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Category Archives: Digital Lifestyle

China will be bigger for the movie box office in 2017 than the US 

China will be bigger for the movie box office in 2017 than the US 

Whether its characters from Disney’s Marvel, Star Wars or Pixar stable, or even DC’s own Batman and Superman, people will flock to the movies to quench their content thirst. Increasingly the international box office is becoming a bigger and bigger factor in movie decisions. Some film, like Expendables 3, are being made solely because of foreign demand, and the same goes for streaming content from Netflix and Amazon. What this tell us is content is truly king, but it also means content companies are likely to pivot to satiate local preferences. 

China — not the U.S. — is projected to be the leader in box office revenue in 2017, according to PricewaterhouseCoopers.If true, it will mark the first time that the U.S. has not been the top revenue driver in an entertainment and media segment. The Chinese box office is expected to generate $10.3 billion next year, while the U.S. will be at $10.1 billion. By 2020, the Chinese box office will reach $15.1 billion versus just $11 billion in the U.S.

Source: China will be bigger for the box office than the US next year: PwC

Prepping the Tematica Select List for the summer heat

Prepping the Tematica Select List for the summer heat

We always love it when organizations catch up to our way of thinking. In this case it’s a reminder that the vector of the global economy is down and its velocity slow . . . a beat we’ve been drumming for weeks here at Tematica Research.

In this week’s edition of Tematica Investing, we dig into the data, including confirmation of our view of the next move by the Fed, as well as:

  • More institutions are cutting growth expectations, and we continue to see a capped market with the high probability of earnings revisions to be had for the back half of 2016. We will continue to be selective with new positions, and add to existing ones strategically. Read more >>
  • As we start to feel the summer heat, we’re adding two Scarce Resource water plays to the Tematica Contender List: American Water Works (AWK)and Aqua America (WTR). Read more >>
  • Updates on Amazon (AMZN), AT&T (T), PetMeds Express (PETS), Starbucks (SBUX) and Disney (DIS). Read more >>

Click the link below to download the full report.

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Food Network teaming with Instacart shows increasing reach of e-commerce 

Food Network teaming with Instacart shows increasing reach of e-commerce 

Following Amazon’s Prime Fresh and Walmart’s teaming with Uber and Lyft for grocery delivery, the intersection of Content is King and the Connected Society is driving a shift in where and how people buy groceries and ingredients. Much like other industry shaking events associated with the Connected Society, this will have a profound impact on both a direct and indirect basis.

xpansion of online fulfillment availability is giving retailers new avenues for selling goods via the Internet.Food Network is teaming up with Instacart to integrate the online grocery delivery service with the Recipe Box and Grocery List features available on FoodNetwork.com and Food.com. The offerings allow consumers to search for online recipes and then create and share shopping lists of the necessary ingredients.

Source: Commentary: Food Network offering shows increasing reach of e-commerce | Chain Store Age

KFC officially launches Apple Pay at US restaurants $YUM $AAPL

KFC officially launches Apple Pay at US restaurants $YUM $AAPL

A step in the right direction for Cashless Consumption, and we have to wonder if KFC is a test bed for other Yum Brands (YUM) chains such as Pizza Hut and Taco Bell.  One more step toward the Cashless Consumption tipping point that is being spurred on by our Fattening of the Population investing theme.

 

The option is now available at “some” U.S. locations, and should eventually reach all of them by the end of the summer, KFC said. Like some other restaurants, people will be able to use Apple Pay both at the counter and in drivethroughs. The rollout is part of a broader adoption of mobile payments at KFC, as the restaurant is now also accepting Android Pay and Samsung Pay.

Source: KFC officially launches Apple Pay at US restaurants

FORBES: Computer Education Key To America’s Safety & Security In Our Increasingly Connected Society

FORBES: Computer Education Key To America’s Safety & Security In Our Increasingly Connected Society

Several years ago former defense secretary Leon Panetta warned about the growing threat of cyber attacks. As we wade deeper and deeper into the increasingly Connected Society in which the Internet is a backbone of commerce and transactions as well as communications and streamed entertainment, the dark side is we are increasingly at risk. Some will tout privacy concerns, and while opinions on that will differ, the cold reality is the more information we put into the Cloud or on the Internet, the more someone is going to want it. What they choose to do with that information, including in some cases email address, birth dates, social security numbers, and potentially financial information depends on who is doing the attack and why.

While this may sound somewhat over the top, estimates put the number of leaked records near 300 million in 2015 with over $1 billion stolen in the same year. While one of the high profile attacks was on the Ashley Madison website, Anthem WLP +%, T-Mobile USA , the White House and even CIA Director John Brennan had his personal email hacked. In 2016, we’ve continued to see cyber attacks, including the one on D.C.-area hospital chain MedStar, but we’ve also learned of either previously unknown attacks or ones whose impact was grater than first believed.

