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Investing in the auto market but worried about the chip shortage? Check this hedge

Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) have been forced to cut back on production further due to the widespread chip shortage. The auto market would normally do well in an economic recovery, but the chip shortage means investors might have to get a little creative to tap into the market. Q1 2021 […]

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April
9, 2021

3 min read

This story originally appeared on ValueWalk

Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) have been forced to cut back on production further due to the widespread chip shortage. The auto market would normally do well in an economic recovery, but the chip shortage means investors might have to get a little creative to tap into the market.

Q1 2021 hedge fund letters, conferences and more
One trader suggests CarMax, Inc (NYSE:KMX) as a potential hedge in the auto market.
More production cuts by Ford, GM
Fox Business reports that the global semiconductor shortage has forced further production cutbacks at GM’s and Ford’s factories in North America. The shutdowns are expected to take a bite out of dealer inventory of vehicles manufactured at those factories.
In a statement, GM said it has been able to keep plants that manufacture its most popular and profitable SUVs and full-size pickups going. The semiconductor shortage has been going on since last summer and has affected more than just the auto market.
For example, schools have had a hard time purchasing enough laptops for students who had to attend class online, and the release of the iPhone 12 and other popular devices was delayed. The shortage also squeezed the gaming console market, making it difficult to find the PlayStation 5 and the newest Xbox model.
Chip shortage worsens
Over the last few weeks, the chip shortage has gotten even worse, especially in the auto industry, as companies are forced to shut their factories down due to a lack of chips needed to finish building their vehicles. The issue was worsened further by the grounding of a container ship in the Suez Canal, which blocked shipping traffic for almost a week, preventing semiconductors from reaching Europe from Asia.
Consumers will likely be forced to settle for lower-end vehicles that don’t have as many electronic features. As a result, the auto industry is expected to take a major hit this year. According to Fox Business, some estimate that the industry will lose $60 billion in revenue in the first half of this year.
CarMax as a hedge in the auto market
JC O’Hara of MKM Partners told CNBC that he has a way to get exposure to the auto industry without dealing with the headwinds from the chip shortage. Despite the chip shortage, GM and Ford are up more than 40% year to date, but that could change if the shortage goes on for a long time.
O’Hara told CNBC that used car sales are “through the roof,” so he likes CarMax for its exposure to the market. CarMax is up more than 100% over the last 12 months and 36% year to date. As GM and Ford move into electric vehicles, semiconductors will be in even shorter supply, and it could take months for the shortage to be worked out.

He was rejected by various publishers because his drawings “were ugly.” Today his manga 'Attack on Titan' is one of the most popular in the world

