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In Theaters Near You: An In-Depth AMC Analysis [Response to CNBC] [DD] 🚀🚀🌕

THANK YOU MODS FOR LETTING THIS THROUGH!
Please click HERE for the PDF version if you would like to download the dd.
(credit: research compiled by IG:@wydstockbros)
To get things started, I'm not a financial advisor, I'm not a bot, and this one goes out to you, Chamath.
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tl;dr
AMC is the global leader in a $17 billion dollar industry that’s been beaten senseless to the ground with so much room to run. After pioneering deals with streaming services, buying out their competition, and upgrading their facilities worldwide, 80% short interest is highly inappropriate for its TRUE fundamental value — $69.69 a share.
🚀🚀🚀🚀🚀🚀$AMC TO $69.69🚀🚀🚀🚀🚀🚀
🚀🚀🚀🚀🚀🚀$AMC TO THE MOON🚀🚀🚀🚀🚀🚀
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"I'm questioning whether they[WSB] are actually doing the research when it comes to things like GameStop and AMC ..." - clueless CNBC dude.
I fuckin miss movies. And when I say movies, I mean the whole damn experience. I wanna buy my $15 popcorn, pour an ungodly amount of butter and jalapenos on that shit and munch in a recliner seat watching in laser 4k quality. I like this company. I like this stock.
For the past few days, I've been scouring Google for news articles and company data. I've also been trying to find some detailed DD in here but they’ve all been pretty limp-dick when it came to AMC. And most of the news articles I've read were surface-level AT BEST with a grim outlook based on first-glance analysis. Guess these analysts are just too damn lazy to dig deep.
Because when we dive into these issues, we can easily see that the theater giant may not be in as bad a situation as the media/analysts are claiming.
In fact, I believe that AMC is absolutely misunderstood, overlooked, and undervalued.
Here is why I am more confident than ever that $AMC will not only reach $30 but is in the perfect setup to see ATHs and WELL ABOVE.

I. Ugly Start, Beautiful Setup

Chances are if you are currently holding a significant position in $AMC, then most likely you've already read up on the company and its current standing in the cinema industry. You've probably read about how the corporation has nearly $5 billion dollars worth of debt with many of its locations still closed as the pandemic remains a global issue. You may have realized that new movies haven't been coming out. But more than that, you're seeing that movies are just being released on streaming platforms anyway. You might be concerned for AMC, or even the industry as a whole.
All of these concerns are very valid and based on real uncertainty, but let's break down each of these points and see if they’re as bad as analysts claim.

II. A Discussion on Debt

Media outlets keep honing in on this debt like it’s an ugly scar of the corporation. But what we need to focus on is why that debt came to be, how the money was spent, and how this debt was a strategic play in order to cement AMC into the new era of cinema-streaming.
We can categorize the money used into four parts:
Pay close attention to the last category because this one is important. Over the past five years, AMC has been acquiring smaller theater companies like Odeon. After buying out these companies, AMC then had to suit its "new locations" with the standard luxury amenities AMC is known for. This makes for a significant bulk of their debt totaling over $3 billion in just acquisitions. This was the investment that helped solidify AMCs spot as the world's largest cinema chain.
On the topic of maintenance costs, AMC managed to raise enough money to get through 2021. With ongoing news of vaccines, we can hope their efficacy leads to a speedy reopening near mid-late 2021. But when the economy does reopen—and AMC is back at full operation—what will it look like?

III. The Future of AMC

There's an elephant here.. right in this very room. Yes, streaming and cinema have had some serious beef in the past. In fact, some cinema chains are having tensions with streaming to this day. But what has AMC done in regards to streaming? They were the first to settle deals in order to partner up and take part in streaming revenue.
Yup, you read that right. AMC is both having their cake and eating it too.
Why would motion picture companies do this? Why not just end the cinema industry? To put simply, analysts are deeply underestimating the value of the "cinema experience". Just as I mentioned in the intro, I miss the cinemas. But I am definitely not alone. But let's not talk about me and the hypothetical "people'', instead let's talk about research studies.
In a 3-year study done in Korea, researchers found that shortening the window of cinema exclusivity and releasing movies on streaming early did not have a significant effect on ticket sales. And though this is a limited study done outside of the US, remember that AMC is a global corporation and these results have a hopeful outlook for the future relationship of cinema-streaming for AMC worldwide.
"But wait, you still haven't mentioned what streaming gets out of this?"
It's not what streaming "gets out of this" but rather what these motion picture companies maintain in keeping a healthy relationship with cinemas. During the peak heat of the movie theater-streaming feud, AMC halted the showing of Trolls and vowed to never show a Universal Pictures film in its theaters again if they were to continue releasing their films on streaming platforms without a proper cinema-exclusivity window. But today, we can see that the tensions have fallen and both motion picture companies and AMC have found a way to mutually benefit each other.
Now besides streaming, AMC has been investing in luxury amenities as seen by their chairs, 4K laser projectors, MERV air filtration, and ultra-surround sound speakers. With so many locations and so many amenities, they are offering full theater rentals with high demand during the pandemic. AMC has further cultivated their century-old movie experience into modern times. And this pandemic didn’t just change their amenities.
They had to learn how to cut costs and have more efficient operations in order to survive. This only spells good news for when they emerge with better operations, more money to spend, and higher valuations. So that begs the question, how high can the company's share price go realistically?

IV. Valuation

First, let's look at the Movie Theater industry as a whole in comparison to a few other popular entertainment industries:
Movie Theater US Market Size $17.1 billion
Casinos US Market Size $15.7 billion
Amusement Parks US Market Size $14 billion
Music Label Music Production US Market Size $9.4 billion
Music Publishing US Market Size $7 billion
In the world of entertainment, cinema is a very lucrative business.
And, again, who is the largest movie theater chain in the world? Yup, AMC.
Clueless CNBC dude mentioned that we retail traders don't trade with a fundamental reason but is there a fundamental reason in shorting a $17 billion dollar industry GLOBAL leader down to its grave? Does AMC deserve to die? I surely don't think so.
Now I won't touch upon squeezes in this since I'm sure many of you folk have already read/heard enough about them, but I will leave this quick intuitive article about it. And yes, these shorts can and will be squoze once we have faith in our upper valuations and investors(we) begin buying again.
And buy again we will. As many users flee limp-dick Robinhood and join one of the real brokerages, their positions/funds will be settled and ready to trade come next week. Where do you think these angry RH refugees will be putting their investments? That's right, exactly into the positions that RH stopped them from buying last week: which includes $AMC.
If you were part of the RH user base and your plays were affected by the blatant market manipulation, it's not only "not too late", but I believe it is an opportune time to BUY.
How high can it go then? When will I know it's too late to take a position?
So when we talk about valuation, many people fear the uncertainty of a stock rising far past its current value. Well, I think Chamath Palihapitiya said it best:
"Everybody that bought that stock is also underwriting how they want to own it."
In our current price-action environment, it's not too ridiculous to see how we are forming the foundations for AMC to continue rising beyond ATHs. We are already hitting nearly $16 on the day and rallying +53% while enduring heavy trade restrictions. Who's to say that this passion cannot continue? Now I’m no expert and can’t tell you how high this can go, but I am personally eyeing $69.69 as a target.
With so many current factors at play including hype, short covers, and ITM options having to be exercised, this is actually the BEST entrance to manifest its ATH valuation and chart some never before seen territory in its price action. It's like the manifest destiny of stock valuation. In fact, we may never see this opportunity for AMC again if we don't act now and solidify its value upward.
At the end of the day, prices are what the buyers/sellers settle upon so WE can pioneer that value if we damn well please. This is what a free market is all about.
Will there be people that disagree with this?
Sure.
Will people continue to short AMC as it goes up?
Absolutely.
Do I think that AMC being shorted 80% and rising is fair?
Really? See section III.
But institutions are selling off! Like Silver Lake liquidating their 44m shares.
Yes, then the next day $AMC dipped to $7.50 and has since recovered… with AMC $600m less in debt.
We all know who is shorting AMC, and I am sick of these hedge funds who think they, alone, can decide whether or not a company is worth a damn.

