Social Media Strategy and Branding: Modern Brand Is Created Through Crowdsourcing

Creating a modern, pre-eminent brand in our New Media Era is done through crowdsourcing by digital natives through user-generated content. Crowdsourcing is the act of a digital media follower (“a friend”, “a follower”), in spreading content. This act was traditionally done by a brand employee or contractor. In New Media, followers communicate the content that the follower finds interesting and engaging. It is communicated to a friend, using a social media platform, like Facebook.The “followers” and “friends” are digital natives. Digital natives are a demographic group usually between ages of 11-30. They have been brought up on digital technology. They enjoy and are comfortable communicating with their friends digitally, most notably through platforms, like Twitter, Facebook, and YouTube.User-generated content is the material that the Natives share with their friends. The content is created in the form of posts, blogging, podcasts and vblogs, videos, photos, mobile phone video, and wikis. Social media has reconstructed the paradigm on which modern marketing is constructed. Marketing has changed from a “push” situation to a “pull” framework because of social media.In Old Media times, an organization, created products, and pushed those products upon the public. One way advertising campaigns were constructed to brand the product. In our new era, it is a “pull” paradigm. In this new paradigm, brands and consumers have a two-way conversation. The products take on an almost human dimension. A brand and a customer become almost like human friends. The general public doesn’t believe the claims of Old Media advertising. People do believe the recommendations of their “friends”. Modern consumers “Pull”, from store shelves those brands that they want to buy—the ones that are their friends. The ones that their friends have recommended. The benchmark for modern social media branding are the Ford Fiesta (The Fiesta Movement), and the Obama Presidential Campaign.The nature of our era creates an interesting situation. This situation has to be understood by a modern marketer in order to create strong, modern brands in a Social Media Era. A company legally owns the brand. If a brand is to be created, in this new era, the brand’s followers actually take ownership and develop the brand. Followers “pull” the brand and develop it. Followers create the actual brand in New Media branding.The Fiesta automobile and Barack Obama campaign created world-class brands through crowdsourcing. In both cases, world-class brands were created, and created very quickly, when followers took engaging material from a Facebook Page and shared this content with their physical friends in the form of posts, text, video, and blogs. At the center of crowdsourcing, and the thing that makes it powerful as a branding device is that brand is created by friends recommending products to their friends. This is how brand is created in New Media.To understand why crowdsourcing is such a powerful vehicle, you have to understand The Consumer Decision Journey, a concept created by McKinsey & Co. McKinsey discovered that a purchasing decision is the end of a long journey of many touchpoints in which the consumer is engaged with the brand over many experiences. Modern brand is created when friends recommend to friends products through the material they create in blogs, posts, video, and texts. This brand awareness development is critical in the selling of products.McKinsey, through its Consumer Decision Journey, discovered that friend recommendation makes a product three times as likely to be purchased. Crowdsourcing creates the brand awareness that creates world-class brands. The brand provides the use of a platform. The platform is a hub, a place where followers can go to grab content. This can be a website or a Facebook Page. The content can either be created by the followers themselves, or provided by the brand. In crowdsourcing, the content is then sent to friends from friends.Ford’s Fiesta campaign, The Fiesta Movement, revolved around Digital Natives. Ford did not spend a nickel on conventional advertising. At the end of the six month social media branding campaign, the Fiesta had 38% brand awareness among its target group, and it sold 11,000 units in its first month of availability, in a tough year for auto sales.In Barack Obama’s case, he went from being a virtual unknown, to winning the Presidency. Much of the credit for the success of his campaign was his brilliant use of social media. It was this campaign that communicated to business just how important social media is in creating brand.Dean [email protected]

