Category Archives: Finance

May 5, 2019 · 14:10

Will there be any Ivy League left?

I always understood that a decent education was essential in getting a good job, nowadays that is not a given, with several graduate degrees and a master, I am finding that at some point age discrimination is pretty overwhelmingly everything in the commonwealth. So when we get the juice on what makes for a good university, the LA Times article (at https://www.latimes.com/local/california/la-me-college-admissions-scandal-target-letters-20190503-story.html) are some universities actually as good as they are cracked up to be? When they admit students through bribery and other means, does that not give a clear case that the overall result of these students imply that they no longer have the best?

The accusation: “The 33 parents charged in the scandal so far are accused of paying $15,000 to $75,000 per child for rigged college entrance exams, and $100,000 to $400,000 per child for an athletics recruiting scam.” is a two edged blade. To what extent was the university part of the admittance? The second part is which deserving student was there for removed from consideration? There is a third, mainly how much additional funds will be shoved into some directions for these students to actually graduate?

The third one is a consideration that is set on very thin ice. Beyond the admittance part, there is actually no evidence of any kind that wrongdoing was done, and when we consider the amount of people trying to get into Stanford, Harvard, Yale, MIT and the Wharton School of the University of Pennsylvania, the case could be made that beside a very small greed driven group within the universities, there is a mere showing at best that this merely involved a few rotten apples at best, but how can we be certain?

You see, there is more to “Federal prosecutors have sent a letter to Yusi Zhao, whose parents paid $6.5 million to the consultant at the heart of the college admissions scandal, informing the former Stanford student she is a possible target of their investigation, a person familiar with the matter said“, we can accept that there is a clear case of timing that is to be played, but it goes beyond that, the fact that “Neither Zhao nor her parents have been charged in the case that has ensnared 50 people, including Hollywood actresses and financiers“, I personally would argue (based on not having seen any evidence) that them either not being investigated, or having avoided the trap in the first place implies (emphases on implies) that they have had clear intent of not getting caught, the innocent always get trapped initially, only the aware avoid all set traps. Yusi Zhao is the daughter of Chinese billionaire Tao Zhao and the implied fatherly side was seen in the New York Post (at https://nypost.com/2019/05/03/meet-the-posh-billionaire-family-entangled-in-admissions-scam/) only two days ago. To be honest, I would be able to relate to “But Yusi “Molly” Zhao’s pharma tycoon dad once bragged that he has no time for rich kids who “don’t rely on their own abilities.”“. Yes, the amount of stupid rich kids that squandered the family fortune, there are plenty of examples and an exponential more examples in the Hollywood film script department. You want to give your kids a leg up by getting them a good education, yet there are more good educators beyond the Ivy league, There are excellent universities in Illinois, California (Berkeley to name one), Columbia, Indiana and Florida. Plenty have highly desired degrees, so why would someone spend $6.5 million when $125K does it; merely because Mark Zuckerberg attended Stanford? People can’t be that dim can they? Well, they can but they end up not being billionaires that is the short and sweet of it.

The problem is not merely the kids of the 33 parents; the issue is that the overall value of the universities involved would find an impact down the line. Will there be the impact when they graduate on the papers that they publish? Will academia go with the statement that as the position was fraudulently acquired, whatever they publish would be scrutinised as non-valued? You might laugh at that, but that is a much bigger issue than we think. Anyone who had to present and upload there papers for grading, having it checked for plagiarism, we all sweated when the number get above a certain point.

Did we make a mistake?
Are all our references correctly in place?
Did someone copy our work?

We get the weirdest fears, often all undeserving, but every university has forever been hammering down on plagiarism, so when one of their papers ends up being a tad too high on the checking software scale, will the thought be they got into the university fraudulently? So they might go with the old stage of having more likely than not copied other work. It sounds crazy, but is it?

It is that much of a leap? If a non-sailor can get into a sailing position with help of a fund supported coach (John Vandemoer), staged as a competitive sailor, what else could have happened? I was (to some degree) a sailor myself, yet I could not hold a candle to some real sailors and she gets in under the radar with full sails unfurled? I believe that this should be regarded as a signal that more was going on.

The news is spreading like wildfire and as we get most of the information we saw in the Washington Post (at https://www.washingtonpost.com/education/2019/05/03/she-paid-college-consultant-million-get-her-daughter-into-stanford-she-said-she-was-tricked/)

Here too we see the emphasis on “No members of the Zhao family have been charged, and they are not mentioned in court papers. But when U.S. Attorney Andrew Lelling announced the arrests in March, he said one family had paid $6.5 million. The Los Angeles Times first reported that it was the Zhao family that had paid the seven-figure sum — far more than anyone else charged in the scheme“, I personally still have the feeling that someone who has been able to avoid all mention has worked much more with intent than the others, now I could be wrong, but the old truth that to avoid a trap you need to know one is there seems to be central in all this, more important. Yet the reference that the LA Times had was missing, how it all started (at https://www.latimes.com/local/lanow/la-me-morrie-tobin-college-admissions-scandal-20190331-story.html), how Morrie Tobin, regarded to be a crooked Finance exec, and when Andrew Lelling gave the media “Our first lead in this came during interviews with a target of an entirely separate investigation, who gave us a tip that this activity might be going on,” we get to see “The tip led investigators to a soccer coach at Yale University, who, in turn, pointed them to William “Rick” Singer, the college admissions consultant who would confess to being the mastermind of the admissions racket. With Singer’s cooperation, FBI agents set about building cases against dozens of the wealthy parents on his client list as well as people at universities across the country Singer allegedly paid to help students cheat their way into school.” within the short time that follows, we see 33 parents and 17 others to be the target of a court case that will impact several Ivy League Universities and even as this was from one tip, the rest will be squawking like goose to get away with as little damage as possible, as such we cannot tell how far this will go, but it will hit others, I have very little doubt on that front.

My reasoning is this, this has been going on for a while, and the way that the amount of money has been moved around implies that the people involved are not on their first milk run. The ABC quote: “Prosecutors said Huffman, 56, made a $15,000 contribution to Singer’s foundation in exchange for having an associate of Singer’s in 2017 secretly correct her daughter’s answers on a college entrance exam at a test centre Singer controlled” gives rise to that. Not merely the fact that she did it, but somehow she was contacted or she contacted a party involved, the fact that the SAT scores were ‘corrected’ in the window available implies that the system is larger spread and available to a larger worried audience (read: parents in fear that their kids will not be good enough). The term ‘associate of Singer‘ also implies that this man had fingers in many American Pie’s and to keep it a secret to the degree it was requires cooperation on certain levels, secrets like these tend to get out in the civil world, the fact it did not is an implication by itself.

There is optionally the fact that this kid went to a test centre that Singer controlled is up for debate whether that was merely fortunate for Huffman. If there is one issue, than it is the issue that there is every change that the kids will now walk with a mark on their life, a mark they optionally did not want, require or ask for.

God help us from overprotective parents at times.

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Tagged as Andrew Lelling, Filicity Huffman, Harvard, John Vandemoer, LA Times, Mark Zuckerberg, MIT, Morrie Tobin, New York Post, Rick Singer, Stanford, Tao Zhao, the Guardian, Washington Post, Wharton School of the University of Pennsylvania, Yale, Yusi Zhao

May 3, 2019 · 12:41

The trivial and the not so

First the trivial, although $1.66 billion is no trivial matter, it is now one week that Avengers Endgame is in play (for a few countries 8 days) and it has made a staggering $1,664,151,786 so far, and it is now in 5^th position on the list of biggest box office successes in the world right behind Avengers: Infinity War, It will not surpass that before the end of the weekend I reckon, yet by Sunday evening it will surpass both its older brother as well as Star Wars, the Force Awakens, less than two weeks and it will be nipping at the heels of the 20 year standing record of Titanic, the movie is going that fast and there is no stopping it, people want to see it more than once (I would really like to see the 3D version) which was not available to me on opening night. At this point 50% of the top 10 most successful box office titles are all Marvel titles. It made me think back to a conversation I had with some director on how he thought that Fantasy movies had no place to go in the 80’s at the Rotterdam ‘Lantaren Venster’ film festival. That conversation is currently making me giggle, the man was sincere in his belief and that is fine, and just like the Deer hunter is not for everyone, neither is Monster Inc.; we all have different takes on what we call entertainment and what we want to see on the big screen, yet I never forgot his view and me being the eternal diplomat remarking at that point to him on how amazing the movie Krull was (I had a mean streak in those days), and with actors like Liam Neeson (Kegan) how could it not be? He was not stricken with a sense of humour, let me assure you of that.

I never had any doubt that Endgame was going to get where it was now, yet the speed at which it did blew me away, it still does. The fact that during the week, in what is usually regarded as the lull of movie incomes, Avengers: Endgame added half a billion like it was a casual shower moment for Scrooge McDuck inside the United States Mint.

