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  • How Famed Rap Producer Scott Storch Blew $100 Million Fortune

    How Famed Rap Producer Scott Storch Blew $100 Million Fortune

    Everyone loves a good rags-to-riches tale, but nothing is more intriguing than watching a Greek tragedy unfold before your very eyes. Famed hip-hop producer Scott Storch was once at the pinnacle of the rap game. Within a few short years proceeding his prime, the producer had hit rock bottom and lost his $100 million fortune (and nearly his mind) in the process.

    For most fledgling hip-hop beat-makers, helping Dr. Dre to create the classic Chronic 2001 album would be the highlight of their career. But that was just the beginning for the then-mercurial keyboard player and wannabe rap producer from Philadelphia.

    Hip-Hop Royalty

    Storch created and played the famous piano hook on the worldwide Dr. Dre hit-single “Still Dre,” alongside other melodic hooks right across the critically acclaimed album. But he didn’t stop there. Over the next several years, the producer became hip-hop royalty and cemented his legacy as one of the greatest beat-makers of all time.

    Over the course of his heyday between 2001 to 2007, Scott Storch commanded $100,000 per beat and was regarded as the hottest producer in the game. Artists lined up to give Storch checks when his gravy train was in full swing.

    cocaine

    He worked with the likes of Beyoncé, Christina Aguilera, Fat Joe, 50-Cent, Chris Brown, Erykah Badu, Nas, Snoop Dogg, Justin Timberlake, The Game, and many more. His signature piano sounds and melodies are still etched into the fabrics of 2000s hip-hop and helped the funky white boy amass over $100 million in royalties.

    The problem was that this funky white boy began liking the white powder more than his Akai sampler and drum machines.

    The Fallen Scott Storch Empire

    In the early-2000s, Scott Storch lived in a stunning palatial sea-view mansion on Miami’s exclusive Palm Island at the peak of his career, which he referred to as the ‘Hit Factory.’ The house was worth $10 million at the time and was recently purchased by another rap music mogul, Birdman, for a cool $20 million.

    At the pinnacle of his success, Storch was taking ballin’ to unprecedented levels and might have even helped to coin the slang phrase. He owned a $10 million 117-foot superyacht and a stunning collection of 15 rare and collectible cars, including a $740,000 Rolls-Royce Phantom convertible.

    But as the white powder intake increased, so did Storch’s erratic decision-making as the producer simply kept buying lavish things he didn’t need.

    Talking about his high times in a Details Magazine interview, Storch said:

    “We’d be at the club [in Miami] and I’d decide to take everyone to Las Vegas [on my private jet]. Do more coke, f—k a bunch of girls. Be up for two days and decide at 11 in the morning to go buy a Rolls-Royce. I probably bought 10 cars when I was high.”

    Rumored to have bedded a litany of A-list celebrities from the 2000s such as Paris Hilton, Kim Kardashian, and Lil Kim, Storch stopped making beats while still reportedly paying $1 million per month on maintaining his lifestyle. Storch also reportedly blew $30 million in just six-months on partying with some of the most famous celebrities in the world.

    Life for the producer started to go downhill fast.

    By 2009, it had become apparent that Scott Storch was having real problems. Not only was he hampered by drug usage, but also in regards to paying bills. His $100 million fortune was already gone and he was waking up in a $10 million mansion with no electricity because he couldn’t afford to pay the bill.

    Storch had to reevaluate life and in recent years has turned his situation around. Returning to producing records and now off drugs, aside from his monumental marijuana consumption, Scott Storch is now in a happy place.

    Even though he lost his $100 million fortune, he still lives a relatively wealthy life due to his ongoing royalty and publishing payments from his classic hits, so don’t shed any tears for Scotty, he’s probably not driving around in a wreck.

    Featured image from Billboard.

  • Team Liquid Emerges as the Best eSports Team

    Team Liquid Emerges as the Best eSports Team

    Team Liquid has emerged as the best esports team globally. Founded in 1998, Team Liquid started out as a gaming community website and forum but gradually rose to fame, subsequently to the top of the esports world.

    Team Liquid’s fame began when it sponsored Starcraft: Brood War Team in 2010 and gradually extended its reach to CS: GO, League of Legends, Heroes of the Storm, Halo, and Dota 2.

    Who Is Team Liquid?

