The Neo-Market Report

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As always, the Neopian Times is proud to bring to you the wisdom and insight of our resident financial wizards, Neil Kauvuto and Maria Blumeroono. In this latest installment our hosts are joined by J.P. Moehogan, president of Chia Steel, who is here to discuss the trend towards globalization in the heavy industry sector. And now, here are our hosts, Neil and Maria…

KAUVUTO: Hi, and welcome once again to this week’s installment of the Neo-Market Report. We are your hosts, Neil Kauvuto and Maria Blumeroono. Later on we’ll be joined by steel magnate J.P. Moehogan, but first let’s take a look at this week’s headlines. For that we turn to my co-host Maria Blumeroono, who’s at the news-desk with the latest from the floor of the Neodaq.

BLUMEROONO: Thank you, Neil. In the wake of last week’s torrential Bull Market, the moderate downturn on The Street this week actually came as a bit of a surprise. Despite analyst predictions of the Neodaq possibly reaching 5000, the index stayed right around 3000 for the better part of the week, settling in at about 2500 at week’s end. However, there were a few companies who posted strong results in the midst of the week’s moderate activity. Among this week’s winners were Kacheek Telecomm, who rebounded from last week’s tumble, and Peophin Water Parks, who capitalized on this summer’s sweltering heat to post stronger-than-expected yearly profits.

KAUVUTO: And, of course, no Market Report would be complete without the floor’s biggest losers. Heading the list this week are a number of tech stocks, many of whom saw their investors sell and put their money into backing the surge of Kacheek Telecomm. Among the techs on the downturn were Cybun Electromatics and Techrobatics Fitness Videos, who both posted lows in the wake of Kacheek’s reemergence. Other losers included Chiatech Password Security, who is still reeling in the wake of the recent password scandal, and Neggwork Commerce, who came back to earth after peaking at over 50,000 NP a share.

BLUMAROONO: This week our special guest on The Neo-Market Report is J.P. Moehogan, the President and CEO of Chia Steel, who is here to tell us about his company’s plans for the future. Mr. Moehogan, thanks for taking time from your busy schedule to join us…

MOEHOGAN: Ah, yes. You’re welcome.

BLUMAROONO: Now, there’s been some recent controversy about Chia Steel’s restructuring strategy, which would entail moving a number of manufacturing jobs out of Neopia Central and into distant areas so the company could save money by paying their new employees much less…

MOEHOGAN (interrupting): well, you see Marie…

BLUMAROONO: Um, Maria…It’s Maria.

MOEHOGAN: Yes, very well. As I was saying, Maria, the key to staying in business is remaining competitive. If we don’t relocate these factories before our competitors do, then when their prices drop our market share will drop. And, as you know, once our market share drops then the amount of profits that our company makes will also shrink…

KAUVUTO: Uh, excuse me but didn’t Chia Steel make record earnings this past year, even with all of its plants in Neopia Central? I mean, your company is valued at more now than it’s ever been worth before, and your percentage of the market has never been higher. Is this how you reward the employees who catapulted you to this unprecedented success, by shipping their jobs to Maraqua where they can be done by some adolescent Koi dropout who works sixteen hours a day for 10 NP a week?

MOEHOGAN: If I can be so frank here, Neil, it’s not very journalistic of you to expose your bleeding-heart bias by painting this issue with such a wide brush. Such demagoguery is really beneath you…honestly, I expected better from an award-winning financial analyst such as yourself. I would think that you, of all people, would understand that this is simply a matter of dollars and cents: nothing more, nothing less.

BLUMAROONO: So is that what you would like to tell the thousands of workers that have lost their jobs due to this restructuring decision, that in the end the money is the only thing that matters?

MOEHOGAN: No, what I would like to tell our former employees is that I hope they understand that this was simply a measure which had to be taken in order to remain number one. If it wasn’t us, then it could have just as easily been the Powlex Corporation or any one of our other competitors. We only want what’s best for the company, and I would hope that they’d understand that.

KAUVUTO: Well, it looks like we’ll just have to agree to disagree on this one. Mr. Moehogan, we’d like to thank you for stopping in and taking the heat. If nothing else you should be credited for having the guts to come on The Neo-Market Report. We’ve contacted a number of CEO’s whose companies are doing exactly what Chia Steel is doing, and I must commend you for being the only one willing to visit and defend your point of view.

MOEHOGAN: Well Neil, even though we don’t see eye to eye on this one I appreciate the sentiment.

BLUMAROONO: And now, let’s check in with Marvin and Clyde, who have a report from the Neopian Commodities Research Institute. Guys…

CLYDE: Thank you, Maria. This week has seen a new low in Codestones with prices dropping as low as 750 NP, though prices should continue to rally, as they always do, on the weekend.

MARVIN: That’s something important we’d like to point out to market novices. Remember that prices always go up on the weekend. It’s the “weekend spike,” as we like to call it here at The Neopian Commodities Research Institute. But a good call on those Codestones, the other week, Clyde.

CLYDE: Yes, currently, we’re expecting prices to continue falling for the next week. Estimates have put Codestone prices bottoming out at around 700.

MARVIN: On the Faerie front, Faeries have risen to 1000 NP, and are expected to continue to climb. Supplies have simply been unable to keep up with demand.

CLYDE: Also, as we said the other week, Motes are continuing to rise in price. With discount cards and negotiating with the shop, it is possible to buy an Ice, Bubble, or Lava Mote for around 100 to 130. The secondary market has put the resale at around 150 to 170. This, of course, does not include the prices of the Frost or Water Motes, which are upwards of 3000 NP on the resale market. But this reversal of fortune for the common Motes has caused a resurgence in the market.

MARVIN: However, you might not want to start selling those Motes just yet, as the value continues climbing. And expect a huge push on BD-Day.

CLYDE: Dark Scrolls, Enchantments, and Air/Water/Fire/Earth Spells have leveled out at 200, with day to day market fluctuations bringing it down to 180 and as high as 250. This type of leveling out is unusual.

MARVIN: A recent glut of spells hitting the market has resulted in this stabilization, and mass selling due to rumours that spells will not be that useful in Battledome have resulted in panic selling from some investors. Clearly this is a volatile market and should be approached with caution.

CLYDE: And now a special report from Snowball, our clothing consultant.

SNOWBALL: HIYEEEE, Neoworld! As you know, EVERYBODY is wearing caps and collars. If you’re buying stuff for your pet, you’ve just GOT to get that nifty cap with the cute little Jub Jub on it. Or if you’ve got style and poise, nothing says affluence like the studded leather collar which goes for around 2500 NP. It's just says, “I can use this for a fire faerie quest, or I can just lay around.” Back to you, Clyde!

CLYDE: Thank you, Snowball. That's all for us this week. Tune in next week for our special report on Wellington Boots: when should you give up on the Faerie Quest and just buy a Codestone. Until then, I'm Clyde...

MARVIN: And I'm Marvin, saying so long!

BLUMAROONO: Alright, guys! And that’s going to do it for us as well. For Neil, Marvin, Clyde, and Snowball, this is Maria Blumaroono saying thank you and good night…