As for the not so trivial we need to take a look at Tesla. The Guardian gave us yesterday (at https://www.theguardian.com/technology/2019/may/02/tesla-elon-musk-raise-money-stocks-bonds) ‘Tesla seeks to raise $2.3bn after concerns it is running out of money‘, even as the newspaper is giving us: “Company announced last week it had lost $702m in the first three months of the year and sold 31% fewer vehicles in the first quarter“, that does not mean that we should go all negative on Tesla. Yet the part that does give rise to concern is: “Founder Elon Musk has previously dismissed the idea of raising more money but in the last earnings call said: “Tesla today is a far more efficiently operating organization than it was a year ago. We’ve made dramatic improvements across the board. And so I think there’s merit to the idea of raising capital at this point.”” When I see ‘a far more efficiently operating organization than it was a year ago‘ I wonder what that is based upon. Consider the cost of being somewhere, why is Tesla in two locations in Sydney, have Sydney sales given rise to a second store? They did the same thing for Melbourne, Amsterdam the Netherlands and we could go on, but when you realise that these are premium locations no matter where you are in the city, having an American approach to locations in Europe, your logistical cost will go through the roof and that is what is happening. The same for Sweden, yet there the cost setting might differ considerably and having part in Täby might make sense, although there are alternatives near Solna as well, perhaps it was a good deal. Now there is a second part, are these Tesla ‘owned’ places or are they independent dealers? No matter what, there are larger costs to consider like displays, parts to show and other items, and many of these places are in expensive areas, now we can agree that there might need to be one, but two?

It goes further that; it is not merely about the stores, it is about awareness to a much larger degree. You see charging the car is still an issue and yes there are solutions. Some look at the home charging solution. Yet consider the amount of energy required, your electricity bill will skyrocket. Now, there are alternatives, first there are solar panels and there we see: “This is why pairing a charging station with a solar panel system is a great solution for EV owners and solar panel owners alike“, I am less optimistic. Depending on several factors you could need up to 70 panels (low end 1kWh a day panel), and when we start looking at the options, when we go for a generic 7kWh solution, we get an annual average of anywhere between the numbers of 20 – 29 kWh daily created. Now this is merely one third of your battery, the question becomes, so you need a 100% every day? When we go commercial sized (30 kWh) we see that the production get to be between 86-133 kWh a day, so basically that takes you off the grid and give you a daily 100% charge, yet the price is also there. At prices that go up to roughly $30,000 – $40,000, now this is not to scare you. Consider that the car ‘fuel’ is free from thereon after, also your house electricity bill is reduced to almost zero, even better you can sell your excess energy to the energy provider, so there is that, but is that what you were after?

Why does this all matter?

It matters as I went to see a Tesla a few weeks ago, merely because I was curious and the Black Men’s Corp Jacket looked appealing for the upcoming winter ($120, which I did not get), and the Models looked pretty cool too (so did the Roadster), yet when I looked into charging, there was a little vagueness (unintentional mind you) they showed the charging unit, and it got me to think things through. I got from more than one source relative the same results “the average petrol car in Australia uses 11.1 litres of fuel to travel 100km (Australian Bureau of Statistics). That’s a cost of $16.65 to travel 100km at $1.50 per litre2. Even a very efficient diesel vehicle (5 litres per 100km) will cost $7.50“, most sites were all about how much cheaper the electricity was, not how much it would cost, so I got one result giving me “the average price for electricity per kilowatt hour (kWh) in Australia is about $0.25 and it takes around 18 kWh to travel 100km in an average EV. So, it will cost approximately $4.50 in electricity charges to travel 100km“, now we have something to work with. If you take the average annual driver distance (20K and divide that by 100) we now see that you are facing an optional saving of $900, not something you can ignore, but we all forget the infrastructure and now my panel viewing becomes important. If we see the brownouts that are going on all over, the switch to Tesla means that the price of electricity goes through the roof at some point, a shortage will do that for you, when everyone needs more electricity, prices go up, and that initial 30 kWh solution now becomes a more interesting money maker, but overall it is not the only path or method to rely on. You see, when the price changes we suddenly see that the $900 savings become a mere $420 savings, yet on the other side your electricity bill rises steadily and with the panels you avoid that 100%, optionally adding income to your household. I do believe that for now the 30 kWh is overkill and as we might not need a full battery every day, we could start with the 10 kWh solution, or even better if they have the plus package (double paneling). The initial $10,000 will earn itself back over 3-4 years and more important it will aid in lowering the electricity bill as the panels can do more than just reload the car battery. More important the larger issue will be the 40 panels, so apartment owners are almost directly out of the race for now, more important, when you have a solution that sets the stage for a doubling down the road with minimum extra you would be looking at reducing the bulk of your electricity bill which is not the worst idea in summer (AC’s swallow electricity like sponges) and that is where we need to look at with Tesla, as we can use Tesla battery power in other ways, the solution becomes an actual larger solution.

They are all about the car and rightfully so, but when did you look around for a battery charge point? That matters, because when there are no options and it must be done at home, you need to have the proper electricity contract, even if that is not the case now, it will be in the future. In Australia, we see Energy Australia giving us: ‘first 10.9589 kWh of peak usage per day‘, then we see ‘Next 10.9589 kWh of peak usage per day‘ and ‘Balance of Peak usage > 21.9178 kWh‘, the prices are all the same for now, but when that changes, which it always does over time? When we see that those in the highest range are charged an additional 5-15 cents per kWh? That will change the cost of living picture real fast and real direct. Now the electrical car is another matter and there is no way that these fears are not with every consumer looking at an electrical car the day after they receive their energy bill, fuel is still more expensive for now; yet when we see it against the Tesla that starts at $112,000 and the highest performance model at $137,000, the math does not work for the largest extent of people. I got here the long way round because it is not the buying of a Maserati that breaks the bank account (for those who can afford it), it is the annual insurance and fuel cost that grab you by the tender spot and makes you regret the choice. Now that we see that and we see that a new 2019 Infiniti Q70 is a mere $48,712 and that is not even close to the cheapest solution, so there is a saving of no less than $63K, if you put that in your super and use the interest to pay for the insurance and fuel you’ll end up paying the cost and growing your fortune, and that by merely banking the additional cost for a Tesla. So no matter how ‘environmentally aware’ you are, the entire saving part becomes a myth and when we see that and we consider that Musk is running out of cash in a myth based created car need that shows that there is a market, yet not with the hardworking population that makes up for a little over 65% of all workers, Elon Musk has a car that is supposed to be for those who prefer high end cars, all whilst we see that the new 2019 Jaguar XF Starts at $50,960, we see that there is a market for people, but is it with Tesla? Consider the question ‘when was the last time you could afford to handover $60K for keeping environmental principles?‘ I met two last year, one was driving a Lamborghini, the other has a black Mercedes-AMG, I reckon they will not join the Tesla community any day soon.

So as I took you on the scenic route towards the drive that Elon Musk requires us all to take and the fact that he seeks $2.3bn, implying he might pressingly need $1.5B by quarter end is a matter for concern, not because of the innovation he created, that is clear and down the track he will be the first; where would Henry Ford be if he never created the Model T? Elon Musk might be the next Henry Ford down the line, yet when we see certain steps taken, we need to see that ‘a far more efficiently operating organization‘ sounds as nice as seeing an organisation grow by 100%, yet when the reality is that they grew from 4 members to 8, we need to seriously consider where we are at and that is where I see Tesla at present. It looks great, yet it is for the bulk of all of us too unaffordable and the bulk of those who can afford it can get the luxury Nissan (Infiniti) or a new Jaguar at half the price and that is where Elon Musk is stationed, in a small niche and in all this.

I do not see the market going his way and that remains to be the sad part, because if he pulls it off and creates a large enough market it will be a historic day for him and for America, they need a win like this in the United States of America where they are in a technology drought. They currently lack of true innovation in too many fields and they show a lack of true new technologies, not amendments or mere iterative steps from the old models that exist. Elon Musk has that one true new technology and I hope that the US can stage it to an actual large enough market, I truly do.

