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InvestWithAlex Joke Of The Day

Goldman Sachs issues a Strong BUY recommendation on what is forecasted to be the hottest selling toy of 2014 holiday season. God Almighty, Inc (GOD), now with AK-47. 

z16

Stock Market Update. March 12th, 2014. InvestWithAlex.com

Daily Chart March 12, 2014 investwithalex

A relatively flat day….the Dow Jones lost -11 points (-0.07%) while the Nasdaq gained +16 points (+0.37%)

After a massive sell off in Asia overnight, most bears proclaimed that the US market will take a hit as well. The markets did open up with a large gap down, but were able to recover most of their losses to end the day either up or flat. Even thought negative fundamental data, overvaluation data and speculative bubble metrics continue to pile up, the bears cannot catch a break. 

WHAT GIVES? 

Well, it’s rather simple. Based on our mathematical and timing work, the stock market has an internal mathematical structure. It must hit its points of force before any bear market or a reversal can take place. Believe me, the fundamental bearish data above will come in to play, soon enough, but for the time being the market doesn’t care. If you would be interested in learning exactly when the bear market of 2014-2017 will start as well as it’s exact internal composition, please Click Here.  

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Stock Market Update. March 12th, 2014. InvestWithAlex.comGoogle

How To Avoid Paying Taxes….Through A Legal Loophole…. Of Course

In another perfect illustration of Federal Tax incompetence, multinationals have accumulated close to $2 Trillion in tax free earnings overseas. Only a corrupt government with a messed up tax code can tax your Social Security or Welfare income while allowing Apple, Google and IBM to accumulate hundreds of billions of dollars in tax free profit overseas. In fact, when I have lived and worked overseas I had to declare my foreign income and pay taxes on it here in the US. That is on top of taxes I have already paid to the foreign government.  But not multinationals.

Does anyone know how I can get one of these loopholes for myself? 

Short of renouncing your American Citizenship you are shit out of luck. But here is how you can achieve the same status as multinationals. .

  • Step #1: Fly to British Virgin Islands and Incorporate a company.
  • Step #2: Fly to Hong Kong and open a business for your company in step #1.
  • Step #3: Fly back to the US and incorporate your HK company in Delaware.
  • Step #4: Properly structure your income generation and bank accounts.  

Congratulations!!!. You are now untraceable and can achieve the same status as multinationals. Outside of income generated within the US, all of your other earnings/income should be considered “deferred” forever under today’s IRS laws. Fair and square. Plus, you get to visit BVI and HK. Everyone wins.

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Google

The largest U.S.-based companiesadded $206 billion to their stockpiles of offshore profits last year, parking earnings in low-tax countries until Congress gives them a reason not to.

The multinational companies have accumulated $1.95 trillion outside the U.S., up 11.8 percent from a year earlier, according to securities filings from 307 corporations reviewed by Bloomberg News. Three U.S.-based companies —Microsoft Corp., Apple Inc. and International Business Machines Corp. — added $37.5 billion, or 18.2 percent of the total increase.

“The loopholes in our tax code right now give such a big reward to companies that use gimmicks to make it look like they earn their profits offshore,” said Dan Smith, a tax and budget advocate at the U.S. Public Interest Research Group, which seeks to counteract corporate influence.

Even as governments around the world cut tax rates and try to keep corporations from shifting profits to tax havens, the U.S. Congress remains paralyzed in its efforts. The response of U.S.-based companies over the past few years has been consistent: book profits offshore and leave them there.

Congress hasn’t acted because of disagreements over whether to be tougher on U.S. companies operating abroad amid broader disputes over government spending and taxation. The stalemate has prevented the U.S. from tapping a pot of money that President Barack Obama and the top Republican tax writer in Congress have eyed for such projects as rebuilding highways.

Deferring Taxes

Meanwhile, the companies are deferring hundreds of billions of dollars in U.S. taxes as they lobby to end a system they describe as a competitive disadvantage in world markets. The top 15 companies now hold $795.2 billion outside the U.S., up 10.6 percent.

That increase was slower than the 15.9 percent rise in stockpiled profits those same companies had the previous year. Pfizer Inc. reported a decrease in offshore profits this year, and General Electric Co. and Citigroup Inc. each reported growth of less than 3 percent.

The Bloomberg analysis covers the two most recent annual filings from 307 companies in theStandard & Poor’s 500 Index. It excludes purely domestic corporations, those that don’t disclose offshore holdings, companies with headquarters outside the U.S. and real estate investment trusts that aren’t subject to corporate taxes.

Yo Canada, Your Real Estate Is Way Overpriced. Crash Coming?

If you thought California real estate was expensive, take a look north of the border. The situation in Canada is equivalent to the hottest markets in the US, with one primary difference. Canadian real estate was a late bloomer and their speculative cycle didn’t really get going until after 2002. Since their real estate cycle was about 8 years behind, they were not impacted by the real estate collapse in the US. Further, when the next round of financing (by the FED) showed up in 2008, Canadian Real Estate simply continued to accelerate as if nothing had happened. 

Basically, Canadian real estate is where the US real estate was 8 years ago. The cycles confirm that as well. When this particular liquidity party ends (happening now) and the stock market shifts into the bear market of 2014-2017, I would fully expect Canadian real estate to collapse. It is never different. 