    In 2017, Team Liquid’s Dota 2 team won the prestigious eSports tournament TI7 – The International 7, which happened to be their biggest victory ever, as well as the biggest in the history of esports up until 2017.

    At the tournament, Team Liquid won against Newbee with an unbeatable score of 3-0, which earned them a staggering prize of $10 million.

    Ever since the team began featuring in competitive gaming, they have carved out a name for themselves as one of the best esports teams. TL has earned total prize winnings of about $18 million and has participated in no less than 1,130 tournaments. Team Liquid is currently considered by many as the greatest Dota team ever.

    Apart from Dota, Liquid is also famous for their Starcraft II accomplishments where they earned more than $1 million in cash prizes. Moreover, their Counter-Strike: Global Offensive unit has racked up prize winnings of $949,000.

    The total prize money earned by Team Liquid to date amounts to staggering $18,231,389.11. They have featured in 1,130 tournaments, which include Dota 2 (Prize Money Earned: $14,258,294.51), StarCraft II (Prize Money Earned: $1,268,979.76), and Counter-Strike: Global Offensive (Prize Money Earned: $949,121.68).

    Notable players of the best esports teams are Kuro Takhasomi AKA KuroKy (Prize Money Earned: $2,831,532.60), Ivan Ivanov AKA MinD_ContRoL (Prize Money Earned $2,816,032.60), and Lasse Urpalainen AKA Matumbaman (Prize Money Earned: $2,811,532.60).

    Other esports teams who made it to the top 6 list include Evil Geniuses ($16.7 million), Newbee ($11.8 million), LGD Gaming ($10 million), Wings Gaming ($9.7 million), and Fnatic ($9 million).

    Featured image from Playerbros

  • HODL Crypto, Sell Shares, Buy Gold

    HODL Crypto, Sell Shares, Buy Gold

    The cryptocurrency markets are bearish, share prices are down across the globe, some experts and indicators say it’s time to buy gold again.

    In fact, as an international share sell-off continues, investors may have already started to move their money to gold. Both prices and trading volume for the precious metal are showing an uptick in the early hours of today, October 11, 2018.

    Investment firm Incrementum published a chartbook summary this week of their “In Gold we Trust” Report 2018. It summarizes, in charts and bullets, how monetary policy, financial infrastructure, and the performance of other markets affects and could affect the performance of the gold markets.

    Incrementum’s chartbook is a must-read and useful if you are currently HODLing onto your cryptocurrency investments waiting for the light and avoiding traditional stock markets.

    The Conclusion – If There’s a Recession Buy Gold

    The charts show that a number of factors in recent years, including the relationship between gold and global trade, share performance, emerging country reserves, and levels of debt could be signaling that a healthy run for gold values is imminent.

    Not least, the possibility of a global downturn, or even a full-on recession, means it could be time to look at stocks of the precious metal instead.

    Recent IMF reports of plateauing global growth and concerns over fiscal policy uncertainty and the impact of rising interest rates support Incrementum’s suggestion that a recession might be ahead. At least it could be if governments don’t get a grip on their monetary policies. It’s not just trading issues that are causing problems, confidence in Europe and the UK is falling due to the unresolved “Brexit” scenario.

    Incrementum makes it clear:

    “How does the gold price perform in recessions? Short answer: Very well!”

    There are two key reasons for this, investors look for safer bets in times of financial concern and crises and these investors will avoid “monetary and fiscal stimulus,” and buy gold to protect against inflation:

    “Gold is the classical safe haven asset.”

    Gold and Crypto Are Friends

    Incrementum is also very positive about cryptocurrencies, Bitcoin as “digital gold,” and blockchain technologies which may fundamentally change global monetary order.

    “Gold and cryptocurrencies are friends, not foes. In fact, a collaborative approach would play to the strengths of both.”

    Underlying gold transactions with blockchain and the emergence of gold-based cryptocurrencies would work towards this collaboration.

    Any investment is, of course, a risk and much analysis is needed to decide what avenue is the right choice for an individual. Traditional stock markets are taking a beating and confidence is falling in the big technology companies and their shares. Cryptocurrency markets are waiting for their next big market signals, institutional interest, and regulatory decisions.

