• Breaking News

    Thursday, December 7, 2017

    The legal cannabis market predicted to triple in size by 2021 and see more revenue than the NFL. Job growth this year: 20%. High-ranking Google and Apple employees are leaving their jobs to launch cannabis-focused startups. "The evolution or rollback of prohibition is inevitable." Investing

    The legal cannabis market predicted to triple in size by 2021 and see more revenue than the NFL. Job growth this year: 20%. High-ranking Google and Apple employees are leaving their jobs to launch cannabis-focused startups. "The evolution or rollback of prohibition is inevitable." Investing


    The legal cannabis market predicted to triple in size by 2021 and see more revenue than the NFL. Job growth this year: 20%. High-ranking Google and Apple employees are leaving their jobs to launch cannabis-focused startups. "The evolution or rollback of prohibition is inevitable."

    Posted: 06 Dec 2017 12:42 PM PST

    Entrepreneurs and investors are leaving their high-paying corporate jobs to focus on the fast-growing marijuana industry, Reuters reports. Alan Gertner used to be head of Google's Asia-Pacific sales team, but he had decided to trade his comfortable corporate job for something a lot less conventional. He is currently building a cannabis brand from a small Toronto office. Gertner managed to raise 10 million dollars in capital in just 10 months. Eric Eslao, a former senior production manager at Apple, also jumped on the bandwagon about a year ago to focus on producing cannabis chocolate bars.

    The legal cannabis market is currently worth about eight billion dollars. According to Arcview Market Research, it is predicted to triple in size by 2021. If these predictions come true, the legal cannabis market will outperform America's most profitable sports organization, the NFL, which aims to reach 25 billion dollars by 2027.

    The significant influx of capital is what helps finance the paychecks of 150,000 workers in the legal cannabis industry in the United States. The industry had a job growth of 20 percent this year. The stigma of joining this industry, legal risks and challenges, and mixed signals of Donald Trump's administration, however, may present a problem.The banks that work with cannabis-related businesses operate in states where the industry is legalized and are limited to accepting cash deposits. On the other hand, Americans increasingly support marijuana legalization, according to a Reuters poll.

    Ian Laird, the co-founder of New Leaf Data Services LLC, said, "The evolution or rollback of prohibition is inevitable. It's not like it stopped anyone from getting it."

    Cannabis investment is still dominated by wealthy individuals, although that is expected to change as the industry grows. The wide-open landscape of opportunity is what draws investors. They are focused on support services and technology. This is how they manage to bypass the legal risk cultivating and selling cannabis still entails.

    At the moment, the cannabis business seems to be about risk arbitrage. Medical cannabis producers are experiencing high returns because the risk is currently high. That too is expected to change soon, since the industry itself keeps creating jobs, as well as tax revenue. Apart from that, Americans are becoming aware of the futility in preventing marijuana use.

    https://www.inquisitr.com/4667846/the-legal-cannabis-market-is-predicted-to-triple-in-size-by-2021/

    submitted by /u/Amidza
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    Google pulls YouTube from Amazon devices, escalating spat

    Posted: 06 Dec 2017 07:37 AM PST

    A rare public spat in the technology industry escalated on Tuesday when Google said it would block its video streaming application YouTube from two Amazon.com Inc devices and criticized the online retailer for not selling Google hardware.

    The feud is the latest in Silicon Valley to put customers in the crossfire of major competitors. Amazon and Google, which is owned by Alphabet Inc, square off in many areas, from cloud computing and online search, to selling voice-controlled gadgets like the Google Home and Amazon Echo Show.

    The stakes are high: many in the technology industry expect that interacting with computers by voice will become widespread, and it is unclear if Amazon, Google or another company will dominate the space. Amazon's suite of voice-controlled devices has outsold Google's so far, according to a study by research firm eMarketer from earlier this year.

    In a statement, Google said, "Amazon doesn't carry Google products like Chromecast and Google Home, doesn't make (its) Prime Video available for Google Cast users, and last month stopped selling some of (our sister company) Nest's latest products.

    "Given this lack of reciprocity, we are no longer supporting YouTube on Echo Show and Fire TV," Google said. "We hope we can reach an agreement to resolve these issues soon."

