Tag: scripsio

The “Amazon Effect” has forced all retailers to step up their “omnichannel” game or face extinction. The ominichannel phenomenon is the ability to compete through brick and mortar and online by redesigning distribution networks and streamline supply chain operations to best serve customers on and offline.

Treasury Secretary Steven Mnuchin said Wednesday the Justice Department is right to be looking into Amazon’s practices as part of its antitrust review of big technology companies.

“I think if you look at Amazon, although there are certain benefits to it, they’ve destroyed the retail industry across the United States so there’s no question they’ve limited competition,” Mnuchin told CNBC’s “Squawk Box. ”

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OK, so you aren’t a retailer, but what if you are a REIT that houses retailers?  An omnichannel strategy isn’t a choice.  What about if you are a REIT, who is housing J.C. Penny? I would say you are no better off than the retailer.

Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties.  Pennsylvania Real Estate Investment Trust is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets.

2019 has been a bad year for most mall REITs. With the number of U.S. store closures on pace to hit a record this year, investors have soured on owners of retail real estate, particularly owners of mid-tier malls.

The carnage worsened over the past week. Shares of Washington Prime Group (NYSE:WPG) and Pennsylvania Real Estate Investment Trust (NYSE:PEI) both tumbled more than 10% between last Wednesday and the end of trading on Monday. (Both REIT stocks recovered a bit on Tuesday.) The main catalyst was a report that came out on Thursday evening indicating that J.C. Penney (NYSE:JCP) had hired advisors to study options for restructuring its debt.

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If you connecting the dots, then you know what’s happening to both Washington Prime Group (NYSE:WPG)

and Pennsylvania Real Estate Investment Trust (NYSE:PEI)

They are both getting Amazoned.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Four months ago, an Ethiopian Airlines crashed killing 149 passengers and eight crew members on board shortly after takeoff. The incident was the second deadly crash of the new Boeing planes in less than five months. A Lion Air Boeing 737 MAX 8 plunged into the Java Sea shortly after taking off from Jakarta in October, killing all 189 people on board.

Immediately after the Ethiopian Airline crash, Ethiopia, China and Indonesia, Caribbean carrier Cayman Airways, Comair in South Africa and Royal Air Maroc in Morocco temporarily grounded their Boeing MAX 8s as a precautionary measure.  This was shortly followed by all 737MAX 8 planes around the world being grounded.

The chart suggested price would fall to the daily demand at $360.

The culprit, Maneuvering Characteristics Augmentation System (MCAS), suspected of reacting to errant sensor data, the solution, a software update.  Today, all 737MAX 8 planes around the world remain grounded.

After Boeing (BA) missed second-quarter earnings expectations by wide margin Wednesday, CEO Dennis Muilenburg stood by expectations that the troubled 737 Max would return to service early in the fourth quarter.

“If any of the timeline assumptions change significantly from a start-of-the-fourth-quarter return to service, then we’ll have to evaluate alternatives,” Muilenburg said. “And those alternatives could include different production rates, they could include a temporary shutdown of the line — not something we want to do, but an alternative that we have to prepare for, I think, is a smart part of our thorough and disciplined process here to make sure we’re covering all scenarios.”

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Price did bounce off the daily demand at $360.

but because the woes continue the zone was breached and now the chart suggests, price could fall down to the support level at $300.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

The US and China have been negotiating for months, bring the Equity Markets along for the ride in hopes that a deal will be made.  But it’s not only the Equity Markets hoping for a deal.  The biggest economy in Europe is also hoping for a deal.

Germany is only expected to grow at a rate of 0.5% this year, according to the latest economic forecasts by the European Commission. It will be the second-worst economy across the EU in terms of growth, just behind Italy.

Germany’s industrial crisis is worsening, the economy is at risk of recession and a raft of mounting troubles mean the chance of a near-term turnaround are fading.

Trade tensions, weaker demand abroad and the travails of the car industry have built up over the past year to take a toll on the engine of Europe’s economy. They’ve dragged manufacturing into its deepest slump in seven years, and some of the nation’s biggest corporate names from BASF SE to Daimler AG and Continental AG have had to come to terms with a new reality for business.

As one of the world’s biggest exporters, Germany is paying a high price for the slowdown in global trade. The economy is forecast to grow the least in six years in 2019. 

The question for Germany is how bad the downturn, once expected to be temporary, will become.

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This year the DAX has bounced off of the monthly demand at 10400 and no has been hovering in the monthly supply at 12400.  However, the bullish monthly candle looks like the DAX once to go higher, which in turn will means breaching the monthly supply zone. 

Thus, I will be watching for any signs of weakness for a potential reversal if and only if price closes below the major support/resistance level at 12200.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Lamb Weston Holdings, Inc. produces, distributes, and markets value-added frozen potato products worldwide. It operates through four segments: Global, Foodservice, Retail, and Other. The company offers frozen potatoes, sweet potatoes, and appetizers under the Lamb Weston brand name, as well as various customer labels. It serves retail and foodservice customers; grocery, mass, club, and specialty retailers; and businesses, independent restaurants, regional chain restaurants, and convenience stores, as well as educational institutions.

I have never heard of Lamb Weston Holdings until yesterday. Yesterday they reported their fourth quarter earnings and the stock fell after they announced slower sales for the fiscal year of 2020.

“For fiscal 2020, we believe the overall operating environment will continue to be generally favorable,” Tom Werner, president and CEO said in a press release. “While we expect that increased spending to upgrade enterprise-wide information systems will temper earnings growth this year, we believe that these near-term investments to improve operating efficiencies, and our continued focus on executing on our strategies, will have us well-positioned to generate sustainable top- and bottom-line growth and create value for our shareholders over the long term.”

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Needless to say, the chart suggests price is going down to the weekly demand at $50.50.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.