Fake News: The Collapse of the MSM’s ‘Facebook Russian Bot’ Story

As 21WIRE said last year, the Russian hacking, or Russiagate story was a political hoax from the start. What this story can now demonstrate, is that for the last 18 months, the entire mainstream media has been promulgating a highly politicised, and relentless campaign of fake news designed to implicate Russia in an imaginary scandal. Leading the pack are former ‘papers of record’ The New York Times and The Washington Post, flanked by America’s premier broadcast TV propaganda outlet CNN.
Last week, we revealed how powerful politicians in Washington had pressured Facebook executives to come up with any evidence to support the Democratic Party’s theory of ‘Russian meddling,’ – demonstrating clear collusion between the Obama Administration and Silicon Valley corporation Facebook, with the goal of fabricating a scandal in order to scapegoat Vladimir Putin and the Russians for the electoral collapse of Hillary Clinton last November.
As a result, US-Russian relations have been sacrificed at the altar of petty partisan politics and a failing deep state agenda.
It certainly begs the question: with so much at stake, why would Washington and MSM lie and risk pushing global tensions closer to a world war level confrontation? If they are prepared to lie about this, what else are they prepared to lie about?
Consortium News Exclusive: The U. S. mainstream media is determined to prove Russia-gate despite the scandal’s cracking foundation and its inexplicable anomalies, such as why Russia would set up a Facebook ‘puppies’ page.
By Robert Parry
What is perhaps most unprofessional, unethical and even immoral about the U. S. mainstream media’s coverage of Russia-gate is how all the stories start with the conclusion – ‘Russia bad’ – and then make whatever shards of information exist fit the preordained narrative.

This post was published at 21st Century Wire on OCTOBER 5, 2017.

Thanks For Nothing… And Everything

During this season of Thanksgiving, I would like to express my overwhelming gratitude…
Thank you, President Obama. Thank you for not upholding your oath to the U. S. Constitution to protect America’s southern border. Thank you for illegally granting amnesty via executive action and avoiding the unnecessary hassles of passing the legislation through Congress. And thank you for your efforts in turning the United States of America into a third-world refugee camp.
Thank you, Obama, for your broad support of Islam and for labeling American citizens as bitter, xenophobic racists clinging to their guns and religion. I would also like to express my gratitude to you, your enablers, and all of the sycophantically corrupt, establishment politicians for near doubling the national debt of the United States these last eight years.
Another heartfelt expression of gratitude goes out to all of the media pundits, talking heads, newspaper columnists, Silicon Valley moguls as well as the proprietors, purveyors and contributors of actual fake news websites who contort themselves daily to support leftist politicians and the progressive agenda. Without the blind commitment of those who have facilitated the Cloward-Piven strategy of sacrificing America to the global elite banking establishment, it would have been far more difficult for Obama to fundamentally transform our country over the last eight years.

This post was published at Zero Hedge on Nov 20, 2016.

Tulip Fever In China’s Housing Markets

Housing in major cities in China has seen price hikes over the last year that resemble the famous Dutch ‘Tulip Fever’ bubble of 1637, according to new research by economic consultancy firm Longview Economics.
‘I think what’s going on in China is troubling … some of the valuations there are really quite extraordinary,’ Chris Watling, the CEO of Longview Economics, told CNBC Thursday. ‘We’ve double checked these numbers about seven times, because I found them quite hard to believe.’ The firm’s research found that only San Jose in the Silicon Valley is more expensive than Shenzhen. The Chinese city has seen prices rise 76 percent since the start of 2015, with the acceleration beginning in April 2015 as the country’s stock market was nearing its peak. The situation in Beijing and Shanghai is similar, albeit less extreme, the company states.

This post was published at David Stockmans Contra Corner By Matt Clinch, CNBC ‘ September 19, 2016.

