Category Archives: Technology

How to Play Detroit’s Chinese Connection

Western investors reacted with outright derision and plenty of skepticism when news broke this week that one or more Chinese automakers are considering bids for Detroit’s Fiat Chrysler Automobiles N.V. (NYSE:FCAU).

What they don’t realize is that not only is a deal like this absolutely possible, it’s highly probable.

And, imminent.

Which means the time to make your move is now.

Many investors are simply incredulous. I’ve spoken with tens of thousands of them over the years who cannot grasp the enormous financial implications associated with China’s emergence as a global power.

In some cases, they don’t want to acknowledge that China truly has global aspirations.

Most of the time, though, I find they simply cannot process the notion that somebody may have a bigger, more profitable vision of the future than they do – especially when it comes to an industry we pioneered.

However, they better get used to the idea… Chinese automakers are a logical partner.

In fact, they may be the only partner.

To continue reading click here

Posted in: Technology |

When it Comes to Amazon, I Couldn’t Disagree More with David Stockman…

Reagan-era Budget Director David Stockman rocked markets Monday with a note to clients calling Amazon.com Inc. (NasdaqGS:AMZN) a bubble, saying the company is “set for a spectacular collapse.”

Then he went on to say that a tech crash is “imminent” and that the company most at risk is Amazon because it hasn’t invented anything “explosively new like the iPhone or personal computer.”

Precisely.

Amazon is not a Reagan-era company, so measuring it today using criteria that applied 35 years ago completely misses the point, not to mention the profit potential.

Stockman has obviously had a long and distinguished career and I respect his analysis. But I cannot disagree more vehemently when it comes to Amazon.

Posted in: Technology |