Because of the great trading results from KDK Options, we are happy to
announce that another donation to Shriners Hospital in Chicago is being made. Posts for the trade in $SQQQ can be found here, and the trade in $XLF can be found here. This is the third donation of the
year for KeaneVCC. We look forward to continuing our philanthropic adventure. Some of
our philosophy is below if interested.
KeaneVCC's philanthropic mission is to provide resources (financial,
human, etc.) to worthy causes that advance the progress of the human
experience. We donate a percentage of all revenue generated (not just
profits). We also find it part of our value system not to write off the donations.
Monday, June 3, 2019
Saturday, May 11, 2019
When Patriotism Clashes With Capitalism
by Michael Keane
In the United States of America, it is generally accepted that there is a high level of both patriotism and capitalism flowing through its citizenry. With the China trade issues like forced tech transfer taking more of a center stage, how to answer the question of what to do when patriotism and capitalism clash has been laid open and the country's business leaders are not stepping up, but are selling out.While there are many layers to the issue, corporate behavior has been less than stellar if you have a lens of citizen first, investor second.
There is an informative Frontline episode by Laura Sullivan on the China trade issues (link here). A central theme of the piece is how corporations have found themselves having trouble explaining the issues while also not wanting the solutions (aka tariffs and other action items) taken because of ramifications to profits, products and services from China. A recent letter from the shoe retailers industry (here) conveys this behavior. Granted, not all of the retailers are based in the US.
This is continuing a trend where corporations are willingly choosing capitalistic desires over the patriotic requirements necessary. This is likely because billions of bonus dollars and stock appreciation is at stake. The tax cuts was another item of corporate misbehavior. The Trump administration were all but assured that corporations would repatriate more revenue when they received their tax cut. That did not happen to any extent the administration was expecting and now our deficits are much higher because of it.
The China tariff standoff will not end until the government of the United States does some honorable, but profit costing actions. Our future competitive advantages are being monetized and sold by the current generation of business leaders in this country. If corporations are allowed to continue to influence government officials to create policy for profits over patriotism, we all will be in trouble.
In the United States of America, it is generally accepted that there is a high level of both patriotism and capitalism flowing through its citizenry. With the China trade issues like forced tech transfer taking more of a center stage, how to answer the question of what to do when patriotism and capitalism clash has been laid open and the country's business leaders are not stepping up, but are selling out.While there are many layers to the issue, corporate behavior has been less than stellar if you have a lens of citizen first, investor second.
There is an informative Frontline episode by Laura Sullivan on the China trade issues (link here). A central theme of the piece is how corporations have found themselves having trouble explaining the issues while also not wanting the solutions (aka tariffs and other action items) taken because of ramifications to profits, products and services from China. A recent letter from the shoe retailers industry (here) conveys this behavior. Granted, not all of the retailers are based in the US.
This is continuing a trend where corporations are willingly choosing capitalistic desires over the patriotic requirements necessary. This is likely because billions of bonus dollars and stock appreciation is at stake. The tax cuts was another item of corporate misbehavior. The Trump administration were all but assured that corporations would repatriate more revenue when they received their tax cut. That did not happen to any extent the administration was expecting and now our deficits are much higher because of it.
The China tariff standoff will not end until the government of the United States does some honorable, but profit costing actions. Our future competitive advantages are being monetized and sold by the current generation of business leaders in this country. If corporations are allowed to continue to influence government officials to create policy for profits over patriotism, we all will be in trouble.
Wednesday, March 27, 2019
New Donation to Northeastern Illinois University
Because of the great trading results from KDK Options, we are happy to announce that another donation to Northeastern Illinois University's College of Business is being made. This is the second donation of the year. We look forward to continuing our philanthropic adventure. Some of our philosophy is below if interested
KeaneVCC's philanthropic mission is to provide resources (financial, human, etc.) to worthy causes that advance the progress of the human experience. We donate a percentage of all revenue generated (not just profits). We do not report them on our tax donations as we feel strongly about giving these resources without receiving tax benefits in return.
KeaneVCC's philanthropic mission is to provide resources (financial, human, etc.) to worthy causes that advance the progress of the human experience. We donate a percentage of all revenue generated (not just profits). We do not report them on our tax donations as we feel strongly about giving these resources without receiving tax benefits in return.
Wednesday, March 6, 2019
What Corporations Did With Their Tax Cuts
There were a few major topics identified when we first set out to analyze the effects of the 2018 tax bill. The link to the original post can be found (here).
One major topic was how corporations would handle the extra cash coming their way. One year out, we have some evidence as to know their behavior. A recent Bloomberg story identified analysis by Citigroup that showed corporations have spent more on stock buybacks than on capital expenditures (story here). This is the first year since 2007 that this has happened.
We mentioned in our original post how wages, stock buybacks, dividends, and capital expenditures would show the intentions of the executives of US corporations. Here is some data
- Wages grew 3.2% in 2018. That is the highest annual gain in a decade. CNBC story here.