Garth Turner’s Blog “Greater Fool” is a great place to follow Canadian Real Estate if you wish. Click Here. 

Please see the full report below.  

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Yo Canada, Your Real Estate Is Way Overpriced. Crash Coming?  Google

From Our Friends At Doctorhousingbubble.com

I really enjoy Canada.  A beautiful country with great cities and fantastic food.  Leave it to our neighbors to the north to show us how it is done for a real housing mania.  For the first time in history we have experienced coordinated global housing bubbles courtesy of central banks following very similar policies.  The addiction to debt isn’t only a U.S. born condition.  While the recent U.S. market is dominated by low supply and massive investor buying, Canada continues to see rising home prices even right through the global Great Recession.  The Canadians interestingly enough also face similar dilemmas between older and younger generations.  Many young professionals are fully priced out of the real estate market even when they are working at relatively good careers.  Many battle it out in the condo markets were even in this market prices are inflated.  Canada has an incredibly heavy reliance on real estate, more so than the United States and their household debt ratios make the U.S. look like a frugal uncle.  One fascinating story highlights a similar story to what many baby boomers here in the U.S. are facing with their offspring.  They face the reality that they are house rich but cash poor.

Canada’s inflated real estate market

Home prices in Canada are inflated.  Global cities like Vancouver and Toronto face massive investor buying that largely makes it tough for local families to buy.  Many pre-bubble buyers are caught in a golden castle but unable to unlock the money until they sell, a similar condition to many baby boomers here in California.

It is important to note that there was no correction in home values even during the Great Recession in Canada:

canada home prices

Canada home values have increased by close to 80 percent in the last decade.  For the U.S. over this same period of 1994 to 2004 home prices are up (adjusting for inflation) by a modest 10 percent even after the 2013 mania:

us home values

The housing market in Canada has been split in many areas between mass produced cheaper condos versus single family homes:

“(CBC) One market is facing too much supply, while another appears to be heating up,” the bank said. “The GTA housing market is a tale of several markets with divergent conditions.”

There are certainly changes in the wind but bubbles can go on for much longer than you think.  How are Canadians keeping this thing going?  For one, they are going into massive debt and putting the consumer hungry Americans to shame:

Debt-to-disposable income ratio

The above chart is very important.  The U.S. hit an apex in terms of how much household debt would tip an economy over.  Debt-to-personal income in the U.S. hit a peak of roughly 125 percent during 2007 at the height of the housing bubble.  You can see the correction that followed in the U.S. and many have felt on a personal level.  Yet Canadian’s continue to pile on debt beyond their actual incomes.  As of more recent data, they are closer to a 150 percent ratio.  Which leads us to those golden real estate handcuffs in Canada.  A great piece on the Great Fool blog highlights this generational divide:

“(Greater Fool) Cheryl and Paul are 57 and 60 and live in a Mississauga house they figure is worth $900,000. They’ve spent the last 14 years paying down the mortgage and have about $80,000 yet to go. She’s been at home since the last kid left the nest six years ago. He sells real estate, made $126,000 last year and has no pension. Between them they have$37,000 in TFSAs, $160,000 in RRSPs and about forty grand in a high-yield savings account.

“How we doing?” Cheryl asked, hopefully. I paused to collect my thoughts. “Oh,” she said. “That bad?”

Of course she knew the answer. The Boomer couple has just over $1 million in net worth, but 80% of it’s in one asset. Paul has no pension. Worse, as a commissioned salesguy, he has no business to sell. And he’s just as good as his last deal – which means any housing correction will not only sideswipe his income, but also his family’s net worth. It’s double jeopardy. And then there’s the nature of their liquid investments – the bulk of which sits in high-cost mutual funds inside an RRSP, meaning the money’s fully taxable.”

This is an interesting situation very similar to our struggle for housing for younger professionals today in many high priced metro areas.  The couple in the story above is massively house rich.  80 percent of their net worth is tied up in housing.  Their retirement accounts are paltry assuming they will be living off this amount for 15, 20, or even 30 years.  The house does not throw off any income.  The only way to unlock the money is to sell.  A home equity loan essentially means resetting the clock on additional debt.  Downsizing or moving to a cheaper area is the only way to leverage that massive gain in housing.  But how many people actually move?  In the U.S. we pointed out that most people are home bodies that would rather eat cat food in their million dollar home versus selling and using the money to live a decent retirement.

Canada’s economy is too focused on residential investment:

US vs Canada resi investment

Canada has been investing too much into real estate going back to 2002.  You can see the correction for the U.S. but is there something else going on here?  The article highlights a reality that many even in the U.S. will face when they are house rich and cash poor:

“But it’s a house. No dividends or interest. Just property taxes, maintenance, insurance and eight hundred grand of locked-in equity which must be released, or these folks are going to run out of money before they run out of time.

This brings us to Jason. Their kid. He’s 28. A member of Gen Y which, at 27% of the population is almost as big as the Boomers (32%). Jason rents in Toronto, makes $52,000 as a IT guy, rides a bicycle and the TTC, likes being urban, has no debt and puts money monthly into a TFSA with $18,000 in it. That makes him typical, too.”

