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NoneThe New England Patriots ’ 34-15 loss to the Miami Dolphins officially finalized their status as a losing football team in 2024. Dropping to 3-9 on Sunday, the Patriots will not be able to get back into winning territory over their remaining five games of the season. As a consequence, they already know that they will finish with a losing record for a third year in a row. After going 8-9 in 2022 and 4-13 in 2023, New England will be no better than 8-9 this season. And if the performance in Miami and the season as a whole is any indication, that record seems unattainable for rookie head coach Jerod Mayo and a Patriots team that has struggled with playing consistent football in all three phases throughout the year. The Patriots not reaching winning territory in three straight campaigns is nothing new, but it has been a while since the organization found itself in that situation. The last such losing streak happened between 1989 and 1993, when New England went five years without finishing a single season above .500. Under Robert Kraft’s ownership, which started in 1994, the team has not experienced a dry run like this one. Time will tell whether it will extend beyond three seasons, and where Kraft’s threshold for losing lies with his club’s new regime. After Sunday’s loss in Miami, defensive tackle Davon Godchaux preached patience. “There are going to be ups and downs,” he said in the locker room after the game. “Nobody got it in a day. Rome wasn’t built in a day. The Patriots organization under Jerod Mayo is not going to be built in a day.” On Day 318 of the Mayo era, that became painfully true yet again.
Black Friday Sale 2024 impact on US Stocks: Big test for shares of retailersAn old proverb goes: ‘Those whom the gods want to destroy, they first make them mad.’ Bitcoin bears would argue, investors in the stock of what was originally a software company — MicroStrategy (MSTR) are in that category. But why so? You would have of course heard of Nvidia and many other AI stocks that have rallied through the year riding the AI boom. But MSTR, which has beaten all AI stocks this year with YTD returns of 515 per cent, and 2,682 per cent in last five years is not up because of anything to do with software. Its upside has all to do with the bitcoin frenzy in recent years and more specifically with the FOMO rally, following Trump’s election victory which is viewed as positive for cryptos. Just around the time when Covid-19 struck, MSTR’s founder and Executive Chairman – Michael Saylor — became a bitcoin bull and repositioned the company as what it calls a ‘Bitcoin Treasury Company.’ Effectively it pivoted from being a software company to focus on accumulating bitcoin from equity and debt issuance over the years. Michael Saylor seems to have not cared much about the software business since. Last week it crossed $100 billion in market cap ($94 billion now). Its annual software revenue is around $450 million. So neither do investors seem to care about it as well. MSTR is all about bitcoin. Anyways, given its bet on bitcoin one might ask what is the issue with its rally since bitcoin too has rallied. Here comes the crazy part. While bitcoin has rallied 157 per cent YTD, MSTR has rallied 515 per cent. How is that possible for a company that is just an indirect way to buy bitcoin, outperform bitcoin by so much? Well, as long as investors are willing to buy its shares that way, it can. Today MSTR trades at 295 per cent premium to the worth of its bitcoin holdings. To explain in simple terms that means, you can either directly buy 1 unit of bitcoin by paying 100 or buy MSTR shares at 295 to get 1 unit of bitcoin. Justifications for this by Michael Saylor and few others belies logic including giving bizarre explanations that coated to sound like sophisticated finance. One explanation given is how using leverage at low cost MSTR will be able to buy more Bitcoin and profit. But that assumes that Bitcoin will continue to only go up. What if it falls big, which has happened many times in the past? Investors would do well to remember how a levered ETF on crude futures wound down when the prices of crude oil went negative in March 2020. Anyways for now MSTR bears, are pointing out to how it crashed after the dotcom boom. Comments
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