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Tagged as Australia, Avengers: Endgame, battery charging, car chargers, cars, Elon Musk, energy australia, Henry Ford, Infiniti, Jaguar, Krull, Liam Neeson, Netherlands, Solar Panels, Sweden, Tesla, the Guardian

May 2, 2019 · 11:55

Epee and quarterstaff

It is an old riddle that goes back to the renaissance: ‘What do the Epee and quarterstaff have in common?’ The answer is that they extent reach. The lesson is that everything has its reach and the power remains when you do not exceed the 90% of it until you are either forced, or if you have a 100% certainty of causing a fatal hit. Making the mistake in those days meant certain death. Those days were not about points, it was not about bragging on besting a person, it was kill or be killed, plain and simple. A lesson that is 500 years old and Apple apparently never learned it. So in the Guardian (at https://www.theguardian.com/technology/2019/apr/30/apple-iphone-sales-first-quarter-earnings) we see ‘Apple’s iPhone sales fall 17% in first quarter as flagship product struggles‘, what was interesting was: “The company made a profit of $11.6bn – ahead of expectations. But this quarter marked another quarterly decline in profit and revenue as the company struggled to move beyond the iPhone“, even as Apple is in a buyback phase to regain its heralded one trillion dollar company, there are still clouds in the background. It starts with the iPhone, an iPhone Xr 128GB is $1299, the not most powerful version of the iPhone Xs is $2049. Yet the competing Androids are $1499 (Google Pixel 3), $1599 (Huawei P30 pro) and $1699 (Samsung S10), those are all on the same, or in some regards on a more superior level; if we are concerned consumers and we are willing to step down a little we can get decently competitive phones for $449, that is what Apple is up against, you can shout all you want on how refined, elitist and top range your phone is, but the amount of people with that kind of cash available is dwindling down and Apple is realising that buying back stock and take control of the smacking they are about to get is indeed a wise choice, but so far my prediction remains that Apple is heading towards a 30% decline of net value is not unrealistic at all. Then there are the issues on the computer side of apple too. What Digital Trends called ‘Flexgate’ last January is still on the mind of many, and as they gave us the quote: “the stage light effect is caused by flaws with a cabling system that Apple uses to attach each MacBook display to the internals of the laptop. In MacBook models from 2016 and newer, Apple switched to a new flexible and thin ribbon cable, which over a long period of time can face fatigue and eventually tear as the lid is repeatedly opened and closed on the laptop” with additional information (at https://www.digitaltrends.com/computing/flexgate-issue-plaguing-some-macbook-pro-owners/) we see that Apple has played the ‘presentation innovation’ card slightly too visible, so now there is a backlash. Then there is bendgate (iPad Pro bending), then we get in addition the May 2018 class-action lawsuit that alleges that Apple has “failed and continues to fail to disclose” problems with its butterfly keyboard. It says Apple’s actions are violating several competition and regulatory laws, including California’s Unfair Competition Law and the Magnuson-Moss Warranty Act. The lawsuit is seeking damages for the class, as well as an acknowledgement by Apple that there’s a problem with its keyboard design. This case is not over and done with, because it will be a global problem soon enough, so the steps that Apple has to take will take a massive chunk on their value and profit reporting within the coming year. Al these actions whilst they have plenty more issues coming their way. Now in their defence, the entire Flexgate could have happened to anyone, but proper testing does give light to these dangers, it is interesting to note that IKEA might have a better quality testing department than Apple does, which shows that Scandinavians optionally have a better idea towards exceeding customer service and keeping proper tabs on quality. This all before you realise that Tech Insider reported ‘Apple is squirrelling away money to pay for lawsuits related to its iPhone ‘batterygate’ throttling scandal‘ (at https://www.businessinsider.com.au/iphone-batterygate-lawsuits-cause-apple-to-set-aside-money-2019-2) an issue that is still not done with and might not be done with until 2020. So when you see that list costing them optional billions, do you think that my view was unrealistic?

As they give us: “previous class-action suits have resulted in $US450 million judgments against the iPhone maker“, I feel certain that this will not get it done in this case and if they are really really lucky, it might only cost them $45 billion, you forget that the Euro courts are snapping at the heels of Apple as well, 27 nations all with a score of angry customers, we realise that there is always a cost to doing business and there is premium to pay when the limelight is set on what might call ‘intentional deceptive conduct’ and ‘batterygate’ fits that bill and then some. This is not the end; there is also indirect damage to come. This was given by Apple Insider with ‘Latest Facebook-related security breach finds millions of records exposed on Amazon servers‘, there we see (at https://appleinsider.com/articles/19/04/03/latest-facebook-related-security-breach-finds-millions-of-records-exposed-on-amazon-servers) that Apple was connected: “These include data sharing deals with companies like Apple, Amazon, Microsoft, and Sony, plus people being able to look up strangers based on phone numbers submitted for two-factor authentication“, so when we see data-sharing, we think it is only Facebook, but sharing goes in many directions and what did Apple share? the entire ‘people being able to look up strangers based on phone numbers submitted for two-factor authentication‘ implies that Apple optionally has a decent amount to answer for, or perhaps better stated, there is plenty of issues brought to light that the Apple legal teams need to ignore, deny or carefully phrase into another direction, there is only so many fines any company can live with before the larger population bails and if that happens before December 2019 than my prediction of 30% could end up being way too optimistic, but I keep a conservative view on the matters for now. Consider the steps that Apple has been making, their ‘new’ iMac Pro, it is a computer that starts at $7,299, whilst the normal new iMac, a computer that would satisfy 95% of all Apple users is a mere $2,799. Now, I am not opposed to an overpowered computer, but consider the cost of creating it, redesigning parts and making it look more expensive, do the amount of buyers rectify for that? Is the ROI curve not massively overstated and when we realise that, is a company where its marketing is insisting on annual innovation not out of control? What is the price tag of that you reckon? It becomes even more laughable when we consider a review (at https://www.youtube.com/watch?v=6YwYZvmYecI) where we see the MacRumors channel giving us at 5:30 that the iMac Pro (2017 model) exports 4K video in 2:44, whilst the normal iMac (2019 model) does the same thing in 2:31, it seems trivial, yet remember that there is a $7,299 versus $2,799 in play and within 2 years the value of $4,500 was lost to the user, as such the life time value of an iMac has pretty much gone into the basement taking out customer loyalty overnight. the last time I looked, looking cool for a year at the price of $4,500 was decently overrated for most people, and it makes for a business case that the iMac pro could be regarded as wasted investment for its consumers soon thereafter (in some places they refer to that as: ‘warranty until you exit the premises‘.

These are some of the issues that Apple is facing and there are a lot more issues (yet most of those are actually trivial). It is there that we return to the Guardian with: ‘the company struggled to move beyond the iPhone‘, that and the 2018 iPad Pro Bendgate issue does not help any and that is where we see that quality assessment has failed miserably. The need to look innovative, lighter and thinner means that testing becomes more and more important. So when the consumer was treated to ‘Apple releases an official statement on reports that some iPad Pros have come bent right out of the box’ on January 2019 with: “Relative to the issue you referenced regarding the new iPad Pro, its unibody design meets or exceeds all of Apple’s high quality standards of design and precision manufacturing.”, and as such the consumer feels duped to say the least. One source also gives us: “Apple claims that the bending can’t exceed more than 400 micron–“the width of fewer than four sheets of paper at most,” which is a “tighter specification for flatness than previous generations,” the note says.

The tech note further states that the antenna splits “may make subtle deviations in flatness more visible only from certain viewing angles that are imperceptible during normal use.”“, whilst the image from MacRumors (at https://www.macrumors.com/guide/ipad-pro-2018-bending-issue/) shows a bending issue close to 1,000% of what they claim, making the issue rise to the surface and also gives a much larger light of additional class actions that might be filed later this year if Apple does not change policy immediately, so is my 30% drop still off? I already gave some visibility to that (at https://lawlordtobe.com/2019/02/24/future-through-the-sub-line/) almost 3 months ago, and I have not noticed any clear loud actions by Apple Marketing to counter the damage that this issue was bringing.

It is not what Apple claims to do, it is the failing on a few levels, the marketing on several product lines and the neglect of services that shows that not only is it struggling to move beyond the iPhone, at present they have very few options left to them in any of the product lines to set any stage of ‘moving beyond’ and that too will suppress growth to a much larger degree, and optionally for a much longer time. All that whilst they should have known when they started the Pro and high priced iPhone series that they are selling to people who demand perfection and high end quality especially at the prices that they are selling it at, at that point your QA department is the most important department you have, not your marketing department.

It is the direct visibility when you extent beyond your reach, you get hammered down and you get hammered down hard, in the renaissance that apple individual would not be defeated, that person would merely be dead and forgotten, I hope that this is the lessons that apple takes to heart because the treasures of 5G are looming and Apple might be out in the cold soon enough. I reckon that the $4.5 billion payment to Qualcomm is making that obvious and clear to all, which is news that was released only hours ago with: “As pointed out by Axios, Qualcomm will record $4.5 to $4.7 billion in revenue from the Apple settlement, which includes a “cash payment from Apple and the release of related liabilities.”” (Source: MacRumors).

Apple still has a long way to go to get back on top, I wonder if they ever will.