The Flexibility Of An Online Education

Consider your current career. Now, add a traditional education to your current work schedule. It’s impossible to organize, isn’t it? Well, that doesn’t have to be the problem anymore. For business people who want higher education, they no longer have to add the schedule of a traditional education (visiting a campus) to their current work schedule. Now, online classes are available and provide the greatest flexibility possible. Never attend another class on a campus. Sit down at home with your computer and get the education you want.Online business degree programs are tailored to fit your schedule. Take as many classes as you can, depending on your work schedule, and finish the degree at your convenience. If you have less time, don’t worry because you can take fewer classes and still receive the degree you want. Sit down, look at your schedule and decide how much time you have to dedicate to your education. Once you know, then you can plan. Take your planned schedule and begin to speak to advisors and look for classes that work with your schedule. You will find the classes you need.The greatest benefit of online classes is the ability to complete coursework whenever you have time. Come in from work, eat some dinner and relax, and then get started on your coursework. Work at your own pace and know what you need to get done for the class. Build yourself a schedule for what you need to accomplish and finish the class with great performance. Having the flexibility to take class online around your work schedule is the best part. Never miss out on the career you are in, continue to make money for your expenses and climb the work ladder with your developing education.What do you think about the flexibility? Thousands of people are signing up a year to take classes online because they allow them to continue with their life and receive education at the same time. Flexibility is key in such a busy world. Whether you are raising a family or single, the flexibility is great for everyone. No one should leave a quality position to return to school and risk losing that position forever. Keep your position and get educated at the same time.Is it for you? If you’re not sure at this point, take time to consider all the details of an online education. When you learn more and speak to others about it, then you can make an educated decision.

It Is Time to Maximize the Power of Social Networking

Let me start by defining what I mean by social networking. I believe this is necessary because it is such a broad topic and there are many conceptions of what Social Networking is all about. With the broad conception of social networking in mind, let me give you a broad definition of the term. A networking website creates a community of registered users and repeat visitors. Social networking allows users to interact and express themselves on the website. Opinions are shared on these sites and users can have their own page of bookmarks or favorites for their friends and associates to visit.Just to make sure we are all on the same page, let me also define the purpose of a social bookmark. Simply put, social bookmarking is a method for internet users to organize, store, and manage their bookmarks online. The resources themselves are not shared. The user simply shares a reference or link that will take the reader to more in-depth information concerning the bookmark.A site for social net-workers empowers the user to fully express themselves through their own shared content and opinions. Through social networking common ideas and opinions are easily linked together. In fact bookmarking has become increasingly popular because they allow the user to locate, classify, rank, and share their resources and passions.Some of the more popular social sites are Digg, Delicious, Technorati, Flickr, and YouTube. These are common sites where you can dig a little deeper to find delicious content on blogs and other sites. Content expression does not stop with the written word. Images are found on Flickr and content rich videos on YouTube.One of the primary purposes of sharing and bookmarking on social networks is to lead the users back to your website. You give them a taste of what they are passionate about on your social networking site. The content that you share on the social networking site should stir up their curiosity and give them enough information that they will want to dig deeper into the topic. If your content is interesting and original, your reader will be moved to take action and click into your website. On that site you will give then the full load of content on the topic of their passion. The more content and information that you provide your readers the more you will be seen in the social networking community as an expert in your niche.It has been commonly assumed that networking on social media sites is most popular and more widely used by the younger generation. This is changing as users age 40 and above are filling the web with content rich bookmarks, blogs, and videos. Social networking is evolving into a venue where a person can tap into a wealth of rich content from mature users who have been searching all of their lives to fully express themselves and share their passions. Superstars and gurus on the web are now becoming common folk like you and me.In closing let me encourage you to fully express yourself through social networking. If you are young or old and want to learn more about anything and everything, the opportunity is at your fingertips. So dig in, the content, pictures, and videos are delicious!

