A GE Collapse, A Bitcoin Bounce, and A New Lithium Play
This week’s top stories…
Rio Tinto Eyeing Lithium: Rio Tinto is said to be considering an investment in Chile’s Chemical and Mining Society (SQM), the world's largest lithium producer. This comes after Canada's PotashCorp. released news of the expected sale of its interest in SQM in order to fulfill the terms of an unrelated merger.
Bitcoin Bounce: After hitting a record high $7,879.06 last week, Bitcoin crashed over the weekend. The cryptocurrency shed 29% of its value before rallying more than 11% on Monday. This is not the first time Bitcoin made a drastic move, and it won’t be the last. Volatility is a hallmark of the fledgling cryptocurrency market.
Retail Apocalypse: Consumer confidence is high and unemployment is historically low, but more chains are filing for bankruptcy and rated distressed than during the financial crisis. Chain stores have announced the closure of 6,800 stores in the first three quarters of 2017, and just 3,000 openings.
House Call: Donald Trump has named former Eli Lilly & Co. executive Alex Azar to lead the U.S. Department of Health and Human Services. Once confirmed, Azar will lead the administration's fight to dismantle the Affordable Care Act. Trump’s first HHS secretary, Tom Price, resigned in September after his extensive use of private and military jets at taxpayer expense was revealed.
GE Reevaluates: With its stock down 35% this year, General Electric (NYSE: GE) is making some sweeping changes. The company is reducing the number of seats on its board, slashing 25% of its home office staff, and cutting its dividend in half. The dividend reduction — from $0.24 per share to $0.12 — is just the second such cut since the Great Depression. The moves are part of a “reset year” under new CEO John Flannery, who took over in August.
Amazon to $1 Trillion?: Morgan Stanley believes Amazon may reach a $2,000 share price in the next 12 months. Currently trading over $1,100 per share, the company sports a market cap of $550 billion. A move to $2,000 would make it a trillion-dollar company. It would be the world’s first. Apple (NASDAQ: AAPL) is currently worth $894 billion and Google (NASDAQ: GOOG) is valued at $720 billion.
To your wealth,
–Outsider Club Research Staff
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