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Tagged as 5G, Amazon, Apple, Axios, Bendgate, Digital trends, Facebook, Flexgate, IKEA, iMac, iMac Pro, Mac, MacBook, MacRumors, Magnuson-Moss Warranty Act, Microsoft, Qualcomm, Return on Investment, ROI, Sony, the Guardian, Unfair Competition Law

May 1, 2019 · 10:56

A little pain to Huawei

Yes, there is finally a moment where we need to ask Huawei questions. Bloomberg reported (at https://www.bloomberg.com/news/articles/2019-04-30/vodafone-found-hidden-backdoors-in-huawei-equipment) that backdoors have been found. More accurately: “Vodafone asked Huawei to remove backdoors in home internet routers in 2011 and received assurances from the supplier that the issues were fixed, but further testing revealed that the security vulnerabilities remained, the documents show“, yet knowing the track record of Vodafone, that is not the whole story. Is there an issue? Seemingly not, as the headline gives us: ‘While the carrier says the issues found in 2011 and 2012 were resolved at the time‘, so an issue found 7 years ago was resolved at the time. Is that issue there now? Bloomberg does not really give us that do they? It gets to be a larger issue of what is seemingly called reporting when we see the ZDNet report from 2017 (5 years after the Bloomberg reported issue: “Thousands of routers, many of which belong to AT&T U-verse customers, can be easily and remotely hacked through several critical security vulnerabilities“. that as well as: “Among the vulnerabilities are hardcoded credentials, which can allow “root” remote access to an affected device, giving an attacker full control over the router. An attacker can connect to an affected router and log-in with a publicly-disclosed username and password, granting access to the modem’s menu-driven shell. An attacker can view and change the Wi-Fi router name and password, and alter the network’s setup, such as rerouting internet traffic to a malicious server“, these are much larger issues and were they resolved? We would think yes, but the article did not give us that. They did give us: “The report said Arris NVG589 and NVG599 modems with the latest 9.2.2 firmware are affected, but it’s not clear who’s responsible for the bugs“. The small fact that this constituted 5 flaws as well as a reported statement of: ‘the vulnerabilities are not limited to the hard-coded credentials flaw‘ give rise to a whole range of issues. So even as we might think that this one flaw is a stitch in the high regard for Huawei, the fact that an American solution has well over 500% the amount of vulnerabilities and as stated on several levels give rise to the reliability of Huawei. Moreover, the length of the issue is also a given at times as well as the need for better 5G equipment. Yet in all this, how much actual damage has either caused, Bloomberg was willing not to disclose that either. Yet Huawei is not out of the woods yet. The article gives us ‘further testing revealed that the security vulnerabilities remained, the documents show‘ and that is indeed a larger problem, yet these documents were from 2012, when was it actually resolved? The fact that we do not see that it was never ‘not resolved’ implies that it was, in addition, the 2012 issues in Italy were resolved that year. Then there is the quote ‘it couldn’t find evidence of historical vulnerabilities in routers or broadband network gateways beyond Italy‘ making it a localised temporary issue.

In all this Huawei has an issue to deal with and even as we see the lack of comparison flaws (I added the AT&T issue so you can be aware), the unbalanced reporting, as well as the clarity that there is to some extent an issue remains. The fact that the huge AT&T disaster was never called to answer questions might be equally a consideration to make. All computers and most software have bugs and security flaws. When I looked this morning, I found a list of 845 vulnerabilities in Windows 10, some of them critical. So when we compare these issues, we should consider that your Huawei router is not the largest problem and that is merely the beginning of the issue. Historically speaking, from 1999 we see that Windows have had 113,811 vulnerabilities; 4911 vulnerabilities regarding the ability to gain privileges, 10377 on getting information and 6001 on bypassing options. So in all we need to consider that your choice of Windows is a much bigger concern than your Router is, if the Chinese government wants to get access to your data they merely need to wait for you to switch on your windows machine, there are plenty of options to get to the stuff no matter which router you buy and if you got the Arris NVG589 or NVG599 modem it would have seemingly been easy as pie to just copy whatever you had, so in the end can you see that the entire Huawei mess is merely an American mess to project the notion that you should not buy Chinese, but consider the optionally more flawed American solutions?

And whilst I got to AT&T, the news (three days ago) was ‘AT&T claims title as first U.S. carrier to hit 2Gbps on 5G network‘, yet when we consider the quote by VentureBeat: “It’s great in the abstract that some businesses in Atlanta may be able to get 2Gbps speeds on a 5G device regular consumers can’t buy. But what really matters is the actual speed normal 5G users across multiple cities will see on actual consumer devices. Verizon has provided a sub-1Gbps sense of what to expect, but AT&T hasn’t.”

We see that what is regarded as reliable in America is a bit of a stretch at some point, for the most I was most disappointed with is the fact that the Bloomberg article should be regarded as an attack on Huawei whilst there is no comparison given as to how that flaw related to the flaws others had, more important the fact that there were larger flaws from others much more recent is a missed part. Still Bloomberg did raise a really valid point on a flaw that Huawei seemingly has, with the perception that the news could have been given in 450 words, the rest was a lot of smoke around an issue that dwarves against some of the other issues, issues where there is actual fire, not merely smoke.

But that is merely my $0.02 on the situation.

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Tagged as 5G, Arris, AT&T, Backdoor, bloomberg, Huawei, Microsoft, Venturebeat, Verizon, Vodafone, vulnerabilities, Windows, ZDNet

May 1, 2019 · 10:41

Waking up 6,897 miles away

I admit that at times I do not understand the motive of those who embrace extreme actions. The LA Times gave us yesterday (at https://www.latimes.com/local/lanow/la-me-ln-los-angeles-terror-plot-20190429-story.html) the issue of continued action after an attack. In this case it is the attack on the Al Noor Mosque on the 15th of March 2019. There Brenton Tarrant decided to murder 50 innocent people, and almost succeeded in murdering 39 additional people. The event drove Mark Steven Domingo (26) to make an IED, and he had planned to detonate it at a rally scheduled to take place in Long Beach this past weekend. The man who only recently had converted to Islam seems to have converted with too much anger in his heart, or perhaps he was always too sociopathic and psychopathic to begin with and he hoped that Islam would give him more support in his violent needs. It is anybody’s guess; so this “U.S. Army veteran who wanted revenge for attacks on Muslims around the globe was planning to detonate a bomb at a Long Beach rally this past weekend before he was intercepted by law enforcement officials, authorities said Monday“. According to papers, he was planning “various attacks — including targeting Jews, churches and police officers“, in all this targeting the police makes even less sense, that is, unless you consider that his sociopathic nature came into play and he merely wanted to target people in uniform. And when I read: “Prosecutors said Domingo sought retribution for the March 15 attacks on New Zealand mosques and was willing to die a martyr“. I wonder if he actually wanted to do that at all. You see, it dawns on me (optionally a completely inaccurate view) that he is one of these people that fear taking their own life, and as the numbers of ‘suicide by cop‘ have dwindled, these people have sought out another path to get it done, because a clear ‘suicide by cop’ tends to become a conversation with the police being able to talk people like that away from such an edge pretty efficiently, yet a terrorist is a target that is to be killed on the spot to safeguard as many people as possible. The fact that he got arrested before his plan came together is merely a nice coincidence for all parties concerned (optionally with the exception of Mark Steven Domingo). In support there is the case of Suicide by Cop: A Psychiatric Phenomenon. It is a work from 2017 by Ralph H. de Similien and Adamma Okorafor. There is one part that came up to debate in light of this optional case. The paper gives us: “It is reported, for example, to be more common in those with previous encounters/experiences with law enforcement agencies. It is estimated that about 66% of victims have had criminal histories“, I am not debating that it is wrong, I wonder if the text needed to be altered to: ‘with previous encounters/experiences with law enforcement, or defence agencies‘, it would fit this bill, yet making a resolution fit is not academically correct and as such I am not stating that I am right, I am merely wondering whether I could be right.

And there are other considerations to make, like how did he convert to Islam? Was he officially converted by an imam khatib? At what mosque did this happen? These questions are equally important for the reason that we need to ascertain how he became radicalised, was it an interior push or an exterior one. The facts as they are shown at present seem to imply that he was an angry person seeking another solution to whatever problem he thought he had, an extreme one and that makes it an internal change, but that is not a given. The data is important here as it casts a much larger shadow on several key elements and until they have been resolved there is no certainty that this will not happen again in the foreseeable future, a threat that Long beach (and other places) can do without.

Even now we see more questions rise. The BBC gave us only hours ago: ‘US Army veteran ‘planned to bomb Nazi rally’‘, we might all think that this is not the worst idea to have, but the extreme part of this is starting to form a pattern, he wanted to blow something up. We can argue that we have all had it at some point; some lash out at their high school, some do it in their high school. There is more in this case: “the former infantryman with combat experience in Afghanistan“, as such I have met plenty of people from that place who came out alright, to some extent I am unwilling to merely hand it over to the label called PTSD. There is a larger issue in play in the United States and this is merely the beginning. Never before in history has a nation been this polarised both politically and socially.