Vegan Food Startup Hampton Creek Used Venture Capital To Buy Its Own Products

Call it the perfect pyramid scheme for the “new normal.”
In the latest example of the venture capital euphoria that has dominated the US in recent years, not to mention potential fraud, Bloomberg reports that vegan food startup Hampton Creek, had a novel idea of how to spend the venture funding it had raised: by buying up its own product. To wit:
In late 2014, fledgling entrepreneur Josh Tetrick persuaded investors to plow $90 million into his vegan food startup Hampton Creek Inc. Tetrick had impressed leading Silicon Valley venture capital firms by getting his eggless Just Mayo product into Walmart, Kroger, Safeway, and other top U. S. supermarkets within about three years of starting his company.
What Tetrick and his team neglected to mention is that the startup undertook a large-scale operation to buy back its own mayo, which made the product appear more popular than it really was. At least eight months before the funding round closed, Hampton Creek executives quietly launched a campaign to purchase mass quantities of Just Mayo from stores, according to five former workers and more than 250 receipts, expense reports, cash advances and e-mails reviewed by Bloomberg. In addition to buying up hundreds of jars of the product across the U. S., contractors were told to call store managers pretending they were customers and ask about Just Mayo. Strong demand for a product typically prompts retailers to order more and stock it in additional stores.
Wait is that legal? Well, technically it is not illegal, although it is extremely unethical (imagine if, gasp, Facebook was using click-farms to fabricate users – it’s the same concept) however it underscore the money printing culture permeating the VC community, which through its generosity may be implicitly enabling fraud. Case in point: Theranos, and now Hampton Creek.

This post was published at Zero Hedge on Aug 4, 2016.

Who Said It’s Rigged? Silicon Valley Elites Get Home Loans With No Money Down

It turns out that even the well-off need help in a housing market as crazy as the one in the San Francisco Bay area, and lenders are elbowing each other in a rush to provide it.
They’re courting Silicon Valley workers with tailored loans, guaranteed 24-hour approval and financial-planning services. Social Finance Inc. has deals with Google and other top technology companies that allow it to market to new hires. First Republic Bank – which gave Facebook Inc. billionaire Mark Zuckerberg a 1.05 percent interest-rate mortgage – has opened branches in Facebook and Twitter Inc. headquarters. San Francisco Federal Credit Union will finance 100 percent of houses costing up to $2 million.
Michael Tannenbaum, senior vice president of SoFi’s mortgage group, calls it ‘white-glove service.’ Lenders often give special treatment to the wealthy, of course, but the tech industry has created a particularly ripe crop of clients who are rich or on their way. It’s a smart bet to cater to a sector that’s created thousands of millionaires and dozens of billionaires, says Glenn Kelman, chief executive officer of the brokerage Redfin. The downside is that the most expensive U. S. housing region is becoming ‘a no-fly zone for anyone outside technology,’ especially with so many people shut out altogether by tight credit standards imposed after the 2008 real estate crash.
What’s going on ‘might be good for the borrower and good for the lender,’ he says, ‘but it’s not necessarily good for San Francisco.’

This post was published at David Stockmans Contra Corner on July 28, 2016.

SP 500 and NDX Futures Daily Charts – Peak Hubris and Complacency

“I don’t understand people…who talk about us as being in decline, and who act as though we are not yet the greatest country that has ever been on the face of the Earth for all of history!”
Hillary Rodham Clinton, 25 July 2016
The Democratic establishment’s lack of understanding of what a large portion of the public has been saying and thinking during this entire election cycle and beyond is both remarkable and yet understandable, given the bubble of easy money, crony capitalism, and endless favoritism in which their candidate and their pampered protgs exist.
This utter disconnect from the public why liberal establishment figureheads can write columns in the New York Times suggesting that all is well because things are great on the affluent bubble-land of the Upper West Side of Manhattan, or in Silicon Valley, and then imply that anyone else who is complaining in the rest of the country is ignorant, a malcontent, or just whining.
We have been hearing this sort of nonsense for some time now from the establishment cronies of both parties. Like all elites who have become insular and out of touch throughout history, the fortunate few have stopped listening to anything outside of their own circles, and have little attention or tolerance for dissent from their group thought.
And I suspect that the DNC power players, led by their poster child HRC, would like to take the support of the Sanders faction for granted, counting on fear of Trump to beat them into line. And so the very comfortable Wall Street wing of the Democrats will eventually toss their progressives under the bus, and try to garner more endorsements from disaffected establishment Republicans and their big money sponsors. After all, this has been Obama’s modus operandi for the past eight years.

This post was published at Jesses Crossroads Cafe on 25 JULY 2016.

