MidSouth Week in Review:
August 06, 2018
Weekly Update from Fund Manager Buzz Heidtke, MidSouth Investment Fund
Aug. 6, 2018 | RedChip Companies
The S & P 500 rose 0.7% for the week, helped by a 9.5% advance from Apple, who became the first company to hit a $1 trillion valuation. If you were to distribute a trillion dollars to each American household, they would receive around $8,651. About 22 years ago, Apple was nearly bankrupt. Since then the stock is up a multiple of 334…..Wages and salaries rose 2.8% for the 12 months ending in June, the biggest pay increase in nearly a decade.
BuzzBits
Amazon – In 1995, Jackie and Mike Bezos plowed $245,573 into their 31-year-old son’s fledging e-commerce website. Bezos told his parents, “I want you to know how risky this is because I want to come home for dinner for Thanksgiving and don’t want you to be mad at me”. One IPO and three stock splits later, his parents intake could be worth almost $30 billion today. That would make them wealthier than Microsoft co-founder Paul Allen, the 30th richest person on the Billionaire Index – The Economic Times
Stacey Abrams – is the democratic nominee to become the first woman and black governor in the state of Georgia. Her credentials are superb and include: Magna Cum Laude grad from Spellman College, a master’s degree, and a law degree from Yale. However, the 43-year old Abrams’ financial situation is a disaster. She owes back taxes of $40,201 for 2015 and $13,851 for 2016. She also owes $96,512 in student debt and another $77,522 in credit card debt, spread over nine different accounts for a total of $228,000 in the red. Also, she has real estate debt of $178,500 and a $4,434 car loan – Yahoo Finance
Strange – Chipotle took a one-day $1 billion drop in its valuation on the announcement that two people got food poisoning at an Ohio location. CBS took a $2 billion valuation hit on a sexual allegation charge against their CEO. A Tennessee man who was convicted 33 years ago of rape and murder of a 7-year-old girl was finally set to be executed, only to receive another stay over worries that the inmate might feel immense pain and torture during the three-drug protocol.
Pot Smoking – “The actual old-school smoking of cannabis is pretty much out the door”, said marijuana store owner Jered DeCamp. Marijuana enthusiasts say the trend reflects a desire by consumers for stronger healthier or more discreet ways to consume pot. In Colorado, smokeable marijuana known as “flower” made up 67% of all sales at pot shops in 2014. Today, it’s down to 44%, while sales of potent concentrate known as “honey” or “butter” have doubled to 31% - USA TODAY NETWORK
Canadian NAFTA Tariff Charges – Autos: 25% charged by Canada vs. 2.5% charged by U.S, Steel 25% vs. 0%, Copper 48% vs. 0%, HVAC Equipment 45% vs. 0%, TV’s 45% vs. 5% - International Trade Commission
COLA Raise – the CPI was up 3.1% in June which indicates the Social Security cost of living increase will top 3% in 2019, the highest increase since 2012. Social Security recipients who waited until 70 to receive their benefits will receive approximately 75% more than those who elected to received their benefits starting at age 62 – Seeking Alpha
Crazy – In October, Helios and Matheson (MoviePass) was trading at $38 a share. Two weeks ago it had declined to 9 cents a share, so the company declared a 1 for 250 reverse stock split (for every 250 shares you owned, you wound up with one). After the split the stock was $22 a share. Today it hit 5.8 cents a share and a valuation of $98,000 in dropping 43.7% per day over the past two weeks. If you bought 100 shares today for $5.80 and it returned to its October 2017 high, your holding would be worth $950,000 - Buzz
Newspapers – Circulation is the same as 1940, but the population then was only 40% of today’s population. Newspaper revenue from ads is what it was in 1981. Papers employ barely half the number they did 14 years ago. People will not buy a classified because they can advertise for free on Craigslist. The New York Daily News, which once had the country’s largest circulation, has seen their circulation decline from 2 million to 200,000 – TIME
Summer Job Loophole – If you have a child or grandchild working this summer, you can contribute up to $5,500 to a Roth IRA for them. Inside the Roth, earnings grow tax-free. The pay-in counts towards your $15,000 gift tax-exclusion ($30,000 if married) – Kiplinger Tax Letter ….. Summer day camp costs qualify for the dependents care credit. If you send your child to any special day camps this summer such as for sports, computers, math or theatre don’t forget the tax break.
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