Oversaturation of Food Delivery Apps Slams Grubhub

By Dan AmossPosted November 13, 2019

Food delivery apps are a form of restaurant sector disruption and have been highly popular with diners in recent years. However, oversaturation of these apps has led to intense competition and a stunning crash of Grubhub stock in late October. This overinvestment will result in consumers benefiting at the expense of the app companies and restaurants, which will continue putting pressure on their stock prices.

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Jim Rickards’ Crash Speculator

Dan Amoss

Dan Amoss, CFA, tracks aggressive accounting and other red flags that markets miss. He’s a student of the Austrian School of economics and Daily Reckoning fan since 2000. Agora Financial relies on Dan for macro market commentary as well as profitable plays like his 2008 call to readers to buy Lehman Bros. puts, which...

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Why Wynn’s Reopening Rally is Fading

By Dan AmossPosted July 8, 2020

The “re-opening” of the economy brought optimism to businesses that rely on travelers and tourists for their revenue, including Wynn Resorts. But WYNN stock is highly cyclical, and its balance sheet is levered enough to create credit stress in unfavorable conditions With plenty of negative economic and job market news on the horizon that will dampen casino and resort activity, it’ll be hard for WYNN shareholders to maintain a bullish view.

Why Carvana is Not the Next Amazon

By Dan AmossPosted September 16, 2020

One key to distinguishing the failure of a company that truly has the potential to mimic a younger Amazon is whether or not that company’s business model is easily copied. Carvana’s model is much more capital-intensive than a young Amazon was, and any number of catalysts could break the Carvana stock bubble in the coming weeks. That’s why we are holding a bearish option position in the portfolio.

Conditions Have Greatly Improved for Short Sellers

By Dan AmossPosted August 7, 2019

China’s recent trade war retaliation of weakening the yuan against the dollar will negatively impact global economic health. Along with negative market reaction to the Fed’s position on rate cuts in the future, all signs point to a crisis in confidence. These conditions greatly improve short selling as companies are exposed to an economic slowdown and trade war fears. Also, Dan reviews recent developments for positions in our portfolio.

Inflation Boosts Costs, Not Just Revenue

By Dan AmossPosted June 23, 2021

With all the media attention on booming consumer spending and demand for certain items, it’s easy to forget about supply. Supplies of goods and services don’t just magically appear. Supply requires a productive workforce and regular capital investments to replace depreciated capital goods. With demand not being met with supply chain challenges, a business bottom line can suffer as well as their stock price.

Why PG&E Shareholders Own More Liabilities Than Assets

By Dan AmossPosted June 26, 2019

As PG&E goes through the bankruptcy process, shareholders will find the utility company’s assets are likely worth less than its liabilities. As a result, there’s a very good chance PCG stock will likely go to zero or a tiny fraction of its current trading price. Today, Dan examines its balance sheet and why assets aren’t worth as much as bulls expect.

Rapid Detonation Of Archegos Is A Stark Warning

By Dan AmossPosted March 31, 2021

In the current market environment, with investor positioning still lopsidedly bullish and highly leveraged shareholders like Archegos, it’s especially worthwhile to limit holdings to quality stocks trading at reasonable valuations. When markets become dominated by momentum traders, and value-conscious buyers are left in the dust, then the predictable result is near-vertical rallies followed by even faster crashes.