Monthly Archives: January 2016

NetEnt is the Test Case for Good Companies in Uncharted Environments

The case of NetEnt will set the tone for gaming investors in the next year or two. What happens with NetEnt’s stock this year will be very telling for how other gambling companies will perform in times of financial turmoil. This is because NetEnt is situated on two extremes. On the one hand, it is one of the most impressive gaming suppliers out there. Growth is spectacular, efficiency is top notch, its balance sheet is a model for financial responsibility for any company be it in the gaming sector or any other. Its products look like a lot of fun. They are colorful, they look exciting, and their games are tuned in to cultural trends.

On the other hand, NetEnt is in Sweden, where interest rates are negative, making asset prices there skewed. NetEnt will be a test case as to how funny money can affect good stocks. When monetary conditions in Sweden normalize, gaming investors should watch how NetEnt’s stock reacts to see how the value of fundamentally strong companies respond to stressful monetary environments.

The other disconcerting thing about Sweden is that it is progressing quickly towards a cashless society. Swedish banks have already begun systematically removing ATMs, and the use of notes and coin is down 20% since 2009. This may seem inconsequential and a trivial point, but it is a direct consequence of negative interest rates. Some Swedish banks don’t even accept cash deposits anymore. This will probably spread.

Negative interest rates mean that bank deposits shrink over time, which would prompt people to take them out and hold them as cash. That would prevent the central bank from lowering interest rates any further into negative territory, so cash is basically the people’s last weapon against inflationary policy. A run on the banks is the final defense against hyperinflation. Take away cash and central banks have literally no check on their policies.

NetEnt is the Test Case for Good Companies in Uncharted Environments

The case of NetEnt will set the tone for gaming investors in the next year or two. What happens with NetEnt’s stock this year will be very telling for how other gambling companies will perform in times of financial turmoil. This is because NetEnt is situated on two extremes. On the one hand, it is one of the most impressive gaming suppliers out there. Growth is spectacular, efficiency is top notch, its balance sheet is a model for financial responsibility for any company be it in the gaming sector or any other. Its products look like a lot of fun. They are colorful, they look exciting, and their games are tuned in to cultural trends.

On the other hand, NetEnt is in Sweden, where interest rates are negative, making asset prices there skewed. NetEnt will be a test case as to how funny money can affect good stocks. When monetary conditions in Sweden normalize, gaming investors should watch how NetEnt’s stock reacts to see how the value of fundamentally strong companies respond to stressful monetary environments.

The other disconcerting thing about Sweden is that it is progressing quickly towards a cashless society. Swedish banks have already begun systematically removing ATMs, and the use of notes and coin is down 20% since 2009. This may seem inconsequential and a trivial point, but it is a direct consequence of negative interest rates. Some Swedish banks don’t even accept cash deposits anymore. This will probably spread.

Negative interest rates mean that bank deposits shrink over time, which would prompt people to take them out and hold them as cash. That would prevent the central bank from lowering interest rates any further into negative territory, so cash is basically the people’s last weapon against inflationary policy. A run on the banks is the final defense against hyperinflation. Take away cash and central banks have literally no check on their policies.

Lionel Messi Wins The FIFA Ballon d’Or For a Record Fifth Time

Barcelona star Lionel Messi returns to the summit of world football after winning the FIFA Ballon d’Or, edging out Cristiano Ronaldo, and his teammate Neymar Jr. in the final cut.

Who is the greatest footballer of past decade?

If we are using FIFA Ballon d’Or awards as bean counters, Lionel Messi, is that man.

A mixed bag of journalists and team captains voted the 28-year old Barcelona star as the greatest player in the world for a record fifth time, after a star-studded ceremony in Zurich. Messi was up against his fiercest rival Cristiano Ronaldo and teammate Neymar Jr. in the final cut. Messi picked up 41.33% of votes, 27.76% went to Ronaldo, and 7.86% to Neymar Jr.

Lionel Messi Wins The FIFA Ballon d’Or For a Record Fifth Time

Barcelona star Lionel Messi returns to the summit of world football after winning the FIFA Ballon d’Or, edging out Cristiano Ronaldo, and his teammate Neymar Jr. in the final cut.

Who is the greatest footballer of past decade?

If we are using FIFA Ballon d’Or awards as bean counters, Lionel Messi, is that man.

A mixed bag of journalists and team captains voted the 28-year old Barcelona star as the greatest player in the world for a record fifth time, after a star-studded ceremony in Zurich. Messi was up against his fiercest rival Cristiano Ronaldo and teammate Neymar Jr. in the final cut. Messi picked up 41.33% of votes, 27.76% went to Ronaldo, and 7.86% to Neymar Jr.

Beth Shak offers $1,000-an-hour poker lessons to women looking for Mr. Right

Listen, ladies. Are you tired of swapping left on dating apps and have some cash to spare? Beth Shak may have just the thing for you.

The former wife of hedge fund manager and fellow poker player Dan Shak is offering her card skills to teach women “a way to find their ideal man at the felt,” Cards Chat News reported.

According to the news outlet, which quoted a New York Daily News article, the former Mrs. Shak is selling a luxury poker set containing gold-embossed cards in a custom-designed wood box with chip logo. The poker set is priced at $129, but pre-orders can get it for $89 and if you’re one of the first 100 to order, you’ll also get an autographed photo of Shak.

Aside from the chip set, Shak is also offering private poker lessons at $1,000 an hour, which she claimed “will show women how to win in more ways than one.”

Beth Shak offers $1,000-an-hour poker lessons to women looking for Mr. Right

Listen, ladies. Are you tired of swapping left on dating apps and have some cash to spare? Beth Shak may have just the thing for you.

The former wife of hedge fund manager and fellow poker player Dan Shak is offering her card skills to teach women “a way to find their ideal man at the felt,” Cards Chat News reported.

According to the news outlet, which quoted a New York Daily News article, the former Mrs. Shak is selling a luxury poker set containing gold-embossed cards in a custom-designed wood box with chip logo. The poker set is priced at $129, but pre-orders can get it for $89 and if you’re one of the first 100 to order, you’ll also get an autographed photo of Shak.

Aside from the chip set, Shak is also offering private poker lessons at $1,000 an hour, which she claimed “will show women how to win in more ways than one.”