Showing posts with label Capitalist Radio. Show all posts
Showing posts with label Capitalist Radio. Show all posts

Sunday, April 24, 2011

Wael Ghonim Named Time Magazine's Top 100 Most Influential People For Causing Chaos in the Middle East...

Wael Ghonim was directly responsible for manipulating the primitive country of Egypt into a chaotic frenzy via Facebook and Twitter. Since the so-called Egyptian Revolution (which was nothing more than a mass pillage and plunder episode), the Middle-East has turned into complete hell. But that didn't stop Time Magazine from naming this war criminal one of the world's top 100 most influential people.

That's right! This Google executive, now self proclaimed revolutionary, is going to be rewarded with American media pomp after turning Egypt into Anarchy. Since Ghonim's tech inspired riots, the Egyptian people are growing more and more unhappy with what has transpired since the so-called Egypt Revolution. Of course, their anger should be directed towards the puss in picture.

Wael Ghonim claims to be doing what he's doing for freedom and to prevent "his country" from being oppressed by authoritarian regimes. Yet, the new governing body of Egypt recently inked an economic deal with totalitarian the government of Iran; not to mention they want to "increase their ties." Where's Wael Ghonim's protests against this?

Lest we forget that Iran has slaughtered thousands of its own people in 2009 when the pro-democracy/pro-capitalist movement attempted to demonstrate against the fixed Ahmadinejad elections. Now, thanks to Wael Ghomin, Egypt is embracing the Iranian regime with open arms. So with this rational, its okay for Iranians to be slaughtered because its not Ghonim's country? What are bunch of hypocritical bull shit!

Anyone in any other country that attempted to do what Ghonim did in Egypt would be thrown in prison for life or, in many cases, executed for treason. But not Wael, he's going to be at the Times 100 awards in a tuxedo, eating a 5 star dinner and hobnobbing with pompous celebrities with bigger egos than his. And why? Because he's a Google executive that manipulated a primitive masses into mass chaos. Thanks Google; for your employees promoting the expansion of the Iranian totalitarian government!

Wednesday, February 9, 2011

Ghost is Bullish on Gold! Financial Institutions Now Accepting Gold as Collateral...

As many listeners know, I was a Gold critic for some time. But as I continue to see the pumping of bullion on the news media, TV personalities and even from certain politicians, I'm seeing the Gold bubble beginning!

For all who are unaware, America loves a good bubble; the dot coms, real estate, etc. Gold, at this point, seems to be one of those financial instruments that investors (laymen and pro) seemed to be getting into for many different factors.

One factor, inflation! The U.S. government is continuing its orgy of deficit spending, which is debasing the American currency. Typically the price of Gold rises when a currency is devalued and we're seeing (and have seen since the concept of investing) investors use liquid from other positions to purchase Gold to hedge against this inflation. This play provides the investor with cash reserves via metal that gains with inflation by default.

Another factor, accumulation! Since Gold's rise since 2000, many firms, businesses and individuals have started up to capitalize on these unprecedented gains. Everything from Gold bar peddlers to scrap Gold buyers fill the advertising space on the news networks and other media; not to mention that financial institutions are now accepting Gold as collateral. This means that a mainstream industry has been birthed based around bullion and is obviously successful enough to continuing paying millions to advertise and accumulate the metal. So what does that tell me, it tells me that this is the beginning of potential Gold scarcity because of accumulation. Accumulation of this metal can cause a huge spike in the value of gold based on the laws of supply and demand; and this is a key factor for fueling the coming Gold bubble.

The last, but not least, factor; over speculation. At some point (I believe we're entering that phase now), everybody from investors to the regular joe are going to believe the hype and accumulate Gold no matter what the market price is. Over speculators are going to be blinded by gains and they will fail to realize the limitations of this instrument (just as the did with real estate). This will engulf the latter portion of the Gold bubble right before it bursts, which I feel will take place in about 2-3 years from now.

Taking these factors into account, I feel very bullish on Gold for the time period mentioned previous. I believe (in my opinion) that bullion could go as high as $3000-$4000 an ounce before is pops, so take advantage by setting aside a minimum of 10-15% of your portfolio and entertain plays in the metals market; especially Gold!

Tuesday, February 8, 2011

AOL CEO Tim Armstrong's Explaination of the $315 Million Huffington Post Deal





Tim Armstrong went on Bloomberg Television after trading hours on Feb. 7, 2011 to discuss his company's recent acquisition of Huffington Post for an astonishing $315 million. Armstrong sounded optimistic to say the least when boasting about the deal and pom-poming its founder, Ariana Huffington (who will now be AOL's editor in chief for news content). If your an investor in AOL, listen closely and see if you believe the vision that Armstrong trying real hard to sell.

After watching this interview, one has to wonder what's Armstrong smoking? Sure, his belief in content production and its revenue generating strategies is one thing. But I don't think that paying the Huffington Post 30 times its annual operating cash flow is a smart business decision in any school of finance.

AOL "expects" Huffington Post's annual operating cash flow in 2012 to be around $30 million; but I feel that's really stretching the imagination. In episode #17 of the True Capitalist Radio Show, I had several AOL investors call into the show with concern about this deal; asking for advice on their next move on this stock. I personally feel that this was not a wise use of a company's capital, and if I owned AOL right now; I would start looking for more profitable short term instruments.

One thing I think that will come about from this questionable move by AOL is a potential corporate buy out frenzy. I think these types of buy out deals (based on speculated future earnings) are going to be a habitual norm in the coming year and into next year, for corporate profits have been high for the past couple of quarters (which has given equities major gains). Companies are sitting on lots of capital and, just as AOL has done, they're going to use it to expand. Not to mention the Obama administration's new view on lowering corporate taxes! Is this going to be the 90's all over again?