The political players have done everything to better their own lives and quality of life, but for the most they have been utterly unable to do that for the lowest 35% of that nation. The homeless, the unemployed and the minimum wage employees have been under increasing levels of pressure. Some need to work two jobs just to meet the cost of living; it gets even worse when we consider certain facts. For example in Kalamazoo, Michigan (expertly found) we see that well over 30% of the city population lives below the poverty line. That is well over twice the U.S. poverty rate, which stands at 12.3%. In a place that is seemingly affordable, a place where houses are on a median that is below $100K, we see a splurge of poverty. A place that is roughly 2.5 hours from Chicago , a city where the prices are non affordable for most these people. Did you not think that this inequality would come home to roost? If there are 15 places where these economic groups can live than it would be a lot, the issue is a lot less positive and the pressures keep on going up.

When we consider that a US veteran, a person that signed up to protect its civilians, is now on a course to kill them; we need to see that the issue is a lot larger than we think it is. Now as the expression goes ‘One Swallow does not make for a summer‘ we can see that one case does not mean it is so, but the pressures are visibly there, the deterioration of the lowest 30% of American incomes is there and when we start seeing the difference on what represents the quality of life in the US against what is regarded to be the standard of living, at that point do we see a first light on how much change is needed in the US. This has been known for the longest time, yet when we consider the simplest part in all this; when we consider that up to 21 million Americans are getting water from systems that violate health standards. When we consider that this is 8% of all Americans and when we realise that this group is more likely than not represented in 95% of the lowest 35% incomes, people who more often than not cannot afford to buy bottled water, how serious do you think that the pressure issue is and how worse could it get soon enough?

I believe that Mark Steven Domingo is the beginning of a much larger problem, it was not founded in religion, it is founded in social desperation and when that hits the least balanced people are the first to totally lose it.

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Tagged as Adamma Okorafor, Al Noor mosque, Brenton Tarrant, Christchurch, IED, Long Beach, Mark Steven Domingo, Ralph H. de Similien, Veteran

April 28, 2019 · 14:07

When a dream is too delusional

We all have those dreams we know will never pass into reality, they are too delusional for comfort, but they are dreams, so we go with the flow. One example is winning the €135,000,000 lottery, the other could be one including Wallis Day (main character in the DC series Krypton) to spend a weekend to remember at her place (with all the extra options). Yes, all options that are delusional and never ever a setting that could ever be true. So in all this we get to yesterday’s article in the Guardian where we (at https://www.theguardian.com/business/2019/apr/27/very-disappointing-ashford-laments-loss-of-debenhams-branch) are treated to ‘‘Very disappointing’: Ashford laments loss of Debenhams branch‘, yes it might be very disappointing, yet consider a few items. First there is the building that they are in, then consider that Ashford has a population of 62,787, so we need to look at another side of it all, or in this case the 2016 Annual report (at http://www.annualreports.com/HostedData/AnnualReportArchive/d/LSE_DEB_2016.pdf).

They had a staff count of around 28,000 supporting 182 stores in the UK and Europe as well as their domestic and international websites. Now consider their premise of Gross transaction value (52 weeks) of £2.9bn. In that regard, how does a shop in a village of 62K people add up to anything? When we look deeper and consider that Debenhams had a total of 165 stores in the UK alone and the amount of cities in the UK from 100,000 people up to 1 million added up to 96 locations, in the remaining places how did Ashford got to be one of those 69 positions? Now, we can see that in Kent, the average income is set to £29,095, which is above the UK average, still, when we do the numbers, the entire validation of having Debenhams in Ashford does not add up. Not in such a posh place, making me wonder why the building was placed there to begin with.

Now consider the additional information that the Kent Online gives us (at https://www.kentonline.co.uk/kent-business/county-news/debenhams-to-close-four-kent-stores-203461/). So, Ashford, Canterbury, Chatham and Folkestone are all shutting down, in all this, I wonder why Ashford, Canterbury and Folkestone were placed in the first place. Kent with its 1.5 million people (in the entire county) has a case for one Debenhams but not 4. The numbers do not make sense. Now we need to remember that Debenhams has been around for two centuries and as such they do not all have new places, but when I see Debenhams Ashford, I see a story that seems to think it is in a multi-millionaire district with 20,000 shoppers, whilst 2,000 active buying shoppers at best would be an achievement in Ashford, the entire article by the Guardian left me with way too many questions. The shop is clearly set out to call in the higher spender; the Dior setting dominating the floor gives that impression. Now, it is not merely about the prices, because Debenhams has always shown to have value for money and their stuff is affordable, yet that also creates the need for a much higher volume of purchases and let’s face it, Ashford is not a place where people buy clothes at a non-stop speed, the cost of living is not supporting that, and the optional coffee machine at £282.00 is not one that most people would buy, the one off perhaps, but most will resort to the luxury Russel Hobbs at £35.00. Now we get the image clearing up, you see as margins are lower, the units need to be sold at much higher frequency and there we see that Ashford never had the stage, moreover it is at least two Kent stores that could be seen as a drain on the Debenhams fortune and that took less than 2 minutes to figure out, so how the continued expansion (read: building upgrade) was seen by those in charge is beyond me.

So when I see: “For other young people, the department store had little to offer. “I just go in there to use the spray on the beauty counters,” said Faith Figaro, 17. “I think it’s expensive, to be fair.”” we see a 17 year old making the case for me and I wonder what possessed the Debenhams top to go in this direction in the first place. It gets to be even worse when the Guardian prints the pragmatic “It’s all hairdressers and coffee shops and nail bars. People won’t come here to shop – they’ll go to a bigger town like Canterbury instead“, which in itself is a truth, making me wonder what is getting into some of these delusional big brands. The entire setting of the larger players has been under fire for the longest of time and the essential need to revisit locations is becoming an essential need for all of them, as such the statement: “Conservative MP Damian Green described the news as “very disappointing”. On Twitter, he wrote: “We need to redouble efforts to strengthen the town centre.”” becomes one of worry. Even as a conservative I wonder how Damian got elected, merely as I saw the writing on the wall within three minutes, so he should have been on the ball for a much longer time, as such the Debenhams situation should have been to be expected, not ‘disappointing‘. For me the entire issue that is started by “Ashford borough council said they would work with the owners of the shopping centre to try to find new occupiers” becomes an issue soon enough. It is the duty of the owner to seek shops and to seek occupancy. When you put an expensive Rolls Royce in an old meadow, you cannot expect your return on investment, you do that by slashing rental prices and by seeking long term solutions that can afford to be long term solutions. Staging ‘elite placement’ in a place where ‘elite placement’ is not realistic is the stage where we see the Australian Westfield issue explode on several stages, places that are intent to fall over within a year, it attracts the wrong facilitator and that is where things go from bad to worse.

It is not the end, it is the Kent Online that also gives us the words from Executive chairman Terry Duddy: “Debenhams has a clear strategy and a bright future, but in order for the business to prosper, we need to restructure the group’s store portfolio and its balance sheet, which are not appropriate for today’s much changed retail environment“. The words sound nice in theory, yet from my point of view; the stage we see in the 2016 annual report contradicts the actions of having most Debenhams in Kent. And when we look at the annual report making the: Profit before tax* (52 weeks) £114.1m claim. I get to the stage thinking that their clear strategy was anything but clear.

In that version of a report we see the strategy: “To be a leading international, multi-channel brand by delivering a compelling customer proposition and increasing availability and choice through our flagship digital platform and well-invested, well-located stores around the world.” I honestly think that they got that wrong by a fair bit. You see, from my personal point of view the setting of ‘well-invested, well-located stores‘ we see the stage where it should have been ‘well-invested, and viable well-located stores‘ it is that part where viable needs to matter and in 50 of the 166 cases it was not to be and that is not something from the last year, the action should have started no later than 2015 as I see it.