This story is all too familiar to people in high priced Southern California.  The vast majority of people in SoCal that bought pre-bubble have locked in some solid games.  Yet how do you unlock those?  Heck, the advice is to stretch to the limit (meaning forego the retirement accounts or other alternatives) and double-down on housing.  We have seen the resurgence of adjustable rate mortgages (ARMs) to stretch the budget even further.  So all the money goes into this one asset.  But then what?  The truth is most will want to move up with that equity they build up (the average hold time in housing is seven years across the U.S.).  So many simply kept resetting the clock up on the property ladder.  Age doesn’t care about your new 2,000 square foot house with granite countertops and if you have a mortgage, you’ll need to continue generating income to pay the bills.

The story above also highlights the story of one of their “kids” at 28 that has a job in IT and makes $52,000 a year.  How in the world is an $800,000 home even feasible for their son?  Even a $400,000 condo would be a stretch.  Should he save for a down payment?  If he starts now he might be able to buy in his forties.  But then a home will cost $1.2 million according to some analysts based on future projections (simply using the current trajectory in Canadian home values).

The young in Canada seem to be facing similar predicaments to those in the United States:

“Incredibly, almost 45% of all young people between 20 and 29 live at home. The jobless rate for the cohort is about 14%. Student debt averages $37,000 after a four-year degree. Underemployment is endemic.

And this is the big hope for so many Boomers – that the ‘next generation’ will pony up and bail them out? Good luck with that.”

Living at home and massive student debt!  A story near and dear to our hearts.  As much as some Canadians would like to believe they are different from their neighbors to the south we are very much alike in our addiction to debt.  We also apparently have a large portion of youth living at home.  I can imagine this is more pronounced in high priced areas.  Just look at the L.A. region in SoCal versus Vancouver in terms of prices:

home prices los angeles

Going back to 2004 home prices in L.A. adjusting for inflation are up 30 percent.  A pretty big jump considering household incomes have not gone up in tandem.  But just look at Vancouver:

vancouver

Home prices are up 110 percent during this similar period!  Vancouver makes SoCal look like an affordable paradise.  It is interesting to know that Canadians are basically facing similar demographic challenges and have a massive amount of young people living at home.  They beat us in hockey and they certainly beat us in going into massive debt.

When $1 Billion “Public Short” Backfires

Hedge fund manager Bill Ackman has hit Herbalife (HLF) with everything he’s got over the last few months to ensure the profitability of his $1 Billion short position against the company.  To no avail. The stock price continues with it’s general uptrend. Whether or not Ackman is fundamentally correct is irrelevant here. He already made two massive mistakes that will cost him a boatload of money. 

    • Never advertise your short position. You risk a short squeeze more than letting others know that the company you are shorting is either fundamentally weak or overvalued. 
    • Timing is the most important element. Don’t short the stock until it breaks down. 

Herbalife might very well be “a scam” as Ackman claims, but it’s share price will only collapse when the time is right. In fact, it might very well be after Ackman covers his short position in disgust or after some sort of a short squeeze. That is why proper timing becomes so important. On the watch list you go HLF. 

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When $1 Billion “Public Short” Backfires Google

BOSTON (Reuters) – Hedge fund manager William Ackman renewed his attack on Herbalife on Tuesday and said he has evidence the U.S.-based nutrition and weight loss company is breaking direct-selling laws in China, its fastest growing market.

Ackman, who has placed a $1 billion short bet against Herbalife, said the company was making recruits pay an entry fee and letting distributors recruit new members, activities he said were illegal in China. He also said the company is disguising its sales to distributors as hourly consulting fees.

Herbalife said it follows local laws. Chinese regulators have yet to comment on the matter but direct sales models have recently come under fire in China, where authorities launched a probe in January into Herbalife’s rival NU Skin Enterprises Inc after state media reported that it brainwashed its members.

In a telephone presentation which lasted more than two hours and drew some 300 listeners, Ackman said the findings were a first step towards bringing his concerns about Herbalife to the attention of Chinese officials.

Ackman, who heads Pershing Square Capital Management, hired research firm OTG to collect the evidence through interviews with Herbalife distributors in China. He was joined on the conference call by one of his lawyers, David Klafter, who said Herbalife is violating Chinese law.

“My understanding of the facts and law in China is yes, they are violating both civil and criminal law,” Klafter said on the conference call.

Legal experts in China, however, say laws governing direct selling are unclear and enforcement is often lax, which makes any tough regulatory action against Herbalife unlikely.

Some Chinese laws allow direct selling under limited conditions, while others ban so-called pyramid selling, when members make more money recruiting new members than selling the actual product.

“These firms are operating in a regulatory grey area in China, which gives less protection because you’ve got an uncertainty hanging over it,” said Ben Wootliff, Hong Kong-based general manager for global risk consultancy Control Risks.

“The law in China says one thing, if it’s actually enforced is a completely different thing.”

Corey Lindley, chief cfinancial officer at direct sales firm dōTERRA and a former NU Skin executive in China, also said the regulator was unlikely to take strong action against Herbalife any time soon.

“I don’t doubt that because of all of this attention there will be some modest movement of some sort with the regulators just trying to be responsive to all of this, but I don’t think it will be material at all,” Lindley told Reuters.

