Bank of America (BAC) . My 30 years in markets have taught me that it is always positive when an overhang is lifted. Back in February, Moody’s telegraphed that it had launched a review of 17 global banks with capital market operations. Moody’s reasoning was that difficult operating conditions, increasing regulation, and lower levels of growth. The rating cuts are considered negative because they increase funding costs as the banks may have to pay more

HOPE FOR GOLD BULLS

June 27, 2012

Traditional technical analysis is more of an art than a science. Experienced practitioners of the art of technical analysis can look at the same chart and come to different conclusions. The way we resolve various contradictions is by backtesting and taking only those signals that show high probability of success in backtesting. We have found that signals based on multiple traditional techniques are more reliable than just one technique. Right now, a confluence of a traditionally well understood chart patterns combined with some traditional indicators on charts of gold ETF GLD and silver ETF SLV is showing some hope for the

APPLE LOCKS IN LIQUIDMETAL FOR TWO MORE YEARS

June 27, 2012

Imagine iPhone 5 looking as though it is made of a liquid metal, and feels like a liquid to the touch. Imagine a case more than twice as strong as titanium. Imagine no scratches or smudges. If Apple (AAPL) pulls off such an innovation in iPhone 5, it will be a coup, giving Apple another edge over its competitors. A recent SEC filing provides fresh evidence that Apple seems to be very interested in dealing with a company that makes such “liquid metal.” A small company named Liquidmetal Technologies (LQMT). The company has developed a series of amorphous metal alloys that are sold

WEEKLY MARKET DIGEST: FORTUITOUS CALL ON TUESDAY AHEAD OF THURSDAY DROP

June 22, 2012

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.) FORTUITOUS CALL ON TUESDAY AHEAD OF THURSDAY DROP June 22, 2012 On Tuesday, June 19th, we wrote Aggressive investors who bought QQQ, FEU, MS, USO, and GREK on Friday may consider taking profits in all these positions with the exception of FEU and exiting them here. Those investors who do not have enough dry powder because they either did not take enough profits in March and April when we were aggressively taking profits or did not hedge may take some profits

FOXCONN CHIEF DISSES GALAXY, TALKS UP APPLE iPHONE 5

June 21, 2012

If you’re in the market for a smartphone, wait for the Apple(AAPL) iPhone 5 and do not buy the new Android flagship Samsung (SSNGY) Galaxy S III, so saysTerry Gou, according to Focus Taiwan. It pays to listen to Terry Gou, as he is no ordinary commentator. Gou is the chairman of Hon Hai Precision Industry Co. Hon Hai is the parent of Foxconn, the company that manufacturers iPhones for Apple. According to Gou, iPhone 5 will put Samsung Galaxy S III to shame. Of course, he’s the guy who will be making money when his company makes those iPhone 5 devices. Samsung