A Case For Bilingual Education

According to a 2006 report by the Parliamentary Assembly Committee on Culture, Science and Education in France, “[B]ilingual education based on the mother tongue is the basis for long-term success.” Citing many of the known and accepted benefits of bilingualism and biliteracy, the Committee makes the case that bilingual education should be supported whenever possible, to help minorities retain their native language – and moreover increase their potential for higher levels of academic achievement in the process.Concerns that children who grow up with two languages will either fall behind academically because of it, or are at risk of not mastering either language well, have largely been disproved by research, the committee stated.”The language which is the vehicle of instruction has a crucial role in that command of it is the key to classroom communication and consequently to pupils’ acquisition of knowledge. A great deal of research has confirmed that types of education based on the mother tongue significantly increase the chances of educational success and give better results,” they concluded in their report.What is Bilingual Education?Bilingual education programs teach speakers of other languages academic subjects in their native language while gradually transitioning them into English-only classrooms. The majority of these programs in America teach to native speakers of Spanish, Chinese, or Navajo. Bilingual education is different from ESL because ESL programs are meant only to teach speakers of other languages English, while bilingual education programs are meant to encourage further retention and development of the native language while teaching English, enabling the child to develop fluent bilingualism and biliteracy.What are the benefits of Bilingual Education?Bilingual education teachers generally transition students from the bilingual classroom to the English mainstream classroom over a period of 1-6 years. This can be beneficial for one because it allows the students to continue their own academic advancement while learning the dominant language, whereas students who must learn a language and other academic subjects in that language often fall behind. By teaching children academic subjects in their native language while acquiring English, the students learn the language while continuing to progress academically. Furthermore, they become fluent and literate in both languages.Studies have shown that quality bilingual education can be an effective approach for teaching second language learners. Successful programs have found that developing and maintaining the student’s native language does not interfere with English language acquisition, but instead enhance it.The advantages of bilingualism are not highly debated. Some of the advantages plurilinguals have, cited by the Parliamentary Assembly, include:• An enhanced faculty for creative thinking• More advanced analytical skills and cognitive control of linguistic operations• Greater communicative sensitivity in relation to situational factors• Improved spatial perception, cognitive clarity and analytical skillsFurthermore, bilingual programs encourage the preservation of a minority group’s linguistic and cultural heritage. Children who are put into English-only schools from a young age will greatly lose their mother tongue and culture unless it is taught and frequently spoken at home – however it is all too common for second and third generation Americans to lose their heritage language.If the benefits of bilingualism are not highly disputed, why is bilingual education highly disputed?Common arguments and sentiments against bilingual education in America include the following:ImmersionThe argument is that if a person is not totally immersed in the new language, they will not learn it – that immigrant children should be totally immersed in the language and therefore be taught entirely in English right away, instead of learning gradually, because they will not learn as well with a gradual approach. Critics of bilingual education often believe that retaining and developing the first language inhibits the child’s ability to learn English. However, bilingual education supporters maintain that retaining the first language will facilitate learning in the second. Opportunities for immersion, moreover, are all around, whereas quality bilingual education opportunities are not.Insufficient mastery of the English languageSome express doubts about the success of bilingual programs in teaching language-minority students mastery of the English language, citing low test scores and poor reading skills in both English and the native language as a result of the programs. However, low scores can be attributed to the child’s social context more than to the effectiveness of bilingual education, according to the 2006 report by the Parliamentary Assembly.Furthermore, according to a 1987 study commission by the California Association for Bilingual Education (CABE), children in “properly designed” bilingual education programs learn English quickly and meet grade-level standards in English and mathematics in three to five years. The report used data collected from 25 schools in seven California districts to dispute the claim that bilingual programs slow the acquisition of English and keep children out of the mainstream longer.BiasSpanish as well as other minority languages have not historically been valued as highly as they should be due to prejudice and xenophobia. One and two generations back it was not acceptable for immigrants or natives to speak a language other than English in school, and parents did not teach their children for fear they would not excel or that it would hold them back. This prejudice still haunts us today.FearIn 2010 Tucson Unified School District (TUSD) banned Mexican heritage and cultural study in their high schools. They claimed that the courses were teaching Mexican-American children to resent white Americans and encouraging them to want to overthrow the US government. Although the school was seeing rises in academic achievement, the program was teaching minority students about their culture and not the mainstream one, and so the programs were cut. This closely mimics the battle bilingual programs have faced in America as well.Insufficient research
Moreover, it does not help that research on bilingual education presents its own set of problems. “Research on the effectiveness of bilingual education remains in dispute, because program evaluation studies – featuring appropriate comparison groups and random assignment of subjects or controls for pre-existing differences – are extremely difficult to design,” wrote James Crawford, researcher on bilingual education. Crawford, however, maintains that there is strong empirical support that native-language instruction does not inhibit or slow the acquisition of English, and that well-developed skills in the native language are associated with high levels of academic achievement.A 1997 press release from a committee of the National Research Council formed perhaps a more well-rounded conclusion. They stated that political debates over how to teach children with limited English skills have hampered bilingual education research and evaluation efforts. The committee recommended that research focus on identifying a variety of educational approaches that work for children in their communities based on local need and available resources. And indeed this availability of resources can be a major concern when talking about constructing quality bilingual programs, as well as the scarcity and demand for quality bilingual teachers.”In recent years, studies quickly have become politicized by advocacy groups selectively promoting research findings to support their positions,” said Kenji Hakuta, committee chair and professor of education at Stanford University. “Rather than choosing a one-size-fits-all program, the key issue should be identifying those components, backed by solid research findings, that will work in a specific community.”If bilingualism has an educational advantage, why don’t our schools support this advantage?Another often disregarded advantage of bilingual education in America is that native English-speaking children can enroll and acquire a second language. America is known for being one of the least dual-tri lingual countries in the world, with a bias toward English-only, while most other countries in the world teach many languages from a young age. The interesting thing is that most Americans would recognize the benefits of speaking two or more languages, although bilingual education remains a highly debated topic.Bilingual education programs have the potential to help encourage and support plurilingualism in America and ultimately improve our nation academically.”The view that bilingualism or plurilingualism is a burden on pupils is… incorrect – they are assets,” the 2006 Parliamentary Assembly Committee reported. “‘Strong’ bilingual educational models which aim to equip the future adult with real bi/plurilingual proficiency and, in particular, bi-literacy, have many advantages over ‘weak’ models which treat bilingualism as an intermediate stage between mother-tongue monolingualism and official-language monolingualism rather than as an end in itself.”

