Today's Tids Issue 3,056
Opening Stuff:
 
If God had wanted us to vote, he would have given us candidates. –Jay Leno.
 
(Note: Written before market opened) I’m hearing of some monster valuations for the Irish game maker King Digital’s pending IPO mainly because of their super popular game Candy Crush Saga, which after all is but a fad, destined to be replaced by the next “hot” techno-pastime. Aren’t some of these valuations for companies based on fads, with no profits reminiscent of the late nineties when eager investors were virtually conned into getting on board the train or be left at the station. There is nothing in history that says Candy Crush won’t become another Farmville or Angry Birds. King has set a per share price of $22.50 which would give it a $7.3 billion valuation, almost exactly that of Farmville’s owner Zynga, the former hottie that reached twice it’s opener, but now languishes at $5.00. The chances are that King will open strong and if you can actually get shares, you may make a buck or two if you can get out fast enough. (Oops! – the IPO opened down 6% and has just passed down 10%). Maybe the market is answering the bigger question that I was alluding to earlier: Are we getting too excited about stuff that has no real value or staying power…just to be there? The answer this morning is, Yes!
 
A observant reader writes to say the scuttlebutt around the back halls of the State House is that George Nee, head of the AFL/CIO in RI told (Ordered?) legislators not to talk to the media during the selection of the new Speaker process. Sounds like Nee, who really runs RI, didn’t want anything negative to come out about his handpicked candidate. Now you really know why businesses in general run past RI as fast as possible – the state is an arm of the AFL/CIO.
 
The Question:
Bonus day! 1. What are considered the five most undervalued stocks on the Dow? Bonus: What does the following list mean to you: Xiaomi, Palantir, Jongdong, Zalando, Uber, Airbnb and Sogou?
 
The Headlines:
--0-Man Refuses To Acknowledge That Romney May Have Been Right About Russia As Threat; Demeans Putin’s State As Mere Regional Power.
--Official Death Toll In Osa Wash Hits 24; Officials Warned Of Potential Mudslides In 1999 Before Building Of Homes.
--US Lawmakers Introduce Bills That Would Eliminate Tax Credits For Solar Industries.
--Pentagon Warns That China Is Waging “Three Wars” To Force USA Out Of Asia; Wars Are Psychological,  Media, Legal Operations That Present Asymmetric Military Technology Which is  Surrogate For Kinetic Conflicts; Says US Unprepared To Counter.
--Arab League Rejects Israel As Jewish Homeland.
--North Dakota Average Incomes Have Doubled Since Start Of Oil Flow.
 
RemDog Morality, Department:
Here’s a little moral, cultural conundrum for you. Jerry Remy, a former pretty good second baseman, Boston area native and long time beloved color announcer on the TV broadcasts is under pressure from sports yahoos to step down from his announcer job. The Problem: His son beat his girlfriend and mother of his child to death. The righteous are saying that Remy enabled his son’s existence, a troubled existence that began around 12 years old and included some 80 run-ins with the law, with relatively few days in jail. Maybe Jerry Remy should have been home more. Maybe the son was one of those black sheep types that appear from time to time in good families. There are plenty of ball players whose lives are on the road in the early days of their children’s growth, and most of the kids seem to do ok. I have no problem with Remy staying on. His real problem is the cancer that seems to be recurring more often than it should.
 
Jerry Remy’s daughter recently told her brother’s now deceased girlfriend, “My brother is going to kill you. Get out.”
 
The new RI Speaker promises to find oil in Rhode Island. Citizens cheer and fall inline.
 
“A politician is a fellow who lay down your life for the country.” –Tex Guinan
 
In the “Did-You Know” section of the marvelous Tids today, we examine the scrumptious cashew. The cashew isn’t a nut to the standards by which we measure nuts (No, I’m not talking about Harry Reid talking on the Senate floor). The cashew doesn’t come in a shell, although it grows on trees. At first appearance it looks like a sumptuous apple. But a closer look reveals a thick green stem which oddly is the shape of…a cashew! The “cashew apple” itself is pulpy and juicy, often used in tropical fruit drinks. The outer skin of the cashew stem, though, is toxic, capable of creating skin rashes ala poison ivy. Roasting the stem removes toxins, and the roasting must be done outside to avoid smoke irritation of lungs. So now you know why cashews are expensive – hazardous duty pay! BTW, whoever first thought of not throwing away the poisonous stem?
 
I think that the PGA should have a “Young Turks” promotion. The way things have been going it appears that the quality of some of the new kids is so good that it will become tougher and tougher to for the Tournament sponsors to rely on having “Big Names” in the final rounds. Phil and Tiger and even Rory at his tender age, are more often also-rans rather than Arnie Palmers charging up the fairways. People will have to find enjoyment more from loving the competition of the game, rather than affixing themselves to celebrity.
 
There’s a helluva lot of money floating around these days just aching to be spent.
 
Holly Misto was a very successful coach of Westerly RI HS girls basketball team who suddenly resigned, and was joined by her assistants in complete support. The only clue she gave was the statement “The parents don’t understand the concept of ‘team’.” I thought it was interesting, as Holly was so loved by her players to the point where many graduates who went on to greater things came back on the scene to praise her, not only as a sports coach, but as a person who improved their understanding of life and prepared them for it. I can only think that some whiny “Darling” got the ear of her parents – who weren’t prepared for real life. I’ll be back on this one. Here is her complete and only statement. You figure it out: “My staff and I resigned freely and not as a result of any wrongdoing. I reached a point where I could no longer effectively coach my team in the context of significant interference from several parents who misunderstand the meaning of team. And my assistants agreed. The interference was continuous throughout the season and escalated during playoff week.”
 
The NCAA tourney would be much better and more predictable if all players were required to proceed to senior year. And, the NBA would be better too. Having “Game” is only a part of the equation.
 
The Answer:
Intel heads the list of five most undervalued which also includes, Chevron, JP Morgan Chase, IBM, and United Health. Bonus: These are some of the companies that form a list of 45 heavily invested in by Venture Capitalists and valued at over a Billion Dollars. In order they are China’s Xiaomi and US Drop Box valued at $10 Bil followed by Palantir at $9B and Jingdong at $7.3B. the rest in  are Zalando, SpaceX, Spotify, Pinterest, Uber, Jawbone, Square, VANCL, Legendary Entertainment, Bloom Energy, Alronb and Woodman Labs. Might be a list to keep in your back pocket, just in case the bubble still has life. http://graphics.wsj.com/billion-dollar-club/
 
I hear a lot around here about all of the snow we have had this winter.  People must be imagining it based on reports from the north and NYC, Philly and DC. I shoveled less snow than I have in years. It has been colder, and perhaps we had more snow events, but definitely not more snow.
 
Happy Birthday to Steven Tyler! Have a Stella and rock.
https://www.youtube.com/watch?v=sZfZ8uWaOFI