It gets to be slightly entertaining when I look at their risk management in light of their e strategic and operational goals, but let’s not make too much fun of the situation, shall we? Even as there is a lot to be said on their KPI’s, the clear message of net debt reduction is important and a good thing, if that £40 million net debt reduction had not been met, the entire matter would have been critically fatal for Debenhams no later than 2018, so good steps had been made, yet larger were essential two years ago, that is as I personally see it and without the raw data my findings are open to critical debate (as my view might be wrong). Yet at page 29 we see the largest flaw. When we see: “New UK stores 12%” we see the largest mistake, in a place where there were 166 stores whilst the population did not support further growth that should have been staged for modernisation for now. I get it, some stores are too old and new stores replace the old ones, yet the 5 year option to rely on upgrades until the economy is much stronger was an essential step to make, even if some of the lucrative old shops would shut down, the long term growth in this economy is just not there. This is why I got the 2016 annual report (the 2017 would have been better, yet I could not find that puppy). Aspects of 2016 and 2017 are seen now, its impact is now direct, like a good ship you adjust course and wait for the numbers to be clear so any adjustment in 2018 would not be a valid impact until 2020 (unless it is immediate navigation) and there is where we see some of the flaws of Debenhams. Even now I noticed that internationally they are not in Germany, it might be because Hennes & Mauritz AB is too great a threat, it might be for another reason, but the one nations where the economy is still in a much better place, is the one place they do not show up. Can they honestly claim that Debenhams Bonn, Berlin and/or Munich would not make it? In the Netherlands they would have a cat fight with C&A and a few others, in Sweden there is Hennes & Mauritz AB, Åhléns and a few others, so that makes sense, France is a dimension all on itself, so no way to tell, yet Germany? If I had to bank on Debenhams Munich or Debenhams Ashford, Ashford would never have been a consideration, yet with no timeline on Ashford I have to make the blind choice and it would not be Ashford, due to no fault of anything Kent related.

It is on page 138 we get the final part. Here we see the minimum lease payments under non-cancellable operating leases. Now some have been there for a long time, it was a choice made and that is fair, yet in the entire matter we see that for up to 5 years we see £96.7 million in play and I have some serious questions on those marks, in light of certain facts seen now, I wonder which of those should never have been made, but that is merely my view on the matter and with up to 50 stores up for closure I personally reckon I might have a case on that.

LSE_DEB_2016

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Tagged as Ashford, Åhléns, Berlin, Bonn, Canterbury, Chatham, Debenhams, Folkestone, Hennes & Mauritz AB, Kent, Kent Online, Munich, Russel Hobbs, Terry Duddy, Wallis Day

April 27, 2019 · 11:56

Then the hard

As we all are looking at the accusations towards Saudi Arabia, the political presented power plays (not real ones) against Iran on ‘no more sanctions waivers‘, all issues we knew were coming upfront of all the other issues, most people forgot to look at France. Or perhaps others were able to pull attention away from France.

Some give us ‘France’s Macron Promises Tax Cuts, Reforms in Response to Yellow Vests‘, others give us ‘Unsatisfied in France: Muted response to Macron sales pitch‘, the short and sweet of the matter is that tax cuts are almost out of the question. The French national debt has risen to over €2,446,051,000,000, France is approaching the €2.5 trillion mark and France is presently dangerously close to the next recession, they only passed it last quarter by nothing short of a miracle, it had nothing to do with President Macron or anyone else, for the most it was merely sheer luck that they avoided the recession stamp, Q2 might not be that lucky a moment. At that point, all the claims of ‘tax cuts via less spending‘ will fall flat soon thereafter, less spending will be the massive agenda point of Q3, and France will have no other way of dealing with it. It is even less good when we consider yesterday’s Financial Times (at https://www.ft.com/content/f9920a26-6750-11e9-9adc-98bf1d35a056) where we are treated to ‘French employees face challenge to short-hours culture‘. When the French system starts applauding the casual work staff solution, France will be heading to a much deeper pit than they imagine, President Macron played the game wrong and even as most would applaud a mental change to the workers environment and how things were done, the system is too rigid to accept changes and as that system went into shutdown mode for too often, the larger impact was ignored, President Macron was too stubborn and now there is a much large impact to be seen.

The FT opens up with the best statement ever: “French workers pride themselves on being more productive than their peers in other countries, despite the fact that they work fewer hours — but that advantage is waning“, it is the ‘waning‘ part that matters. The world had adjusted for the longest of times and their advantage is no longer there, so we have a protective system (which is fair enough) and whilst it was an advantage no change was going to happen, but now that the advantage is gone change is still not an option and now these labour laws become a noose, new investors and new companies are trying to find ulterior solutions (apart from growing outside of France), now we see that the need for longer hours is essential, or we see that these people are in a stage of becoming casual workers and being complemented (read: replaced) with other casual workers and the hours will go to the best performing people, making this solution more than a slippery slope. The Financial Times is giving us numbers where we see that French production is already surpassed by the Netherlands and Germany and that is also where we see that a growth system of part timers made that happen. You see in the end two people working 20 hours part time will perform better and get more done than one doing 40 hours and that is the shift that some France exploiters seem to be looking at, it partially improves tax revenue, but it also does something else. In the stage of cost of living these people will often work two jobs, so doing 2 times 20 hours and merely ending up working 20% harder for the same pay. When France gets there it will hit the French workforce really hard.

Now we get to the part where the €2.5 trillion mark matters, as the ECB is trying to find new ways to convince others that the continued provision of stimulus to the economy matters, that against all the odds and against all the previous parts, we see that the ECB policies will hit France harder, the debt makes it so and whilst the ECB is not an elected official, it is draining the options away from the European nations, all whilst so far it has been proven that there was no actual benefit to the economy twice over. So after three trillion in unacceptable spending the ECB still believed it can work, all whilst we see the data different.

It comes down to the old premise from Albert Einstein no less: “The definition of insanity is doing the same thing over and over again, but expecting different results” and this now gives us the optional premise whether ECB rate-setter Olli Rehn should be committed under section 20 of the Mental Health Act (the involuntary committing of a patient).

It hits several nations, yet in all what is happening these issues will hit France and Italy the hardest I reckon. That part is seen when we consider “In France only 71 per cent of the population was in employment last year, compared with 79 per cent of the UK and 80 per cent in Germany“, in this the case for casual workers is often easily made, yet in France the impact gives a larger rise, lets consider that it reduces 10% of the unemployed force, which would be great, if not for the fact that these 10% now employed imply that the same amount of employed people will see a 30% reduction to their quality of life as they now share the one job with another person. It will not increase tax revenue ad that is easily shown.

At present in France the first two tax brackets are: €9,964–€27,519: 14% & €27,519–€73,779: 30%

Example one: A person makes a full income of €35,000. This gets the treasury €4702, we now get two part-timers, giving each €19,000, giving the treasury two times €1265, making it €2530, a treasury loss of €2172.

Why? The zero bracket will now apply to both employees, and even they will not see it in their second job, we see a larger shift that will occur, so in their time of great debt the treasury will fail itself twice over and even in more ways than one thinks. When you consider that the average income in France is €26,700, the part timers will dent the treasury a lot further than you think, and consider that the second job is fully taxed, how long until the French will not go that way? How much will the treasury miss out on, that is beside the next wave of badly designed stimulus ideas, a game that only sees banks and members of the ECB winners, the rest gets an added debt, how was that ever fair, just or even beneficial to any economy? Yes, France too will face their endgame, yet whether this Endgame involves President Macron (Thanos) and the Avengers (the yellow coats) to come to blows is not a given, it is an expected must soon enough.

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Tagged as Albert Einstein, ECB, France, laboour laws, national debt, Olli Rehn, President Macron, Yellow Vests

April 27, 2019 · 11:51

First the soft

There is a wave of anticipation, having seen Avengers Endgame on opening night two days ago, we see the anticipation rush through. There will be no spoilers here, but I can give advance warning of the dangerous side shows in the cinema. You see, the final part is a three hour movie and worth watching, yet watching the parents with younger sidekicks watch the movie whilst the parent realising that after two hours the bladder of junior is under pressure is a sight to see. I saw at least two fathers rushing themselves (as well as junior) to the bathroom hooping not to miss too much is a sight to take momentary notice of.

Taking a large/jumbo drink into a three hour movie is a really bad idea!

The second one is sweet. In at least two points in the movie, something huge happens and it is a sight to behold, I was not ready for large crowds to stand up and cheer and clap, it was a little unexpected, the movie gets you that deep into the story, it is an amazing one and we get volley after volley of amazing moments for almost three hours.

So when we now see that Avengers: Endgame is heading towards a 700 million opening weekend (globally) is no stretch, it would make it the largest opening weekend in history. The three most successful movies never pulled that off, so Avatar, Titanic and Star Wars: the force awakens will not be the contenders. The question becomes, can Endgame surpass the opening weekend of Avengers: Infinity War, which had an opening weekend of $630 million. There is however one side that hold endgame back, as a few nations open a week later, and as at present the overseas record has not been surpassed, the end result is not a given, I believe that the movie has what it takes to surpass Infinity War in every way, in the end, it becomes a roll of the dice (to some extent). I believe that this movie has the goods to surpass the amazing results that Avengers: Infinity War brought, I believe to be proven right in the next week. I hope to be able to see the 3D version at that point.