    Meanwhile, a new gold rush might be on the way…

  • Britain’s Most Expensive Millionaire Pad Sold for a Cool $210 Million

    Britain’s Most Expensive Millionaire Pad Sold for a Cool $210 Million

    Nothing says “I am filthy rich” like buying Britain’s most expensive millionaire pad. If you had a spare $210 (£160) million laying around or stashed in a Walter White-style hole in the desert, you could have been the owner of the flashiest and most expansive property in the United Kingdom. But not any longer.

    A lavish penthouse apartment in one of the swankiest parts of London has just been sold for a cool $210 million. The property sale has garnered a great deal of attention in the local and national media and amongst the growing litany of young and trendy multi-millionaires and billionaires that now make the metropolis their home.

    Swanky Millionaire Pad in Knightsbridge

    The penthouse is a prestigious One Hyde Park property, in the high-class and breathtakingly swank Knightsbridge area, just a stone’s throw from Chelsea’s Stamford Bridge. Chic, sleek, flash, prestigious, exclusive and expensive are just a few words to describe this stunning property. But is any home worth $210 million? Apparently so.

    Nestled in a prime high-end shopaholic location just meters from Harrods and Harvey Nichols and next door to the 5-star Mandarin Oriental Hotel, the penthouse is taking the phrase “conveniently located” to the next dimension.

    The Knightsbridge millionaire pad is spread over two floors and comes equipped with not one, but two wine cellars, which will tickle the fancy of even the most pretentious fermented grape consumer. There are two balconies looking majestically across Hyde Park offering first-rate elevated views of aging Tai Chi practitioners and cosmopolitan dog-walkers.

    The extravagant interiors scream decadence with dominating chandeliers, authentic oak floors and even bulletproof windows for the security conscious and paranoid schizophrenics.

    The SAS-trained security guards are on hand to deal with any undesirables unlawfully entering the property or to take out passing Hyde Park joggers with a sniper rifle.

    Exclusive One Hyde Park Development

    One Hyde Park is easily one of the most exclusive property developments in the world, purchased by the Candy Brothers in 2007. They initially bought the land for £150 million ($195 million) three years earlier and then went on to construct the 86-apartment complex in one of the most prime real estate spots imaginable. Tens of millions of pounds routinely change hands as the apartments are continually bought and sold.

    The buyers of the most expensive millionaire pad in the UK are remaining under the radar. Although it is known that the property was purchased in the name of two offshore holding companies on the tax haven island of Guernsey. Although the sale initially happened in May, the full details are only now coming to light.

    Featured image by Rob Deutscher.

  • Is Fox CEO James Murdoch Set to Take Over Tesla Chair?

    Is Fox CEO James Murdoch Set to Take Over Tesla Chair?

    After Elon’s run-in with the SEC, there’s an empty seat on the Tesla board. But that could be about to be filled, as charismatic media tycoon James Murdoch expressed his interest in taking over. As one of the world’s most innovative and ambitious companies, a seat on the Tesla board is a hotly contested spot.

    Murdoch is far from the only horse in the race to keep leather covering warm. But according to an article by the Financial Times, he looks to be the favorite to succeed Mr. Musk as the new Tesla chairman–a position that must be filled by the middle of November.

    Elon Musk Damaging Tesla Stock

    Social media, particularly Twitter, seems to be the downfall of many a celebrity who can’t keep themselves from getting into Tweet wars or rants in public. However, it’s not a healthy addiction to have.

    When it comes to everyday people, we might get anxious, irritated, or even amused by getting into fights on Twitter. But when it comes to billionaire businessmen with a duty to their shareholders, things are a lot more serious.

    In fact, making certain knowledge public on social media can be considered as breaking the law. Mr. Musk was forced to leave the role as Tesla chair in a settlement deal with the SEC after they claimed he broke the securities laws following a tweet that he had the “funding secured” to take the electronic car manufacturer private.

    While Musk is staying on (for now) as Telsa’s CEO, the SEC requires the Chairman’s seat to be filled by an independent party and non-executive of Tesla. According to the FT, Mr. Musk declined to comment, although later replied to the FT tweet stating that Mr. Murdoch was the frontrunner, saying:

    “This is incorrect.”

    Short but to the point. He negated to reply anything further. It’s well-known that Musk’s favored candidate is Antonio Gracias, Tesla’s lead independent director. However, Musk has already been advised that his relationship is not independent enough due to his involvement with Mr. Musk and his companies.

