After hours last night in America, Zillow (Z) collapsed again – this time to $16 – whilst Nu-Skin (NUS) collapsed from $30 to $24. What is really happening is that these essentially useless companies (so ably highlighted as such by Andrew Left of Citron years ago) have finally come to be seen as such by the American retail investor. This is a profound change and it certainly has not stopped yet. I, for my part, got some Tesla (TSLA) away at $159 yesterday afternoon and shall sell each recovery burst.
I have also read a coruscating attack upon Twitter (TWTR), the share price and not the medium – this former is now around $14.50. MAU (Monthly Average Users) are now declining. Growth stock? I think not.
When Dame Margaret Hodge was in charge of the HoC Public Accounts Committee she established an astonishing reputation for stupidity and hypocrisy combined and offered through her foghorn of a voice. She was so stupid that she failed (and I presume still fails) to realise that she is immediately and perpetually seen as a liar.
I rather thought that when she departed in favour of Meg Hillier we the people would find a subtler animal. Au contraire: yesterday Ms Hillier, whose voice is marginally less repulsive, set about quizzing Google’s UK boss on Google’s corporation tax bill. She decided to ask this hapless chap what his pay is where this topic is of virtually no relevance and, quite possibly, could not be answered instantaneously and accurately. But the Hillier harridan pushed on trying to whip up public hatred of those whose pay is materially higher than the average wage. She merely made herself look stupid. P.S. She does not so realise. We of course pay Hillier’s salary.
The infantilisation of Britain (cont.): yesterday the Competition and Markets Authority pronounced that special offers (BoGoF etc.) cause supermarket customers to spend £1,000 p.a. more than otherwise they would (no evidence was/is offered). Therefore special offers are to be banned since they are said by the CMS to “seduce” consumers. Have you ever been seduced by an offer of four packets of cereal for the price of three? I thought not. Indeed, the very idea that one could be is itself very sad.
The CMA’s idea is generally to protect citizens from their obligation to themselves to read anything. This policy is certainly bound ultimately to fail. In the meantime we all pay for the CMA.