May 19, 2020 Brandon Suffel
Since I haven’t posted in over a week, taking a break, I took some time to think & try and understand what I want to learn from what I’m posting on here. Instead of commentating on stocks that make headlines, I want to grow my knowledge deciphering what’s considered an asset and what’s considered a liability when looking at businesses–suggesting what’s my best option to invest in. That doesn’t mean I won’t make inevitable mistakes along my journey.
J.C. Penney recently filed Chapter 11 bankruptcy. Their recent motive is synonymous to the downslide of current economic conditions. Retail stores aren’t open for shoppers to go in and purchase items. J.C. Penney lost significant money from the lack of business and sales, as well their online retail services continued to struggle. Families are less worried about fashion trends than they are about putting meals on the table.
When I think of J.C. Penney as a business, I look to see how many assets they have and how much output they’re reporting (earnings). As of recently, sales have fallen into turmoil and business has faltered. They’re not a strong business to invest in because their dividends report no returns. I know that I wont make income from investing in this business. And I know that I’m gambling my finances hoping the business will appreciate in value after they’ve gone bankrupt.
Amazon has recently disclosed private information that they’re talking with J.C. Penney executives–alluding to a possible acquisition. Is this good business for Amazon? Sure, amazon could swoop up J.C. Penney retail services and acquire a portion of the online retail business. J.C. Penney would be bailed out of their bankrupt troubles. Executives of J.C. Penney would acquire some shares of Amazon stock, also leaving with a hefty bonus.
On the economic and job side of business, J.C. Penney employees would lose jobs. The product leftover in stock would sell on Amazon at Amazon’s rate, or never be sold at all.
I personally don’t see J.C. Penney as an asset anymore, unless they can find their way out of their own mess. They’re trying to invest in an REIT = Real estate investment trust. They plan to sell 30% of their stores–saving money on property tax; however losing consumer traffic in stores.
J.C. Penney went under the ticker of $JCP before 9:30 AM this morning. As of now, they’re under $JCPNQ. Most brokerages do not support purchasing shares of $JCPNQ at the moment; you can only sell your shares. To buy shares, OTC (over the counter) markets make them available.
Joe Rogan moves to Spotify
Joe Rogan posted on Instagram, this afternoon, he plans to move his podcast to Spotify indefinitely. If you plan to watch full shows, you must watch them on Spotify. Clips will continue to be available on YouTube.
Spotify accumulates new music listeners & subscribers every day. Some may argue they’re the best service out there; and others vouch for other services like Apple Music or Pandora.
Two years ago Spotify became a publicly traded company. Even after they became public, they continued to grow substantially. Many Spotify users advocate they provide the better service, like Joe Rogan for example, and others report they’re content with the services they have, oh well.
With Joe Rogans new move to Spotify, I wouldn’t be suprised if Podcast enthusiasts & entrepreneurs move in a similar direction. This brings great business to Spotify. And the more users they win over, that only adds a bigger buck to the dividend rewarded to the investor.
$SPOT killed today. I mean KILLED today. The stock was up $13.60 (+8.42%) in trading hours.