V. Conclusion - Resurgence

We are at the cusp of AMCs resurgence. Because most of us have been kept from participating in social activities, we can better understand that the public is yearning for a sense of normalcy. Sure we've gone pretty far with just watching movies on our TVs or computers through the pandemic, but that doesn't scratch the itch for many folk.
What you're investing into when you invest in AMC is the entire experience in tandem with its new streaming deals. And having been beaten so low—while still holding such great fundamental prospects— its share price is ready to blow up.
In the future when “The Deep Squeeze” is turned into a movie, we’ll be a part of history.
And you’re going to want to see it on the big screen.
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Position: $50k in calls and shares
🚀🚀🚀🚀🚀🚀$AMC TO $69.69🚀🚀🚀🚀🚀🚀
🚀🚀🚀🚀🚀🚀$AMC TO THE MOON🚀🚀🚀🚀🚀🚀
submitted by FiveDollarPutLong to wallstreetbets [link] [comments]

$SNE, MASSIVE DOUBLE DICK INSIDE. Poised to moon long-term (Computer vision boom, EV boom, autonomous driving tech, gaming boom, music streaming boom, cross-media IP, vertically integrated anime streaming monopoly, online medical services boom, shift to mirrorless cameras)

$SNE, MASSIVE DOUBLE DICK INSIDE. Poised to moon long-term (Computer vision boom, EV boom, autonomous driving tech, gaming boom, music streaming boom, cross-media IP, vertically integrated anime streaming monopoly, online medical services boom, shift to mirrorless cameras)
Listen up retards. Do you happen to feel regret because you always think “ohhh if I yoloed my savings on TSLA/AMD/NVDA 🚀 leaps years ago I could be rich by now!!!”
Well if you didn't know already, it doesn’t really matter what happened in the past. Hindsight will always be 20/20. You shouldn’t be harsh on yourself on your past self that your past self wasn’t retarded enough to yolo their savings into AMD/TSLA/.... Your past self doesn’t have the same knowledge that your current self has. It’s fine. If you judged those stocks with the best DD you could do at the time and didn’t think they were worth it, then you did a good job.
If you always think about what you could/should have done in the past, then you don't have the right attitude to play the stock market casino imho.
The single most important thing is to be able to look ahead. There are always plenty of opportunities around. There are thousands of rockets that are still on earth right now. Some may depart this year, others will stay a little longer on earth. The true strength lies in being able to identify those rockets with the knowledge you have right now. And if you still miss most rockets that will take-off this year that's fine, maybe you'll learn, get better and you'll do better next year.
Now, what if I told you there’s a big rocket that’s parked right right here on earth and it has decent chance for take-off this year? Maybe it won't quite reach the moon this year yet, but hey leaving the exosphere should already be a cool milestone.
It has rock-solid fundamentals and will see lots of growth in the following years/decade.
It’s a company that has the fundamental technology to power all the computer vision tech, which is bound to boom this decade.
The company we’re talking about is of course Sony, and it is extremely undervalued right now.
Its P/E is only 14. They have a P/S of 1.65, a PEG of 0.92 (< 2 is already somewhat exceptional for a company/conglomerate of Sony’s size, under 1 is a steal)
Much lower than all of its same-sector peers. This indicates significant undervaluation.
Next up Sony has a P/CF 13.2, ROE of 20% (S&P 500 average is 14% which would already be considered pretty good. 20% ROE is excellent), PEGY of 0.89, P/B of 2.65 and finally Sony has $41.6B in cash on hand. This makes Sony one of the cheapest tech/entertainment/EV/semiconductor growth stocks you will find on the market.
(ROE of 20% + PEGY of 0.89 + PEG of 0.92 means this company is a growth stock based on the numbers alone, but we’ll dig into the actual company and overall outlook in a moment)
I challenge all retards to find a company with similar benchmarks in one of the mentioned sectors, seriously.
Quite frankly doing this DD honestly blew my mind. I kept looking everywhere for reasons why the company could be so undervalued and why they may struggle in the future. Very important to look at all the challenges the company faces to make sure I’m not just doing confirmation bias DD. But all I could find was the opposite. After several weeks and months of working on this DD, I can only conclude that it is overall a very solid company for a bargain price. The new CEO is taking the company in a great direction imho and I'm begin to think he could be Sony's Satya Nadella.
So if you want some easy tendies, maybe consider $SNE while it is still cheap, I’d say.
For the autists out there who care about analyst ratings, SONY ($SNE) currently has 18 BUY ratings, 2 OVERWEIGHT, 4 HOLD and 0 SELL. (= analyst consensus is a STRONG BUY). Very little analysts cover this stock compared to other entertainment/tech companies, so this adds to my assertion that the stock is very much under the radar. Which means you have time to get in before it gets noticed by the larger investing world and before it starts to get a more fair valuation (P/E of around 30 would be more fair for this company I think, but still cheaper than many same sector peers). But, anyway the few analysts who do happen to cover this company are basically all saying it’s an instant-buy at its current price.
Most boomer investors still think big Japanese tech companies are dinosaurs that have long been surpassed by China, South Korea and Apple etc ages ago. Young boomers may think Sony = PlayStation and that it's it. But the truth is that PlayStation, while very important (about 24% of Sony's total revenue last year), is a part of a larger story.
Lots of investors in general associate Sony with the passé Japanese electronics companies from the 80’s and the 90’s. Just like a lot people may think BlackBerry is a struggling phone company.
While Sony may not be the powerhouse in consumer electronics it was in the 80’s and the 90’s, in a lot of ways they are more relevant than ever before. Despite being a well-known brand and being known as the company behind PlayStation, for some reason its stock still seems to be under the radar among both retail and institutional investors. And boy, are they mind-blowingly undervalued. Even if a big part of its business would collapse tomorrow, they would still be slightly undervalued. And I am about to tell you why.
(& btw compared to Japanese tech/entertainment stocks $SNE is still super cheap (Canon, Nikon, Toshiba, Sharp, Panasonic, Square Enix, Capcom, Nintendo, Fujitsu all have P/E ratios ranging from 18 to 77 and none of them have the combination of global clout, fundamentals & growth prospects that Sony has))
2021 Sony as a corparation is not the fucking Sony from 2005-2015’s, just like BlackBerry in 2021 is not the fucking Blackberry from 2012. Just like Garmin in 2021 is not Garmin from 2011. Just like AMD in 2021 is not AMD from 2012.
No, in 2021, Sony is the global leader in imaging technology and people do not fucking realize it. Sony has 50% marketshare in the CMOS image sensor market. There’s a very good chance the smartphone in your pocket has Sony image sensors (unless it’s a Samsung phone). Sony image sensors are powering a big part of today's vision/camera technology. And they will power even more of tomorrow's computer vision tech.
In 2021, Sony is a behemoth in video games, music, anime, movies and TV show production. Sony is present in every segment of entertainment. Sony’s entertainment branches have been doing great business over the past 5 years, especially music and PlayStation. Additionally, Sony Pictures has completely turned around.
In 2021, Sony is the world’s biggest music publisher (and second biggest music company overall). Music streaming has been a boon for Sony Music and will continue to be.
In 2021, Sony is among the biggest mobile gaming companies in the world (yes, you read that right). And it’s mainly thanks to one game (Fate/Grand Order) that nets them over $1B revenue each year. One of the biggest mobile gaming companies + arguably biggest gaming brand in the world (PlayStation).
In 2021, Sony is an EV company. They surprised the world when they revealed their “Vision-S” at CES 2020. At the reception was fantastic. It is seriously one of the best looking EV’s. They already sell sensors to Toyota. Sony will most like sell the Vision-S's tech to other car manufacturers (sensors for driving assistence / autonomous driving, LiDAR tech, infotainment system).

