Apple blew away the streets numbers on the top line and bottom. Apple will be up significantly this morning, blowing away my argument yesterday for taking a little Apple profit off the table. I hope you didn’t listen to me. I fortunately didn’t. Sometimes my thoughts for the column get reconsidered ten minutes later. This business of writing and investing is weird. Never take my advice (or anyone’s advice) literally until you mull it over yourself.
IBM blew away numbers and had their highest revenue quarter ever. Google was upgraded by three firms yesterday and had targets raised to well in excess of $700. I love Apple and Google.
I continue to be pessimistic about the financials. Stocks like C, BAC, or GS have had a big run. But they face too many problems, too many unknowns that leak out regularly: Bad balance sheets. Horrible commercial loans. And stupid actions, like Goldman’s hyping of Facebook stock to its US investors, then changing its mind. Goldman partners do well. The stockholders less well. And the clients? Well they’re at the bottom of the heap, useful for fees, but little else. Proprietary trading is the name of the game.
I do continue to like the foods stocks I mentioned yesterday. More about them tomorrow.
Should we invest heavily in Europe? I like diversification. I’m not a big fan of heavy investment in Europe. The Times ran a cover story on the weekend:
It contained two paragraphs:
The tragedy of the Euromess is that the creation of the euro was supposed to be the finest moment in a grand and noble undertaking: the generations-long effort to bring peace, democracy and shared prosperity to a once and frequently war-torn continent. But the architects of the euro, caught up in their project’s sweep and romance, chose to ignore the mundane difficulties a shared currency would predictably encounter — to ignore warnings, which were issued right from the beginning, that Europe lacked the institutions needed to make a common currency workable. Instead, they engaged in magical thinking, acting as if the nobility of their mission transcended such concerns.
The result is a tragedy not only for Europe but also for the world, for which Europe is a crucial role model. The Europeans have shown us that peace and unity can be brought to a region with a history of violence, and in the process they have created perhaps the most decent societies in human history, combining democracy and human rights with a level of individual economic security that America comes nowhere close to matching. These achievements are now in the process of being tarnished, as the European dream turns into a nightmare for all too many people.
The piece’s conclusion is not sanguine. There are savior scenarios. But the existence of one currency — the Euro — severely limits options — chiefly devaluation. Read the entire fascinating piece. Click here.
The Australian Tennis Open has started.
It’s played live on ESPN, and replayed on The Tennis Channel. Melbourne is 16 hours ahead of New York. Hence live play begins in the middle of the night. Right now –for the early rounds — ESPN is starting at 7:00 PM.
Harry’s guide to watching tennis:
1. Players refer to an ace as a “free point.” The “easiest” ace is down the center line. The key to watch where your opponent is standing and serve elsewhere.
2. The classic tennis “play” is to serve wide, wait for the return, then whack your ball to the opposite corner. This strategy relies on a good, hard, well-placed serve.
3. Most points are won, not because someone hits a winner, but because the other guy screws up. Hence players gingerly hit balls back and forth in the hope that their opponent will screw up. I’ve seen most of the top players practicing. They hit a lot harder and faster in practice than they do in matches.
4. Keep the ball in play, keep edging it to corners, ultimately your opponent will hit a short ball. Then you can move in and put the ball away for a winner.
5. Heavy top spin lifts the ball up high when it bounces. Returning a high bouncer is far more difficult than returning a low shot — even if the low shot is hit very hard. Nadal is the expert on high bouncers. He uses a weird grip, special strings and he comes up on the ball as he hits it. You have to be 23 and have extraordinary timing. A thousandth of a second makes a difference. I once fluked a Nadal shot. I fluffed my other tries.
6. A single-handed backhand is more flexible than a two-handed one. Some people believe a two-handed backhand gives great control, especially returning hard shots. The short backswing is useful. All two-handed backhand players use a one-handed shot when they get into trouble. I’m too untalented (or too old) to learn a two-handed backhand.
Today, tennis is basically a running game. The faster you run, the faster you get to balls. I can’t run as fast as a 20-year old. Most tennis professionals retire when they hit old age — around 30.
Understanding Engineers – One
Two engineering students were riding their bikes across a university campus when one said, “Where did you get such a great bike?”
The second engineer replied, “Well, I was walking along yesterday, minding my own business, when a beautiful woman rode up on this bike, threw it to the ground, took off all her clothes and said, “Take what you want . “
The first engineer nodded approvingly and said, “Good choice; the clothes probably wouldn’t have fit you anyway . “
Understanding Engineers – Two
To the optimist, the glass is half-full .
To the pessimist, the glass is half-empty .
To the engineer, the glass is twice as big as it needs to be .
Understanding Engineers – Three
A priest, a doctor, and an engineer were waiting one morning for a particularly slow group of golfers . The engineer fumed, “What’s with those guys? We must have been waiting for fifteen minutes!”
The doctor chimed in, “I don’t know, but I’ve never seen such inept golf!”
The priest said, “Here comes the green-keeper . Let’s have a word with him . “
He said, “Hello George, what’s wrong with that group ahead of us? They’re rather slow, aren’t they?”
The green-keeper replied, “Oh, yes . That’s a group of blind firemen . They lost their sight saving our clubhouse from a fire last year, so we always let them play for free anytime . “
The group fell silent for a moment .
The priest said, “That’s so sad . I think I will say a special prayer for them tonight . “
The doctor said, “Good idea . I’m going to contact my ophthalmologist colleague and see if there’s anything he can do for them . “
The engineer said, “Why can’t they play at night?”
Understanding Engineers – Four
What is the difference between mechanical engineers and civil engineers?
Mechanical engineers build weapons
Civil engineers build targets .
Understanding Engineers – Five
The graduate with a science degree asks, “Why does it work?”
The graduate with an engineering degree asks, “How does it work?”
The graduate with an accounting degree asks, “How much will it cost?”
The graduate with an arts degree asks, “You want fries with that?”
Understanding Engineers – Six
Three engineering students were gathered together discussing who must have designed the human body .
One said, “It was a mechanical engineer . Just look at all the joints . “
Another said, “No, it was an electrical engineer . The nervous system has many thousands of electrical connections . “
The last one said, “No, actually it had to have been a civil engineer . Who else would run a toxic waste pipeline through a recreational area?”
Understanding Engineers – Seven
Normal people believe that if it ain’t broke, don’t fix it .
Engineers believe that if it ain’t broke, it doesn’t have enough features yet .
Harry Newton who now understands why Microsoft employs so many “engineers.”
I added some more useful links on the left — check out the travel links.