Mind The Faltering Unicorns – – San Francisco Real Estate Boom Cooling Rapidly

Office landlords are bracing for a cooling of San Francisco’s red-hot market as weaker startup valuations and lower venture-capital funding temper years of runaway growth in the technology-industry hub.
The city’s office-vacancy rate jumped in the second quarter by the most since the last recession, while the amount of space available for sublease almost doubled, according to a report to be released this week by brokerage Cushman & Wakefield Inc. New lease deals have tumbled so far this year.
With demand seen cooling further, office owners who benefited from years of heated leasing by the likes of Uber Technologies Inc., Airbnb Inc. and Twitter Inc. are now rushing to seal deals and capture rents near record highs. They’re seeking to sign longer leases with creditworthy companies before prices slide, renewing agreements well ahead of their expiration and offering concessions, including free rent and cash for space improvements, according to J. D. Lumpkin, a managing director at Cushman & Wakefield in San Francisco.
‘We may not be in a free fall, but it’s a sign of things to come,’ Lumpkin said. ‘Those who are smart know it’s time to get aggressive and lock in credit tenants that you want for the next five, seven, 10 years in new leases and do whatever it takes.’ The moves represent a turn for a commercial real estate market that until recently had the nation’s lowest vacancy rate, driven by early stage tech firms scooping up space and Silicon Valley giants expanding to accommodate workers seeking an urban lifestyle. Now, the flood of money to startups is slowing and investors expect acquisitions of smaller companies whose valuations are falling, potentially leading to job cuts and office consolidation.

This post was published at David Stockmans Contra Corner By Alison Vekshin, Bloomberg Business ‘ June 30, 2016.

The celebrity privacy case that exposes hypocrisy of Silicon Valley power brokers

Ours is a world where a handful of technology companies – along with a considerably higher number of their billionaire owners – are heading towards power that will border on the absolute, uncontested not just by politics but also by the media of any kind.
Two seemingly unrelated recent news stories make it quite clear. First, a report from Moody’s Investors Service suggests that just five US tech firms – Apple, Microsoft, Google, Cisco and Oracle – hold $504bn (345bn) in spare cash, a third of total reserves by all U.S. corporations (excluding financial companies). It is the first time that all of the top five spots have gone to companies in the tech sector.
A recent raid by the French police on Google’s Paris office – part of a 1.6bn (1.2bn) tax probe – hints at the origins of that wealth. And that spare cash rests on – and produces – political power. Google’s lobbying expenses, for example, are some of the highest in the business world; its lobbyists have visited the White House, on average, more than once a week in the period between Barack Obama’s election and October 2015.
The second news story has to do with Peter Thiel, the unconventional investor who made his name as a co-founder of PayPal, and who went on to make his fortune as a venture capitalist, backing companies including Facebook in their early days. Thiel, it turns out, has bankrolled the controversial lawsuit brought by Hulk Hogan, the celebrity wrestler, against Gawker, the gossip site. Hogan, whose real name is Terry Bollea, sued for invasion of privacy after Gawker published an excerpt of a leaked sex tape in 2012. He has been awarded $115m by the courts; Gawker’s future is uncertain.

This post was published at The Guardian

New U.S. Business Formation Falling Off A Cliff

We’re supposedly living in the age of startups when people can create new businesses, enrich themselves, and employ their fellow Americans. That narrative, like much economic optimism these days, is now mostly a tale for coastal cities, and a tenuous one at best.
Fewer new businesses were created in the last five years in the US than any period since at least 1980, according to a new analysis (pdf) by theEconomic Innovation Group (EIG), a bipartisan advocacy group founded by the Silicon Valley entrepreneur Sean Parker and others. Businesses that did form are also far more concentrated than ever before: just 20 counties accounted for half of the country’s total new businesses. All of them were in large metro areas.

This post was published at David Stockmans Contra Corner by Quartz ‘ June 1, 2016.

Canary On Sand Hill Road – -Q1 Startup Financing By VCs Drops 25%, Valuations Tumble

Venture-capital investors hit the brakes on investing in the first quarter, following a funding bonanza the past two years that pushed valuations of once-hot technology startups to soaring heights.
Funding for U. S. startups fell 25% from the fourth quarter to $13.9 billion, the largest quarterly decline on record since the dot-com bust, according to data from Dow Jones VentureSource. The numbers of deals also hit a four-year low of 884.
The drop threatens to hasten a slump rippling through Silicon Valley that is pushing startups to slash marketing budgets, lay off staff and dial back lofty ambitions. Investors such as mutual funds and big banks that pumped money into startups on the promise of big returns have since retrenched, as a punishing market for initial public offerings has spoiled the runaway optimism.
The sky-high valuations of last year have retreated as a result. In the first quarter, the median value of U. S. startups plummeted to $18.5 million after hitting a peak of $61.5 million in last year’s third quarter.
‘I think investors are nervous, sitting on the sidelines waiting to see what happens,’ saidBrian Mulvey, co-founder and managing partner at PeakSpan Capital, which recently raised a venture fund of $150 million.