40 sensors in the Sony Vision-S
Considering the overwhelmingly good reception of the Vision-S so far, I suspect the Vision-S could be another catalyst that will put Sony as a company on the radar of investors and consumers.
We've seen insane investment hype for anything even remotely related to EV over the past year. We've seen a company that barely had a few EV design concepts (oh wait, they had a gravity-powered truck though) even get a $30B market cap at some point lmao.
But somehow a profitable company ($SNE) that has an EV that you can actually drive, doesn't even have a fair valuation?
In 2020’s Sony’s brand value is at their highest point since 12 years. In 2021, it is projected to be a its highest point since 2001 assuming same growth as average yearly growth from 2015 to 2020. Keep in mind brand valuation is a bit bullshitty as there’s no standardization to compare brands from different sectors, let alone non-consumer-facing brands with consumer-facing brands. But one thing we can note is that Sony both as B2C brand and as a B2B company is on a big upwards trend.
https://interbrand.com/best-global-brands/sony/
https://careers.uw.edu/blog/2020/03/17/these-are-the-10-biggest-video-game-companies-in-north-america-shared-article-from-zippia/
In 2021, Sony is an entertainment behemoth. They have grown their entertainment branches by a huge amount over the past 5 to 10 years (they made some big acquisitions in the music space especially and they’re now also all-in in anime). I don’t think people realize how big Sony is as an entertainment company. I dug up the numbers and as of Q3 2020, PlayStation is the second biggest video game company in the world (Tencent is #1) in revenue (I suspect Sony might dethrone Tencent after Sony’s FY Q3 2020 is released). But Sony already comes very close to Tencent especially if you add Fate/Grand Order (which is under Sony Music and not under PlayStation) under PlayStation.
There’s no single other company that has this unique combination of a dominant/important position in all entertainment segments. (video games + music + movies + TV series + anime + TV networks). I guess Tencent maybe?
In 2021, Sony has amazing momentum in the camera space. If you’re familiar with the enthusiast photography space, you should know this. Basically, the market is slowly shifting from SLR to mirrorless cameras. This is because mirrorless cameras tend to smallelighter, have faster AF, better low light performance, better battery life and better video performance. Sony is the company that has been specializing in the development for mirrorless cameras for over a decade while Canon’s bread and butter has always been SLR cameras. Sony is in the lead when it comes to mirrorless cameras and that’s where the market is shifting towards. Because the advantages of mirrorless have become more and more apparent and Sony’s cameras have become technically superior, Sony has gained quite a bit of market share over Canon and Nikon in the last few years. In 2019, Sony overtook Nikon as the #2 camera manufacturer. Sony is in an upwards trend here. (they have the ambition to become the world’s #1 camera brand) Sony also has very good marketing for their cameras. (Sony has a lot of YouTubers / influencers / brand ambassadors for their cameras despite being a smaller brand than Canon)
(just search on YouTube and/or Google “switching to Sony from Canon” just to give you an idea that they do have amazing brand momentum in the camera space. You won’t get as many hits for the opposite)
A huge portion of Sony’s profit comes from image sensors in addition to music and video games. This is in addition to their highly profitable financial holdings division & their more moderately profitable electronics division.
Sony’s electronics division, unlike other Japanese brands, has shown great resilience against the very strong competition from China & South Korea. They have been able to maintain their position in the audio space and as of 2020 are still the global market leader in high-end TV’s (a position they have been holding for decades) and it seems they will continue to be able to maintain that.
But seriously this company is dirt-cheap compared to any of its peers in any segment and there’s various huge growth prospects for Sony:
  • CMOS image sensors & Sony’s overall imaging prowess will boom due to increased demand from automotive sector, security & surveillance industry, manufacturing industry, medical sector and finally from the aerospace & defence industry. On the longer term, image sensors will continue to boom due to increased demand for computer vision & AI + robotics. And for consumer electronics demand will remain very high obviously.
  • Sony is aiming for 60% market share in the CMOS image sensor market by 2026. Biggest threat here is Samsung here who have recently started to aggressively invest in image sensors and are challenging Sony. Sony has technological lead + higher production capacity (and Sony will soon open a new plant in Nagasaki), so Sony should be able to hold off Samsung.
  • The iPhone 12 Pro has 3 cameras + a lidar sensor. Apple now buys 3 image sensors (from Sony) + LiDAR sensor (from Sony) per iPhone 12 Pro they manufacture. Remember the iPhone X and iPhone XS? That one had “only” 2 rear cameras (with image sensos from Sony of course). Basically, Sony will be selling exponentially more image sensors as more smartphones get equipped with more and more cameras.
  • Now think about how many image sensors Sony can sell to Apple if the iPhone 13 will have 5 cameras + LiDAR sensor (I mean the number of cameras on smartphones certainly won’t decrease)
  • Gaming (PS5 hype, PSN game sales are booming, add-on content is booming, PS+ subscribers count is booming and finally PSNow & first-party games sales are trending upwards as well). Very consistent year-on-year profit & revenue growth here. They have a history of beating earnings expectations here. The number of PS+ subscribers went from 4M to 48M in just 6-7 years. Investors love to hype up recurring revenue and subscription services such as Disney+ and Netflix. Let’s apply the same logic to PS+? PS+ already has more subscribers than HBO Max in the USA.
  • PlayStation (video games in general) has not even scratched the fucking surface. Most people who play video games now are millennials and kids. Do you think those millennials will stop playing video games when they grow older? No, of course not. Boomers today also still watch movies and TV. Those millennials have kids and those kids are now also playing video games. The kids of those kids will also play video games etc. Basically the total addressable audience for video games will by HUGE by the end of the decade (and the decades after that) because video games will have penetrated all age ranges of the population. Gaming is the fastest growing segment of the whole entertainment business. By a large margin. PlayStation is obviously in a great position here as you can guess from the PS5 hype, but more importantly imho, the growth of PS+ subscribers (currently a bit under 50 million) and PSN users (>100 million MAU) over the past 5 years shows that PlayStation is primed to profit from the audience growth.
  • On top of that you have huge video game growth in the China where Sony & PlayStation is already much better established than Xbox (but still super small compared to mobile games and PC gaming in China). Within the console market, Xbox only competes with PlayStation in North America. In the rest of the world, PlayStation has an enormous lead over Xbox. Xbox is simply a lesser known and lesser desirable brand in the rest of the world
  • Anime streaming (basically they have a monopoly already + vertical integration, it might still be somewhat niche right now, but it will be big within 5 years. Acquiring Crunchyroll was a very good move)
  • Music streaming (no, they don’t have a music streaming service, but as music streaming grows, Sony Music also gets a piece of the growing pie through licensing/royalties, and they also still have a little 2.8% stake in Spotify)
  • Apple, Amazon, Netflix, AT&T and Disney are currently battling it out in the streaming wars. When there’s a war you have little chances of winning, you shouldn’t be the one waging the war. You should be the one selling the ammo. Basically Sony Pictures (tv shows + movies) is in that position. Sony Pictures can negotiate good prices for their content because Apple, Amazon, Netflix, AT&T are thirsty for content and they all want their own exclusive content. Sony Pictures does not need to prop up their own streaming service just like Sony Music doesn’t need their own music streaming service when they can just license out their content and turn a profit. There will always be demand for TV & movies content, so Sony Pictures is well positioned is as an independent content provider. And while Apple, Amazon, Netflix, AT&T and Disney are battling it out on the forefront, Sony is quietly building their anime empire in the background. Genius business move from Sony here, seriously. They now have anime production & distribution.
  • Netflix has 200M subscribers and they currently have a 250M market cap. Think about what Sony will have in 5 years? >30M Crunchyroll subscribers (assuming all anime will be consolidated into Crunhyroll) & >100M PS+ & PSNow subscribers? Anime and gaming is growing faster than movies and TV shows. (9% CAGR for anime, 12% CAGR for gaming vs. 5% CAGR for the whole movies & TV show entertainment segment which includes PVOD, SVOD, box office, TV etc etc). And gaming as a whole is MUCH bigger than SVOD streaming. Netflix gets 99% of their revenue & profit through subscriptions. For the whole Sony Group Corporation, their subscription services (games + anime) it’s currently only 4.5% of their total revenue. And somehow Sony currently has a meagre $128B market cap?
  • PlayStation alone is bigger than Netflix in terms of operating profit. PlayStation has a MUCH higher profit margin than Netflix. For Q3 2020 Netflix posted $790M operating profit and PlayStation posted $988M operating profit. Revenue was was $6.44B for Netflix vs. $4.77B for PlayStation. (and btw Sony’s mobile gaming revenue (~$1B / year) is under Sony Music, it is not even in those PlayStation numbers!!!)
  • Think about it. PlayStation alone posts bigger operating profit than Netflix (yes revenue is bit smaller, but it’s the operating profit that matters most). And gaming is growing faster than movies. And PlayStation is about 24% of Sony’s total revenue. And yet Netflix has a market cap that is equal to the double of Sony's market cap? Basically If you apply Netflix’ valuation to PlayStation then PlayStation alone should have a bigger market cap than Netflix' market cap.

