Clockin' all the riches
Got the hollow points for the snitches
So would you just walk on by, cuz I'm too hard to lift
and no this ain't Aerosmith
'Let Me Ride'
If reports are right, this is one heck of a story that includes the passion of a thinker, an improbable rise of a kid from the ghetto, along with gangster moves in the world of business. Apparently, Apple has decided on its largest acquisition ever, by gaining “street cred,” through reportedly offering a $3.2 billion takeover of Beats Electronics, which will make a lot of noise. The story goes back to 1979, with Noel Lee making electronic stuff in the family basement.
Eventually, Lee created the Monster Cable Products, but struggled to grow beyond its success in audio cables. For a while, the company focused on speakers, which brought Lee and his son in contact with Dr. Dre and Jimmy lovine. The pair was interested in designing speakers, but after failing to create a distinctive product, Lee suggested headphones. A deal was close, but due to the horrendous terms, the Lees eventually had to pull out. Dre and lovine chose another company, but without the right technology, the first product was ugly and of poor quality.
It was back to the Lees and a deal was finally made, which put the inventor and his son at a gigantic disadvantage. They were in the headphone business, but lost all control and had no decision-making input. Eventually, the Monster name was taken off the packaging as marketing focused on the rapper, and the most famous producer in the rap music world. Even then, it was slow going until HTC of Taiwan showed up with $300 million, and requested 51% of the business.
The Lees were kicked to the curb and the rest is history. From a poor kid, to a militant rapper, to a producer, who possibly pocketed $500 million after this deal- Dr. Dre is clockin all the riches…
The Real Gang Bangers
Speaking of gangsta rap, has Janet Yellen finished yet? I get she would love to unravel the mess she helped to create with Ben Bernanke, but the double talk is so disingenuous. Moreover, why is she chiming in about income inequality, when the Fed is pumping billions of dollars each day that go straight to banks, to help make the wealthiest people in the world wealthier? Please shut up, you guys have made a mess, and while it is impossible to know when; one day there will be consequences.
I must say, this market has bipolar tendencies, which worries and intrigues me at the same time. It is clear that stocks need a catalyst to get it over the hump, and yet indecision, which is usually a cause for weakness, has not sent blue chips lower. In the meantime, the Russell 2000 closed right at its 200-day moving average (exponential). Even that 200- point decline fails to illustrate the true carnage in the past four weeks. However, I continue to wonder how much longer these diametrically opposing forces can resist each other.
Yesterday, it felt like the Dow pulled up all the other major indices early in the session, but late in the session, they pulled it down, and by the end of the day, it was a wash. At some point, the bifurcation will stop, and the blue chips will inspire oversold tech stocks, or the same panic will also spread to those companies with earnings and ancient operating histories.
Futures have put on a brave face this morning, resisting a pre-open stumble. But, stocks will generally open under pressure.
In Other News: Wasserman-Schultz Planned Attack on "Sexist" Obama for Considering New DNC Chair | Michael Schaus