MarketLine Blog

Posts written in December 2017

Toys R Us: Collapse Inevitable as Company Fails to Utilize the Power of the Internet

MarketLine

In recent months, well-established toy retailer Toys R Us has given repeated indications of the state of its finances. In September the US-based parent company announced that it entered into bankruptcy protection proceedings and is planning to close more than ten percent of its US stores in the near future. More recently the UK division made similar announcements, to close nearly a quarter of its stores soon after the New Year. So the recent news that the Pension Protection Fund (PPF), one of the company’s largest creditors in the UK,… Read more

AeroFarms: High-Rise Greens

MarketLine

AeroFarms’ food growing method, called aeroponics, requires no dirt, no sun and needs about 95% less water than traditional farming. It also applies 40% less fertilizer, and no pesticides. The company uses rehabilitated buildings, such as warehouses or old industrial plants, instead of constructing sophisticated massive, modern facilities from scratch, which dramatically reduces the property costs. While about ten years ago, indoor farming was associated with high costs and visions of people in lab coats walking around plants in soil many stories up in the air, the reality today is… Read more

Persimmon: Unjustified Criticism Forces Resignation of Valuable Senior Management

MarketLine

In February 2012 Persimmon, the UK-based homebuilding firm, announced ambitious plans to make dividend payments to investors totaling nearly £2bn ($2.67bn) over a ten year period. Eight months later the company’s Long Term Incentive Plan was approved by the board and shareholders, providing rewards for management pegged to dividend payout amounts. Fast-forward five-and-a-half years and the goal has almost been reached. During that time annual revenues have nearly doubled and the share price has increased by a factor of more than three-and-a-half. In the coming weeks the company’s CEO is… Read more

CRISPR Gene Editing: Now the technology is being used on humans, we can and should change the nature of our species

MarketLine

CRISPR technology is a simple yet incredibly powerful tool for editing genomes, the fundamental building blocks of any organism. It allows researchers to easily alter DNA sequences and modify gene function potentially with no limits or boundaries to what can be done to alter the physical attributes of animals and human beings. The process uses enzymes to cut through sections of DNA allowing new sequences to be added or parts removed. The result is that we can now completely alter genes, therefore the actual structure of an organism itself. Perfected… Read more

YouTube TV expands its presence in the US: Changing consumption patterns reduce demand for cable TV

MarketLine

A major shift is currently underway as an increasing number of consumers switch over from cable/satellite TV to online streaming. 61% of young adults for example today watch TV online, as compared to around 10% of the 50-64 age group. YouTube therefore in April 2017 launched its live online streaming service in five major urban areas in the United States. The service has seemingly been a success as by the end of the year, it has been expanded to more than 80 urban areas across the US. YouTube TV provides… Read more

Qatar Eurofighter Typhoon deal: BAE sale should not distract from harsh reality of lost markets

MarketLine

The decision of the Qatari government to buy 24 Eurofighter jet aircraft built by BAE is useful but should not disguise a stark reality: at present the jet is losing out badly to the French made Rafale, especially in what were formerly highly productive markets in the Arabian Gulf. The danger in placing too much faith, or emphasis, in attempting to turn around sales is that very few nations have the available resources to buy in the numbers BAE would ideally like. The current geopolitical problems in the Gulf suggest… Read more

Bitcoin: Bitcoin to reach a value of $100,000 per coin over the next five years

MarketLine

The term cryptocurrency has become widely spread amongst the investment news world in recent times due to its increasingly fast growth in value. Although the phenomenon began in 2008 with the release of Bitcoin, more and more cryptocurrencies have now established their presence in the market, reaching massive market values already, with thousands of investors purchasing coins on a daily basis. With large growth forecasted by analysts worldwide, regulations in this ‘currency’ market are not to be seen, but the UK treasury is working with the EU to tighten up… Read more

Huawei second bestselling smartphone brand in mid-2017

MarketLine

In June and July 2017, Huawei was found to be the second bestselling smartphone brand globally. Whilst the race to become the top smartphone brand has usually been a two way race between Samsung and Apple, the inclusion of Huawei into this race at least temporarily is indicative of future trends. The company’s fast growth in the most populous parts of the world, namely China and the wider Asia-Pacific region suggests that Huawei is certainly a force to be reckoned with in the coming years. The strong growth potential in… Read more