PS+ growth and software digital ratio growth

  • Sony Vision-S & autonomous driving tech (selling sensors + infotainment system to other car manufacturers). Sony surprised everyone when they revealed their Sony Vision-S electric vehicle last year at CES 2020 (in-house design and made in cooperation with Magna Steyr). And it’s currently being tested on public roads. Over the past year we have seen absurdly big investment hype into anything even remotely related to EV’s (including a few questionable companies). We’ve even seen an EV company with a gravity-powered truck get a $30B market cap in June last year. Meanwhile Sony, out of nowhere, revealed what is arguably (subjectively) one of the best looking EV’s. It got very positive reception at CES 2020. An EV that you can actually drive. But somehow their stock is still dirt-cheap based on their current fundamentals alone? Yet some companies that had pretty much nothing but some EV design concepts got insane valuations purely due to hype?
  • LTE chips for IoT & Industry 4.0 (Altair Semiconductors)
  • Cross-media IP (The Last of Us show on HBO, Uncharted movie etc). Huge unrealized potential synergy here (it’s about to change). We have seen that it can turn out super well when you look at The Witcher, Sonic the Hedgehog and Detective Pikachu. When The Witcher released on Netflix, sales of The Witcher 3 significantly increased again. Imagine the same thing, but with Sony IP’s. Sony Pictures is currently working on 7 video game IP based TV shows and 3 movies. We know The Last of Us tv series is currently in production for HBO. And then the Uncharted is currently in post-production and scheduled to be released in July this year currently. If Uncharted turns out to be successful, it will mark a big, new milestone for Sony as an entertainment company imho.
  • Aniplex (Sony Music Entertainment Japan subsidiary for anime production, distribution & mobile games) had a fantastic year in 2020. (more on this later) There is a lot of room for mobile games growth with Aniplex. Thanks to Aniplex, Sony might beat their earnings forecast.
  • Drones. DJI just got put on Entity List in USA and Sony started developing drones for prosumer / professional a few years ago. Big opportunity for Sony here to take a bit from DJI’s dominance. It only makes sense for Sony to enter the drone market targeting the professional & prosumer video market, considering Sony’s established position in the professional audio/video/photography space
  • Currently Sony also has several ventures & investments in AI & robotics
  • Over the past decade, Sony has also carefully expanded into medical equipment tech & biotechnology. Worth noting that Sony also has an important 33% stake in M3 inc (a medical services through-the-internet company with a market cap of $65.5B) (= just their stake in M3 Inc is worth $22B alone, remember Sony, with their large, diversified revenue streams & assets only has a market cap of $128B?)
  • Sony Pictures has a great upcoming movie slate (MCU Spider-Man, Uncharted, Ghostbusters: Afterlife, Venom 2, Morbius, Spider-Verse sequel, Hotel Transylvania 4, Peter Rabbit 2, Vivo, The Nightingale). They will profit from the theatre reopening and covid recovery. They may even become more favourable among movie theatre chains because they won’t release their movies on the same day on streaming services like Warner (and yeah movie theatres are here to stay, at least for a while imho)
  • All the above comes on top of established, mature markets (Financial Holdings & Electronic Products)
  • Oh yeah, btw though TV’s are a cyclical and mature market and are not that important for Sony Group Corporation’s bottomline*, Sony TV’s will continue to do well for the following successive years: o 2020: continued pandemic boost
  1. 2020-2021: PS5 / Xbox Series X/S
  2. 2021 Summer Olympics (tv sales ALWAYS spike during the olympics) (& the effect is more pronounced for high-end TV’s, = good for Sony because Sony’s market share is concentrated in the high-end range (they are market leader in the high-end range)
  3. 2022 FIFA world cup (exact same thing as for the olympics)
  4. You could say it’s already priced in, but the stock is already ridiculously undervalued so idk…
You would think this company somehow has a bad outlook, but that could not be further from the true, let me explain and go over some of the different divisions and explain why they will moon:
Sony Entertainment
While Netflix, Disney, AT&T, Amazon, and Apple are waging the great streaming war, Sony has been quietly building its anime streaming empire over the past years.
  • Sony recently acquired Crunchyroll for $1.175B (it is a great deal for Sony imho and will immediately be more valuable under Sony. Considering the growing appetite for anime I honestly do not even understand why AT&T sold it, they could have integrated it with their other streaming service (HBO Max) but ok)
  • With Crunchyroll Sony now has the following anime empire:
  • Aniplex (anime production & distribution, subsidiary of Sony Music Entertainment Japan) F
  • Funimation
  • Manga Entertainment UK (production, licensing, and distribution, UK)
  • Wakanam (licensing and distribution in Europe)
  • AnimeLab (licensing and distribution in Australia & New Zealand)
  • Crunchyroll (3 million paying subcribers, 90 million registered users and 50 million social media followers)
* Why anime matters:

Anime growth
“The global size is expected to reach USD 36.26 billion by 2025, registering a CAGR of 8.8% over the forecast period, according to a study conducted by Grand View Research, Inc. Growing popularity and sales of Japanese anime content across the globe apart from Japan is driving the growth”
(tl;dr anime 🚀🚀🚀🚀🚀, Sony is all in on anime and they have pretty much no competition)
Anime is the fastest growing subsegment of movies/video entertainment worldwide.
  • Sony also has a partnership with Bilibili for anime distribution in China:
https://www.chinadaily.com.cn/a/201903/26/WS5c990d93a3104842260b2737.html
  • Bilibili already partnered with Sony Music Entertainment Japan to bring Aniplex’s hugely successful Aniplex’s Fate/Grand Order mobile game in China.
  • Sony acquired a 5% stake in Bilibili for $400M in March 2020 (that 5% stake is now already worth $2.33B at Bilibili’s current share price ($BILI) and imho $BILI still has lots of upside potential considering it is the de facto video creation/sharing/viewing à la YouTube/Twitch for GenZ in China)
https://ir.bilibili.com/news-releases/news-release-details/bilibili-announces-equity-investment-sony

Sony Music Entertainment Japan
Aniplex
  • Sony Music (mobile games) generated $400M revenue from its mobile games in Q2 FY2020, published through Aniplex (Sony Music Entertainment Japan, “SMEJ”) subsidiary
  • They are the publisher of Fate/Grand Order, one of the most profitable mobile video games of the past 5 years (has generated $4B in revenue (!!) by the end of 2019 and is still as popular as ever). Fate/Grand order is the 7th most profitable mobile game in revenue worldwide as of 2020 (!)
Fate/Grand Order #9 game by revenue last year as of Q3 2020

  • Aniplex launched Disney: Twisted Wonderland in March this year. In Q3, it was the #10 most downloaded mobile game in Japan. (Aniplex now has two top ten games in Japan)
  • Fate/Grand Order was the #2 most tweeted game in 2020 and #3 was Disney: Twisted Wonderland. You can see that Aniplex has two hugely successful mobile games. (we are talking close to $1B of revenue a year here). It is the #2 game in Japan by total revenue from Q1 2016 to Q3 2020 and the #9 game in worldwide revenue from Q1 2020 to Q3 2020.
Aniplex has two very popular mobile games
  • SMEJ earns about > $1B from mobile games in revenue from mobile games and there is still a lot of future growth potential here considering Japan’s mobile game market grew a whopping 32% yoy from Q3 2019 to Q3 2020.
  • Aniplex recently co-distrubuted the movie Demon Slayer: Mugen Train in Japan in October 2020. It became the highest grossing film of all time in Japan with a total gross box office revenue of $380M. In the middle of a pandemic. It still needs to release in South Korea, China and USA where it will most likely do great as well.
Sony Interactive Entertainment (SIE) (Game & Netwerk Services business unit):

  • We all know 2020 was a huge year for video games with the stay-at-home pandemic boost. The whole video game sector brought in $180B of revenue in 2020, a whopping 20% increase yoy.
  • But 2020 will not be just a one-off temporary exceptional year for video games. The video game market has a CAGR of 13% which means it will be worth $291B in 2027. Video games is by far the segment with the highest growth rate in the whole entertainment industry.

