Browse Comics By Craft
MidLincoln Comic- Rob Saunders from imaginary RedSun AM in Lincoln Nebraska has decided to learn some real skills aside from his investment skills, but to do it in a manner that would be useful in his day to day work. He wanted to build a car but decided to learn automotive sector in greater detail as his car was being built. He first set aside time to draw a sketch of his new car, and he did that quite quickly. He then started putting together a list of parts he would need to buy with some pricing estimates. The list of parts grew longer and the running total was already quite substantial. He then decided to get the order from a customer first before spending any additional money. So he wondered who would buy it and how to sell it. He rang his long time client – Arthur nn also a car collector, to explain that he thinks that markets are quite toppish, Fed is likely to tighten in March and bonds moved a touch weaker to price that while China central bank has also stated to tighten a bit in anticipation that in case of dollar strength hundreds of millions of small (but very powerful market force) Chinese investors will be hoarding dollars. Oil price also looked quite toppish to Rob – he thought that long oil trade has gather quite a lot of popularity and there will be lots of sellers if the dollar to more higher. Rob's strategic view on the markets was still bullish but tactically he thought there will be some pull back. He then sent Arthur a sketch of his car asking he wants to buy it. Rob also said that he wants to be producing his cars by the pull method.
Building an ATV
Arthur did not place the order for the car and Rob thought if he would do another sketch, Arthur might like it. He did one more sketch, though it looked too ergonomic for him unlike previous… really all-terrain vehicle (ATV) example
..Rob’s strategic view on the markets has not changed, he was still quite bullish, but tactically, though he maintained a neutral stance, his skepticism of the markets grew stronger despite that his gloom has not materialized last week and GEMs and US markets continued stronger. He phoned up Arthur to talk about the markets, upcoming FOMC meeting on March 15… and Chinese mini tightening.
Rob at Mule Stage
Rob has been aware of the “mule stage” in car design. During which engineers take donor cars, strip the vehicles down, and place the prototype products in the existing automobiles. Rob tried this as well.. He particularly liked the windshield wiper
Rob was working on frame for his car pre-production prototype.
Having completed a working “mule” Rob started working on pre-production prototype. As he welded the frame, Rob started to think whether or not to add shares of Gestamp Automocion SA a leader in “Body In White” supplies to his is European stock portfolio. It would all depend on price, he thought. He liked the rally in European shares… He also thought that the US markets will continue to be supported while emering markets could stage a real rally. US bonds will be a notch weaker while gold is like stocks these days – higher, despite the outflows from gold funds.
Body on Frame
Besides covering global financial markets, Rob was working days on the prototype… Dressed in a camouflage work robe he looked like a car mechanic rather than a fund manager. The frame of his prototype looked complete.. He contemplated what to use for the body parts – steel or aluminium. He liked the aluminium idea. He also discussed steel vs. aluminium in automotive with Gestamp managers, a company which he recently met as part of pre-ipo roadshow.
Rob has built a woodie
Choosing between aluminium or steel for the body and parts for his car, Rob has decided on Aluminium for the final product but meanwhile he decided to stick to wood for his prototype. Rob’s prototype has turned up to be a "woodie".. A classic variant of body-on-frame construction The prototype was ready in fairly short time and Rob went for a ride in local terrain. Rob was over ambitions in evaluating the cars’ ATV capabilities; got stock fairly fast and had to look for a tractor for help
Bicycle - a more reliable transportation
Rob was quite happy about his European equities portfolio, which received additional boost following Emmanuel Macron win in France. His Investment into Gestamp IPO returned 5% since the placement. He has increased his European exposure following Merkel win in Schleswig-Holstein and was overall quite positive on European stocks and Euro. Which he thought could still some of the strength from the rising USD. Good that Rob took his bicycle when into his woodie when he went for a test drive, it saved him lots of hours when he had to look for a tractor in a local cornfield.
Rob has a new plan
Rob’s 1st model probably failed the tests in the real terrain. Rob's next idea was to make the version of his ATV slightly more athletic. But he also thought of making it a super single 6x drive with wheels on each axle sort of like Austrian Pinzgauer. While doing that he got slightly carried away with car production and missed the new rise of the Austro-Hungarian Empire at least in equity markets this year. This was most probably the effects of the most expensive Brexit and divorce
6 Wheeler in the Making
Rob enjoyed the emerging markets ride so far this year that would not stopped neither by China downgrade nor by Brazil political shenanigans. But he did not completely believed in emerging markets.. He was expecting at least a pause if not a complete pull back. Meanwhile he launched a completely different model in the rural crafts center… super single 6x drive with wheels on each with Austrian Pinzgauer in mind. The 6 wheeler model was supposed to have 3 bench sears and aluminium body. Its narrow geometry would increase its all terrain capabilities allowing it to maneuver in between the trees
Rear Engine Transmission Shift Problem
Rob has been very energetic and progressing rapidly on his 6 wheel all drive. He struggle a bit with a shifting mechanism for his rear engine prototype. His transmission was completely manual and he could not just get away with electronics. He thought of borrowing a rear engine transmission shift from Tata Nano, which also had rear engine and actually a reminiscent 2 cylinder engine. On the markets he was watching the pause on the most of the markets, that he had anticipated, and thought that the correction or a pause could exacerbate. So he cut his risks.
4 Wheel drive and thoughts about business
Rob watched Fed’s move and emerging market stocks tank last week. He was still not confident in emerging markets and he added more to his shorts. Meanwhile he finished his 6 wheel drive. But he thought that 6 wheels was quite exogenous. So he decided to repeat his exercise and build a more basic 4 wheel and most importantly he started to think about wrapping it all up into a business.
Rob has started covering his shorts in GEM space. He also took on more US risk. In his automotive craft exercise he stumbled a bit with his 4 wheel drive and he started looking for help as the complexity of the tasks grew, but markets were difficult and he could not keep up. Following few rounds of interviews he assembled some initial team
Markets have been rising on fears of attack on North Korea, then they were rising as the threat of North Korea risk off was less. After some huff and puff - Rob decided to try and raise some money for his future automotive engineering business.
He put together a presentation