Read More  >>

Grabbing Some Java and Taking Some Profits

Grabbing Some Java and Taking Some Profits

There was no Monday Morning Kickoff this week, due to the Memorial Day Holiday. So we’ve got a few things to cover on this first day of June!

Year to date return, we’re looking at a whopping 2.58 percent for the S&P 500. Pulling the lens cap back even further, we’d see that over the last year, the S&P 500 is actually down 0.5 percent for the 12 months ending May 2016. Net net however, with the market rallying 2.3 percent last week, it was the best week for the S&P 500 over the last twelve.

And so, in this week’s edition of Tematica Investing, we are making two important moves. Here’s what you’ll find in this week’s report:

  • We are initiating a BUY rating on SBUX shares with a long-term price target of $74. Because we aim to use weakness to our advantage, there is no stop-loss recommendation at this time. Read more >>
  • We are issuing a SELL on American Capital Agency Corp. (AGNC) shares. Read more >>
  • Updates, updates, updates on the Tematica Select List. Read more >>
  • This week’s Ask Tematica tackles a question on stop losses. Read more >>
  • We’ve got some good news on the Thematic Signals horizon! As you know there is no shortage of confirming data points for our thematic investing framework, but we’ve devised a more user friendly way for you to get them. Read more >>

Click the link below to download the full report

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Mondelez to create more apps, online videos in advertising shift @Redbull @BuzzFeed @MDLZ @PepsiCo $MDLZ $PEP #ConnectedSociety

Mondelez to create more apps, online videos in advertising shift @Redbull @BuzzFeed @MDLZ @PepsiCo $MDLZ $PEP #ConnectedSociety

When a brand as trusted (and as yummy) as Oreo moves shifts gears to online and mobile as well as apps because traditional advertising isn’t getting it done…. kinda tells you something. To us its more Content is King and Connected Society at work. 

Massive disruption in the ad industry prompted Mondelez to switch gears as audiences have become more difficult and expensive to reach, Henderson said. “Advertising is no longer a huge part of the content consumption experience.”

Source: Mondelez to create more apps, online videos in advertising shift | Reuters

Abercrombie’s Sales Slip as Fewer Shoppers Visit Its Stores – WSJ

Abercrombie’s Sales Slip as Fewer Shoppers Visit Its Stores – WSJ

This story on Abercrombie & Fitch Co. provides yet another confirming datapoint in our Connected Society thematic and the transformation of the American-style mall, which is helping to drive our Content is King thematic as well.

Here are just a couple of excerpts . . .

Executive Chairman Arthur Martinez attributed the decline to “traffic headwinds, particularly in international markets and in our U.S. flagship and tourist stores.”

 

Same-store sales are expected to remain challenged in the second quarter and improve in the second half of the year.
Abercrombie has been hit hard by changing consumer preferences, declining mall traffic and fierce competition from fast-fashion players . . .

 

Abercrombie joins a growing list of retailers reporting a weak start to the year. Poor results at department stores and specialty retailers have illustrated consumers’ shift away from brick-and-mortar stores. . .

 

“The traffic situation is a systemic problem for the industry,” said Mr. Martinez. “Our job is to make the most of the traffic we do get.”  He said Abercrombie hasn’t ruled out the option of selling merchandise on Amazon. “As our brands come back to their status and health, we will be looking for additional channels to take our products,” he said.

Source: Abercrombie’s Sales Slip as Fewer Shoppers Visit Its Stores – WSJ

Taking the plunge with this core Connected Society holding

Taking the plunge with this core Connected Society holding

Earlier this week, in the Monday Morning Kickoff, we shared expectations for a much more subdued week, with only a few key economic data points and a slower speed of earnings reports. Talk about not getting what you expect.

Once again we’ve got conflicting views on whether the Fed will hike interest rates in June. We also saw the continued strengthening of the US dollar, and on the back of a greater than expected inventory drawdown, oil prices are nearing $50 a barrel. Combined with the late week rally we saw last week that snapped the prior 3-week losing streak in the market, the S&P 500 is up more than 2 percent over the last few days.

In this week’s edition of Tematica Investing:
  • The ping-pong game over the Fed potentially boosting rates as soon as June continues this week. We will continue to digest data and position theTematica Select List accordingly, balancing the renewed market melt up that has only served to stretch valuations. Read More >>
  • We are adding Amazon (AMZN) shares to the Tematica Select List given its pole position in our Connected Society investment theme, and note the company is also benefiting from Cash Strapped Consumer and other thematic tailwinds. Our price target is $880, and for now we will hold off with a stop loss as we look to use any weakness to scale into this core Connected Society holding. Read More >>
  • This week’s Ask Tematica focuses on whether the US economy is indeed at full employment. Read More >>
  • Rounding out the issue is Thematic Signals, which shows that once again there is no shortage of confirming data points for our thematic investing perspective. Read More >>

Click the link below to download the full report