US video game market growth (worldwide growth has a 13% CAGR)

PlayStation revenue and operating profit growth

  • PlayStation obviously has a huge piece of this pie and over the past years has seen consistent yoy revenue and profit growth. Think about it, for every FIFA/Call of Duty/Assassin’s Creed sold on PS4/PS5, Sony gets a 30% cut. There have been sold a billion PS4 games so far.
  • 5 years ago 20 to 30% of PS4 games were purchased digitally. Flashforward to 2020 and it’s 60-75% and the digital ratio looks set to still increase a bit. This means higher profit margin for game publishers and for Sony at the expense of retailers
  • SIE has seen huge success in its first-party games over the past 5 years. Spider-Man, God of War, Horizon: Zero Dawn, The Last of Us Part 2, Uncharted 4, Ghost of Tsushima, Days Gone, Ratchet & Clank have all been huge successes. This is really big and represents a big change compared to the previous generations where Sony never really hit it big as a games publisher even though most of their games were considered quality games.
  • SIE is now not only a powerful platform holdeprovider, but also a very successful games publisher with popular IP’s (Uncharted, God of War, The Last of Us, Horizon, Ghost of Tsushima, Ratchet & Clank). This is an enormous asset, because firstly it increases the chances of success for cross-media opportunities (Sony Pictures can make TV shows and movies out of it to expand the popularity of those IP’s even more). And secondly, it is an obvious selling point for PS5. The more popular and bigger their exclusive content, the more they can draw people to their platform/service. This should increases PS5 total marketshare over its competitor.
  • The hype for God of War: Ragnarok will be absolutely through the roof. Hype for Horizon: Forbidden West is also very good already (10 million yt views, 273K likes which is very good). Gran Turismo 7 and Ratchet & Clank will also do very well in 2021. (I suspect that GoW oand Horizon might be delayed to 2022)
  • PS5 reception has been extremely good. Demand is through the roof as well all know. The only problem is that they cannot quite capitalize on the demand due to lack of supply, but overall, it is a very good thing that demand is very high, and that reception has been very positive. The challenge will primarily supply and production-related for the following 6 months and to be able to maintain brand momentum. Hopefully, they won’t push disappointed/inpatient customers to competitors.
  • Considering there’s backwards compatibility from PS4 to PS5, users will want all their PSN content to transition with them as well, so I expect them to lose very little marketshare to Xbox. Also, I do not know if Americans realize it, but Xbox is not nearly as big as PlayStation in the rest of the world as it is in the USA. PlayStation just has global brand power that Xbox just doesn’t have, so Xbox isn’t much of threat at all I’d say. Where I live, in Belgium, In Europe everyone is talking about the PS5, nobody really seems to care about Xbox Series S/X that much. Comparing PlayStation to Xbox in terms of mindshare is like comparing Apple to Motorola (not meant to be a diss to Motorola, I have a Motorola phone myself, just saying that Xbox has significantly less mindshare / brand power in Europe).
  • SIE is likely working on PSVR 2, this could be big.
  • Sony has a small stake in Epic Games (1.4%) and they have a good business relationship with them, so this might also make them open to release first-party games on Epic Games Store after exclusivity period on PS5.
  • Remember the Travis Scott concert in Fortnite? I believe that was one of the reasons why Sony invested in Epic Games. It serves as an example how music can sometimes converge with video games, and this can play to Sony’s strengths.
  • PlayStation also has way superior presence in Asia compared to Xbox. Have been expanding into China as well. Another great opportunity for revenue growth.
  • PS+ subscribers grew from 5.7 million by the end of 2013 to 46 million by October 30th, 2020. This is an average growth rate of 28% over the past 5 years. Considering most of the growth was early on, it will slow down, but I predict that they will have about 70 million PS+ subscribers by the end of 2023. This is huge and represents a stable, recurring source of income. Investors who keep hyping Netflix/Disney+ will love this, but it seems they have yet to discover $SNE.
  • There is a reason why Amazon, Google, Nvidia have been aggressively investing in video games & games streaming. They know the business is huge and is about to get even bigger. But considering the established, loyal PlayStation userbase, the established global brand of PlayStation and the exclusive games, PlayStation should be able to easily standoff competition from Amazon, Google and Nvidia (GeForce Now) in the next few years. So far, Amazon’s venture into game development, publishing & streaming has completely failed. Stadia and GeForceNow seem to have a bit more success, but still relatively niche. Therefore, I think PlayStation is well-positioned to remain one of the leaders in the industry for the following decade.
I'll get to the other divisions later, I figured this is a good first step.
But so far the tl;dr
Image sensors: 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
IoT/Industry 4.0 chipsets: 🚀🚀🚀🚀🚀🚀🚀
PS5/PSN/PS+: 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Online medical services (M3 inc.): 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Anime: 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Fate/Grand Order: 🚀🚀🚀🚀🚀
Demon Slayer: Mugen Train 🚀🚀🚀🚀🚀
Sony Music / music streaming (the performance of Sony Music’s in Sony’s business is seriously understated. The numbers speak for themselves): 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Sony Electronics 🚀
Sony Financial Holdings (very stable & profitable business, even managed to grow slightly during pandemic when most insurance companies performed more poorly): 🚀🚀🚀
Still have to cover Sony Pictures, but their upcoming movie slate looks pretty good honestly (Spider-Man sequel, Venom: Let There Be Darkness, Ghostbusters: Afterlife, Uncharted, Morbius, Hotel Transylvania 4 so that's worth one rocket as well imho 🚀
tl;dr of tl;dr:
🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

Disclaimer: I am not a financial advisor. I am an idiot that's trying to understand why $SNE stock is so cheap.
Positions: SNE 105C 21st January 22
submitted by Audacimmus to wallstreetbets [link] [comments]

guilt, anger, empathy

I'm so fucking mixed up right now. My dad is so deeply invested in Trump and QAnon that he has completely fucked everything his father worked for til the day he died. Forced his mother, my complete saint of a grandmother, to sell their house and income property in one of the most desirable cities to live in and move out to BFE Oklahoma. She and my Uncle, his brother, both have heart conditions and now 0 infrastructure to manage them. My germaphobe Uncle is being forced to attend medical visits where he is regularly in contact with unmasked people. They feel unsafe and disconnected where they live, though they love the new house itself. I got the you-told-us-so call a few days ago, and I feel more upset than before. I managed to get my grandmother to stop actively propagating Q material on facebook, and my impression is that she just doesn't know what to believe at this point and is trying to avoid politics. I can understand that, at least. She is an extremely kind woman who was taken in on the child-trafficking claims and nothing else, it wasn't too hard to talk to her.
My dad is so fucking sick now. He's in recovery and has now taken up gambling for fun, and has been going to the casinos and coming home (endangering the remainder of the at-risk household) since they reopened. He openly brags about being at bars, smoking and singing maskless. He voted for Trump in 2016 because he hated Hillary and the libertarian candidate wasn't going to win (or so he told me). Now he's so far gone he can do nothing but post on Twitter about HCQ and how he refuses to bend to "covid fascist edicts" and won't allow himself to be "reprogrammed" by the government. He railroaded my whole family into tearing up their roots and starting anew in a brand new place and now he isn't even unpacking because he plans to move to Texas with his girlfriend. My Uncle gave up the business he built for over a decade, and the relationship he'd been in for nearly as long. All of my grandma's comfort and independence have been stripped away. I kept begging them not to do it, I kept telling them it wasn't safe, but they were constantly being manipulated with my dad in the house and everyone screaming about the stupid governor trying to destroy everyone's livelihoods with shutdowns. So many people are dead, and all he could be assed to think about was his own freedom. I begged and begged, but my grandma just won't think of herself or her wellbeing. They used her for her money so that they could afford to move, and they are already priced out of the market they just left. My childhood home, lemon trees, rose vines, ugly old tile and all is being rented out to randoms now. The thought of picking up and moving again sounds horrific but less horrific than the consequences of staying where they are and in a home with him.
I found out the day after the Capitol riot that he had traveled all the way to DC to take part when a friend I had at my last job sent me a news article with his extremely unique name in it. There he was, in front of God and everybody, disgracing the family name and making us look like a bunch of hateful lunatics. I wonder if I'll ever be able to get a job again. I was planning on changing my name when I get married, I might have to do it sooner. That day I discovered the extent of his issues (3200 tweets in 3 months) and how awful the things he was saying had become. When I found out he was one of the people joining 'militias" to "keep the peace" during the George Floyd protests, I knew he was gone. I didn't understand how deeply he had bitten into the conspiracies until now. Being someone who has frequented 4chan from much too young an age, it was so hard to fucking explain to these people that the things they were sharing (literal photos of computer screens showing 4chan posts!!! I'm not even making this shit up) came from a place with complete anonymity and less vetting for posts than any of their social media platforms, let alone wikipedia. An actual forum full of gore, porn, and memes. I could not get through to them, but now even my Uncle who voted for Trump thinks he has gone too far.
This week has been a fucking mess for me. This is the man I used to call my hero. He used to be an avid musician, a gentle hand on my shoulder when I was wound up and tense, a patriot in the military who served and strove to better himself. There were several times in my life when it was us, and just us. I have been neglected or abused by most of my family, including him. My conflicted feelings go back further than when he started to openly oppose women's rights, back before QAnon even existed. But he is a different person now. He is not the man who spent all the cash in his wallet to win me the biggest dog at the booth in the fair, nor the man who brought me a copy of our favorite book when I was hospitalized for making an attempt on my life, nor the man who took me to see snow, stars, and the countryside in thousand-mile-trips cross country. He's gone. I am crying here with the letter he slipped me when I was in the mental hospital with instructions to read it when I was hurting. Here it is, the final sentence, a quote older than both of us.
"You have been, and always shall be, my best friend."
I reported him to the FBI the day before the inauguration. You won't see me on the news being called a hero, I am here in my home unable to sleep or eat, existing in obscurity. I have no parents anymore, though my chosen family is wiser than me to say I never really did. When I found out he had not returned home after the riot, and had a weapon with him, the choice was made for me. None of the adults in my family have the strength to even stand up to him, they certainly aren't going to grow up now.
I don't know where he is, or what's going to happen. I don't think he can go back to being that person, he is as invested in avoiding admitting he is wrong as he is in getting his way. His actions are those of a bitter man who feels wronged by the world and is trying to extract what he can for himself from society. It saddens me to say that I am not his only child, which makes that outlook even more disturbing. I started treatment for PTSD a couple months ago, and I am barely functioning. Today, I had to email my landlord and go to the post office. I have already broken down three times, and drank until I could pass out for a few hours this afternoon. The nightmares are intense. The shaking is intense. I keep remembering things he did and said, good and bad. I wish I knew how to get through to him. He calls me a fucking libtard. The last safe space I had is gone because of him. He just doesn't care, about his kids, his mother, nothing. My grandfather is rotting in a grave miles from the product of his life's achievements, and the family is slowly going broke now. I stopped thinking of him as family years ago, but going through this with his mother is really difficult.
I am sorry for being all over the place. I feel like I'm barely surviving right now, for a combination of reasons that reach far beyond my parents.
submitted by VisualActual to QAnonCasualties [link] [comments]