    Mr. Gracias is the owner of Valor Equity Partners that invested in Tesla in 2005. He also invested in SpaceX.

    Mr. Murdoch was also not available for comment, however, those close to the media tycoon said that he had expressed his willingness to take up the role. It looks to be a sensible move for Murdoch since he will soon be stepping down as chair executive of 21st Century Fox once the sale to Walt Disney is completed. He also stepped down as Sky’s chairman following the company’s sale to Comcast.

    James Murdoch Gives High Praise for the Tesla Tycoon

    At a recent on-stage interview at a Goldman Sachs conference, Murdoch spoke well of Musk and his time as a Tesla director. Calling Elon and his companies “exciting” and “audacious.”

    Murdoch is also a friend of Musk, having joined Tesla last year as an independent director thought to help strengthen the board. His appointment, however, seems to have failed to do that, as they continue to pander to Mr. Musk’s outlandish wishes.

    Murdoch was, in fact, one of the directors who praised Musk’s rejection of the SEC deal that saw 14% shaved off of Tesla’s shares. This may not make shareholders so thrilled at the possibility of having Murdoch take over the position.

    Tesla has until the middle of next month to find a replacement, although this period can be prolonged upon Mr. Musks request.

    Featured image by NRKbeta.

  • If the Fed Has “Gone Crazy” Is Jerome Powell Next on the Chopping Block?

    If the Fed Has “Gone Crazy” Is Jerome Powell Next on the Chopping Block?

    If you were after an in-depth analysis of the latest interest rate hikes from the US Federal Reserve, you won’t get one asking Donald Trump. “I think the Fed has gone crazy,” he said, stepping off of Air Force One. And in case you thought he might want to retract the statement, he then repeated it.

    Which leads to an interesting question. If the Fed has indeed lost its mind, does that mean that Fed Chair Jerome Powell is also insane? And if he is, should he be allowed to hold a seat of that magnitude?

    Mr. Trump has voiced his disapproval over rising interest rates for some time now, accusing them of going too fast with interest rate increments. Back in July, he told CNBC:

    “I’m not thrilled about it… We go up and every time you go up they want to raise rates again… I am not happy about it. But at the same time, I’m letting them do what they feel is best.”

    Yesterday, on the back of the worst trading day in the US stock markets in months, Trump wasn’t quite so diplomatic:

    “I think the Fed is making a mistake, they’re so tight. I think the Fed has gone crazy.”

    He then repeated that sentiment a few seconds later.

    This Wednesday saw the worst day of selloffs for the S&P 500 since February, the worst for the Nasdaq since the Brexit vote, and caused the Dow Jones Industrial Average to drop more than 800 points.

    Should the White House Interfere with the US Federal Reserve?

    The Federal Reserve raised short-term interest rates for the third time this year last month, indicating that plans are to continue slowly with the push. In fact, there are plans for a further rise at the end of this year, followed by three more increments in 2019.

    Is it normal for a US president to comment on decisions made by the Fed? No. Especially since the bank is meant to be entirely free from political pressure. But then, there’s nothing normal about the 72-year-old man currently holding office in the White House. Mr. Trump is certainly not known for holding back when it comes to giving his opinion.

    The US president feels that rising interest rates are in conflict with his goals of making America great again. High interest rates affect the strength of the dollar and could potentially force the growing American economy to slow down.

    However, Trump’s lambasting of the Fed’s decision, calling it “crazy,” has to make you wonder. If that’s really the case, what is the world’s most powerful economy doing with a crazy person at the helm? Now there’s a question that’s been posed before.

    In a later statement on Wednesday by White House press secretary, Sarah Sanders, she said that even after Wednesday’s selloffs, “the fundamentals and future of the US economy remain incredibly strong.”

    Featured image from Shutterstock.

  • Bail on Apple Shares While You Can

    Bail on Apple Shares While You Can

    Anything with a half eaten Apple printed on it seems expensive, especially the company itself. The iPhone XS starts at around $1,000 USD and goes up from there. Most people think of computers when they think of Apple. Yet from a business perspective, the company has been a smartphone powerhouse.

    At least that has been the case until this year.

    Here’s the problem: smartphones are carrying the company’s profits. There is a tremendous amount of competition in the smartphone market. Earlier this year Huawei overtook Apple as the world’s second-largest seller of smartphones, but the stock market just keeps bidding Apple shares higher (apart from the stock selloffs yesterday that saw all major tech companies take a sudden downward turn and Apple (AAPL) down almost 3.5%).