April
9, 2021

10 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

This story originally appeared on Cine Premiere

As you read these lines, a story that has gained worldwide popularity and recognition over the past decade is coming to an end. Today, with the publication of episode 139 of the Attack on Titan ( Shingeki no Kyojin ) manga, eleven years and 34 volumes of surprising twists, endearing characters and a world that raised metaphors about war, loss and freedom are closed. For a month, fans filled social networks and their favorite digital meeting places with compilation videos, cosplays , emotional messages, memes, fan arts , analyzes and collages of the most epic panels in preparation for the farewell. Mexican artist Tatería even dedicated a mural to the series that went viral online. In commemoration of this milestone, we review the origins of Hajime Isayama’s acclaimed manga and what this says about the success of a work that enters the list of the most memorable of recent times. Image: Via Cine Premiere An effective hook Much of the appeal of Attack on Titan lies in its story: an identifiable conflict and subplots that enrich the main action, a fantasy world with precise rules and solid cohesion, as well as an effective approach that begins in media res , that is, at the midpoint of the entire argument. The hook, in its debut, was simple, but with force and dramatic impact. The remnants of humanity, after being on the brink of extinction, live in a walled city that prevents the entry of the titans, human-eating humanoids who appeared out of nowhere. Peace has reigned for a hundred years, but one morning thunder shakes heaven and earth; then a titan taller than any other ever seen emerges above the wall. That threat that shakes their world, reminds humanity that lives in fear and that those walls were actually cages. “I wanted to create something short, simple and interesting when someone saw it. Making it complicated would alienate people, “says Hajime Isayama in Attack on Titan Guidebook: Inside & Outside . Thinking about how difficult it was to get people to read his lengthy first chapter, he focused on an event that would attract attention from the very first pages. Thus was born the iconic image of the Colossal Titan, seen from a low angle, looming over the wall. What are the Titans and where do they come from? How to defend yourself against such a threat? What to do with hatred after being the victim of a tragedy? These questions raised the underlying mysteries to continue. They were resolved little by little, with new questions before each answer, until the turn that revolutionized the plot to one focused on a long-standing war between two nations and its impact on the character of the characters, as well as on the motivations for their actions. Image: Via Cine Premiere An intimate story Isayama has been a diligent author with his work. Despite his withdrawn personality, he did not stop fighting for an opportunity. In 2006, when she was just 20 years old, she came to Tokyo with the dream of becoming a mangaka , although, by her own admission, she always struggled on the plane of drawing, which was one of her biggest hobbies. He thought that his work lacked the necessary quality by the standards of the medium, a self-criticism that was supported by multiple publishers. “I visited many companies. They liked my story, but they said the quality of the drawing was poor. I was going to give up because there are a lot of people who want to become manga artists. I didn’t think I could become one of the greats, ”Isayama confessed in an interview with the   BBC . When a Kōdansha editor finally expressed interest in Attack on Titan , Isayama had such low self-esteem that he thought, “What’s wrong with this guy?” The themes within the work have deep ties to his own biography and perhaps that emotional honesty facilitated identification with readers. In an interview with NHK , the author revealed that his childhood harbored feelings of inferiority with respect to his environment: so much physical, because of the mountains that surrounded Hita, the town where he grew up, that they made him wonder what lay beyond them; as social, as he often lost skills or failed to demonstrate his skills. A desire to change his way of being and thinking would motivate him to leave Ōita prefecture: “It was not ambition that drove me. I felt inferiority, a certain frustration, ”he recalls . The first conceptual influence for the manga ( via ) was Muv Luv Alternative , an adult visual novel about an alien invasion that nearly wiped out humanity. Then his bad experiences in Tokyo with drunk and angry customers in an internet cafe where he worked at dawn would be added. Isayama thought how terrifying it was to be in front of someone with whom it was impossible to communicate and that idea encouraged the creation of the Titans. In interviews for Kōdansha and Kaboom magazine in 2013, he recounted that early designs were inspired by a zombie Mona Lisa coming out of the painting to eat people in the horror manga Cloud, the Master of Hell ( Jigoku Sensei Cloud ). Later, monsters like Godzilla, Mothra and Gamera and Japanese horror cinema, would add to their influences. The grotesque and the unusual are perceived as a nodal point in the attractiveness of the work: “To draw the titans I choose expressions that cause discomfort. The expression of the titans is not suitable for every situation, for example, from when they find one to they kill him, he does not stop smiling. I chose to do it this way to produce the most unpleasant sensation possible, ”he explained. These visual references mixed with their experiences, built a world abundant in details that kept the fandom committed to the liberation story of Eren, Mikasa and Armin, outlined with dramatic undertones that strengthened its appeal. The care that the author and publisher put into the story is reaffirmed in the words of the editor Back, who stated in Attack on Titan Guidebook : “Isayama listens to every opinion before deciding. There are countless suggestions and he listens to all of them. Thus, it takes a position and builds around everyone’s proposals. Attack on Titan is not only yours, many people have influenced Kōdansha ”. That was the power of a creative story, balanced between what it showed and what it didn’t show, between depth and spectacular action, that paid off for his enthusiasm. Image: Via Cine Premiere Japanese pop culture titans The economic factor also played an important role. When something accumulates success, the cultural industries give it more exposure, translating it into greater prestige and scope. The manga debuted in September 2009 in Bessatsu Shōnen Magazine . From the beginning it had a successful reception, managing to sell almost 3.8 million copies by the end of 2011, as recorded by Oricon . In 2013, a peak of nearly 16 million copies sold earned Kōdansha its first profit increase in 18 years, ANN reported. That rebound was fueled by the premiere of the anime’s first season on NHK television in April of that year. The adaptation catapulted Attack on Titan as a worldwide phenomenon, by making its plot available to an international audience, even those who did not consume anime. Two months later, the Japanese publisher printed an additional 8 million copies to meet the demand for the, until then, 10 compiled volumes. The franchise expanded to numerous spin-offs , light novels, video games, live action films , and merchandise. Although sales have declined since then, largely due to increased digital consumption, Bessatsu Shōnen Magazine announced on Twitter in December 2019 that the manga had surpassed 100 million copies in global circulation, ranking in the Top 20 of the best-selling manga sagas of all time. His honors include the Kōdansha Award in the shōnen category in 2011 and nominations for awards such as the Manga Taishō and the Tezuka Osamu Cultural Award. “There is nothing more valuable than people being able to share emotions, which cannot be expressed in words, thanks to a story. It made us happy to feel this way together with our readers and partners through Attack on Titan . Although the series came to an end, these memories will always remain warm in our hearts. Thanks for reading us ”, wrote the Bessatsu Shōnen Magazine editorial department about the ending. Today, the end point of this story is written as successful as it is memorable. However, Shingeki no Kyojin will still live. On the one hand, in the projects that remain, such as the conclusion of the last season of its anime adaptation or in the Hollywood live action film by Warner. On the other, and more importantly, in the memory of his followers: those from the beginning, those who caught up and those who are still missing. Because good stories are known to be timeless.