Boomer Stock Recovery Play: Coca-Cola

Boomer Stock Recovery Play: Coca-Cola
TLDR; Coca Cola is still 10% below its pre-covid high. It should go even higher.
For the 8 of you still reading, I present to you a somewhat neglected stock hurt by Covid that hasn't fully recovered, but also one whose February high of $60 is not a ceiling.
Yes, Coca Cola has had a decent run from it's $36 March lows and is even up 12% since October, trading about $54/share as of Friday before pulling back a bit this morning. It's not done yet. Let me provide a few reasons why.
To understand where we're going, let's look at where we've been. Here's a 5 year chart.

5 year performance of KO: courtesy of CNBC
The stock has been of a bit of a snoozer until it began to awake from its slumber about 2018, which accelerated through 2019 and then Wall Street really started to like it in 2020. It had upward momentum, upset by Covid. This momentum will return, very soon.
Catalyst: In Person Dining
Why will momentum return? Most importantly, vaccines will return restaurants back to normal operations by summer 2021. The restaurant industry has been in total carnage. Independent restaurants are closing permanently every day, with large chains taking market share. BUT - those that are still operating are living off of Off-Premise consumption. IF people get drinks to go, they get one. No refills. This has depressed an entire major sector of Coke's sales. As restaurants return to normal, they'll have more customers, and existing customers will be consuming more cokes per sale than they are now. That's a double re-open win.
Catalyst: Cutting overhead like a mo-fo
There's more to this story. Coke has used Covid as an opportunity to cut costs and streamline operations. They've cut employees and overhead expense - more than 1/3 of their North American employees. They've cut a lot of niche product that had overhead burden and marketing/distribution expense but had little revenue, much less profit, like Tab.
They're going to come out of this a leaner, more focused company. They may still have an old and sleepy brand image, but they're also a cash printing machine, and they're going to be printing even more tendies to share with us.
Catalyst: Falling Dollar
But wait! There's more!
Coca Cola generates roughly one third of its revenue from North America. That leaves the balance subject to currency fluctuations. With the dollar tanking, those foreign profits are going to be worth even more.
Not Priced In
Looking at the CNBC.com earnings helps demonstrate that the street has not priced in the recovery, much less the benefits from restructuring and currency. The company itself has not been providing guidance as they have no more visibility than we do how the almost random shutdown/reopen orders will happen. They did, however, warn that Q3 would be hampered by currency exchange rates when the dollar was strengthening, the opposite of what is happening now and projected to continue for a bit. How did Q3 end up when the currency was facing headwinds? They beat the street consensus by 18.8%, and were just one cent per share less than a year ago - when unemployment was at a record low and everything was "normal".

Coke's Earnings Trend - CNBC
Based on the same CNBC data, the street is projecting that one year from now, after restaurants are fully operational, after the company has completed a worldwide restructuring that will eliminate 1/3 of its North American employees, and after the benefit of a presumed lower dollar, the company will just be earning 3 cents more in Q3 and Q4 2021 than it did in 2019, pre-covid. Again, this would say that reopening their fountain sales division to normal levels is only worth 4 cents per share from this past quarter when much of the country remains shut down. That seems low. Too low.
Benchmark: Starbucks
What's the upside here? I'm using Starbucks as the benchmark. They're both beverage companies, though Starbucks is clearly more of a direct restaurant play, and more of a pure play on China's reopening - which is far ahead of the US's and the rest of the world's economy.

Starbucks One Year Performance - CNBC
Starbucks hit a high of about 93 in January, as Covid was already gripping China. It then fell and rebounded to about $90 in February before beginning the March market swoon. On the way back up it kept bouncing into that $90 level (frustrating the hell out of me holding $90 calls) before finally breaking through on the way to all time highs, now at $102, almost 10% above the January highs.
Looking at a similar pattern (though KO held on longer before a much quicker descent) I would expect KO to test $60 soon, and probably bounce off a time or two before breaking through. Again, based on prior momentum I would expect once it clears $60 it should easily run up another 10%. The market will quickly recognize when they reopen they're going to have more operating leverage than when the shutdown began, and they're going to start seeing currency gains as soon as this quarter.
Benchmark: Pepsi
Pepsi is probably viewed as Coke's more direct competitor. Coke had been outperforming them over the last 3 years until the Covid dip. Pepsi, more diversified because of its snack businesses, was the better stay at home play. Coke has a decent catch up trade remaining.
3 year performance Coke vs Pepsi: Barchart.com
Strategy:
Sugar water doesn't get stock analysts excited any more than WSB casino patrons. For that reason, I would not be looking at any FD's. This one needs some longer dated options.
I want to get past the next earnings on 1/28 for evidence of the currency lift to begin to show, but the country will likely still be in winter Covid shutdown mode so I'm not sure we'll get guidance then based on restaurant openings. I'm also feeling like mid-January/February could be a bit rough after a lights-out November and a presumed Santa Claus rally at month's end. Keep some powder dry to buy this on dips. I am.
I'm thinking there's a three-prong approach here.
For the first taste, February 55 calls. Relatively low risk (only slightly OTM), gets us a few weeks past the next earnings date when we should at least see a currency boost, but also captures any run up as the market starts to figure out there's still reopening meat left here to take off the bone.
I'm going to put the heart of the play into June 60 calls. The country should be mostly vaccinated, restaurants should be back to near normal. Hopefully this will be telegraphed by the April earnings call. If this gets priced in sooner...Vega is your friend.
For a stretch, going to throw the balance of the play into leaps for Jan 2022 65's.
I'm starting this position with $5K. Because I expect a decent dip sometime Jan/Feb, will hopefully have some dry powder on the sideline to increase these positions if I've been too early on this move. But as we've seen with many of the reopening plays, when the market decides it's time, I don't want to be late....or any later than I already am.
Positions:
Purchased this morning at open:
Act fast and you can get in cheaper than me!
submitted by One_Eyed_Man_King to wallstreetbets [link] [comments]

Background on that credit cooperative Toda tried that failed - because he made bad decisions and was too incompetent to hire qualified staff?