    Long Way Down

    Apple is valued at more than $1 trillion USD. Their trailing price to earnings ratio has climbed to around 20 over the last few months. A price to earnings ratio of 20 isn’t abnormally high, but it isn’t exactly at value levels either.

    Other massive technology companies, like Amazon (whose price to earnings ratio is north of 140), are trading at stupefying levels. Apple’s valuation isn’t nearly as high, but they are highly vulnerable to a substantial drop in earnings. They rely on the Western world to support a business model that may not be able to adapt to the next phase of global growth.

    Taken together, these two factors make Apple unattractive as a stock.

    Big technology players around the world are highly leveraged to continued consumer growth and a stable financial system. Apple’s presence in the Chinese market has been suffering. Right now Chinese tech heavyweights are expanding into their own nation and other growing markets across Asia.

    Apple has depended on Chinese consumers for more than a decade, now they seem to be coming up short. This isn’t great for a business that is highly leveraged to global consumer spending and is able to maintain their valuations because of an accommodative central bank policy.

    Wall St. Loves Apple (Which Isn’t Great)

    Another reason to avoid Apple shares relates to their relentless rise in value over the last decade. Major investors have made a lot of money on AAPL. The overall economic picture has been looking less stable all year, so sticking with a stock that has lots of profit locked up may be difficult for some investors.

    Tech mega caps like Google have risen to earnings multiples around 50, which seems optimistic with Syria heating up again, and an uncertain interest rate situation in the USA. If there is any sort of problem in the global markets, tech heavyweights might be first on the chopping block.

    The recent uncertainty in government debt been hard on global markets, imagine what would happen if there was an even larger negative surprise!

    Expensive Money is Bad for Growth, and Consumer Spending

    Interest rates are still at ultra-low levels around the world. Last week a decent jobs print in the US sent the 10-year yield to levels that haven’t been seen for years. There has also been a string of hawkish statements coming out of the US FED, which could mean a tighter monetary policy in the world’s largest economy.

    Apple relies on a consumer that has easy access to high levels of disposable income. In a world where their competition is expanding rapidly, Apple’s business model looks increasingly questionable. Despite the recent higher-than-expected jobs print in the US, the vast majority of US consumers have less money to buy toys than they did a few years ago.

    Apple Isn’t a Compelling Story Anymore

    A short glance at a weekly chart for AAPL will show that the MACD indicator is at elevated levels, and the RSI is approaching overbought territory. This chart isn’t a slam-dunk short, but it should give anyone who is holding AAPL second thoughts. AAPL shares have been on a winning streak for more than a decade, and there are sure to be some fat profits waiting to be locked-in.

    AAPL chart
             AAPL chart

    It is possible that APPL shares will continue to increase in price for a short time, but when the next round of selling comes to the markets, it would be wise to either be out of your position or at the very least sell some calls to offset your potential mark-to-market losses.

    Over a longer-term, Apple may be in for a rough ride.

    Apple’s core computing business hasn’t generated enough profit to justify their valuation in a long time. As a smartphone manufacturer, they aren’t in a great position. The company sells an expensive product that has a hard time competing outside of the US.

    Apple was able to expand in China for many years, but today companies like Huawei and Xiaomi are displacing Apple. The last 20 years have been amazing for Apple, but nothing lasts forever.

    Featured image from Shutterstock.

  • Epic Games Buys Kamu to Improve Fortnite’s Fairness and Security

    Epic Games Buys Kamu to Improve Fortnite’s Fairness and Security

    Good news for Fortnite fans of all ages. Epic Games, the company behind the popular video game, made a winning move by buying security firm Kamu.

    Epic says that it’s trying to protect its players after thousands of people downloaded a virus-filled app that promised to generate V-bucks, the in-game currency used in Fortnite.

    This isn’t the only time Fortnite has been the target of cyber attacks. Hackers also used another fake app to track the players’ locations and spy them through their devices’ cameras.

    Kamu Has More Than 100 Million Users Worldwide

    The Helsinki-based Kamu was established in 2013 to work on player administration, game telemetry, and game security, among other services. The company developed “Easy Anti-Cheat,” a service that incorporates anti-cheat software and multi-player game management. Kamu is presently used by more than 100 million gamers around the globe.

