In an effort to fulfill my new year’s resolution to post more often, I’m going to try writing some quick news items that were of interest to me for the day. I know that was the original intent when I first started this blog, but found that it took quite a bit of time to come up with writing ideas, do some research, and write a full detailed post. This will just be quick “hey, did you hear this?” points of stocks that we may own, are thinking of owning, or just don’t own at all. We’ll try to do this on a daily basis which should keep this blog full of content. So, without further ado:
For those who don’t know Nest Labs – they are the makers of the Nest Thermostat – a “smart” thermostats as well as other alarms (smoke, CO)for home. Nest Labs was co-founded in 2010 by Tony Fadell, who helped develop the iPod at Apple. Unfortunately, not much is known about Nest Labs (i.e. how much money they make although this author would certainly guess it’s no where close to $3.2B). It seems like Google is making this purchase to get ahead in the race for the next generation of smart devices – no longer your phone, but starting to look at appliances and door locks. This acquisition comes shortly after the much quieter takeover of Boston Dynamics, its 8th robotics company acquired in 6 months. This author feels Kevin O’Leary, chair of O’Leary Funds (and appearing on venture capitalist-like shows Dragon’s Den and Shark Tank), has it bang on when he says these are investments in IP relating to sensor technology. Maybe might be worthwhile to think about other potential targets – while Google tends to not buy public companies, maybe someone else would be interested in:
- Invensense (INVN) – motion sensors found in game controllers, tablets, phones, etc.
- iRobot (IRBT) – makers of the Roomba, but most don’t know about their military division building bomb-clearing robots
- Infinity Augmented Reality (ALSO) – introduced to me by a co-woker; seems to be making a competitor to Google Glass, although their promotional video looks to more futuristic than realistic at the moment
Tesla provided and update during the Detroit auto show today – indicating that the Model X is on track for limited deliveries in 2014 and mass deliveries set for 2015. CEO Elon Musk went on CNBC indicating that the $35K EV is likely 3 years out. More importantly was the company reporting that it had delivered 6,900 Model S in the last quarter of 2013 – well above the 6,000 guidance provided. Markets reacted well to the news sending the stock up 15% and ignoring the charging adapter “recall” – which probably isn’t considered a recall in the true sense. While the company is priced to perfection (meaning Model X execution perfection), it’s still firing on all cylinders and meeting expectations.
Another GeoInvesting Short Article on AFSI
GeoInvesting was at it again, issuing another short article on Seeking Alpha, providing supposedly more information from it’s initial short article a few weeks back. This writer could barely follow the first article – and quickly got lost when reading this new article. Interestingly enough, AmTrust stock price dropped prior to this report being issued (down $2) and then recovered after it was published, ending up on the day. Perhaps the company exercised some of their $150M stock buy-back.
The author owns shares in Google (GOOG), Tesla (TSLA), and AmTrust Financial Services (AFSI). A full list of holdings can be found here.