Sounds kinda like somebody who goes bankrupt in the casino business, right? But we're told over and over and over that Toda was "a successful businessman". Let's take a look at one of the rare examples of his supposed business savvy, which is rare because, while SGI tells us that Toda had "ten businesses" or "seventeen businesses", it only identifies TWO - the publishing company that went bankrupt and the failed credit cooperative.
Hmmm...
Anyhow, on to business! This is all from The Human Revolution, Vol. 2, First Edition 1974. First, a bit of a lead-in about the failing publishing company because that's an integral part of the narrative:
When word got out about the condition the company was in, Toda's associates in the publishing field were certain to react in different ways. Some would sympathize, others would laugh, and perhaps some would make derogatory comments about Toda's abilities in business.
Perhaps 😐
But none of this would alter him.
Why not? If you fail at something, shouldn't the thought at least cross your mind that you need to do something different to avoid that outcome again? If you were able to understand why you failed, wouldn't that knowledge help you perhaps make better decisions in the future? Ah, but that would require change, something Ikeda prides himself on never doing, so naturally, his "mentor" would never, either.
Let the publishing firm stop operations, let it go bankrupt, Josei Toda was and would remain a man with a great mission.
See, when people can't focus on their work, they don't tend to do as well. This is one of the dangerous aspects of religious zealotry.
But he would always rise to the top again. That was the kind of man he was, and Yamamoto was certain that some day the whole world would come to understand and respect this great personality. (p. 200)
Made to order in his ghostwritten fictitious novels! But the truth peeks out once in a while from under the sloppy covering of lies. Let's back up a few pages and see what led up to all this.
As one of the initial steps to implement the Dodge Line, all new loans from the Financial Bank for Reconstruction were halted. This dealt industry a crippling blow and caused a panic in financial circles that had immediate repercussions in the offices of Josei Toda's publishing firm.
Reopened after the war primarily to serve as a basis for the rebuilding of the Soka Gakkai
THERE's a big problem right there....
Toda's company, Nihon Shogakkan, had in that sense been a success, largely due to his efficient and able management. But it was already financially shaky when the Dodge Line, by stimulating a tight-money policy in local banks, seriously reduced Toda's operational funds.
Okay - let's pause here. It appears that Toda's supposed "efficient and able management" was all about restarting the Soka Gakkai. What we learn here is that Toda's company is "financially shaky" - it is only surviving thanks to infusions of other people's money in the form of bank loans. His publishing business is NOT profitable, though earlier we were told it was! If the only way you can stay open is by taking out loans on an ongoing basis, you're insolvent.
It is possible that he ought to have acted quickly to reduce business expenses by cutting back on the staff and effecting other emergency methods.
Yes, that would have been consistent with "efficient and able management" IF that "efficient and able management" had been referring to the management of his publishing business.
But he could not because he was fundamentally positive and humane in business. He could not find it in his heart to fire people who had been loyal to him, the company, and Soka Gakkai through very trying times. Perhaps he was not cold-blooded enough to succeed in modern business.
Or perhaps he simply WASN'T capable of "efficient and able management".
But that would mean he wasn't a successful businessman, and the whole rest of the narrative insists that he WAS a successful businessman! None of this is making any narrative sense.
A resourceful man, never at a loss for fresh ideas, especially in times of trouble, Toda gave much thought to his predicament. At last he decided that when money is tight the way to profit is to open a credit association. A small moneylending business would provide the operational funds so badly needed by his publishing firm. As luck would have it, something promising in this line turned up quite soon.
Sense of foreboding...rising...rising...
One morning in June, 1949, Toda received an unexpected visit from Taro Kurikawa, an old acquaintance who had been kind enough to lend office space to Toda when he first reopened the publishing business after the war.
This source stated plainly that Toda bought the whole building at the very beginning. With his own money.
The two men discussed many things, including the Dodge Line and the menacing effect it was having on Toda's business. Kurikawa, who had once been a member of the Tokyo metropolitan assembly, had many friends.
Maybe HE should be the one starting a credit cooperative!😃
When Toda told him of his idea to start a small finance company, Kurikawa listened attentively. Then slapping his thigh, he suddenly said: "I've got it. You're right that in times like these lending money is the only way to survive, and I just got wind of some news that might interest you."
Isn't that a strange way of thinking? That when people don't have any money, the best way to MAKE money is to lend THEM money? How are they going to pay it back if they don't have any money? Isn't that predatory and UGLY?? Like loan-sharking?? DEFINITELY non-Buddhist!
"It's not definite yet, but I hear that an old acquaintance of mine - Toru Oi - is trying to convert his consumers' guild into a credit cooperative. He used to be a high government offical; but he's gotten old, and it would be dangerous for him to assume management of a business."
WHY "dangerous"??
"So far, he is having difficulties changing his guild into a credit company because he can't find the right partner. That's where you come in with your great knack for business."
Ha ha ha.
There it is again.
"What do you think? I'll help too, if you need me. If you're interested, I could call on him today and check the matter out."
Toda knew too much about business to become overly enthusiastic over all offers presented. After thinking a minute he said: "It's not a bad idea, but it wouldn't be so easy to make a success of something like that. To be frank, if someone else had come to me with the plan, I'd have turned it down."
Odd...if he really "knew so much about business".
"Oi is absolutely all right, except for his age. There will be some legal problems, but since the investor will be the same person, they shouldn't amount to much. It's not as if you were starting a new company from scratch; you'll just be changing an old one."
This doesn't sound very good...
From what Kurikawa said, it appeared that the new firm could start operations immediately. Still Toda hesitated: "Are you sure this consumers' guild isn't in danger of going broke? I couldn't afford to take on anything unsound at this stage in the game."
Does anyone know what a "consumers' guild" even is?
"No. It's not making much, but I know for certain that it's not in the red, either," said Kurikawa.
Doth the lady protest too much?
"I'll talk to OI, see what he says, and call you again. Maybe you could arrange a meeting in a few days."
"All right," said Toda. "We can meet first. I'll decide whether to get involved in this after we've met."
A few days later, Toda met Mr. Oi, who explained to him the legal procedures for changing the present status to that of a credit cooperative. He then outlined the running of the company, listed the board of directors, and briefly related their duties. Toda was appalled at the inefficiency with which Oi managed things. But the very challenge of taking on such a company, which was not in fact in desperate financial straits
Methinks the lady doth protest too much!
whetted his appetite for business.
So here we've got someone who knows nothing about this type of business, who considers himself qualified to judge whether it's solvent or not - given that there were not audit provisions or reporting requirements for businesses like there are today. Why couldn't "Oi" have shown him falsified financial statements? Toda would have never known...
Toda accepted the offer of partnership that Oi made and set out immediately to take the necessary legal steps.
Notice that this credit cooperative is originally a partnership but becomes solely Toda's as the narrative goes on. Even though it originally had its own board of directors, who would have stayed in place if this had been a partnership bringing a new partner on board as described. What about them?
...the new company, named the Toko Credit Cooperative, finally opened in the fall. The offices were on the first floor of Toda's Nihon Shogakkan
Remember, that building TODA purchased.
and most of the staff, too, came from the publishing company. (pp. 190-193)
Why would anyone think that people who had worked for a publishing company would know anything about how to run a credit cooperative? The savvy businessperson, when embarking on a new venture, hires the most qualified people that can be found in that type of business! NOT people from church, neighbors, relatives, and that guy he has drinks with at the bar most Thursday nights!
In contrast to the rising trends in Soka Gakkai affairs, the Nihon Shogakkan publishing company pursued a steady downhill course. The tight-money policy, overproduction in the publishing business, and finally, the rebirth of many of the popular magazines that had been discontinued during the war defeated small publishing houses. Toda's magazines, Ruby and Boys' Adventures, had done well at first, even when book sales were dropping.
That's because they were PORN: Take a look.
This is a page from Ruby.
But soon these two periodicals could no longer withstand competition from the big magazines. Ruby failed first, as large numbers of issues were returned unsold each month. Boys' Adventures managed somehow to stay in the black for a while. In August, 1949, Toda changed its name to The Boy of Japan in the hope of attracting buyers, but by autumn unsold copies had reached eighty percent of all issues printed.
Changing the NAME and not the CONTENT to fix a failing publication seems like a BAD business decision to me.
One chilly, cloudy fall morning, Toda assembled his employees in the main office and had Okumura, the accountant, give a full statement of the financial status of the firm. The figures that Okumura read in a dispirited voice left no room for doubt: the company was facing a severe crisis, with a deficit of millions of yen each month.
See? It was only loans from the bank that were keeping the company afloat.
Until that moment, many of these people had not opened their eyes to the true significance of the returned books, the unsold magazines, the unpaid bills, and the complaints about arrears from the printing and paper companies. For one thing, the glow of happiness they had experienced at the wonderfully successful fourth general meeting of Soka Gakkai still lingered.
This should illustrate the danger of mixing religious zealotry with business. Religious zealotry makes people addled.
But more important, no one who worked for Toda could believe that he would not somehow pull them out of any preidcament. While realizing that the company was in trouble they nevertheless continued to trust that Toda would fix it all.
Oh, where, oh where is someone who can STAND UP??
"I have thrown this open to you becasue I trust you and need your suggestions," Toda said, addressing everyone present.
"Those figures must be wrong," came a voice from the back of the room.
"Figures don't lie," retorted Toda. "And Okumura arrived at these figures after long and very careful calculations. Human beings - especially people who lack strength - interpret things the way they want them to be.
"You're weak, you worthless worms!"
Also, preaching.
"When it is convenient, they can convince themselves that black is white. But cold, hard figures can't be treated that way: you can't make a credit out of a debit.
Actually, that is very easy to do! Debits are your assets; credits are your liabilities. You can use your "debits" as a down payment for something; then all you have left are the "credits" for what you are on the hook to pay back! Sheesh. Obviously, these ghostwriters weren't accountants or even Accounting Honors Students!
"Figures do nothing but illuminate the incontrovertible facts, and recognizing them frankly for what they are takes courage. The way a person acts on the basis of these frightening figures shows what kind of stuff he is made of. Facing the facts and using them is what is meant by true human strength."
Ugh. MORE preaching.
The employees believed for a moment that this remark was another one of Toda's introductions to a splendid solution. But from his solemn look and from what he said next they saw that the situation was grave.
That ol' incompetent omniscient narrator again. SUCH terrible writing.
"I'm serious. If any of you have any ideas to offer, please speak up. These figures are not just correct, I suspect they are optimistic. They are still incomplete, for one thing. The number of returned magazines covers only the period ending three months ago. We can be fairly sure that when the rest of the figures are in the picture will be still darker. Since the situation is certain to get worse, we've got to put our minds to it now. Don't misunderstand me; I'm not blaming you. I only want your ideas and opinions."
THIS isn't "leadership". And it isn't the clerks' job to figure out how to save the company. They weren't even aware of the company's desperate situation.
Bewildered by the gloomy outlook of the company and by Toda's complete lack of his usual wit and humor, no one had anything to suggest.
"Well," said Toda, "it's not surprising that you have nothing to say on such short notice. I've been thinking about this for a long time, and I have only one idea. We must stop publishing. It may be that in the near future we can start again, but examining the pluses and minuses has convinced me that we must stop right now. If we do not, we will only be adding to our deficit, no matter how hard we work."
"Of course, I shall expect all of you to do your best in cleaning up the remaining affairs of the publishing company. We'll gradually start thinking about what future steps to take at the proper time. I hope you'll all take this bravely. Try not to be discouraged. Remember that I expect a lot from my disciples. Stopping publication is hard on us, but we won't be causing anyone else any trouble."
As they drifted aimlessly back to their desks, the employees of Nihon Shogakkan were in a state of semishock. The publishing company was going to close down. Toda's words of encouragement
THAT's what passed for "encouragement"??
had little effect. Many of the people thought most seriously about what they would do for a living if the company closed permanently. Still, all of them cared enough about Toda not to betray such feelings by so much as a look, let alone a word.
Because that's the Japanese way.
The news of the cessation of publishing activities came as a deep shock to Shin'ichi Yamamoto. Since joining Toda's firm in January, 1949, he had devoted himself to the magazine Boys' Adventures, which had gained some popularity. In May he had been appointed editor-in-chief of the magazine.
Recall that Ikeda had been employed at a different publishing company before he came to work for Toda.
... A sense of accomplishment and happiness at his promotion inspired Yamamoto to devote all his time to the magazine, of which he was proud. His work brought him into closer contact with many small children.

