Cramer says anticipate business consolidation earlier than shopping for on-line sports activities playing shares

CNBC’s Jim Cramer said Monday he believes investors should stay away from online sports betting, claiming it was unattractive for their own businesses like Draft kings because there is too much competition in the gaming industry.

“Until we see fewer promotions and more M&A deals, these online sports betting stocks are … very difficult to own,” he said “Bad money” said the host, noting that this view is in stark contrast to something of optimism around the burgeoning cohort in early 2021.

“But when we see what the reality looks like, there is a lot of competition for market share and little profit. What a shame, because profits are what this market wants right now. That’s why every single one of these stocks has been destroyed.” “Said Cramer, referring to people like Penn National Gaming, DraftKings and FanDuel parents Flutter entertainment.

Other players in this area are Caesars Entertainment, which operates an online sports betting company, and Rush Street Interactive.

Cramer’s comments on Monday are in response to a major milestone on Saturday when mobile sports betting was officially legalized in New York, the most populous US state where it did so. The first four bookmakers to meet regulatory requirements and start taking bets were DraftKings, Caesars Sportsbook, Rush Street Interactive, and FanDuel.

Another five operators are still in the process of meeting all legal requirements, Associated Press reported. Cramer said this is something that investors need to consider when examining the impact of New York’s high-profile start.

“These online gambling companies are throwing money at people to gain market share,” Cramer said, referring to the commercial and commercial blitz taking place in New York. “If the industry is already that competitive with four players, imagine the deals you get with nine players.”

Another factor to consider is New York’s “astronomical” 51% tax rate on revenues that online sports betting providers will be subject to, Cramer said.

“Before you can think about buying sports betting stocks, I think we need to see some consolidation. We have to see some companies leave, ”he said.

Join Now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Consolidation in China’s electrical automobile house is ‘inevitable’

The electric vehicle sector is experiencing its “most exciting moment” – and a consolidation in the industry is inevitable, says Helen Liu of Bain & Company.

“I would say that consolidation is an inevitable trend in this industry,” Liu, a partner in the consulting firm, told CNBC’s Capital Connection on Tuesday. She cited reasons such as the capital-intensive and technology-heavy nature of the electric vehicle sector.

“Historically, we’ve seen invisible hands like the market, and also visible trends, regulations that continually navigated the industry through the consolidation trend,” she said.

On Monday, China’s Minister of Industry and Information Technology the country has “too many” EV manufacturers. These comments sparked fears about further regulatory action by Beijing, this time targeting the autonomous vehicle sector after earlier moves in other industries such as private education and technology.

IHS Markit’s Huaibin Lin said he saw little chance of regulatory interference from Beijing in the short term. Demands by the industry and information technology ministry for a consolidation of the auto sector are not new and have taken place in the last 20 years, he told CNBC’s “Squawk Box Asia” on Tuesday.

“We are in [an] an ever-growing market where we have seen tremendous growth in automotive sales over the past 20 years, “said Lin, manager China Automotive at IHS Markit, adding that the new energy vehicle market is currently experiencing very strong momentum.

“Are we going to see any drastic consolidation in the industry itself? We think there will be a big question mark as long as the market goes on,” he said.

For the next 10 years you will see very fierce competition within the new energy vehicle industry. Nobody knows who will actually survive in the end.

Helen Liu

Partner, Bain & Company

Liu of the consulting firm Bain agreed, saying that the momentum for growth and the outlook for the sector are currently very positive. This is underpinned by factors such as supporting guidelines and, above all, customer acceptance.

“Based on our Bain study this year, we found that the acceptance of electric cars by Chinese customers is leading global trends and we also believe it is steadily increasing,” she said.

China’s electric boom

For its part, China previously mentioned that it would be happy By 2025, 20% of all new cars sold are to be New Energy Vehicles.

Still, the two analysts say it’s too early to say who could be a clear winner in China’s EV space.

“I think it might be a little too early to say which brand or name will win in the end,” said Liu of Bain.

Read more about electric vehicles from CNBC Pro

Beyond domestic competition, IHS Markit’s Lin said China’s electric car makers are also expected to face increased capital competition over the next decade.

Some of this competition could come from long-standing established companies in the automotive sector, he said, with traditional internal combustion engine vehicle manufacturers such as: Volkswagen, BMW and Daimler’s Mercedes is now forging “drastic” electrification strategies.

“You will see very fierce competition in the new energy vehicle industry for the next 10 years,” Lin predicted. “Nobody knows who will actually survive in the end.”

Wooden County Commissioner helps Restoration Act cash for PSD consolidation

PARKERSBURG, W.Va. (WTAP) – The Wood County Commission may consider using funds from the American Recovery Act to help meet a long-term goal set by Commission President Blair Couch.

Couch has proposed consolidating some of the county’s smaller civil service districts for years.

This has been one of his goals in particular since the district commissions were given the power to process rate increase requests from the PSDs a few years ago.

The public law districts of Lübeck and Claywood Park had come before the Commission with requests for fees – in some cases more than once.

“Claywood Park and Lübeck are great PSDs,” Couch told us last week. “But the Charleston Civil Service Commission thinks it’s a worthy goal, and we’re going to involve them in it so we can get it right. I think there are inherent cost savings. “

The commission discussed the idea with representatives of the West Virginia Public Service Commission last summer, while Lübeck at the time had a proposal for a rate hike pending before the county.

The Commissioners will discuss the consolidation idea at their meeting on Monday morning.

Copyright 2021 WTAP. All rights reserved.