Herbalife said sales in China rose more than 120 percent in the fourth quarter of 2013, the fastest of any region worldwide, contributing about 10 percent to global sales last year. The company has 200,000 sales representatives in the country and uses a “unique marketing program” to meet Chinese regulations, it said in its latest annual report.

Herbalife has said it remains confident in its business in China and said it is in compliance with local laws.

IN THE SPOTLIGHT

Ackman publically accused Herbalife of running a pyramid scheme in December 2012 when he unveiled his $1 billion short position in the company’s shares. So far he has lost money on the bet as rivals such as Carl Icahn took the other side.

The company says its business is not a pyramid scheme.

Despite the paper losses, Ackman has said that he has found fresh evidence nearly daily that is convincing him to stick by his original bet. If Herbalife ceased to exist right now he would make a few billion dollars, he said.

But there is no sign yet that Herbalife is near collapse, particularly since no regulator has yet commented publicly about its intentions in spite of heavy lobbying from Ackman.

During the conference call, many participants asked why there are virtually no public stories about people who have lost their life savings on investments in Herbalife.

Ackman said civil rights groups have identified over 1,000 victims and that this firm has found roughly 200 victims. But he said many victims are reluctant to go public because they do not realize they have been cheated or are embarrassed about it. Also “a lot of Latino victims are undocumented and the last thing they will do is complain to the government,” Ackman said.

Fresh media attention, including a front page article in the New York Times on Monday, should help galvanize regulators into reviewing the matter, he said.

Herbalife’s share price closed down 1.16 percent at $65.39.

Wall Street To Main Street ……Suck It America

The average bonus paid to securities industry employees in New York City in 2013 grew 15% to hit $164,530 in 2013. That’s 3X the median American household income of $51,000. But, how dare are you to question such bonuses? After all, 2013 was a great year for all market participants. Plus, do you know how freaking hard it is to shuffle paper assets around? That’s right, so shut up you average American peasant. 

Now, last time Wall Street bonuses were this high was in 2007. This is rather simple. The massive Wall Street bonuses last year are yet another indicator for the stock market top. As I have indicated many times before, based on our mathematical and timing work, the bear market of 2014-2017 is just around the corner. When it starts, most of the excesses associated with the last 5 years will disappear. If you would be interested in learning the internal structure of the upcoming bear market and its exact timing, please Click Here. 

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Wall Street To Main Street ……Suck It America Google

The average bonus paid to securities industry employees in New York City in 2013 grew 15% to hit $164,530 in 2013, according to estimates released Wednesday by New York State Comptroller Thomas P. DiNapoli. That includes cash for the current year and compensation deferred from prior years.

That is the third biggest bonus on record, says DiNapoli. The other two stand-out years: 2006, when workers gleaned $191,360 and 2007, when they gained $177,830.

THREATS: Record margin debt poses risk for bull market

Although profits were lower than in past years, Wall Street still had a healthy 2013, DiNapoli said in a statement.

Firms had to deal with costly legal settlements, higher interest rates and an evolving regulatory environment, yet “Wall Street continues to demonstrate resilience,” he says.

Wall Street, which had record losses during the financial crisis, has shown profits for five consecutive years, he says.

Profits for the broker/dealer operations of New York Stock Exchange member firms totaled $16.7 billion in 2013. That is 30% less than in 2012, he said in the statement, “but still strong by historical standards.”

The securities industry in New York City is reaping more dollars, but has fewer workers. It had about 165,200 workers in December, which is 12.6% less than before the financial crisis, which brought about massive layoffs as well as the demise of entire financial firms.

Does The US Want A War With Russia?

Sure looks that way. That is exactly what I was afraid of when I wrote Ukraine Wants The US To Get Into A War With Russia. 

“According to the Web site of the Atlantic Council, Dempsey said that “he’s been talking to his military counterparts in Russia, but he’s also sending a clear message to Ukraine and members of NATO that the U.S. military will respond militarily if necessary.”

Are these people in our administration morons? The US is 6,000 miles away from Ukraine and it should have no stake in what’s going on there. Yet, the US Administration is going out of its way threatening direct military intervention into Ukraine. WTF? If that happens, it will mean an immediate war with Russia.

Now, you might be a patriotic chest beating American (as I am) expecting a fast victory, but a war with Russia is a completely different animal. Russia is not Iraq or Afghanistan.  Any conflict in that region might very quickly escalate into a nuclear war. Luckily for you, we are not there yet. 

Anyway, is the American Idol on tonight? 

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Does The US Want A War With Russia?  Google

Chairman of the Joint Chiefs of Staff of the United States General Martin Dempsey has claimed that in the case of an escalation of unrest in Crimea, the U.S. Army is ready to back up Ukraine and its allies in Europe with military actions. 

According to the Web site of the Atlantic Council, Dempsey said that “he’s been talking to his military counterparts in Russia, but he’s also sending a clear message to Ukraine and members of NATO that the U.S. military will respond militarily if necessary.”

“We’re trying to tell [Russia] not to escalate this thing further into Eastern Ukraine, and allow the conditions to be set for some kind of resolution in Crimea. We do have treaty obligations with our NATO allies. And I have assured them that if that treaty obligation is triggered [in Europe], we would respond,” Dempsey said.

