When companies grow, they tend to become more profitable. That's because they can employ a concept called economy of scale. It's easier to make 10,000 products via a carefully designed production line than making 100 products by hand. For the right product, say a car, the scale and increased profitability should be obvious.
 | | Good morning. When companies grow, they tend to become more profitable. That's because they can employ a concept called economy of scale. It's easier to make 10,000 products via a carefully designed production line than making 100 products by hand. For the right product, say a car, the scale and increased profitability should be obvious.
Yet it isn't obvious to some. During the Tesla Motors annual meeting on Tuesday, CEO Elon Musk said "Profitability is always challenging when you're a fast-growing company." Actually, no. If you're fast-growing, you're likely already profitable, or plan to soon be. Despite promising since early 2018 that Tesla would be profitable, the company remains stuck in neutral—although folks who love the company have no qualms about adding shares here. | | |
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| | |  | DOW 30, 26,004.83 | -0.17% | | | | S&P 2,879.84 | -0.20% | | | | NASDAQ 7,792.72 | -0.38% | | | | | *As of market close | | | • | Stocks modestly declined on Wednesday, amid tepid economic reports indicating a possible slowdown. | | | | • | Oil took a beating again, following inventory reports, but gold was the biggest winner of the day, up 0.5 percent. | | | |
| | | CPI Data Shows Low Inflation | |  | | Prices for goods rise at a lower than expected rate in May. | | The Bureau of Labor Statistics released its May Consumer Price Index data on Wednesday. The data shows a gain of 0.1 percent, trailing estimates of 0.2 percent.
This follows a 0.3 percent rise in April, which, if annualized, would have shown some of the largest inflation growth in nearly a decade. The new data suggests a slowing economy.
» FULL STORY | | | | |
| | The Real Reason Stocks Could Rally in 2019? | |  | A Wall Street legend whom millions have seen on Fox Business, CNBC and Bloomberg TV just made a prediction that has stunned the business world. WARNING: What he says contradicts everything you're hearing from Wall Street and the Main Street media. If you want to see how to make a fortune in 2019, it's important you watch this interview right away.
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| | Judge Blocks Teva Pharmaceutical's Settlement with Oklahoma | |  | | Maker of opioid products faces lengthy legal hurdles. | | The state of Oklahoma has been going after pharmaceutical companies for their role in manufacturing and selling opioid products. Many companies have settled with the state without going to trial, with the exception of Johnson & Johnson (JNJ), which is currently going through a trial.
Teva Pharmaceutical Industries (TEVA) was one firm that settled with the state, and for $85 million. Yet a district judge in the state will not approve the settlement.
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| | | | Insider Activity: Martin Midstream Partners LP (MMLP) |  | | CFO, COO, and General Council pick up half million in shares. | | On June 11th, a large cluster of insiders bought up shares of Martin Midstream Partners LP (MMLP).
These buyers include CFO Robert Bondurant, who picked up 10,000 shares. General Council Chris Booth picked up 9,500 shares. And the company's COO, Randall Tauscher, picked up 20,000 shares. All told, these insiders bought nearly $500,000 in shares.
» FULL STORY | | | | |
| | Unusual Options Activity: New York Community Bank (NYCB) | |  | | Big bet on shares moving 10 percent higher over next four months. | | At least one trader is betting on a sizeable rally in shares of New York Community Bank (NYCB) between now and mid-October.
On Wednesday, over 10,100 contracts traded on an October 18th $11 call option for the regional bank. With a prior open interest of 462 this represents a twenty-two-fold surge in volume. Shares currently trade around $10, implying an upside of $1 per share, or about ten percent, for these call options to move in-the-money before expiration.
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| | | | TOP | | | MAT | 5.273% |  | | | | ALXN | 2.996% | | | | | LLY | 2.7% | | | | | CTL | 3.291% | | | | | HRB | 3.118% | | | | | BOTTOM | | | WDC | 5.65% |  | | | | MU | 5.396% | | | | | LRCX | 5.286% | | | | | AMAT | 5.143% | | | | | HAL | 4.574% | | | | | |
| | |  | | "[It's] Difficult to see where it goes from here… I suspect that means we are heading for a very thin summer, the market to start loading up on new fears and non-solutions, and face the next crisis point in Q3. | - Bill Blain of Shard Capital on the market's moves in the past week  | |
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