How to Overcome Perfectionist Paralysis

April
9, 2021

4 min read

Opinions expressed by Entrepreneur contributors are their own.

Starting my business was extremely difficult. The business part wasn’t hard. I could learn how to market and grow a brand. There are millions of free resources out there. What I struggled with was my mindset.I was getting in my own way. At the time, I was going through a huge personal transformation. I was finally dealing with unresolved childhood trauma and accompanying feelings of shame. For anyone unfamiliar with shame, it is an overwhelming, powerful, subconscious belief that you are completely worthless and not good enough. A common defense mechanism against shame is perfectionism. I felt like the only way I could share my business with anyone was if it was flawless and high-performing. But of course, it’s impossible to have a high-performing business when it’s just starting. Unfortunately, this is how the cycle goes. Shame leads to striving for perfection, and failing to reach the impossible form of perfection leads to more shame. Related: Perfection Is a Trap, and It’s Keeping You From Being SuccessfulPerfectionism leads to procrastination. When you put too much pressure on yourself or a decision, you create fear of making the wrong choice and failing. Brene Brown describes perfectionism as “often the path to depression, anxiety, addiction, and life-paralysis”. So, how do you break that cycle? Here are three things that worked for me. 1. Change your mindset You do have the power to change your thoughts, and you do have the power to change how you feel. There were so many negative thoughts flowing through my head when I was building my business. For example, I would think, “I don’t have any customers yet. No one cares about what I have to say. Why am I even doing this?” Growing your business from a state of panic or anxiety won’t get you very far. I worked a ton on changing my thoughts. Eventually, I was able to convince myself, “I have a unique combination of business and life experience that gives me the ability to help many people exactly as I am right now, in ways that no one else can.” Related: Mark Cuban: ‘Perfection Is the Enemy of Success’When I grew my business from a state of ease and self-confidence, I was more creative, motivated, and willing to take chances. I was able to build my business from a state of relaxation and empowerment. 2. Try things without expectations When we put expectations on our actions, we create fear that the expectation won’t be met. When I let go of expectations, I just started moving. I took a deep breath, asked myself what I should do next, and did the first thing that popped into my mind without assigning it any meaning. I just started trying things, with no expectation that it would or would not work. When you try things, you start learning what works and what doesn’t work. And then you start doing more of the things that work. Little steps create little wins, which turn into bigger steps and bigger wins. Movement creates flow. And flow leads to breakthroughs. 3. Fall in love with the journey Life is, after all, about the journey, not the destination. There will be ups and downs in your business journey. Successes and failures. Embrace them all. In his book, The Road Less Traveled, M. Scott Peck says, “We are guaranteed winners once we simply realize that everything that happens to us has been designed to teach us what we need to know on our journey. Now what better news can there be than that we cannot lose, we are bound to win?”Every roadblock you meet is there to teach you something, to make you better. Don’t resist those roadblocks – embrace them! View those challenging moments as opportunities to grow. Say to yourself, “Okay, roadblock. I see you, I accept your lesson. And now I will move on as a smarter and better person.”  Related: Why Perfection Can Get in the Way of HappinessAppreciate the things you learn, the people you meet, the way you are growing and becoming better and better. Fall in love with the process. The bottom lineAs the famous saying goes, “A journey of a thousand miles begins with a single step.” Strive for momentum, not perfection, and fall in love with the journey.

