{"id":90854,"date":"2016-06-04T09:35:25","date_gmt":"2016-06-04T13:35:25","guid":{"rendered":"http:\/\/countingpips.com\/?p=90854"},"modified":"2016-06-04T09:35:25","modified_gmt":"2016-06-04T13:35:25","slug":"are-we-really-as-smart-as-we-think","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/06\/are-we-really-as-smart-as-we-think\/","title":{"rendered":"Are We Really As Smart As We Think?"},"content":{"rendered":"
June 4, 2016<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Are<\/p>\n

We humans are a smart bunch.<\/p>\n

At least, we think we are.<\/p>\n

I mean, we have smartphones, smart watches, smart meters, and smart cars, among other things.<\/p>\n

Yet, for all this smart stuff, we\u2019re finding it trickier to operate one of our longtime tech mainstays.<\/p>\n

The television.<\/p>

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Far from embracing new-age smart TVs, Greg Miller explains in his article this week, \u201cAmericans watch nearly 2.5 hours of television per day \u2013 but sometimes, it seems much of that time is spent actually finding programming! The problem is only getting worse, too, what with programming coming from multiple sources \u2013 the cable company, Netflix Inc.<\/strong> (NFLX<\/a>), Hulu, Chromecast, and others.\u201d<\/p>\n

However, another \u201csmart\u201d device is here to help us \u2013 and Alphabet Inc.<\/strong> (GOOGL<\/a>), Amazon.com Inc.<\/strong> (AMZN<\/a>), and shortly Apple Inc.<\/strong> (AAPL<\/a>) are falling over themselves for our business.<\/p>\n

Welcome to the Smart Home<\/h2>\n

As Greg covers, Google used its recent Google I\/O conference to unveil Google Home<\/a> \u2013 \u201ca dedicated in-home device similar to Amazon\u2019s<\/strong> Echo<\/a>. The goal? To harness its Big Data and machine-learning capabilities to make Google Home easier to use, more intuitive, and eventually more capable than Echo.\u201d<\/p>\n

In other words, a smart home, courtesy of Google.<\/p>\n

Like Echo, it will be able to control many of the devices in your home \u2013 with some key benefits.<\/p>\n

Greg also notes that Apple is poised to enter this growing field, with a big update planned for Siri.<\/p>\n

In turn, \u201cThe FCC mandate for cable companies to make their programming information open-source creates an opportunity for a single device to track all that [TV] programming. And if that device can also do all the other things that Amazon Echo and Google Home do, it could become a true hub of information and expand the size of the potential market for these devices.\u201d<\/p>\n

You can check out Greg\u2019s full article below.<\/p>\n

That\u2019s not all he\u2019s been up to this week, though.<\/p>\n

The Profits Keep Coming<\/h2>\n

On Thursday, he covered another new trade for Extreme Alpha<\/em> subscribers. This time, on one of America\u2019s leading home improvement and renovation companies that\u2019s capitalizing on strong industry tailwinds, as Americans spend more money on their homes.<\/p>\n

Extreme Alpha<\/em> is based on the overriding premise that \u201cshare prices follow earnings.\u201d<\/p>\n

If a company\u2019s earnings are rising, the stock price will follow. Conversely, if earnings are falling, the stock price will decline. Simple as that.<\/p>\n

Extreme Alpha <\/em>selects strong, well-established companies that have achieved a much sought-after \u201ctriple beat.\u201d<\/p>\n

In other words, they\u2019ve just beaten Wall Street\u2019s expectations for revenue and profit in their earnings reports, while also raising their future guidance.<\/p>\n

Strangely, though, Wall Street often takes its sweet time to reward such terrific companies. Especially when the market is taken by surprise.<\/p>\n

When analysts are right, it\u2019s hard for a stock to move much because the news is already baked into the price.<\/p>\n

But when they\u2019re wrong, we profit from their miscalculations through a powerful concept known as the \u201cpost-earnings announcement drift\u201d \u2013 or PEAD \u2013 where a company\u2019s share price is powered higher as analysts and investors readjust their view.<\/p>\n

But this doesn\u2019t happen immediately after an earnings announcement \u2013 hence the \u201cdrift\u201d aspect. But as more investors become aware that the company is mispriced, they bid shares higher.<\/p>\n

Extreme Alpha<\/em> selects the best triple-beat companies \u2013 and the best PEAD candidates.
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To profit, it harnesses a strategy that locks in consistent, sizeable gains while slashing downside risk.<\/p>\n