According to the General, the incursion of Russian troops into the Crimea creates risks for all the countries of Europe and NATO allies.

“If Russia is allowed to do this, which is to say move into a sovereign country under the guise of protecting ethnic Russians in Ukraine, it exposes Eastern Europe to some significant risk, because there are ethnic enclaves all over Eastern Europe and the Balkans,” Dempsey said. 

Can Tesla Win The War Against Coalition of Automotive Retailers?

Over 100 years ago The Association of Licensed Automobile Manufacturers (ALAM) filled a lawsuit against Henry Ford to prevent him from selling Model-T to the American public. Yesterday, Coalition of Automotive Retailers fired a first shot in what is to be a long and fascinating battle, essentially preventing Tesla from selling their cars directly to consumer in New Jersey.

Now, keep in mind that Auto Dealership is a massive industry in the US and they will not go down without a fight. Even though Tesla will eventually win this war it might be years or decades before this plays out. In terms of Tesla’s stock price. It is still overpriced and is likely come down over the next few years. Particularly, when the bear market of 2014-2017 really gets going. 

What bear market? 

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Google

Yesterday’s vote by the New Jersey Motor Vehicles Commission to block direct manufacturer auto sales in the state is likely only the beginning of a much larger and national effort to prevent Tesla (TSLA) from selling its innovative electric cars.

Chris Christie looks like he’s in the back pocket of the New Jersey Coalition of Automotive Retailers (and its president Jim Appleton) which donates regularly to political operatives in the state and its their explicit business as a lobby to influence legislation in the automakers’ favor.

The Tesla dealership in the Garden State Mall in Paramus New Jersey serves as a perfect example as to why the automakers are worried about Tesla. The dealership, a large storefront in the mall, is an evocative commercial for every single consumer who happens to walk by. Tesla is not just selling cars there, it is promoting its brand image for a future when it will be selling less expensive automobiles to a much wider base.

Next stop, Ohio, where there is also recently introduced legislation pending that would ban the direct sales model affecting Tesla in that state as well.

On a national level, the automakers’ lobby has deep pockets and significant leverage and they will go to great lengths to protect business as usual regardless of the how it affects consumers.

Ultimately, this is a sign of weakness by the automakers, that they need to resort to politics to prevent an innovative competitor. A coordinated nationwide effort will threaten Tesla’s direct-to-consumer sales model and will at least slow disruption in the industry.

A more novel approach, and one that would benefit competition and car buyers, might be for the automakers to focus instead on innovation in their own right.

Is Candy Crush Worth $7.6 Billion?

In today’s market it might as well be worth a Trillion. After all, the valuations of Facebook, Twitter, WhatsApp are once again reminiscent of the 2000 Tech Bubble.  If WhatsApp, the company with no revenue to speak of is worth $1.6 Billion…..King Digital Entertainment (maker of Candy Crush) can theoretically be worth  $7.6 Billion. At least they have $1.9 Billion in revenue, although 80% of that revenue is from Candy Crush alone. 

Yet, all of this is a fools game. 

On the bright side, these sort of IPO’s allow savvy investors to make a killing on the short side. Yes, King Digital will IPO and it’s share price is likely to be up significantly over the next few trading days or even months. However, the eventual collapse in their share price is almost a given. Particularly, when you take the bear market of 2014-2017 into consideration. Zynga’s 85% share price loss within a 6 months period of time is a perfect example of what is to come for King Digital.

With that said and as always, please do your own research and make your own investment decisions.  

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Is Candy Crush Worth 7.6 Billion?  Google

 

* To offer 22.2 million shares at $21-$24/share

* To list shares on NYSE under symbol “KING”

* Shares scheduled to start trading on March 26 – underwriters

March 12 (Reuters) – King Digital Entertainment Plc, the maker of hit mobile phone game Candy Crush Saga, expects to be worth up to $7.6 billion when it goes public this month as the Irish company looks to take advantage of strong demand for technology investments.

The successful IPO of Twitter Inc in November and a surge in Facebook Inc’s share price have fueled speculation that a string of technology firms could come to market, including music-sharing service Spotify, lodging service AirBnB and payments company Square.

King should also get a boost in its U.S. initial public offering from a surge in shares of digital coupon company Coupons.com Inc after it went public on Friday. Shares of Coupons.com doubled after being priced above the company’s planned IPO range.

King Digital said it expected to price its IPO of 22.2 million shares at between $21 and $24 per share. At the top of this range, the company would be valued at about $7.6 billion.

The offering is scheduled to be priced on March 25 and the stock will start trading on March 26, two underwriters told Reuters.

The Dublin-based company will sell 15.5 million shares in the offering, while stockholders, including Apax Ventures, will sell 6.7 million shares, the company said in a filing with the U.S. Securities and Exchange Commission on Wednesday. ()

King is hoping to benefit from a shift towards mobile platforms, social networks and app stores. The company derived 73 percent of gross bookings from mobile users in the fourth quarter ended Dec. 31.

In February, an average of 144 million daily active users played the company’s games more than 1.4 billion times per day, the filing showed.