S&P 500 Rallies As U.S. Dollar Pulls Back Towards Weekly Lows

Key Insights
The strong pullback in the U.S. dollar provided significant support to stocks.
Treasury yields have pulled back after touching new highs, which served as an additional positive catalyst for S&P 500.
A move above 3730 will push S&P 500 towards the resistance level at 3760.
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Pfizer Rallies After Announcing A Huge Price Hike For Its COVID-19 Vaccines
S&P 500 is currently trying to settle above 3730 as traders’ appetite for risk is growing. The U.S. dollar has recently gained strong downside momentum as the BoJ intervened to stop the rally in USD/JPY. Weaker U.S. dollar is bullish for stocks as it increases profits of multinational companies and makes U.S. equities cheaper for foreign investors.

The leading oil services company Schlumberger is up by 9% after beating analyst estimates on both earnings and revenue. Schlumberger’s peers Baker Hughes and Halliburton have also enjoyed strong support today.

Vaccine makers Pfizer and Moderna gained strong upside momentum after Pfizer announced that it will raise the price of its coronavirus vaccine to $110 – $130 per shot.

Biggest losers today include Verizon and Twitter. Verizon is down by 5% despite beating analyst estimates on both earnings and revenue. Subscriber numbers missed estimates, and traders pushed the stock to multi-year lows.

Twitter stock moved towards the $50 level as the U.S. may conduct a security review of Musk’s purchase of the company.