This post was published at David Stockmans Contra Corner on April 18, 2016.

Peter Thiel Says Everything Is Overvalued: “Public Equities, Houses, Government Bonds”

Since the Fed may not, or simply refuses, to see if not a bubble then at least “froth” in any asset class, perhaps it should hire Peter Thiel to be on its macroproduential supervisory committee, because according to the venture capital legend who co-founded PayPal everything is overvalued. Speaking at the LendIt USA Conference in San Francisco on Tuesday, he said that he is “somewhat concerned about the frothiness of the markets” and adds that “startup tech stocks may be overvalued, but so are public equities, so are houses, so are government bonds.”
He adds that “if there is a bubble it is probably centered on the zero % interest rates, the quantitative easing, the money printing and that’s a very strange one because it permeates everything.”
To be sure he remembered that he does have a conflict of interest and tried to tone down the bashing of his own industry: “Silicon Valley is quite far from it. If the bubble is in cash, illiquid startup investments may be a place to hide.”

This post was published at Zero Hedge on 04/13/2016.

More Silly-Con Valley

Privatizing Profits and Socializing Losses, Tech Bubble Style
The Wall Street Journal had an article this past week entitled ‘Tech’s Hometown Bank.’ This has convinced me that Silicon Valley has replaced Wall Street as the new epicentre of financial malfeasance and conflict of interest.
The article is about the Silicon Valley Bank (‘SVB’). The business model of SVB is to make loans to tech start-up companies which very often have negative cash flow, limited (if any) tangible assets and are financially dependent on successive rounds of fickle venture capital funding. In other words, these are entities that have absolutely no debt capacity and which should be entirely equity financed.
Tech start-up valuations keep climbing into the stratosphere, thanks to the Fed’s EZ money. So there is money in them thar hills! Very tempting, so how van we get at it using other people’s money? Silicon Valley has the answer.
SVB funds these loans overwhelmingly with borrowed money, almost all deposits benefiting from FDIC insurance[1]. The bank reported a ratio of tangible equity to assets of 6.4% at the end of 2014 (see page 51 of these financial statements).
What could explain this seeming madness? The answer is simple: in addition to charging interest on the loans, SVB takes warrants [2] in its high-tech borrowers. At last count, the holding company of the bank had warrants in 1,625 of these companies.
This means that SVB has perfected the business model of ‘heads we win, tails the taxpayer loses.’ If things go well, the shareholders of SVB cash in on the warrants; if things go badly, the FDIC picks up almost all of the loss.
By playing this game with high volatility tech start-ups, SVB has gone way beyond anything that Wall Street was able to manufacture with the relatively prosaic sub-prime mortgage loans of the financial crisis.
By keeping the warrants in the holding company of the bank, they have even created the theoretical possibility of the bank going under, leaving large losses for the FDIC and the taxpayer, while the shareholders continue to benefit from the warrants. Bravo!

This post was published at Acting-Man on December 16, 2015.

Why The High-End Housing Market Is Heading For Trouble – – China’s Cash Buyers Are Vanishing

The New York Times ran an article on Sunday talking about how the Chinese invasion of U. S. real estate is only expanding.
They aren’t just buying condos in Manhattan or McMansions in Silicon Valley – they’re buying properties in new developments in places like Plano, TX, just north of Dallas.
In the market for homes over $1 million, the Chinese make up one out of every 14 buyers – which is huge. In the top tier markets in San Francisco, Orange County or Manhattan, they can be 50% or more!
In the past year they paid $831,800 on average for an American home for a total of $28.6 billion. That’s more than double their level just two years prior!
The next biggest buyers, Canadians, only spent $380,300 on average. The average U. S. buyer: just about $250,000.
As you can imagine, a lot of Americans in these cities the Chinese are buying into aren’t much too happy. With that kind of buying power, they’re jacking up costs across the board. But it gets worse.
69% of their purchases are entirely in cash. Local buyers can’t do that! They have to apply for a mortgage. So they’re pissed off because so many Chinese can close a deal in a weekend.
But we need to consider why the Chinese are trying to get the hell of out dodge in the first place.
Many know like I do that China’s economy is a time bomb, so they’re trying to get their money out – especially before, worst case scenario, the government starts taking it.
Others just want to get their kids into American high schools or colleges to give them a world-class education. And some are just escaping the growing smog!

