Showing posts with label lunch. Show all posts
Showing posts with label lunch. Show all posts

Saturday, December 11, 2010

China And India Eat Our Lunch Because They’re Smart And Ambitious

Deng Xiaoping and Jimmy Carter during Sino-Ame...

Deng Xiaoping & Jimmy Carter

“You know, my friends and relatives in the states still believe that the U.S. is the greatest place in the world,” explained an American in Melbourne, Australia. “They think the rest of the world is full of poor people who can’t wait to emigrate to the U.S. They need to get out more.”

So we get out. We open our eyes. We look around, and what do we see? We see a whole world full of people who are hustling and bustling, schlepping and trying to gain an advantage, each looking for a way to get richer, faster.

The motivations all over the world are about the same. People generally want wealth, power and status and they want to get it in the easiest possible way but it can mean different things to different people.? They go about it differently too. In the mature economies, they look for subsidies and angles. Tax breaks. Bailouts. Boondoggles. Sinecures.

“We have plenty of corruption here in India, too,” a colleague noted. “But most people know they can’t get much from the government. They have no choice. They have to start a business or get a job.”

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Nothing stands still. A few years ago, the Russians, the Indians and the Chinese were all very helpfully sitting on the sidelines. With their goofy theories and their counterproductive policies, they posed no competition. Americans found it easy to feel superior. Half the world had tied its hands behind its back.

But in the ’70s and ’80s, things began to change. “To get rich is glorious,” said Deng Xiaoping. “Perestroika,” said Gorbachev. And now they’re all at it. Indians, Brazilians, Turks, Indonesians. They all have faster growth rates and much less debt than the developed countries. China and Turkey are both growing about five times faster than the U.S. India, Brazil and a dozen other countries aren’t far behind.

The latest test scores show Chinese math students in Shanghai far ahead of Americans. And the latest reports tell us Chinese trains are setting records for speed at 300 mph.

Nothing is off limits. No industry is safe. Nobody can expect a free lunch forever.

In India, we rode in a Nano, the car Tata Motors is selling for $2,500. It was a little loud…but surprisingly spacious and comfortable. For getting around town, it seems perfectly adequate. And soon it will be available in the US. How will Detroit compete with these guys on the low end? And on the high end, there’s plenty of competition too from Japan and Germany.

Isn’t Germany a mature economy? Well, yes and no. Germany’s factories and infrastructure were flattened in WWII. It had to rebuild from the bottom up. Its post-war government was completely new. Its currency just came out less than 10 years ago. Besides that, a large piece of present-day Germany lived under the heel of the Soviets for 45 years. They had a close-hand look at what central planning can do to an economy.

America’s government, meanwhile, has been in business since 1776. Its economy has been the biggest in the world for the last 110 years. It was the only major combatant in WWII to come out the other end with its wartime plant and equipment intact. It has had the world’s richest people and the most gold for many years.

“Nothing fails like success,” is one of our Daily Reckoning dicta. Will it fail now, or later? We don’t know. Readers are urged to get out more and draw their own conclusions.

Worlds Apart: A Firsthand Look at Emerging Market Growth by Bill Bonner originally appeared in the Daily Reckoning.

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Friday, November 19, 2010

SAP Has A Bright Future Only If Big Blue And Oracle Don’t Eat Its Lunch

SAP’s market share in enterprise resource planning has declined from around 29% in 2005 to around 26% in 2010 by our estimates [] due to competition from players like Infor, Sage and Oracle’s Applications unit and IBM. Companies use ERP solutions for integrating an organization’s data and processing it into a single system.

ERP software accounts for around 38% of our price estimate for SAP so any decline in its ERP market share impacts SAP’s stock price. While we currently expect a gradual decline in market share through 2016, SAP could add around 5% to its share price if it maintains its current market share.

We have a Trefis price estimate of $53.29 for SAP’s stock, which is about 8% above the current market price.

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Competition Could Erode Share

Infor acquired Qurius’s ERP LN operations in July 2010 to help its expansion in the European market. [] Sage’s presence in the healthcare, payment processing and online banking (a sector with increasing needs for such solutions) verticals is also challenging SAP.

According to Gartner, SAP’s market share steadily declined from 2005 to 2009 due in part to Oracle’s acquisition of PeopleSoft in 2005, which lifted its market share in ERP making it second to SAP. Oracle has a strong presence in Europe, SAP’s home market, and has been pushing into the financial services domain and increasing its focus on human resources management software, which includes payroll processing, recruiting process, employee services, etc.

While we currently forecast modest declines in market share, we note that SAP has maintained market share close to 26% since 2008, and if it can maintain this, this would add around 5% to our price estimates.

You can drag the forecast trend-line above to express your own view, and see the sensitivity of SAP’s stock to SAP Market Share in Resource Planning Software.

Our complete analysis for SAP’s stock is here.

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Saturday, October 23, 2010

Akamai Looks Like lunch AT & T, stock, valued at $28

Image representing Akamai as depicted in Crunc...

Steps to competitiveness

Dan Rayburn reported in his blog, AT & T joins with Cotendo to push on value added services such as the acceleration of the application and the acceleration of the dynamics of the site.Company has already signed up to approximately 200 customers who use their services acceleration Cotendo is a network of distribution of content that was launched in 2009 and has developed acceleration .According technology blog.

The AT & T-Cotendo partnership may be serious competition in the long term for Akamai. below we discuss the potential impacts of the new partnership AT & T and Akamai.

AT & T provides value added more

Value-added services beyond traditional content delivery are a growing part of business Akamai.Le partnership Contendo-AT & T provides AT & T capacity to sell more value added services such as the acceleration of the application and acceleration of dynamic site customers existing business by taking advantage of Contendo technology.

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AT & T indicated that approximately 40-60% of all new customers in its sales pipeline have existing DNS capability or will a [].This implies that the company has significant sales opportunities already in the pipeline when it comes to value added services.

In addition, value added services may permit AT & T do share in the broader market can AT & T more to appeal to customers looking for such services.AT & T stated that it the price of its products at a discount of 50% for what is Akamai and maintain comfortable margins [] were more WINS for AT & T can contribute to society slow its declining revenues of the company.

Pressure on Akamai

Competitive prices in the value-added services will put pressure on Akamai lowering its prices or to limit increases in prix.En line shopping (e-commerce) segment accounts of Akamai during most of the use of the value added services.Concurrence higher value added services may affect the number of online stores customers Akamai as well as revenues from the Akamai customers shopping online.

Despite growing competition, we kept Trefis price estimation for stock of Akamai unchanged as we have already taken into account in the higher price competition in the future .Cependant, you change forecasts above to see engines main Akamai stock sensitivity as its customers purchase online and the amount of revenue that akamai generates on average each customer shopping online.

You can see Trefis $28 full price estimate stock the Akamai here.

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