    Amazon said in a statement, "Google is setting a disappointing precedent by selectively blocking customer access to an open website."

    It said it hoped to resolve the issue with Google as soon as possible but customers could access YouTube through the internet - not an app - on the devices in the meantime.

    The break has been a long time coming. Amazon kicked the Chromecast, Google's television player, off its retail website in 2015, along with Apple Inc's TV player. Amazon had explained the move by saying it wanted to avoid confusing customers who might expect its Prime Video service to be available on devices sold by Amazon.

    Amazon and Apple mended ties earlier this year when it was announced Prime Video would come to Apple TV. Not so with Google.

    In September, Google cut off YouTube from the Amazon Echo Show, which had displayed videos on its touchscreen without video recommendations, channel subscriptions and other features. Amazon later reintroduced YouTube to the device, but the voice commands it added violated the use terms and on Tuesday Google again removed the service.

    The Fire TV loses access to its YouTube app on Jan. 1, Google said. Amazon has sold that device for longer than the Echo Show, meaning more customers may now be affected.

    https://www.google.com/amp/mobile.reuters.com/article/amp/idUSKBN1DZ37O

    submitted by /u/gronkspike25
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    Broadcom with a 72% increase in dividend.

    Posted: 06 Dec 2017 02:30 PM PST

    They also doubled the dividend last year - went from 51c to $1.02 and now goes to $1.75

    Also beat earnings. https://investorplace.com/2017/12/broadcom-ltd-avgo-2/#.WihvaUqnGM8

    submitted by /u/dvdmovie1
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    Is now the time to invest in marijuana stocks?

    Posted: 06 Dec 2017 10:38 PM PST

    From what i can tell, the weed industry is growing rapidly. Seems like now would be a good time to invest but im not sure how i would go about doing that? What stocks are there? And would it be worth it to invest?

    submitted by /u/CrazyMojo911
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    Just found out my dad has been sitting on 3 mil in cash since 2009

    Posted: 06 Dec 2017 07:47 AM PST

    He pulled out when the market collapsed and was too terrified to ever get back in. The only investing he does now is a small annuity with ~500k. Let this be a lesson to everyone to BTFD.

    submitted by /u/TVP615
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    (Serious) Why would someone with steady income and liquidity invest in crypto?

    Posted: 06 Dec 2017 02:08 PM PST

    There seem to be endless subs for different crypto currencies and it seems super popular on reddit. However, it seems like it would be an insane risk to invest any substantial portion of ones net worth in crypto. Like even worse than day trading, unless you are a professionally trained/ heavily educated in macroeconomics, microeconomics and able to understand financial statements 10k/10q. One would think investing in traditional mediums (401k, mutual fund, etc) would yield a much more predictable return based on the diversity of your investments. All I see on reddit are people either investing in like 6 tech companies or putting a lot of money into crypto. This all seems like an unbelievable risk unless someone does not have a guaranteed continual income and the risk is justified by the potential reward.

    However, I have not followed crypto that much. But at a glance it seems like a poor choice to use as a main source of investing.

    submitted by /u/AwkwardTickler
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    Looking for ETFs

    Posted: 06 Dec 2017 09:06 PM PST

    First off, I have read the part of the guidelines that says not to post about advice, but to comment on the "Daily advice thread". But I can't find the Daily advice thread. If someone or the mods can link to that, I'd be happy to comment there.

    I'm new to investing, and I've been reading the threads from the sidebar, but what I didn't see is anything helping someone find ETFs. How do you suggest going about finding ETFs to invest in?

    submitted by /u/normal_monkey
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    The History of Sears Predicts Nearly Everything Amazon Is Doing One hundred years ago, a retail giant that shipped millions of products by mail moved swiftly into the brick-and-mortar business, changing it forever. Is that happening again?

    Posted: 06 Dec 2017 08:28 AM PST

    One hundred years ago, a retail giant that shipped millions of products by mail moved swiftly into the brick-and-mortar business, changing it forever. Is that happening again?

    To understand Amazon—its evolution, its strategy, and perhaps its future—look to Sears. Mail and browsing catalogues were the internet before the internet. Then, after one of the most successful half-centuries in U.S. corporate history, Sears did something really crazy. It opened a store. Sears was not content to be a one-stop-shop for durable goods. Like Amazon today, the company used its position to enter adjacent businesses, becoming an inextricable part of consumers' lives. So how might Sears's experience predict Amazon's future? Sears showed that physical retail doesn't necessarily cannibalize the mailing business. So far, Amazon's online sales have actually grown in regions where it has a physical store presence.