The King IPO will raise as much as $532.8 million at the top-end of the planned range. It filed for a $500 million placeholder in February.

Entities related to Apax will own 44.2 percent of the company following the offering, according to the IPO filing. CEO Riccardo Zacconi, who has led the company since it was founded in 2003 in Sweden, will have a 9.5 percent stake.

Candy Crush Saga, which involves moving candies to make a line of three in the same color, was the most downloaded free app of 2013 and the year’s top revenue-grossing app.

It has been downloaded more than 500 million times since its launch in 2012. The basic games are free, but players must pay for add-ons or extra lives.

King offers 180 games in 14 languages through mobile phones, Facebook and its own website, but is heavily reliant on Candy Crush, which brings in about three-quarters of its revenues.

Nuclear World War 3 Is Coming Soon.When, How & Why (Full Report)

nuclear explosion

Quick Update: May of 2015: Over the last few months quite a few people told me that my timing is off. Questioning my work and suggesting that this war will start much sooner than 2029. Well, it’s NOT going to happen.  My cycle work is exact. What I talk about below represents approximately 5% of my work. I left quite a bit of stuff out. Every single war, including smaller wars, can be predicted with these cycles. Either through the primary 84 year war cycle or its smaller counterparts. 

Let me give you another quick example that I didn’t mention in the book/report below. The US entered World War 1 in April of 1917. Exactly 84 years from that date brings us into April of 2001. Just 5 months shy of September 11th, 2001 and the start of Iraq/Afghanistan/Terror wars. In other words, scary accurate. I rest my case.    

A Few Excerpts From The Book

If you want to see the rest of the information, please get the book. In addition to the excerpts below the book offers mathematical proof and the steps you need to take in order to save your family and yourself.  

WARNING LABEL

Yes, this book should come with its own warning label. The subject matter discussed here is beyond hard to swallow. For most people. Try telling parents that their kids only have 15-20 years to enjoy life before their world is turned into a literal hell and you will get a death stare of a thousand knifes. Try telling Christians that there will be no Rapture before the gates of hell open up and they will curse your soul to ten thousand years of fiery hell.  Try telling religious leaders and scholars that the final war will NOT originate in or around Israel and they will laugh at you. Finally, try telling the rest of the populous that the war is coming and they will immediately dismiss you as one of those “The End Is Near” crazy sign holders with a free WI-FI connection.

Nevertheless, it is a book that I had to write in order to save the very few who will pay attention.   For others, I have a quick message. If you are closed minded enough to dismiss the message in this book purely on religious grounds or from a vantage point of sheer terror, I demand that you put this book down and move on.  There is no point in reading it. It will bring nothing but frustration and anger into your life.  Then email me at [email protected] with a proof of purchase and I will gladly refund the entire amount (direct purchases only, not Amazon).

In essence, I have no desire to argue with people about the validity of my forecasts. My work speaks for itself and I hope you will see that throughout the book.  Finally, before you assume that I am sort of a doomsayer seeking to build some sort of a cult following, understand something very important. I am a very well to do and generally very happy. I do not have any interest in doom and gloom, I am simply reporting what my work indicates. As such, please don’t contact me or seek further guidance in regards to this report. Simply be aware that this is coming down the pipeline and decide what plan of action is best for your entire family.

“The Future”
I AM, and you are not, most likely my brothers and sisters
Soon, the Earth shall shake and roar in my honor
Shaking the dead weight and dirt of its surface
Draining the blood of the wicked and greedy
Purifying the oceans and the human spirit
Remain in your sleep you no longer my brothers and sisters
Open thy eyes and bask in my light
Open thy ears and hear my thunder
Open thy mouth and taste bitter ashes
Rejoice as the night is now over and the new morning is here
Join with my spirit and prosper forever
No One Can Stop Me

– Universal Consciousness

II thought long and hard whether or not I should publish this report and information. After careful consideration I have figured that if this information saves just one life and/or one family, it’s worth it.

Report Summary: I plan to spend the 2029-2040 time frame at my beach house on one of the Islands somewhere in the South Pacific as the

  • Coalition of NATO Members and
  • Russia/China Alliance

…..NUKE each other back to the stone age.

Now, before you assume that I am sort of a doomsdayer seeking to build some sort of a cult following, understand something very important. I am a very well to do and generally very happy. I do not have any interest in doom and gloom, I am simply reporting what my work indicates.

I have learned a long time ago that I cannot change violent human nature NOR future. As such, please don’t contact me or seek guidance in regards to this report. Simply be aware that this is coming down the pipeline and decide what plan of action is best for your family and yourself.

The Bible calls this period Armageddon, graphically describing its aftermath in the Book of Revelation.  Fortunately or unfortunately, I was able to figure out the exact time frame of this occurrence. By accident I might add. This report is to show you exactly why, how and when things will unfold.

I first became aware of the subject matter at hand during my research and analysis of future stock market cycles. After years of work with cycles and getting a fairly good understanding of the stock market composition (giving me the ability to predict the stock market with incredible accuracy) I came across something that puzzled me. When I got into the early 2030’s something crazy happened.

After a strong run up (due to inflation, not fundamentals) the stock market proceeded to collapse to the tune of 90-95% within a 2 weeks time frame. At first, I thought that I got some of my calculations wrong, but after some verification my original work was confirmed. Which brought out an incredibly important question.