3 Sectors To Buy When The Market Pulls Back 

It’s been only a month since the S&P 500’s last 5% correction and 5 months since the last 10% correction but we think another is on the way. Not because of any underlying weakness in the market but because of frothiness

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April
9, 2021

4 min read

This story originally appeared on MarketBeat

The Market Is Getting Frothy 
It’s been only a month since the S&P 500’s last 5% correction and 5 months since the last 10% correction but we think another is on the way. Not because of any underlying weakness in the market but because of frothiness. At 21.9X forward earnings, the S&P 500 (CBOEINDEX: SPX) is trading at valuations not seen in decades making it an attractive time to take profits off the table if nothing else. One of many possible catalysts for this correction is the Q1 earnings season but there are others like rising interest rates, Biden’s tax plans, and a resurgence of COVID-19. As for earnings, the expectations are high and we’ve already seen evidence this quarter of great not being good enough. 
Most recently, reports from Conagra (NYSE: CAG) and Constellation Brands (NYSE: STZ)  came in both better than expected and with positive guidance, and yet shares are down in the wake of the reports. If this trend continues we could easily see a 5% correction turn into a 10% to 20% correction when it’s all said and done. In our view, this will be yet another entry point into what we view as the early stages of a long-term bull market in U.S. equities. 
Evercore Singles Out Home Improvement
Evercore issued an update on its internal Home Improvement Lead indicator. According to them, the indicator has edged down from its high in January but still points to some upside in the sector. Based on strength in housing, the flight to suburbs, new household creation, and labor market data we think this is grossly understating the point. Sales at retailers like Home Depot (NYSE: HD), Lowes (NYSE: LOW), and Tractor Supply Company (NASDAQ: TSCO) have been accelerating and the pace of growth is only going to slow because of tough comps to last year’s COVID surge. 
Among the drivers of growth in the sector, Evercore lists supply constraints (low inventory), pro constraints (can’t find people to do the work), and reduced spending per unit compared to past home-improvement cycle peaks. In our view, the home improvement cycle is tied to secular trends in the workforce that have another decade to run. Evercore is leaning toward businesses with higher exposure to professional services due to its view DIY’ers will hand off their projects to pros as they become available and COVID-19 restriction fade and we think that a good idea. Retailers like Home Depot and Lowes offer exposure to both. 
J.P. Morgan Is Looking At The Home Builders 
The analysts at J.P. Morgan issued on the home builders after conducting their quarterly pre-earnings preview. They see the sector pulling back a bit after the Q1 reporting season following a period of relative strength. In their view, stock prices are pricing in a great quarter with no room for exception and that has it set up for weakness should earrings fail to impress. In our view, the recent strength in the home builders is pricing in an extended period of industry strength characterized by high demand, rising prices, and expanding capacity. It may be several years before the cycle runs out and the home builder stocks should move higher until then. 
Along with the builders, J.P. Morgan sees an opportunity in building products as well. They’ve called out Whirlpool (NYSE: WHR) and Masco (NYSE: MAS) and we think names like Haverty (NYSE: HVT) and Aaron’s (NYSE: AAN) should be included as well. These company’s both pay solid dividends with growth and dividend growth in their futures. 
eCommerce Is The New Commerce 
eCommerce stocks have been on the move this year as well with post-pandemic winners like Williams-Sonoma (NYSE: WSM) and Shoe Carnival (NASDAQ: SCVL) up 80% and 65% YTD because of it. eCommerce sales accelerated to 44% growth in 2020 because of the pandemic and those gains are not only sticky but the basis for future growth. Looking forward, the eCommerce industry is expected to continue taking share from traditional outlets along with widening use of the Internet. Any weakness in price action is likely to be short-lived in the face of labor market improvement, consumer confidence, and spending data, and a buying opportunity that shouldn’t be missed.

