How to Win the SnapChat IPO Without Buying the Stock (Coming Soon)





The two leading underwriters of the SNAP IPO ($SNAP) recently were noted as Goldman Sachs and Morgan Stanley. A close third position was JP Morgan. It is important to follow how many shares each one offered and how each of those investment banks made off because of the IPO. Snap Inc is seen as a loser, namely because it has actually lost almost a billion last year. They spend way too much and have not yet found out how to capture their extremely young audience ad dollars. A lot of young people use Snap… And as a side note lets be real, they are not a “Camera Company”. They are a photographic social media company using real time technology.

Morgan Stanley led the way. Which is why they are the featured stock of this story. How do you beat a loser in the market when they launch their IPO? Buy the underwriter. In this case Morgan Stanley as the lead will make the most money from the offering because of fees charged to Snap for the process and how much they had to offer to funds and insurance companies.

“According to SEC filings, lead underwriter Morgan Stanley got 60 million Snap shares, or, 30.2 percent of the shares given to underwriters — which would mean $25.71 million in fees, the biggest cut of any bank”.

This is big because when it comes to quarterly earnings, especially year over year (YoY) Morgan Stanley should see a jump in earnings due to the slow growth of the IPO market from last year. So take a look at the numbers and perhaps Morgan Stanley is the real winner here.

One last thing to note: Saudi ARAMCO Oil deal scheduled for 2018 is also expected to have Morgan Stanley lead the deal, and will be if it goes through the largest IPO ever valued at pre-IPO around $2 Trillion. For more info on the Snap IPO, check out the links below.


** In interest of full disclosure the author does own shares in Morgan Stanley (MS), but not Snap (SNAP). **

** Please check out a prospectus and look at your own risk before investing in anything, if you choose to. **

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Why Millennials Are Not Leaving Home


Mortgage rates are down slightly again, but first time home buying has slowed down and even dipped. In 2015 the percentage of first time home buyers was at 32%. Contrary to the expectation, the reality is that recent grads and others in the younger portion of the Millennial group have more expenses than other generations.

  • Gas
  • Food
  • Going out
  • Rent
  • Student Loans
  • Car Loans
  • Insurance
  • Retirement

I could rattle off a few more but for now these will do. So lets pick out and explain a few:

Going out: This may seem like an easy one to cut out if your an older generation, but the truth is we like to have fun. Going out makes us forget the rest of the bullshit on this list so no we wont get rid of this one. Now, we might limit how much we go out in a week or month, but not going out at all is not an option when clipping expenses.

Student Loans: This one will keep us from buying homes and living at home the most drastically. The range for some loan balance a month is between $200 and $1,000. That additional expense should be a mortgage payment, and now it is not. The amount on average borrowed for a 4 year education is $30,000, or a good-sized down payment.


Insurance: The rising costs of insurance (Medical, Car, etc) is not cheap anymore. In 2015 the average cost for Millennials insurance was $486 a month. Insurance is not wanted but needed, and many of us see it as unnecessary, especially because we can stick to our parents plan until we’re 26.

Retirement: For older generations this might be the saddest reality for the younger generations knowing the fact that 80% of Millennials do not invest. Investing can be anything, but in this case it’s stocks, which are a basic form of investing when you do not know how bonds, annuities, 401k, ROTH or Traditional IRA’s work.

Photo Courtesy: Reuters/Lucy Nicholson

In turn, all these things add up. And if you look at this list of common Millennial expense, the fact that workplace wage increases have been happening do not really help. You can increase the amount of money you pay someone, but it does not matter when their list of expenses grows higher than your increase. One thing that some bigger companies how incorporated into their pay packages (Like having an automatic 401k option) is paying off their workers student loan debt.

Still, living at home seems like a good option and the housing market will continue to slow down if some of these things are not looked at. No one cares or looks at “Net Worth”, or considers the impact of owning a house with tax benefits and and tying it to retirement.


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Cover photo: Startup Stock Photos


Why Facebook Should Buy Square


The floor of the New York Stock Exchange.
The floor of the New York Stock Exchange.
Facebook is coming off its highest stock price since… Well, ever. After hitting the $100.00 per share mark last week Facebook’s value was around $230 billion earlier this year (Pre $100.00 per share). Facebook bought WhatsApp for $19 billion in 2014 and saw WhatsApp’s potential with its 450 million users. Now WhatsApp has grown to 900 million users, so whatever Mark Zuckerberg saw was very clear.

Facebook is becoming a behemoth. In a few ways Tim Cook and Mark Zuckerberg are very similar people when it comes to how they view competition and the importance of mergers and acquisitions. Cook and Apple bought Beats from Dr Dre in 2014 for $3 billion. Zuckerberg and Facebook bought Instagram in 2012 for $1 billion absolute bargain. Facebook has also bought WhatsApp and Oculus in 2014. Oculus was bought for $2 billion.1431862470600

What do a photo sharing app, an international instant messenger app, and a virtual reality video game company have in common with Facebook? Well if you break it down like that each one compliments a part of Facebook. Instagram with the photo’s uploaded, WhatsApp is like Facebook’s Messenger, and Oculus provides the option of virtual reality with not where Facebook’s position is today in social media’s intensive media sharing, but for where Facebook could explore going in the future.

