More Signs of the Coming Denouement

Baidu.com’s (BIDU) IPO, billed as China’s answer to Google, was up fourfold today from its $27 offering price. It broke $150 intraday.

For anyone who has been wondering if we are getting frothy in the markets, here’s your answer:

click for larger chart

Bidu

chart courtesy of BigCharts.com
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The WSJ reported that this was "the biggest first-day gain since the heady days of the dot-com boom," and noted that to find a comparable debut, "it’s necessary to go back to the last leg of dot-com hysteria."

While this doesn’t mean that the market comes to end next week (and it better not, because I’m traveling), it is hardly a sign of thoughtful contemplative investing by cool headed, unemotional traders.

If anything, this further confirms my negative market perspective into 2006, withthe top coming in the November December time period. 

Category: Investing, Psychology

Economists React to NFP

Category: Economy

Is the Bond Market Hampering the Fed?

Category: Economy, Fixed Income/Interest Rates

207k New Jobs

Category: Economy

Its that Time Again: NFP

Category: Economy

Media Appearance: Power Lunch (8/04/05)

Category: Media

Are CD Prices Getting More Dynamic?

One of the more interesting items we’ve discussed has been the different pricing strategies that studios use with DVDs versus what the labels do with CDs.

The studios, to their credit, use a form of dynamic pricing — they intelligently recognize that a content item’s value is highest when first released, and then subsequently fades. That’s why DVD prices come down over time, to capture those marginal buyers. The consumers who will not pay $49.99 for Seinfeld Season 1 & 2, might pay $29.99.

The labels have mostly avoided this strategy — but perhaps that’s changing. I had just finished reading a post about Amazon’s conference call, and on it Amazon’s management discussed their Long Tail strategy. I went over to the site, and thru some random clicking and scrolling, noticed this little tidbit:   a long list of interesting CDs for sale on Amazon for between $6 and $10:

Blowout Music Bargains

As Low as $9.99


As Low as $8.99


As Low as $7.99


As Low as $5.99

I ran thru the entire $9.99 list, and was surprised to see quite a few names worth buying (I have yet to go thru the other lists). I am waiting to hear back from Amazon as to whether this is a new pricing policy, a discount from labels, a loss leader, or a mere inventory clear out.

Here’s my short list of favorite moderate priced CDs off of the Amazon sale:

  • : On And On

    On And On This is a fabulous album; Recall I first mentioned Jack Johnson in December

  • : Stripped

    Stripped — an under appreciated stone album

  • : Tattoo You

    Tattoo You the same — kicked  off the modern Stones, and it rocks

Read More

Category: Finance, Music

Your world with Neil Cavuto: (8/03/05)

Category: Media

The Return of the 30 Year Bond

Category: Economy, Fixed Income/Interest Rates, Politics

GDP Revised Downwards

Category: Economy