Short Cocaine, Heroin, Microsoft

by Julia Mezzanine Tranche

Recent research by Long or Short questions the purchasing power of the Family of Four (“FoF”). During the process of investigating pricing changes relevant to the decline of FoF purchasing power, Long or Short also identified several trends in the wholesale and retail drug trade.

Increasing prices in Cocaine and other “A-List” narcotics have jump-started online disintermediation of street dealers and spawned a growing industry in price comparison for illicit drugs. MSN is the first internet provider to jump into the fray as the links below show:

Heroin in the Age of Crack-Cocaine price comparison at MSN Shopping Compare Heroin in the Age of Crack-Cocaine prices before you buy to make sure you get the best deal. (link)

Free Cocaine price comparison at MSN Shopping
Compare Free Cocaine prices before you buy to make sure you get the best deal. Find a list of Free Cocaine prices from multiple vendors at MSN Shopping. (link)

MSN’s entry into the marketplace will exert strong downward pricing pressure and is sure to bring other entrants (GOOG) into the market. This loss of pricing power compounds the pressures on the The Big Three (cocaine, marijuana and heroin), as the more nimble, efficient and market responsive meth, as well as a host of other addictive drugs, continue to grab market share. With their high legacy social stigma costs, the Big Three may very well not be able to adjust their position to compete effectively with the upstarts.

Recommendation: Short Cocaine, Heroin, Microsoft (MSFT). Long Investment Bankers (due to increased disposable income from dropping cocaine prices).

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