Coinbase (NASDAQ:COIN) IPO: 3 Things for Investors to Know

Given the astounding growth of cryptocurrencies like Bitcoin over the past year, it’s no wonder that the upcoming Coinbase (NASDAQ:COIN) IPO is one of the most anticipated market events of 2021.

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April
9, 2021

5 min read

This story originally appeared on MarketBeat

Given the astounding growth of cryptocurrencies like Bitcoin over the past year, it’s no wonder that the upcoming Coinbase (NASDAQ:COIN) IPO is one of the most anticipated market events of 2021. As the largest U.S. cryptocurrency exchange, Coinbase generates massive revenue from transaction fees on its platform and has already given investors insight into its huge earnings potential. It might just be a company that lives up to the hype surrounding its market debut. While there is certainly an element of unpredictability with this business thanks to the volatility of cryptocurrency prices, that likely won’t deter investors from grabbing shares of the company when it goes public via a direct listing on April 14th. Coinbase is certainly an intriguing player in the burgeoning cryptocurrency industry, which is why we’ve put together a list of 3 things for investors to know about the company ahead of its big debut. The First U.S. Cryptocurrency Exchange to be Publicly Listed Cryptocurrency has come a long way in a very short time. These digital assets are kept on a shared ledger known as a blockchain and have increased in popularity largely due to the meteoric rise in the price of Bitcoin. With more and more businesses and financial institutions getting on board the cryptocurrency train, it’s easy to see the potential in a company like Coinbase. It offers users a simple and safe way to buy, sell, and hold cryptocurrencies on its platform. Coinbase has also developed an advanced crypto trading platform called Coinbase Pro that cryptocurrency enthusiasts love. The company generates revenue by charging transaction fees every time its users buy or sell a cryptocurrency on its platform. It also makes money from things like margin fees, custodial services, and a rewards credit card program. The company’s platform enables approximately 43 million retail users, 7,000 institutions, and 115,000 ecosystem partners to participate in the crypto economy. Since this is the first major U.S. cryptocurrency exchange to be publicly listed, it could be a major step towards the widespread adoption of digital currency and will go a long way towards legitimizing the industry. This is one of the big reasons why the company’s debut is attracting so much attention. Eye-Catching Earnings Most high-growth companies that make their market debuts are a long way from reaching profitability. This is another big reason why Coinbase stands out. The company has already delivered some eye-catching earnings that could send the stock price soaring on April 14th. Coinbase had a very strong 2020, during which it generated $1.1 billion in revenue and $322 million in net income. Those were solid numbers for a company that has only been around since 2012, but what’s even more impressive is that the company has already eclipsed those figures in the first quarter of 2021. Coinbase recently provided investors with its estimated Q1 earnings numbers that likely boosted the company’s valuation by billions. The company reported $1.8 billion in Q1 revenue, which topped its revenue for the entirety of 2020. Coinbase also saw $355 billion in trading volume in Q1, which surpassed the entire trading volume of last year. Total assets on Coinbase’s platform increased from $90 billion to $223 billion, which represents 11.3% of the crypto-asset market share. It’s also worth noting that the $223 billion in assets includes $122 billion from institutions, confirming that Coinbase is becoming a trusted name among sophisticated investors. Direct Listing over Traditional IPO Coinbase will go public with a direct listing on April 14th and will trade on the Nasdaq under ticker symbol COIN. If you aren’t familiar with direct listings, it’s probably because very few companies use that route to go public. Direct listings are unique in that no new shares are created when the company goes public, only the outstanding shares are sold with no underwriters involved. You might be wondering why Coinbase is going public with a direct listing over a traditional IPO. This likely has to do with money, since the company will be able to go public without paying huge fees to investment bankers. There’s also the possibility that Coinbase wants to avoid share dilution or lockup periods. Since the company doesn’t have to worry about generating interest and demand for its shares, one could argue that a direct listing does make sense. Final Thoughts While Coinbase is one of the most exciting companies to go public in recent history, it’s important to understand that the hype surrounding its market debut could lead to an extremely high valuation. Some analysts value the company around $80 billion, while other estimates are as high as $100 billion. Keep in mind that that market debuts are normally volatile and that this stock will likely mimic the price movements of major cryptocurrencies like Bitcoin. If you are interested in adding shares, it might pay off to wait until the initial hype dies down and the stock has some trading history before you decide to invest.