    [LINK]

    (https://www.theatlantic.com/business/archive/2017/09/sears-predicts-amazon/540888/)

    submitted by /u/Yard-Dog
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    Interactive Brokers will allow Bitcoin Futures - with a twist

    Posted: 06 Dec 2017 08:48 AM PST

    After the founder of IB taking out a full page ad to warn everyone about the risks of Bitcoin futures to clearinghouses, it appears that IB does plan to support trading Bitcoin futures, albeit with an interesting twist that will undoubtedly make the bitcoin-to-the-moon camp giggle in delight. From the knowledge base article:

    Will there be any restrictions on trading?

    Due to the extreme volatility of cryptocurrencies, clients will be unable to assume a short position (including as part of a spread). In addition, market orders will not be accepted.

    submitted by /u/wpawz
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    Question: Asset allocation in 2018

    Posted: 06 Dec 2017 09:19 PM PST

    IMO, stock market is around record high globally. Bond market is vey likely to fall with more upcoming interest rate hikes.

    I am looking for suggestions for a long term investor: Which asset class is less risky in 2018? Is it a good idea to long USD or buY REIT ETF? Thanks much.

    submitted by /u/AlteregoMike
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    Depending on these investments, how should I open these accounts?

    Posted: 06 Dec 2017 09:48 PM PST

    I have a regular bank account (parent is attached so they can assist me with school), and a credit union account where my deposits go. I have a good sum of cash and I want to invest in ETFs, stocks, and eventually trade options. I've heard vanguard is good for ETFs, fidelity (or robinhood) for stocks, and tastytrade for options (although I saw optionshouse was good too).

    Is it necessary to have this many accounts? I intend on doing a practice account for options for a while. What are your recommendations on how I go about doing this.

    submitted by /u/HalfSaiyan
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    Amzn/Goog stock is up. Why are all the call options down?

    Posted: 06 Dec 2017 01:06 PM PST

    Am I crazy or is Yahoo finance not showing the options correctly?

    Did something else happen that make the option buys worry about the future? Its not very often I see moves so drastically different.

    Any help is appreciated. Thanks.

    submitted by /u/ChooseLIFE___
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    US yield curve flattens at fastest pace since financial crisis

    Posted: 06 Dec 2017 05:54 PM PST

    https://www.ft.com/content/1ecaf10e-da1c-11e7-a039-c64b1c09b482

    "But some investors and analysts say the driving forces for the current move are different. Heightened expectations for the passage of tax reform into law could offer a short-term boost to the economy, but were unlikely to trigger a long-term boost to inflation that would drive longer-dated yields higher, said Ian Lyngen, head of US interest rate strategy at BMO Capital Markets."

    submitted by /u/etienner
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    Does anyone invest with Wells Fargo advisors?

    Posted: 06 Dec 2017 10:19 PM PST

    If so how has your experience been working with them?

    I'm considering investing my 650k with them... Are they a good choice?

    submitted by /u/SpareTech_O
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    How likely is the price of gold going to change in the next decade?

    Posted: 06 Dec 2017 09:26 PM PST

    I'm thinking of buying gold for a long term safety net. I have money lying around that i'm likely to spend if i don't hide away. I think Stock market is for short term investment, that's why i don't want to put my money there. Also, i wanna save it for the unlikely event that gold might become the only solid currency (post apocalyptic mind, I know). Please give me any advice, thanks.

    submitted by /u/TheFunnyWeirdo
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    Will the FOMC meeting sell off in stocks?

    Posted: 06 Dec 2017 09:17 PM PST

    Will we see a sell off ahead of the FOMC meeting due to the high likely Hood of a rate hike?

    submitted by /u/ajgbaby
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    Help with valuation and critique my analysis, please

    Posted: 06 Dec 2017 09:21 AM PST

    I am trying to do a valuation on a private life insurance stock and could use some input from the community. How would you value this stock and is my logic solid or flawed. I'm kind of new at this, but basically I want to know what a reasonable target would be if this stock were to make a public offering.