- Stock buybacks increased to over $800 billion. That is an increase of 60% over the 2017 total of $500 billion. This happened with a stock market that ended the year 5% to the downside. (Bloomberg)
- Capital Expenditures increased $100 billion from $600 billion to $700 billion. (Bloomberg)
- Dividends increased 10% to $450 billion from $400 billion in 2017 (Bloomberg)
These numbers tell a strong story about how corporations used the extra revenue from the tax cut. It is not a healthy story. A higher than normal percentage was dedicated to buybacks. On the one hand, having that as the reason for rising earnings and stock prices is not a long term recipe for success for investors. Corporate America used the tax cut to buyback stock to boost earnings per share that inflated bonuses while wage growth was a paltry 3%. On the other hand, it is positive news for all those execs whose bonuses are tied to earnings. It also stemmed the slide in the stock market.
Corporate America needs to take the infrastructure opportunity coming and invest those tax dollars in its employees and products.
** This blog is used for opinions and ideas and should not be used as a direction to act without doing your due diligence.**
One major topic was how corporations would handle the extra cash coming their way. One year out, we have some evidence as to know their behavior. A recent Bloomberg story identified analysis by Citigroup that showed corporations have spent more on stock buybacks than on capital expenditures (story here). This is the first year since 2007 that this has happened.
We mentioned in our original post how wages, stock buybacks, dividends, and capital expenditures would show the intentions of the executives of US corporations. Here is some data
- Wages grew 3.2% in 2018. That is the highest annual gain in a decade. CNBC story here.
- Stock buybacks increased to over $800 billion. That is an increase of 60% over the 2017 total of $500 billion. This happened with a stock market that ended the year 5% to the downside. (Bloomberg)
- Capital Expenditures increased $100 billion from $600 billion to $700 billion. (Bloomberg)
- Dividends increased 10% to $450 billion from $400 billion in 2017 (Bloomberg)
These numbers tell a strong story about how corporations used the extra revenue from the tax cut. It is not a healthy story. A higher than normal percentage was dedicated to buybacks. On the one hand, having that as the reason for rising earnings and stock prices is not a long term recipe for success for investors. Corporate America used the tax cut to buyback stock to boost earnings per share that inflated bonuses while wage growth was a paltry 3%. On the other hand, it is positive news for all those execs whose bonuses are tied to earnings. It also stemmed the slide in the stock market.
Corporate America needs to take the infrastructure opportunity coming and invest those tax dollars in its employees and products.
** This blog is used for opinions and ideas and should not be used as a direction to act without doing your due diligence.**
Friday, February 22, 2019
Blockchain Gets Major Endorsement
by Michael Keane
Last week, JP Morgan announced that it has created its own cryptocoin, the JPM Coin. Given what has been said before by the company, this was a major shift and endorsement not only for cryptocurrencies, but also a big endorsement of the blockchain technology behind it.
While Blockchain technology is absolutely still in its infancy, the announcement can be looked on as a game changer when it comes what the true perception of the technology by the big players. It harkens back to the infancy of the housing crisis, when at first the banks laughed at people like Dr. Michael Burry and Mark Baum, but then joined them in a big way while using deception announcements to keep the public at bay. Last week's announcement by JP Morgan would not have come without some testing of the technology's utility to the bank's mission and profit model. Jamie Dimon calling cryptocurrencies a "fraud" 18 months ago now looks like a delay tactic.
This announcement is also a very good indicator that average consumer uses are now ready to had in the marketplace.
The following outlets have caught the sea change in JP Morgan. Enjoy!
Cnbc article-Hugh Son
CNN Article- Matt Egen
Forbes Article - Michael del Castillo
** This blog is used for opinions and ideas and should not be used as a direction to act without doing your due diligence.**
Friday, January 18, 2019
Donation Made to Shriner's Hospital of Chicago
Because of some great trading by KDK Options, we are able to make our first donation to Shriner's Hospital Chicago!We look forward to continuing our burgeoning charitable arm in 2019.
Keane Venture Capital and Consulting donates a portion of all revenue to charity. This is part of our ethos and work process. Previous donations have also included Northeastern Illinois University.
** This blog is used for opinions and ideas and should not be used as a direction to act without doing your due diligence.**
Keane Venture Capital and Consulting donates a portion of all revenue to charity. This is part of our ethos and work process. Previous donations have also included Northeastern Illinois University.
** This blog is used for opinions and ideas and should not be used as a direction to act without doing your due diligence.**
Tuesday, December 4, 2018
Donation Made to Northeastern Illinois University
Because of some great trading by our partner, KDK Options (link to blog here), we are able to make another donation to Northeastern Illinois University's College of Business. This donation marks the smallest period between charitable donations.
Charity for Keane Venture Capital and Consulting revolves around healthcare and education. Recipients have included Shriner's Hospital of Chicago, Northeastern Illinois University, and the No Shave November organization. Tax deductions are not taken on charitable donations.
** This blog is used for opinions and ideas and should not be used as a direction to act without doing your due diligence.**
Charity for Keane Venture Capital and Consulting revolves around healthcare and education. Recipients have included Shriner's Hospital of Chicago, Northeastern Illinois University, and the No Shave November organization. Tax deductions are not taken on charitable donations.
** This blog is used for opinions and ideas and should not be used as a direction to act without doing your due diligence.**
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