What can collapse the Dow Jones 90-95% within a two week period of time?

confused guy

I knew that it had to be something big. Such drops are unprecedented in the history of the stock market. As a matter of fact, it had never happened before. Even the 1929-32 collapse of 90% took 3 years to play out. So, what the hell could cause such a meltdown?

Sure, a natural catastrophe, an earthquake, giant tidal wave, meteor strikes, etc….are all a possibility. However, we are not talking about a specific region. We are talking about the entire stock market which represents every corner of Americana as a whole.  Some sort of a war is always a possibility, but for the market to collapse to such an extent so rapidly, it would have to be a nuclear war.

Is that even possible in today’s world?

I had to find an answer and so began my research into the subject matter. Using the same cyclical analysis I use for the stock market work, it wasn’t long before I found my answers. What I found shocked me to the core. The nuclear war is indeed coming. It will be fought between 2029-2032 and it will literally destroy the world and impact every human being on the face of the Earth, one way or another.  What I find fascinating, is that today’s macroeconomic and geopolitical developments are already lining up for what is to come.

This report is to show you exactly what will transpire over the next 20 years and what you can do to in order protect yourself.

WHEN?  

Every significant* American war has been fought exactly 84 years apart. Based on my work this is not a coincidence.  Let’s take a look.

(*Significant can mean many things. In this case, it’s the % of casualties based on total population).

Revolutionary War: Started in 1776.  Total American Casualties (killed and wounded) 50,000. 1.25% of population. Total US Population at the time…. 4 Million (including 700K slaves).

EXACTLY 84 YEARS LATER—————-

Civil War: Started in 1860. Total American Casualties (killed and wounded) 1.1 Million  3.2% of population. Total US Population at the time…31 Million (12.7% are slaves).

EXACTLY 84 YEARS LATER————————

World War II: For the US the war technically started on December 7th, 1941 with the attack on Pearl Harbor, but the US suffered the highest % of casualties in 1944. Exactly 84 years from the previous cycle.  Total American Casualties (killed and wounded) 1.05 Million. 0.7% of population. Total US Population at the time 132 Million.

EXACTLY 84 YEARS LATER  (NATO Vs. Russia/China)——————-

nato vs russia

World War III. 2029-2032. Nuclear War. The war will be fought between NATO Members and Russia/China Coalition. Massive casualties. Most major cities or population centers with +1 Million people throughout the world will be Nuked.

(***Please note, I am very well aware that there were many wars in between the wars described above. World War I, Vietnam War, Korean War, Iraq/Afghanistan, etc… They do not count because they were not major wars. Even though tens of thousands of people have died, as per % of population such losses were small. For example, the total number of casualties in Vietnam (killed and wounded) were 200,000 or 0.01% of US Population at the time. Now, compare that to massive losses as per % of population in the wars described above. )

Why Do I Believe This Will Be A Nuclear War? 

My study shows that the weapon that were “brand new” at the preceding 84 cycle war are used on a massive scale during the next war. For instance, machine guns (Gatling Gun) were first introduced during the Civil War in 1861. Subsequently, they were used during the World War II on a massive scale, inflicting a devastating casualty count.

As you know, the first Atomic Bomb (Little Boy) was used by the US on Hiroshima on August 6, 1945. Followed by Nagasaki on August 9th. If we take 84 years from those dates, it will bring us into the summer of 2029. Whether or not that’s the exact date…….I refuse to say. A date of 2029-2032 is sufficient enough for our purpose.

Please note, there will be a multitude of signs right before the nuclear war starts. These sort of things do not happen in the vacuum and/or out of the blue. There will be plenty of news during that period of time that will allow you to narrow down the time frame and hopefully to save your family and yourself.

PART II

WHY

All wars repeat in cycles. In Part I of this report, I have shown you the major war cycle associated with all of the MAJOR American Wars. Unfortunately, the war is coming and cannot be stopped. Based on my stock market work, future is predetermined and cannot be altered.

Fundamental Reasons: 

Let’s take a look at North Atlantic Treaty Organization (NATO). 

nato1

NATO is a military alliance organization that consists of 28 countries. You can see the full list HERE.  It’s membership consists mostly of the EU countries and North America. Obviously, the US is the largest superpower, force multiplier and policy driver. More or less, the treaty works as follows. If any of the NATO members are attacked, all other members must provide military support, assistance and equipment. Basically, if any of the member states are attacked, the entire NATO goes to war. NATO was originally created to counterbalance Soviet Russia after WW II.

Political Reasons:

You don’t have to go very far to see the tension between Russia and the US  -OR- China and the US. Just turn the TV on. As I write this today, the relationship between Russia and the US has cooled to the point we haven’t seen since the 1980’s, before the Soviet Union broke up. All because of Ukraine. Whether or not the situation in Ukraine has been caused by the US or Russia is outside the scope of this discussion.