This post was published at David Stockmans Contra Corner on December 4, 2015.

ACTOR DONALD SUTHERLAND CONFIRMS HUNGER GAMES IS ALLEGORY FOR THE US

Here is a short clip featuring Donald Sutherland, who acted in The Hunger Games movie series, to learn in some detail what he thinks about them. He says flatly, it is an allegory pertaining to the United States, which is just what I wrote about a year ago.
You can see the Sutherland video clip here:

That is quite outspoken and courageous of Donald Sutherland to say. If it gets too much exposure he’ll likely see his Hollywood roles begin to disappear.
Here’s a quote from our article on The Hunger Games, which you can see here.
When I think about Washington DC, increasingly, I see The Capitol depicted in the Hunger Games … DC leads the way in the US for federal public corruption convictions. The inhabitants of DC are getting richer than those in the 50 Districts (formerly known as ‘states’). In recent years this has increased to a dramatic degree… becoming painfully obvious especially when you consider that DC, unlike San Francisco (and its Silicon Valley) has almost no natural, wealth building industry.


This post was published at Dollar Vigilante on NOVEMBER 22, 2015.

Hysterical Senator Feinstein Wants To Ban PlayStation 4

The bloodshed in Paris led U. S. officials Monday to renew calls for limits on technology that prevents governments from spying on phone conversations, text messages and e-mails.
Senator Dianne Feinstein, a California Democrat, said she asked Silicon Valley companies to help law enforcement and intelligence agencies access communications that have been encrypted – or scrambled to evade surveillance – if terrorists are using the tools to plan attacks.
‘I have asked for help. And I haven’t gotten any help,’ Feinstein said Monday in an interview with MSNBC. ‘If you create a product that allows evil monsters to communicate in this way, to behead children, to strike innocents, whether it’s at a game in a stadium, in a small restaurant in Paris, take down an airliner, that’s a big problem.’
The debate over using encryption illustrates how the pendulum of balancing security and privacy swings in response to events. Companies such as Apple Inc., Google Inc. and Yahoo! Inc. incorporated stronger encryption in their products after revelations of U. S. spying were exposed by Edward Snowden in 2013. Now the tables have turned.
Apple and Google on Monday didn’t respond to requests for comment on the issue. A Yahoo spokeswoman declined to comment. In the past, the companies have argued that governments can obtain evidence through other means, such as informants.

This post was published at David Stockmans Contra Corner by Bloomberg Business ‘ November 18, 2015.

This Is Not A ‘Correction’……..It’s The Beginning Of The Global Bubble Unwind

August 17 -REUTERS Breakingviews (Edward Chancellor): ‘Financial markets, like religions, are faith-based networks. The complex structures of assets and liabilities that comprise markets are held together by a set of underlying beliefs. Unlike religions, however, financial dogmas are occasionally shown to be false. We experienced such a moment last week, when the Chinese authorities chose to devalue their currency.’
Contemporary global finance is a complex ‘system’ of interwoven (electronic) ‘faith-based networks.’ As the bursting of the global Bubble unfolds, myriad ‘financial dogmas’ will be exposed as bogus. Too many have been little more than chicanery.
For the most part, global finance is comprised of a labyrinth of IOUs. And IOU value hinges on confidence, faith and trust. Over recent years too much of global finance has been underpinned – directly and indirectly – by concerted efforts of the world’s central bankers. Trillions of newly minted government finance have been validating tens of Trillions more of private-sector obligations and asset prices. Now, faith in the almighty power of central bank Credit and fiscal deficits, unquestioned for far too long, has begun to dim. The unfolding global crisis of confidence expanded and accelerated this week.
Global financial tumult has now attained sufficient momentum so that even U. S. markets can no longer remain comfortably oblivious. Yet, for most in the U. S. there remains little worry: the economy is sound, housing is booming, Silicon Valley is heroic, the banking system is rock solid, and the corporate sector is awash in cash. The U. S. economy is viewed as insignificantly exposed to China’s economic slowdown – and to global issues for the most part. Analysts speak of a ‘normal’STOCK MARKETpullback – yet another buying opportunity. There is, however, little normal about current global financial, economic and geopolitical backdrops.