From a big picture point of view, today’s rebound is broad, and most market segments are moving higher. Treasury yields have started to move lower after testing new highs, providing additional support to S&P 500. It looks that some traders are ready to bet that Fed will be less hawkish than previously expected.

S&P 500 Tests Resistance At 3730

S&P 500 has recently managed to get above the 20 EMA and is trying to settle above the resistance at 3730. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If S&P 500 manages to settle above 3730, it will head towards the next resistance level at 3760. A successful test of this level will push S&P 500 towards the next resistance at October highs at 3805. The 50 EMA is located in the nearby, so S&P 500 will likely face strong resistance above the 3800 level.

On the support side, the previous resistance at 3700 will likely serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will move towards the next support level at 3675. A move below 3675 will push S&P 500 towards the support at 3640.

SPDN: An Inexpensive Way To Profit When The S&P 500 Falls

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

CRISPR Stocks: Will Concerns Over Risk Inhibit Gene-Editing Cures?

Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

How Millett Grew Steel Dynamics From A Three Employee Business

STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

Shoe Repairs And Several Other Things When I Was 7

Shoe Repairs And Several Other Things When I Was 7
My Dad repaired most of our shoes believe it or not, I can hardly believe it myself now. With 7 pairs of shoes always needing repairs I think he was quite clever to learn how to “Keep us in shoe Leather” to coin a phrase!

He bought several different sizes of cast iron cobbler’s “lasts”. Last, the old English “Laest” meaning footprint. Lasts were holding devices shaped like a human foot. I have no idea where he would have bought the shoe leather. Only that it was a beautiful creamy, shiny colour and the smell was lovely.

But I do remember our shoes turned upside down on and fitted into these lasts, my Dad cutting the leather around the shape of the shoe, and then hammering nails, into the leather shape. Sometimes we’d feel one or 2 of those nails poking through the insides of our shoes, but our dad always fixed it.

Hiking and Swimming Galas
Dad was a very outdoorsy type, unlike my mother, who was probably too busy indoors. She also enjoyed the peace and quiet when he took us off for the day!

Anyway, he often took us hiking in the mountains where we’d have a picnic of sandwiches and flasks of tea. And more often than not we went by steam train.

We loved poking our heads out of the window until our eyes hurt like mad from a blast of soot blowing back from the engine. But sore, bloodshot eyes never dampened our enthusiasm.

Dad was an avid swimmer and water polo player, and he used to take us to swimming galas, as they were called back then. He often took part in these galas. And again we always travelled by steam train.

Rowing Over To Ireland’s Eye
That’s what we did back then, we had to go by rowboat, the only way to get to Ireland’s eye, which is 15 minutes from mainland Howth. From there we could see Malahide, Lambay Island and Howth Head of course. These days you can take a Round Trip Cruise on a small cruise ship!

But we thoroughly enjoyed rowing and once there we couldn’t wait to climb the rocks, and have a swim. We picnicked and watched the friendly seals doing their thing and showing off.

Not to mention all kinds of birdlife including the Puffin.The Martello Tower was also interesting but a bit dangerous to attempt entering. I’m getting lost in the past as I write, and have to drag myself back to the present.

Fun Outings with The camera Club
Dad was also a very keen amateur photographer, and was a member of a camera Club. There were many Sunday photography outings and along with us came other kids of the members of the club.

And we always had great fun while the adults busied themselves taking photos of everything and anything, it seemed to us. Dad was so serious about his photography that he set up a dark room where he developed and printed his photographs.

All black and white at the time. He and his camera club entered many of their favourites in exhibitions throughout Europe. I’m quite proud to say that many cups and medals were won by Dad. They have been shared amongst all his grandchildren which I find quite special.

He liked taking portraits of us kids too, mostly when we were in a state of untidiness, usually during play. Dad always preferred the natural look of messy hair and clothes in the photos of his children.

US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

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US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?