    Besides improving cybersecurity, the company is also looking to use Kamu’s technology to ban cheaters from the game. Epic Games is already fighting this issue through a series of legal actions that include prosecuting a 14-year-old over claims that the underage player had “unlawfully modified” Fortnite and created “unauthorized derivative work.”

    Before the buyout, Kamu had already partnered with Epic to improve players’ security and enforce better fairness features. Epic Games CEO Tim Sweeney said:

    “Kamu’s team and tools have been key to building a vibrant Fortnite multiplayer experience that’s fair for all players.”

    Besides working on Epic Games products, Kamu will continue to provide their services to their existing customers, whether they use the Epic’s engine or not.

    Epic Games will also use this acquisition to establish a strong presence in Helsinki and consolidate its position in Europe. The company plans to recruit new talent for developing its engine, online services, and other technology.

    Fortnite Is More Important Than Cryptocurrency

    Fortnite is by far the most successful video game on the planet, having over 125 million enrolled players. In May 2018, the game brought in $318 million across the console, PC and mobile categories, making about $2 million a day from iOS users only.

    The Fortnite phenomenon has conquered gamers of all ages–and created panic among parents and even sports teams that now have to deal with possible Fortnite-addicted baseball players.

    During the most recent earnings season, Fortnite surpassed crypto, in terms of how many times it came up in company calls to analysts. Fortnite registered 54 mentions from executives and analysts at tech giants, compared with talk of cryptocurrency, that was mentioned just 45 times.

    Featured image from Shutterstock.

  • Largest Outside Investor Is Unfaithful to Tesla: NIO Stocks Jumps

    Largest Outside Investor Is Unfaithful to Tesla: NIO Stocks Jumps

    In yesterday’s trading on the NYSE, stocks of the Chinese e-car manufacturer NIO put a real rally on the floor. The reason may be a new investor, but he’s also invested in probably the biggest competitor Tesla.
    Investment firm Baillie Gifford has bought an 11.4% stake of rival NIO. Investors were pleased with Monday trading on the NYSE. Baillie Gifford apparently relies on e-mobility, after all, the group already holds a large stake (second-biggest shareholder) in Tesla.

    Bloomberg Report Pushes NIO Stocks

    On Monday, NIO stocks rose sharply and finished with a whopping 22.35% gain at $ 7.39. Initially, the rally was triggered by a Bloomberg report. Here, the US news site reported that a new major investor should now hold 11.44% of all NIO shares.

    On Tuesday morning, they confirmed a mandatory notification to the US Securities and Exchange Commission the process. Newsflash: the new NIO shareholder, Baillie Gifford, is also the largest outside Tesla investor. Only Elon Musk holds more shares of his company.

    More Confidence in the Chinese Market?

    According to CNBC, the investment firm from Edinburgh currently holds around 9% of Tesla. So why invest in another e-carmaker? The reasons can only be speculated on. NIO wants to focus primarily on the Chinese market, which in the near future is also considered the largest market for electric cars. Although there are expansion ambitions, China is clearly in the spotlight.

    Unlike Tesla, which builds its vehicles in the United States and could find it difficult to compete in the Chinese market because of the trade war between the United States and China (despite news of opening a Chinese production plant), NIO has the home advantage here.

    Tesla Produces News Headlines in Particular

    In addition, Tesla stocks make one thing special: volatility. The stocks of the e-car manufacturer from Palo Alto vary significantly with each new headline. However, the price turbulence is rarely due to fundamentals. Mostly it’s about the latest tweets of Tesla’s boss Elon Musk on Twitter.

    Future profitability is often doubted by experts, even if the billionaire never tires of emphasizing the opposite. In addition, the scrutiny of the CEO with the US Securities and Exchange Commission brings further uncertainty for investors.

    Whether Baillie Gifford joins NIO because he believes in the success of NIO, or rather because he sees a failure of Tesla, remains open to debate. In any case, the new investor gave NIO stocks a boost.

    NIO didn’t dare to jump onto New York’s trading floor until September 12. With a value of currently 7.39 US dollars, the securities are trading well below their previous high of 13.80 US dollars, which they hit the day of NIO’s IPO.

    Tesla’s Fans with an Unequivocal Request to Elon Musk

    After another verbal kick against the US Securities and Exchange Commission, Tesla’s CEO Elon Musk turned numerous fans against him. Not the authorities, but he himself is the problem of the stock price decline it seems.