Now how does Square come into play? if you think about how careful Facebook has bought the companies it has acquired, one could definitely see why Square and Facebook would be a perfect match. The prices Zuckerberg paid for Instagram and Oculus for the “bargain” billion and two billion dollar respectively make Facebook a visionary company to go shopping at the dollar store for billion dollar private companies in the lower range but could provide value down the road. WhatsApp could be considered a bargain for the $19 billion paid based on how many users it had at the time and how many Facebook not only projected but also guessed right to how many it has grown too.jack-dorsey-techcrunch-disrupt-sf-2012_pop_20294

Square is founded and run by Jack Dorsey, who also founded and is back as the current CEO of Twitter. Square filed for its IPO on 11/06/2015, and it came in lower than most expected… $2 billion under to be exact. This could be a play for Facebook, or any other large company with a lot of dollars to spend because of the low valuation. A mobile payments platform is what Facebook should turn to for its next acquisition. Square would be a perfect fit for Facebook for not where it is right now, but again where it could go. Having payments processed through Facebook should be something seen as a way to get users to have one-stop platform to do everything.

This could be seen as a conflict because Facebook is a competitor of Twitter, of which Dorsey also runs. But that could be taken out of his hands once Square goes public. Dorsey will probably stay with Twitter as CEO for the long term, because the task of trying to lift two separate companies from slow revenue growth problems will be too hard to handle all at once and he could probably do better with Twitter anyway.

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Amazon’s New Fire Tablet



The new Kindle Fire coming out at $49.99 will probably be the highest selling product of the Christmas season. We are now coming to the point of technology where not only does it continue to get smaller with each device, but also costs are coming down. We are starting to see different ways to build tablets and smartphones to get them out to the market quick and cheap compared to competitors. Apple doesn’t often counter products. They will most likely not come out with a $49.99 tablet because that is not what they do.

Reacting to how competitors make moves is not what a company like Apple does. They have a plan and stick to it, which has worked for them so far. That means a lot when it comes to believing in your customer base and in yourself with your products and services that you don’t have to try and one-up someone else doing the same thing you are doing.

This was an unpaid post.

Image courtesy of Amazon Press

Why Millennials Today Are Not Investing


Photo Courtesy: Reuters/Lucy Nicholson
Photo Courtesy: Reuters/Lucy Nicholson

Many of the Millennial Generation are not seeing investing as an option or as necessary. Not only for retirement but also just as a general way to grow what money they have quicker. I am surprised some financial discount brokerages have not catered or carved out an option in all their products to have one created for someone either in school or just young and do not know what to do with their money. By having someone provide their age or a school (.edu) email address should be enough to gradually show them how investing works by offering a cheaper commission package or platforms of some sort.

That is just an idea because these firms will soon see that the Generation X’ers and Baby Boomers will all but soon be tapping in to what they have put in to the market, and yet it seems few Millennial’s have any clue as to how to even navigate and execute a trade.

Case in point: I am 21 years old and only one of my friends actually has an investment account, and he’s actually doing pretty well with it. Though most of people my age are in college as seniors (Or credit-wise some point in junior year), I don’t expect any of them to have 401k plans yet because none of us have launched or started full time careers. But the fact that almost no one has a personal investment account, let alone an IRA of some type, is concerning for the future of financial well-being.

My point in bringing this up is that early on in the start of a full time career, a Millennial may not choose to open a personal investment account (Including an IRA) or a 401k because of the lack of knowledge but also because of the sizable bill every student is racking up right now. When people back in 2008 to even now say how my generation to even the generation under us will eventually have to pay for a national debt is starting to show specific effects. Slow rise in income will be our biggest burden.

I do not see how companies today feel alright with not raising wages from the middle on down. Companies are making profits and not in the red. The costs that are affiliated with the Millennial Generation will most definitely be greatest in the repaying of the four years of college where they incurred debt. For some, upwards of $100,000. And that amount could be seen for the kids going to Columbia, Yale, Brown, etc. The Ivy leaguers who are supposed to be first in line on the forefront of how a generation is lead in everything they do. In terms of economics I’ve been told by my professors to think of it like this: You forego or leave money on the table by being a full time student. Even if you have a part-time job while in school, which 80% of Millennial’s do, you still could have a full-time job and be making more at the point in time. So the foregoing of money means less to help pay off the amount you owe at graduation.
Photo Courtesy:

Rise is debt when starting a first time full-time job will mean less and less will be saved for retirement because of the fact that after 6 months of leaving school they will say hello to the first installment of payments from school (Many of which carry high interest rates; even if it is a government loan). Joining a companies 401k will not seem a viable option because of the thought of using money for “now” costs will be more important than saving for later.