The major point I want you to understand here is this. Russia is fed up with the US due to NATO’s expansion right up to its borders. Plus, the US keeps lecturing Russia on what to do and how to do it. Since no one likes being lectured, Putin is not only fed up with the US foreign policy, he is furious with it. His speech on March 18th, 2014 proves that without a shadow of a doubt.

vladimir_putin1

With that said, we can anticipate Putin to be in power in Russia for as long as he wants. For as long as the US continues with it’s policy against Russia (and I don’t see it changing anytime soon) our relationship with Russia will continue to deteriorate.

China finds itself in a very similar situation. If you have ever been to China, you very well know that Chinese are very proud people. Just as Americans are. Yet, America cannot help itself but to shove it’s god given “Righteousness”, democracy and politics down Chinese throats. I can tell you this. This infuriates the Chinese to no end. Plus, China is trying to build a military superpower in the region only to be constantly undermined by the US with the help of Japan, Taiwan and the Philippines. Again, who is right or wrong here is outside the scope of this discussion.

The bottom line is this, both Russia and China are fed up with the US at this point in time. Further, given today’s geopolitical and macroeconomic situation I see no reason for the situation to improve. Quite the opposite. I see the US relationship with both countries deteriorating further as all 3 superpowers fight for their own interests.

china russia love investwithalex

If you didn’t know, China and Russia are both “communist” countries that go way back. In fact, until China started selling crap to the US, it was always expected that China and Russia would stand together. Vietnam War, North Korea, Communism Ideology, etc…. In fact, it wouldn’t be wrong to describe China and Russia as having a “brotherly” relationship. You see the evidence of that at the United Nations, where Russia and China tend to support each other on important international issues.

In Summary: Both China and Russia are fed up with the US. On multiple levels. As the US and China/Russia relationship continues to deteriorate over the next 10-15 years, Russia and China will, once again, be forced to form an alliance. With the US/NATO flexing its military muscles, the alliance between Russia and China will eventually become a military alliance similar to NATO.

Economic Reasons: 

Most wars are triggered by economics, not ideology.  For example, Civil War was fought over cotton trade, not slavery…..Revolutionary War was fought over excessive taxes…not British rule and WWII was triggered by economic depression and war repatriations in Germany in the 1920s and the 1930s.

So, if you haven’t noticed the US owes China $1.3 Trillion. With the US National Debt at over $17 Trillion, the US is one recession away from not being able to cover its interest payments. In a nutshell, we don’t have the money to repay the Chinese. The only way out of this mess is for the US is to inflate its currency away. The FEDs have been trying to do just that over the last 10 years. Thus far, without too much success, due to a number of deflationary forces within the economy.

Based on my timing and mathematical work, that is about to change. The FED will be successful in getting inflation going after 2017. Slow at first, much faster after 2022. Basically, they will be able to inflate away the Chinese $1.3 Trillion or more.

This might not be a problem if China didn’t face a massive economic slowdown over the next decade. It’s own bear market so to speak. Chinese leaders will need someone to blame in front of their population and since the US will inflate its $1.3 Trillion away, China will point its finger where it belongs. Rightfully so. Of course, this will cause massive friction with China. In fact, I see this economic issue as the major trigger point that will eventually set this war off.

That is why I view macroeconomic and geopolitical issues between China/Russia and the USA/NATO as a major trigger point. You will see most of the issues I talk about come into light over the next few years. They will not get better. They will continue to deteriorate further from this point on.

HOW

This section will be a pure speculation, but we have a good reference point.

Looking at the Cuban Missile Crisis in the 1960 provides us with a perfect example. If you study the incident, Soviet Union and the US literally came a few minutes away from blowing each other up. The bombers were already in the air and both nations had their finger on the proverbial red button.  The scary part was, if one sailor or one pilot or one soldier would have made a simple mistake at that juncture….as simple as accidentally firing their gun…..we would have had a nuclear war in the 1960. And that’s the most important thing to remember.

kennedy investwithalex

It is difficult to predict exactly what will happen and how things will unfold, but we will eventually end up with some sort of a standoff between Russia/China Vs. USA/NATO. During that standoff a number of small skirmishes might eventually turn into an all out war and shortly thereafter, into a nuclear war.  A trigger might be as simple as a short firefight between a Chinese and an American soldier.

At the end of the day, it doesn’t really matter what actually triggers it, the point is, the war will be triggered one way or another. 

WHO WILL WIN?

No one will win. If the above scenario comes to fruition, as my stock market work indicates, billions (not millions) of people will die.  No one wins in a situation like that.  Most population centers throughout the world (particularly in China, Russia and the US) will be radioactive wastelands. Who cares who wins. Humanity as a whole will lose. Big time.

WHAT YOU SHOULD DO

You have a number of options.

1.  You can dismiss me as a crazy person and that is totally fine by me. I will have a beer for you while sitting on a beautiful beach somewhere in the South Pacific as the War starts.

2. You can save this report and start watching macroeconomic and geopolitical developments over the next 10 years. What you will find is that this report was right on the money. You will see the US relationship with Russia/China deteriorate significantly over the next 10-15 years. You will also see China and Russia coming together and forming a military alliance. At that stage you will have two options.

  • Do nothing. You will eventually get vaporized or otherwise killed during the war.
  • Get away from major population centers and become self sufficient. Same applies to your family. Make sure you can protect yourself as well as sustain your family over a 10 year period of time.

Good luck everyone. We will need it.