Author Archives: Scalper1

Virtual Reality Could Disappoint Initially, Baird Says

Hype about virtual reality is in full gear ahead of the launch of Facebook ’s ( FB ) Oculus Rift. But don’t be surprised if VR meets consumer disappointment at first, Baird analyst Colin Sebastian said in a research report Monday. Talk about virtual reality for video games was at a fever pitch last week at the Game Developers Conference in San Francisco, Sebastian said. But, he added, the Oculus, the Vive from HTC and Valve, and Sony ’s ( SNE ) PlayStation VR face a serious risk of a “trough of disappointment” post launch. “While we expect each of the three VR platforms will likely sell out of limited initial production/shipments, adoption among a broader consumer base will require lower prices, more  attractive form factors and improved usability,” Sebastian said. “Additionally, we note there are still some issues with motion sickness.” He expects Oculus to sell 500,000 to 1 million units this year, which is less than consensus expectations for 1 million to 2 million units. Sony won’t hit the market with its VR headset until later this year, but its lower price and installed base of PlayStation 4 game consoles will give it a significant advantage, Sebastian said. The Oculus Rift is set to begin shipping on Monday in 20 countries, including the U.S. The Oculus headset costs $599 and requires a high-end PC with a graphics card. Bundles of the Oculus Rift and “Oculus-ready” PCs start at $1,499. The HTC Vive, a collaboration between smartphone maker HTC and video game developer Valve, is due to go on sale April 5 and cost $799. Like Oculus, Vive requires a high-end PC with a dedicated graphics processor. Sony announced last week that its PlayStation VR will go on sale in October in Asia, Europe and North America. The headset will be priced at $399 in the U.S. PlayStation VR users will need a PS4 game console, which now retails for about $350. Also, some games will require PlayStation Move and camera accessories to track players’ movements. Sony plans to sell a $500 bundle that includes the VR headset, two Move wand controllers, a PlayStation Camera and a “PlayStation VR Worlds” collection of themed mini-games. RELATED: Content Is King In The War For First Generation Virtual Reality  

Chart Of The Week – 2008 Or 2011?

By Joseph Y. Calhoun Credit spreads are a big input to our investment process. It was the widening of spreads that convinced us to reduce our equity allocation before the volatility of last year. But active asset allocation requires that you get two consecutive decisions correct and that isn’t an easy task. Right now, for instance, we are watching spreads intently trying to figure out whether the all clear has been sounded. Spreads have narrowed considerably over the last five weeks, and if they continue to do so, we will, in keeping with our process, be forced to raise our risk budget. When we did our monthly Global Asset Allocation review 11 days ago, the trend was still toward widening and the decision was obvious but spreads have continued to narrow. So, the big question facing us and all the other tactical allocators is this: Is it 2008 or 2011? If it’s the former, we have just been given a wonderful opportunity to get more defensive. If it is the latter, we need to figure out how to raise our risk allocation. Click to enlarge So which is it?

Amazon.com Sues Executive Whom Target Recently Hired

Amazon.com ( AMZN ) is suing logistics and supply chain expert Arthur Valdez, whom Target ( TGT ) recently hired, alleging that Valdez violated the noncompete clause in his contract, according to the Wall Street Journal . Valdez had been an Amazon employee for 16 years and signed a noncompete agreement in 2012 requiring him to wait 18 months before taking a similar position at a rival. The lawsuit, filed Monday in King County Superior Court in Washington, according to the Journal, says that Valdez has already disclosed secrets to Target such as an analysis of Amazon’s holiday operations and its same-day grocery and package business. Valdez’s appointment at Target was announced in February, according to Reuters . Its report says that according to Valdez’s attorney, he isn’t scheduled to start until March 28. Amazon.com stock was up almost 1% in afternoon trading on the stock market today , near 558.50. The stock has an IBD Composite Rating of 66, where 99 is the highest. Shares are up 18% from a recent three-month low of 474. The Journal quoted a Target spokeswoman as saying that the company has taken significant precautions to ensure that proprietary information stays confidential and that Target believes the suit is without merit.