I love business models such as the razor and razor blade. That is one in which you basically give away the razor in order to get a annuity of sales from the razor blades.

One such product is the Apple (AAPL) suite of "i" products: iPod; iPhone; iPad. Except, in the case of AAPL, these products make money on the razor and the razor blades. The razors are the aforementioned products. The razor blades are applications or "apps", music and videos which are sold on the company's iTunes website.

The amount of apps out there is mind boggling. They outnumbers exchange traded funds (ETFs) and they are being created even faster than those securities. 

Now my friend, Cody Willard, of Fox Business News fame, has built a website dedicated to apps. It is called AppConsumer.com

I gave AppConsumer a good kicking of the tires and was quite impressed. In fact, I posted my own Top 5 Most Used Apps List. I have appended that list here below. Check out the site when you have a chance. It will make you a better application consumer in a growing world of applications.

Used on an iPhone 3g, which I need to upgrade:

1. Bloomberg – I am a professional money manager and President of LakeView Asset Management, LLC . I need to be on top of the markets – stock, commodity, bonds, stock futures, currencies and news at all times wherever I go. The Bloomberg app is free and provides we with that instant access 24/7.

2. Gmail – When it comes to web based email services, GMail is the best there is to offer. Why should I invest in a Blackberry when I can just put the GMail app right on my IPhone. It allows me to have instant communication for business and personal reasons. Gmail is easy to use and does not require any third party servicing or contract.

3. MLB.com At Bat Lite - I am a big  baseball fan. Have been my whoile life since growing up in Brooklyn when we used to play in Sandlots. Sandy Koufax was a local hero, as was Joe Torre. I played little league in the neighborhood where Joe Torre grew up. I am a devoted fan of the Yankees and use the MLB app to follow every game wherever I might be. It also gives me MLB news and standings in real time.

4. The Weather Channel (TWC) - My family has homes in two different states, our main house in New Jersey and a vacation home in upstate NY on Lake George. Weather is so important in the northeast for safety, recreation, school closing, etc. that having up to the minute and forecast weather is vitally important no matter where we may be. It also helps me on business trips out of town. I prefer TWC but I would note that my wife is a Weather Bug fan.

5. Shazam – I have over 2,500 songs on my iPhone. There are plenty more that I am missing from my catalog of music. Whenever I hear a song that I like or do not know the name, I Shazam it and get the artist and title information immediately. Then I can decide later to add it to my collection.It also has great links to YouTube and the iTunes store.

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC owned AAPL stock and calls --- although positions can change at any time.

For more information on investing with LakeView Asset Management, LLC please visit the company's website

Posted By Scott Rothbort at August 24, 2010

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There were multiple stories out over the weekend about Research in Motion (RIMM). First was the news that RIMM would try to go head to head with the Apple (AAPL) iPad with it’s own Blackpad product. Those rumors helped RIMM shares move a bit higher on Friday. However, today several countries are ready to shut down the Blackberry email service. That has shares lower today in a strong tape.

RIMM originally was content with having a near monopoly over the enterprise market. However, it was apparent that the company was too reliant on corporate technology budgets. Then it made what I thought was a good strategic move by expanding to the consumer markets. However, RIMM lost its way. RIMM really needs to define itself. RIMM needs to differentiate itself from Apple (AAPL). Instead, RIMM defines itself by Apple. The company will be one step behind the innovator, AAPL if it continues along this less dominant path.

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC owned AAPL stock and calls --- although positions can change at any time.

For more information on investing with LakeView Asset Management, LLC please visit the company's website

You can subscribe to The LakeView Restaurant and Food Chain Report newsletter at Restaurantstox.com

Posted By Scott Rothbort at August 2, 2010

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General Motors (GM) is buying Americredit (ACF) for $3.5 billion. It was two factors that got GM into trouble in 2008. First was its huge foray into consumer lending, particularly subprime lending. Second, were problems with its core auto manufacturing business.

Out of political and social necessity, along came the US Government and bailed out GM and GMAC. GMAC is trying to rebrand itself under the brand name “ally”. GM was supposed to slim itself down, get away from risky financing and get back to making cars that the public wanted to own. Last years “cash for clunkers “ program helped to kick start sales of US made cars. 

So, now GM relapses and get deeper into higher risk financing. Where is the outrage? Why is the US Taxpayer, Congress and the White House allowing GM to buy ACF?

It just goes to show you that credit is cheap and in the midst of a major bull market.

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC owned GMAC debt securities --- although positions can change at any time.

For more information on investing with LakeView Asset Management, LLC please visit the company's website

You can subscribe to The LakeView Restaurant and Food Chain Report newsletter at Restaurantstox.com

Posted By Scott Rothbort at July 22, 2010

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Some thoughts about IBM (IBM) now that we are pretty much a full trading day removed from the earnings release.

First, IBM is no longer as relevant as it one was for the overall market or for the technology sector. IBM's heyday was the 1960s and 1970s. IBM was then replaced by Microsoft (MSFT) in the 1980s and 1990s. Now, MSFT has ceded its technological leadership to Apple (AAPL). Someday some other company will supplant AAPL. We may be years off from that happening.

Second, the revenue for IBM miss was not a miss at all. It was a failure on the part of analysts to properly factor in the impact of foreign exchange on their revenue estimates. Either the analysts are lazy or incompetent. The excuse that they do not have enough revenue data and geographic breakdowns for IBM sales is a “dog ate my homework” defense. It is not acceptable to me.

Third, IBM, the largest component in the Dow Jones Industrials (DJIA), a price weighted index, just proves how antiquated and out of touch with the investing public that the DJIA is. 

Posted By Scott Rothbort at July 20, 2010

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Biglari Holdings (BH) is getting smoked once again today. This restaurant chain / wannabe roll-up conglomerate reported very disappointing results on Friday after the market close. BH earned $3.84 versus $1.58 last year and the sole covering analysts’ expectations of $5.97. I have warned that this company is a disaster in the making and have short positions on. The stock has lost just over 1/3 of its value since peaking in early April at $418.  

BH was a short pick for my newsletter, The LakeView Restaurant & Food Chain Report several weeks ago. Is it too late to short BH? I believe that this stock could trade into the 100s, especially if the chairman makes another nonsensical offer for stock of another company. The company should earn between $15 and $16 dollars in FY10. What kind of multiple would you want to put on this stock? Does it deserve a multiple like McDonald’s (MCD) or Yum Brands (YUM)? I think not. BH deserves a multiple of 10 to 12 and I am being generous. 

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC was long shares of MCD and short shares of BH--- although positions can change at any time.

For more information on investing with LakeView Asset Management, LLC please visit the company's website

You can subscribe to The LakeView Restaurant and Food Chain Report newsletter at Restaurantstox.com

Posted By Scott Rothbort at May 24, 2010

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