    Key Metrics

    • annual ROE of 21% over the last 4.5 years (fairly consistently)
    • total growth over a 4.5 period of 114%
    • book value of $21.39 (up from $10 4.5 years ago)
    • EPS for the last four quarters combined was $3.65

    Valuations:

    P/E Ratio: Looking at peers, P/E ratios range from 5 to 66 across a range of 15 companies sampled. Mean is 20, median is 16, standard deviation of 16. The average PE ratio, over the last 5 years, has hovered around 15 for peer-group insurance companies. If I use a PE ratio range of 15-20, I get valuation of $55-$73.

    P/B ratio: My understanding of P/B ratio as it applied to financial services industry is that a P/B of 1 is cheap and 2 is likely overpriced. Using that as a valuation method I get a valuation of $21-$43.

    PEG Ratio: My understanding of PEG ratio, is that a company, when fairly priced, will have a P/E ratio equal to its growth rate. With a CAGR of 21% and a history of similar results since inception, this would give a valuation of around $77.

    ROE: The ROE is significantly greater than peers, suggesting a well run company worth paying a premium

    Other Factors Life insurance companies are helped by rising interest rates, which is the current trend. Although higher reserves and corresponding capital requirements are hitting the industry along with increased regulation, this particular company is well positioned and ready for regulatory change and capital adequacy rules. This makes me lean toward a higher valuation.

    My thought process:

    So looking at this company and the various valuation methods, I get a range of $22-$77 with the price/book method standing out as being low. Looking at the average P/E ratio of peers, of which this company outperforms, I get a value of $58. I am going to use this as my absolute lower limit and discard the price/book method as being inappropriate for this relatively new company that significantly outperforms its peer group. Given the other valuation methods suggesting an upper limit of $73-$77, I am going to peg my upper limit at $73. That gives me a working range of $58-$73 for the stock.

    Now I need to decide which end of that range is most appropriate. Given the strong performance relative to peers, I am going to skew this value to the high side of my range. The mid point of $58-73 is $65.50, making the high side of the range $65.5-$73. That is a fairly narrow range, the midpoint of which is $69.

    Conclusion

    If I had to place a value on this stock, I would say $69 is appropriate.

    submitted by /u/DrunkenGolfer
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    New RR looking for a book or other resources that help break down retirement planning and strategies. 401(k), 403(b), SEPs, 529, custodial accoiunts,.etc,

    Posted: 06 Dec 2017 08:53 PM PST

    My knowledge is growing but I feel a need comprehensive assessment with laymen and industry practic

    submitted by /u/RecklessBakery
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    Ready to move into taxable stock trading. What online brokerage do you all use?

    Posted: 06 Dec 2017 08:39 PM PST

    So I max my 401k and IRA every year with a 3 fund mix of Vanguard Domestic Stocks, International Stocks, and Bonds with a proportion that fits my age. Now I want to dip my toe into the taxable stuff. I'm doing some research, and I'm stuck on step 1, chose a brokerage. I'd like to do everything online. However, how do I know which stocks are available from a given brokerage before I sign up? Should I assume that from any large mainstream brokerage, like Charles Schwab or Etrade, I'll have access to any stock of note, whether it's on the NASDAQ or whatever? What do you all use? Thanks.

    submitted by /u/PM_ME_SUM_SNATCH
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    Best way to diversify from concentrated stock position

    Posted: 06 Dec 2017 01:04 PM PST

    In a nutshell, I have almost all my investment $ in Apple (purchased back in 2009). What is the best way to diversify this single position while minimizing taxes?

    Thanks.

    submitted by /u/DNSamurai
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    What is the best stock brokerage and why?

    Posted: 06 Dec 2017 06:49 PM PST

    Questions about the best tools for a beginner to use, i.e simulators, apps, games, that will help me learn how to trade on Forex.

    Posted: 06 Dec 2017 06:12 PM PST

    Hello, i am just wondering if any of you know about Forex and how the best way i could learn how to safely trade on it without using actual cash, and any tips or tricks would help. I wanted to learn how to day trade but the cap for the NSE is way too high, and have heard Forex could be successfully used with a starting amount of 1000$

    submitted by /u/sadd_slugg
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