So we end the soft part of the day with a detailed view on Bradley Cooper, who is going to be in the movie and that is not a spoiler at all.

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Tagged as Avengers, Avengers: Endgame, Boxofficemojo, Bradley Cooper

April 16, 2019 · 12:02

The pope’s mobile is on the clock

Hickory Dickory dock, the pope ran up the clock,

The clock struck one, and hit his bum, Hickory Dickory dock.

An old rhyme slightly adjusted and gives light to a joke that mattered, it is old and it goes like:

Q: Why does the pope kiss the ground when he arrives?
A: You’ve never flown with Alitalia have you?

That is where we are, the clock is counting down; Alitalia is on its last legs and merely has two weeks left. As sources report that EasyJet pulled out of the race and even as Delta is still on board, someone needs to be found for the remaining 40% and that is the hard ball, consider on how much of an issue Alitalia is when people like Warren Buffett and Bill Gates will not take a shine to it, it might be too harsh to call Alitalia a money pit, but that is what is amounts too. The flight market is close to saturated, even as we all needed to fly (quite literally) 20 years ago, the companies started to figure out not to give their profits to the airlines. On a global scale close to 9750 planes were in the air last year at any given time, transporting up to 1.3 million people. The operative part is ‘at any given time‘, so how much travel is required nowadays? In 1998 I was flying close to 21 weeks that year, giving trainings and doing consultancy round the clock, at times living from a suitcase with added support from my laptop giving IT trainings and software training. I circled the planet twice that year, from Amsterdam, New York, Atlanta, Sydney, Singapore, Istanbul, via Munich and back to Amsterdam. I thought it was great and as long as the profits were outshining the costs, my bosses kept on sending me to more locations, it was all fine by me. These days are over, even as we see more and more airports expanding to ‘facilitate’ for more passengers, we see a dangerous curve, Stockholm Arlanda is expanding to facilitate for 40 million visitors a year. The numbers give us that the top 25 carriers facilitated for 13,718,655 passengers and if they are all tourists, that would be fine, yet the business side is not adding up. You see 15 out of the 25 had a decrease the went up to 27.3%, the lowest 10 were below 4.5%, still they were all still decreases and the largest increase came from Riga, Latvia.

Now consider that on the other side, on the airline side, apart from the element where we see that Alitalia had no operating profit between 2009 and 2015 with added low points of well over minus a quarter of a billion, the setup of airlines seems to be too odd.

I do get it, a nations having a national airline is a matter of pride, we get it, but at what cost? The airline has about 100 planes as part of the mainline fleet and the cost of doing business is just too high, there is no decent chance that whomever owns the airline might do so, so that they can say that they own an airline, it seems the weirdest of reasons, but from the financial view that is as much as we are going to get and the bad news is not done at this point.

You see, the work I used to do can be done remotely more and more, when 5G is totally here, we can see the shift where the classes can be given remotely with a phantom screen and with the presentations running in the background, the speed will enable us to give individual service to all the participants in up to three locations at the same time, almost like remotely run classroom software with camera’s in all locations. At that point we will see even less traffic required implying that the business classes on these flights will be close to a thing of the past.

The more immediate and difficult part is that none of this is the fault of Alitalia. Yes, we can look at the scandals and the past sting operations, yet the foundation is not that, it is the need of people to travel. In that light the traveller will be the one using their local airline (like many would), some will select airlines for their service and there we see groups of people seeking flights by Singapore Airlines, Cathay Pacific Airways and Emirates. So these airlines are also poaching local travellers as they have shown and proven themselves to be a cut above the others. When it comes to business and tourist Italy, we see decline of both and falling harder, yet Italy is still the destination to several countries, namely Germany, France, UK and US as the largest four. These four add up to 23%; the rest is from all over. So, what makes me the specialist? I am not; I am merely using common sense. 100 planes, in an age where their power is tourism and we are going into the summer season, but that setting is a stage that represents merely 18 weeks out of 52, the numbers and the economy do not support the fleet, or so it seems.

when we consider that Rome Leonardo da Vinci-Fiumicino supported 42,995,119 passengers last year, there is a decent case that I am seeing it wrong, but that is from all airlines, beside Alitalia, we see Air India, Emirates, Turkish Airlines, United, Etihad Airways, Thai Airways, Asiana Airlines, Qatar Airways, Cathay Pacific, Air China, Lufthansa, Ethiopian Airlines, Finnair, British Airways, SWISS, EL AL Israel Airlines, Air France, Saudia, Ukraine International, Jet Airways, Air Canada, Egypt Air, KLM, Kuwait Airways, Brussels Airlines, Aeroflot, Korean Air, China Airlines, Singapore Airlines, China Southern, Iran Air, all flying to Rome, now we see a different picture, even as the airport needs the space and growth, we see no decent numbers on how the Alitalia flights are doing, some sources were giving me ‘No Data‘ and that is fair enough, but it makes a much stronger case that unless there is someone with deep pockets that Alitalia is on its last legs and in its final stage of a mere two week notice until it shuts down. Planes would be auctioned off and the lot to be repackaged for other management styles. And I do believe that the end is not in sight, Alitalia is not the only one in such a sordid state of affairs. I believe that the business case of airlines should have changed a long time ago, and it will get worse soon enough, as the oil price goes up, so do the prices of flights. You see the one element we seem to ignore is not the drop in non-tourist passengers. It is the fact that one barrel of crude oil only facilitates for up to 4 gallons of jet fuel, the turnaround is that high, 42 gallons can only make 4 gallons of jet fuel, after that it boils down to gasoline, diesel and other items, so when the barrel goes up in price, the impact is seen quite fast. Consider that a flight from Rome to New York takes 9 hours and 40 minutes (or 2,088,000 seconds), now consider that a 747 needs 1 gallon a second, so if the oil goes up by $1, the maximum cost of a flight would go up by 2 million times the price increase and we can only get 4 gallons bet crude oil barrel making it an optional increase of $500K per flight (which is not completely true as diesel and gasoline would need to bear part of those costs too, but with only 4 gallons to the barrel, jet fuel would take the hardest hit).

That part counts too and as such tourist numbers would go down to some degree, especially from America. These are all still mere elements in the hardship calculations, but the elements are starting to add up, more optional other choices, more localised incentives and less options for Alitalia, that is the sad reality for Alitalia. As far as I was able to see, the press (the non-Italian press) did not take a look at these elements. Even as the BBC did look at one element “At the time the Irish airline was struggling to contain the fallout from a pilot shortage, which led to the cancellation of flights for about 700,000 passengers“, the abundance of competition, as well as the dangers of fuel changes were not looked at. Yet there are other sources, Bloomberg (at https://www.bloomberg.com/news/articles/2019-03-18/easyjet-drops-from-alitalia-bidding-in-setback-to-government) gave us a month ago that Delta is “exploring ways to work with Ferrovie dello Stato and maintain our partnership with Alitalia in the future“, yet I am not convince that they are in it with their heart and soul. Merely a stage where their accountants can optionally see plans for the Alitalia infrastructure and options to give Delta a streamline boost and let Delta grow in other ways accepting Alitalia to some degree for some time, yet how that ‘for some time‘ develops will remain an unknown. Part of it is seen with “Delta would take a 10 percent stake, which would double within four years if certain business goals are met“, yet these business goals are not really heralded by any party. In that regard Lufthansa was open and clear by stating that Alitalia needs to shed 40% of the workforce and that is where the cost of the Delta business goals are likely to be seen as well and that 40% will remain part of the problem. The Italian government would had to euthanise 40% of the workforce in a time when it could not afford to do so and that is the issue to the larger extent. If that knife is thrust hard and deep Alitalia might be around on April 30^th, yet at present that is not a given, the pressured parties are not willing to get to that point until the 11th hour and at that point it might just be too late, because in the end the airline is not the only player, the airports will try to make sure that their part of the equation remains safe and there are plenty of airlines offering to ferry people to these locations making the equation unbalanced and unrealistic for the bookkeepers of Alitalia, a sad story for an airline that only recently made it to its 10^th year.