This post was published at David Stockmans Contra Corner by Doug Noland ‘ August 22, 2015.

The Last Bubble Standing – – Amazon’s Same Day Trip Through The Casino

Right. Amazon is the greatest thing since sliced bread. Like millions of others, I use it practically every day. And it was nice to see that it made a profit – -thin as it was at 0.4% of sales – – in the second quarter.
But the instantaneous re-rating of its market cap by $40 billion in the seconds after its earnings release had nothing to do with Amazon or the considerable entrepreneurial prowess of Jeff Bezos and his army of disrupters. It was more in the nature of financial rigor mortis – – -the final spasm of the robo-traders and the fast money crowd chasing one of the greatest bubbles still standing in the casino.
And, yes, Amazon’s $250 billion market cap is an out and out bubble. Notwithstanding all the ‘good things it brings to life’ daily, it is not the present day incarnation of General Electric of the 1950s, and for one blindingly obvious reason. It has never made a profit beyond occasional quarterly chump change. And, what’s more, Bezos – – arguably the most maniacal empire builder since Genghis Khan – – apparently has no plan to ever make one.
To be sure, in these waning days of the third great central bank enabled bubble of this century, GAAP net income is a decidedly quaint concept. In the casino it’s all about beanstalks which grow to the sky and sell-side gobbledygook. Here’s how one of Silicon Valley’s most unabashed circus barkers, Piper Jaffray’s Gene Munster, explains it:
Next Steps For AWS… SaaS Applications? We believe AWS has an opportunity to move up the cloud stack to applications and leverage its existing base of AWS IaaS/PaaS 1M users. AWS dipped its toes into the SaaS pool earlier this year when it expanded its offerings to include an email management program and we believe it will continue to extend its expertise to other offerings. We do not believe that this optionality is baked into investors’ outlook for AWS.

This post was published at David Stockmans Contra Corner on July 24, 2015.

Dotcom Redux: Meet Jet.com With Negligible Revenues, Big Losses, Amazon as Chief Competitor And A $3 Billion Valuation

Online marketplace Jet.com Inc. has almost no revenue, years of likely losses in its future and a strategy that includes underpricing mighty Amazon.com Inc. on millions of items. Jet also has perhaps the highest valuation ever among e-commerce startups before their official launch.
Behind the Numbers of Jet.com’s Audacious Plan to Attack Amazon That is no contradiction in Silicon Valley, where investors keep pouring money into audacious businessEXPERIMENTS filled with big-splash potential. Jet is the buzziest e-commerce arrival of the current boom, with $225 million in capital raised in the past year and a timer on its website counting down the seconds to Tuesday’s opening of Jet to the public.
More than just about any other current startup, Jet seems reminiscent of the dot-com boom era, when e-commerce companies assumed giant losses before breaking into the black.

This post was published at David Stockmans Contra Corner on July 21, 2015.

Why The Stock Market Casino Is Dangerous: The Case Of Looney Tunes In the Sand Dunes

On August 4th the Wall Street Journal carried a breathless tale of how a handful of obscure oilfield suppliers were striking immense riches in the sand dunes of Wisconsin. Owing to the ‘shale revolution’, the stock price of an outfit that had originated in the stagnating business of supplying sand traps to golf courses, and which had been at death’s door as recently as 2011, had gone parabolic.
Emerge Energy Services (EMES) presently traded at $145 per share, reflecting a red hot gain of 8.5X over its $17 IPO price fifteen months earlier. In a literal sense, silicon valley had come to the silicon dunes of Lake Michigan, as reflected in EMES’ valuation at 43X its LTM earnings.
Given the fact that EMES’ share price had most recently risen by $100 or $2.5 billion of market just since January 2014, the ‘momo’ story was self-evidently all about upside growth, not current profits or cash flow. In fact, during its 14 quarters as a public filer, EMES had generated negative $50 million of operating cash flow after CapEx. So at a total enterprise value of $3.7 billion, the punters chasing the stock straight up the parabolic curve would seemingly have anticipated some stupendous growth indeed.
Except……except they had no idea about EMES’ sustainable growth potential and didn’t care because the buyers were robots, day traders and flavor-of-the-month hedge funds. They were piling into the stock of a company selling a form (white sand) of the second most abundant low-value commodity on planet earth for no other reason than Emerge Energy Services was another momo play on steroids. The ‘price action’ was the investment thesis.

This post was published at David Stockmans Contra Corner on Jan 2, 2015.