ZYNE Issue 7 - La chapelle a budding fast fashion company, the result of cheap power

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                                            Edited by jack@zyne.com
 
 
 
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10/20/2017  ZYNE Issue 7  -  La chapelle a budding fast fashion company, the result of cheap power
 
 
 
 
---Greetings :-D ---------
 
Welcome all new readers!
Fall is here, Great time to be investing and trading, sun is out leaves are in, market is on an upmelt! Lots of great stocks to be invested in (2 out of 3000), the rest
is bound to fall in range :0
 
    Jack Meister
 
 
 
 
---General <><  --  General market
At the top range of the market, can't be too top heavy (100% invested in equities)  ,  
selective investing with 1/4th or 1/5th of capital on each position ,  every position needs
to be in a cheap in range (has dropped for awhile) while being strong in business ( market leader). 
 Although, regardless of where the market is:  the previous stock selection can apply to ANY 
market condition.
 
 
---Growth []_____[]-- Bitcoin Vs Government Money (Dollar,RMB,EUR)
 
The land grab of bitcoin and the lack of proliferation due to the static number of bitcoins available has led to insane price growth  1200$ to 5500$ usd in 2017.
What makes bitcoin rise so much? 
- static number of bitcoins available (21 million BTC)
- constant news media advertising/"pump and dump"
- instability in multiple regions around the world (destabilizing their own country currency)
- goldlike restrictions (definite supply)
 
what makes bitcoin not a valid currency?
- at the current moment , can not purchase anything unless exchanged to (Government Money) 
- goldlike  restrictions ( the reason US dollar was taking off the gold standard in the 1970s is without inflation there is no "exponential" growth, gold backed money stabilizes your foundation but limits your growth)
- Every single government hates BTC (lack of taxes)
- to buy within society's comforts ( housing, starbucks ,food)  , it needs to be allowed by government
 

Usages of bitcoin:
- If you live in a volatile area with no stable government, bitcoin is a good alternative to your local currency
  Anything is better then a lawless area. BTC can be used to escape your lawless society (if you live in one ) :D 
 

Stable Scenario :
 
[government governed ]
  [society]
 [gov money]                                             [btc]
   [goods&comfort]
  ^^^^^^^^^^  all other one roof                          ^^^ Outside of government & society 
 

Unstable Scenario:
 
[lack of government]
 [lawless society]                                               [btc]
  [inflated gov$]
   [goods&comfort can't be bought]                                ^^^^ Outside of unstable government provides stability
   
 
 
 
---Fact \O_O/-- money should never be the goal, just the result of cheap ownership
 
Money always a slippery object, but power is firm.  Control of steel is more useful then control of tofu.  The chase of money has always been
a slippery goal but the chase of power leads to concrete results, much more static. The ownership of power results in exponetial gains.
 
Luckily in our capitalistic world, power comes in colorful varieties.
Different power(s)
a) control of market share
b) control of society
c) control of brand
d) control of money
e) control of beauty
f) control of perfection in skills
g) control of location
i) control of entertainment
 
Details of each control to be written in the future, in fact a whole book can be written on each of them 😊

---Growth []_____[]--   La Chapelle -  the Chinese Zara HKex: 6116.HK
 
After an IPO in 2015 , at the price of $14 HKD on the Hong Kong Exchange.  Goldman sachs bought 5% for $50 million USD in 2013. 
$50 * 20 = $1 billion worth 2013.
 
2017 la chapelle market capital = 2 billion USD 
 

Revenue for La Chapelle 
 
2013 6.2 Billion RMB (6.6 USD to RMB conversion , 1 billion USD)
2014 7.8 Billion RMB 
2015 9.0 Billion RMB
2016 10.2 Billion RMB
2017 10.51 Billion RMB (estimated)
90%  revenue growth from 2013 - 2016
 
Looks about right, Here are the competitors for La Chapelle:
 
Zara: 112 Billion EUR
H&M: 43 billion USD (2017 May)
La Chapelle:  2 billion USD
 

The growth of fast fashion aka copy cat fashion, from catwalk straight to stores within 8 weeks  while ensuring
clothing quality (medium quality) is an interesting business model, They do not rely on a particular "style" or
flavor of the month, they rely on speed, manufacturing and the extreme fickleness of clothing buyers.
 
The more fickle the better fast fashion operates, here today off the rack tomorrow! Clothes don't need to be washed, they are only worn once.
Goldman sachs entered la chapelle around $8 HKD per share, current price is around $10.50 HKD per share (2017 October).
 
 
 
Have a great week!
Until next week or the week after... Zyne Letters.
 
 

 
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