    Elon Musk and Social Media

    Tesla’s CEO Elon Musk does not seem to have learned anything from the Securities and Exchange Commission (SEC) ruling. Despite charges of securities fraud on the part of the US Securities Exchange and a lenient outcome for Musk, he cheerfully keeps on tweeting.

    The e-carmaker Tesla and the 47-year-old were, after the out-of-court settlement with the SEC, each fined $20 million in penalties. In addition, Musk must give up his post as Chairman of the Supervisory Board and renounce this authority for the next three years.

    The Tesla stocks responded with a price increase. A justification, as required by the Federal Judge Alison Nathan by October 11 by both parties, has not yet been received. But one thing is for sure: the Tesla CEO harms the company more and more with his social media appearances.

    It seems like every time the electric car maker announces positive news that they are on the rise, Musk places a tweet that damages the stock. In addition to marijuana consumption in an interview with Joe Rogan, which he claims to have done only to impress his ex-girlfriend, Musk draws attention in recent months with more and more negative headlines.

    Fans Speak Up

    After Elon Musk entitled the SEC on Twitter as “Shortseller Enrichment Commission,” Tesla fans addressed the CEO directly. Some fans asked Musk to stop tweeting.

    For many, the negative impact of Musk’s machinations on the Tesla stocks seems to be a thorn in the side. Some report losses in recent months from Musk’s media appearances.

    One of Tesla’s shareholders noted his displeasure live:

    “Dude, your Twitter account is doing far more damage to my TSLA stock holdings than the SEC or shorts ever have, and it’s been that way for a long time. The stock price is basically a roller coaster between positive Tesla news and you tweeting dumb stuff.” – Justin Meade (@jameade87) October 5, 2018.

    In the following words, Ross Gerber, co-founder of the Gerber Kawasaki Asset Management, asks Musk to stop: “WTF please stop tweeting. Feel free to call me to vent. We want to see Tesla succeed. You’re just helping the enemy. I don’t get it.

     

    Charts from https://www.tradingview.com/chart/

    Featured Image from Tesla

  • Roman Abramovich Proves That Even Billionaires Have Money Problems

    Roman Abramovich Proves That Even Billionaires Have Money Problems

    When everyday people have money problems, it’s usually something on the frontline like struggling to pay monthly bills and so forth. When a Russian billionaire such as Roman Abramovich has money problems, it’s in regards to undervalued luxury properties on the French Riviera.

    Roman Abramovich is better known across the Western world as the owner of English Premier League (EPL) football club, Chelsea. But he’s also as a businessman that made billions of dollars amidst Russia’s oil industry scramble in the early 1990s.

    Although Abramovich is usually in the news for signing a new center forward for the London football club, this time it’s because he undervalued his €100 million French Riviera chateau to reduce his wealth tax payments.

    €1 Million Tax Bill for Russian Billionaire

    Estimated to be worth approximately €10 billion, Abramovich is positioned in the top 150 richest people in the world and is currently battling authorities over a €1 million tax bill in regards to his French Riviera home.

    The Russian billionaire purchased the villa, Cap d’Antibes, in an area called “Billionaire’s Bay” in 2001 in a popular French resort region between Nice and Cannes. He spent over €30 million on renovating the property.

    According to a Daily Telegraph report, he should have paid a higher price in “wealth tax.” By undervaluing the property at €41,000 per square meter, he now finds himself in hot water with French authorities.

    The 18.5-acre estate was once owned by the Duke and Duchess of Windsor and has an estimated living area of 2,400 square meters, which Abromovich claimed was worth half of the what the French Court of Cassation believes to be closer to the real value.

    Yet Abramovich is adamant that authorities have failed to take into consideration his spending on the renovations. However, when compared to similar properties in the region, the court ruled that Abramovich had underpaid on his wealth tax between 2006 and 2007.

    The Russian oligarch has been dealing with a number of issues over the past several months and has had high-profile run-ins with the UK authorities in regards to his visa, and other reports out of Switzerland saying that Abramovich could have links to organized crime, which the Russian has flatly and strongly denied.

    As the old adage goes “more money, money problems,” so will it be interesting to see how this pans out over the course of the next few months.

    Featured image by De Marina Lystseva.