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Tagged as Aeroflot, Air Canada, Air China, Air France, Air India, Alitalia, Asiana Airlines, BBC, bloomberg, British Airways, Brussels Airlines, Cathay Pacific, China Airlines, China Southern, Delta airlines, easyjet, Egypt Air, EL AL Israel Airlines, Emirates, Ethiopian Airlines, Etihad Airways, Finnair, Iran Air, Italy, Jet Airways, KLM, Korean Air, Kuwait Airways, Leonardo da Vinci-Fiumicino, Lufthansa, Qatar Airways, Saudia, Singapore Airlines, Swiss, Thai Airways, Turkish Airlines, Ukraine International, United

April 14, 2019 · 14:40

At the end of a journey

Today is not for the faint of heart, or those who are hindered by emotional parts, today is not merely about gaming, it is about the game. We are currently confronted with a few issues, the first one is given by the Guardian, was for two weeks. My initial issues with ‘Apple Arcade v Google Stadia: which is the future for video games?‘ is a simple stage. Why can’t we have both? I was never anti one or pro the other ever. I was not about Atari ST versus Amiga, I was not about CBM-64 vs Atari 800, I was also not about N64 vs PS1. My issue with Microsoft was their stupidity, as well as their refusal to listen to their gamers, that is the mere reason why the Nintendo Switch is now on par with the total Xbox lifetime sold consoles, it took Nintendo less than 2 years to get there and they got there, the most powerful console is now actively being surpassed by the weakest of the three consoles, that is the impact of stupidity (optionally ignoring Karma was partially a reason too).

So I believe that there is space for both, a case can be made for either console and even as we are most likely to get one of them first, there is a decent case for getting them both down the track. We will have to wait what is in store for us, yet the Google controller clearly looks like something we have seen before. Yet wait; only two days ago we see Microsoft Stupidity strike again. This time in the shape of the Microsoft CFO giving us: ‘Xbox CFO on Google Stadia: “Cloud Won’t Match Local Experience”‘, so thank you Tim Stuart (apparently he is the Xbox CFO), thank you for confirming this, the entire push of Cloud and always online is proven to be a bad choice, as I stated for the last 6 years. Too bad that you never considered the stupidity of your console choices years ago, you might not have become the underdog, defeated by the weakest of all next gen consoles.

I particularly enjoyed the passage (at https://mspoweruser.com/xbox-cfo-on-google-stadia-cloud-wont-match-local-experience/) “Microsoft believes that it will struggle in providing gamers enough content as the company doesn’t have strong ties to Game developers and publishers.“, it is merely a temporary delay at best, you see, when it came to exclusive games, Microsoft was nowhere to be found for almost two years, and when we see on how the magnificent growth through indie developers is seen on the Nintendo Switch (which surprised me too), we see that new players giving free value like (Gems of War) on IOS, android, PS4, XB1 and Switch is showing to be an amazing journey and for those who have all the consoles 500% more joy than ever expected. By having micro transactions, but not pushing them, we see a much larger market that will also benefit Google Stadia, then there is Fallout Shelter and there is a whole range of games that will find a happy audience on the Google Stadia (and its Apple adversary). So when it comes to Microsoft, they gambled and lost, they have remained short sighted as I expected them to be and they (as I personally see it) openly forsake their gamers for illusionary short term goals end their loss against their competitors is not done yet, not by a long shot.

So when I see “In an interview with The Telegraph, Microsoft’s Chief Marketing Officer for Xbox, Mike Nichols said, “Emerging competitors like Google have a cloud infrastructure, a community with YouTube, but they don’t have the content.”” I see a new level of shortsightedness. I see the failing from Mike Nichols. I designed three ideas in gaming in under a week and I am not even the visionary that some are, content can be corrected for; indie developers can make up the difference much faster than the barricades that Microsoft erected long ago.

Google has an optional trump card that none of the others used and as such has the open advantage much sooner than expected. The article has more laughable statements, but let’s move on for now. You see, Techradar had the right idea last week when it gave us ‘Google Stadia may be the first good use for 5G phones‘, the entire setting of 4G ‘Wherever I am’ and 5G ‘whenever I want it’ will find unification in Google Stadia and it will grow close to exponentially soon thereafter. Techradar also gives us: “Google executive Phil Harrison, meanwhile, confirmed that Stadia has already started gaining momentum and that Google received strong support from developers the game streaming platform which in theory solves one of the major concern regarding Stadia“, I do remain critical on the need to measure and keep in check those who are in it for the micro transactions and short term gain for themselves, they are not a joy, they are the Achilles heel of gaming soon enough, but the momentum counts and must not be ignored. Apple Arcade has a larger issue, Apple lost well over 450 billion in value and even as close to 50% of the loss has been regained, Apple cannot afford to be casual, there are 2 billion gamers in the world and if Apple does not play its cards right, they merely become another short term player in a game setting that they might not comprehend. Microsoft didn’t, that much is clear and they got hit and they got hit hard.

The other side

You see, the moment I ‘feared’ has come to town, there have been two games over the last year, two games that changed it all. The first is God of War 4; a game so amazing, so large and so perfect in almost every way that is boggles the mind. Even now, watching the total cut scenes on YouTube is a journey that is close to 6 hours. 6 hours that is a story supporting a game with graphic perfection that was unseen until that day. Now we see ‘Sekiro: Shadows Die Twice‘, a game with graphic and gaming perfection. Both games are PS4 exclusives, both are singular reasons to upgrade to the PS4 pro and both are challenges of the largest degree. It sounds morbid, but at the end of my life, I am finally seeing what should be regarded as the apogee of gaming. Finally I see something that equals and surpasses on what my imagination could perceive, after 40 years of gaming, we are finally getting the games that are the top in its field. Both for the Sony console. That is what Apple and Google are up against, yet they are not. With their solutions they are much more a trump solution for the 1 billion mobile gamers wanting a little more. Nintendo Switch with their docking station is proving the switch between on the road and the large TV screen, both regarded in equal measure on one system and with 5G google can do the same thing, Google Stadia could be a growth system (optionally much more than Apple) in the stage where systems are vying for a billion gamers. So even as Microsoft was (in my personal view) deceptive to hide behind “We’re developing Project xCloud not as a replacement for game consoles, but as a way to provide the same choice and versatility that lovers of music and video enjoy today,” they are eager to avoid the entire online only and pushing us towards their Azure desk. They opened that door and they are now learning that Google is much better in applying that very same portal, another battle lost for Microsoft (and they were never that ready to begin with). A game lost in one generation, what the Xbox360 build form the strong setting of the very first Xbox, the Xbox One pretty much lost and at present they have no options to regain that market any day soon, they wasted too much options on that road.

Google has an additional advantage, the bulk of all gamers have a modern TV, so form that part we see more than the Guardian gave us (at https://www.theguardian.com/games/2019/mar/27/apple-arcade-v-google-stadia-which-is-the-future-for-video-games) two weeks ago. With: “streaming would open games up to millions – if not billions – of people who don’t want or can’t afford to buy pricey equipment“, take that consideration with a $59 Chromecast to stream to your TV, at that point a person’s Mobile is going to be the centre for gaming, stream to TV with merely a mobile and a controller. That is the true growth for Google and even those who have a console; it will be enriching to take a turn to the options Google offers, any gamer would want to take that path. As I see the gaming solutions that the CBM-64, the Atari ST and the Amiga offered, a mere high resolution upgrade will make hundreds if not thousands of games, none of them IP protected, all offering the original designers a stream of additional wealth, all there for the taking and all there for the streaming. Some of the most original games, even now still regarded as awesome passing of time, all ready for the next few years. So there we see just how the statement “Microsoft believes that it will struggle in providing gamers enough content as the company doesn’t have strong ties to Game developers and publishers” is not just a weak one, it is one that can be overcome close to overnight, a mere state of denial by what was once great and is optionally now soon forgotten, the mere application of not listening to gamers and keeping the focal point of greed and dependency got them there and now soon to be surpassed not once, but optionally twice. How is that for a lack of vision. Even as I see more solutions that could set a wining stage on the Xbox 360, now it will be the stage that fuels optionally both the Google as well as the Apple solution to gaming.

The games they provide will not equal the two games mentioned or what the PS3 pro offers for now, but as we clearly knew and what Nintendo Switch has proven to us, the most powerful console does not win, the best game does and when we see that, when we see that great gaming has existed for decades, yet some of these titles were forgotten, or better stated not played on current systems, they are not dead, they can be revived in the new gaming world that is introduced by Apple and Google.

So what was three is now set to the stage of 5 and in that stage we know the top two, yet in the end Microsoft could fall back to 4^th position soon enough, when that happens will they finally wake up in Microsoft land, or will we get more marketing and statements that can be laughed at soon thereafter. Gaming is a much more serious business than most realise and those who do not will not last long in that place, so the need to listen to the gamers was always a first, the one part that Microsoft never considered for the longest of times, that is why they are sliding from 2^nd to 3^rd and soon enough optionally 4^th. If I am still around in 2022, I wonder if my words will be shown and proven to be correct. For Microsoft to gain momentum they will require to make massive changes to their way of thinking and with both Google and Apple entering that field, will they change fast enough, and more important, will they finally truly listen to their gaming population?

Time will tell.

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Tagged as Chromecast, God of War 4, Google Stadia, Microsoft, Mike Nichols, Nintendo Switch, Playstation, Sekiro: Shadows Die Twice, TechRadar, Tim Stuart, Xbox

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