WHAT??

He watched them fondly as they played pranks, laughed, cried over quarrels, or chewed their pencils as they puzzled over difficult problems in their textbooks. Often he felt an impulse to hold them in his arms. He felt that he would be willing to do anything for them.
What IS this? This is so weird! And remember, once Ikeda had children of his own, he turned into the world's foremost absentee father and deadbeat dad! Is this supposed to gloss over THAT uncomfortable fact?
... Yamamoto's personality and and his ardor for his magazine won him friends among the artists and their families. From time to time, when writers or painters were out of sorts, the charm of Yamamoto's way triumphed over their bad humor and enabled them to finish on time tasks that otherwise might have been late. For the most thorny personal problems, Yamamoto called on the intercession of wives and other family members. He always made a good impression and won the affection and confidence of everyone with whom he came into contact. As he learned the many aspects of his work, day by day Yamamoto found it more interesting and worthwhile. Gradually, as he became proficient in his tasks, his self-confidence grew and fed his aspirations for the future.
Gaaah - my fingers just threw up all over the keyboard. Gimme a minute...
In the fall of 1949, he started working on ambitious plans for a special New Year issue of The Boy of Japan, as the magazine was by then called. Blah blah blah.
Because his hopes were high, the announcement of plans to halt publication came as an especially great blow to Yamamoto. It was almost as if an airplane that he had been piloting had suddenly lost power and started hurtling earthward. He saw with painful clarity that he could do nothing but resign
If only!
himself to the collapse of his beloved boys' magazine.
Yeesh, such overblown, puffy, florid prose. Yeah, we get it - reality sometimes bites. And having to FACE reality can be painful, especially when one has obviously been operating from a position of delusion. But lay off the flowery phrasing a little...
Fortunately, a messenger boy from a printing company came in with the galley proofs of the December issue of the magazine. Remembering what Toda had said about not letting the halt of publications interfere with outstanding business, Yamamoto started thumbing through the pages of proof. As the smell of fresh printer's ink filled his nostrils, Yamamoto quickly became absorbed in his task, aware all the while that perhaps this was the last work he would ever do on the magazine to which he had devoted so much love and care. When he finished his proof, he looked at his watch and saw that he had read through the lunch hour. He was hungry.
Big boy's gotta eat!
Yamamoto started chewing on the proofs.
Deciding to go out for something to eat, he rose and moved toward the front door of the office.
What, they couldn't just write, "He got up and headed out" instead??
As Yamamoto passed the reception area, he caught a glimpse of Toda laughing happily over a game of Japanese chess that he was playing with a frequent visitor to the company.

"What a man!" thought Yamamoto.

There he sat playing a game as if nothing was wrong, when only this morning he had announced that the company was about to collapse. (pp. 194-199)
While the rest of Toda's employees suffered under the paralyzing effects of the bad news, Yamamoto set briskly about his afternoon errands. First, he had to call on an artist to pay for some work. Then he had to pick up the plate for an ink drawing for the December issue of The Boy of Japan.
The artist's house was cold, bleak, and disorderly; but the man had apparently been eagerly awaiting Yamamoto's visit. ...Almost before he was aware of it, Yamamoto was talking about Nichiren Shoshu and the philosophy of Nichiren Daishonin. He did not intend to try and convert the artist.
SUUUURE he didn't...
In fact, he was still not actually talking with that aim in mind. But the painter became very interested. Though he had no knowledge of Buddhism, what Yamamoto told him fired his imagination. Before they parted, the painter said he would like to discuss the matter more fully some other time. Yamamoto, after promising to contact him again soon, went out into the twilight. (pp. 201-202)
...and that's the last we ever hear of this artist/painter! I suspect this vignette was inserted for the sole purpose of making it appear that Ikeda had ever attempted shakubuku, even inadvertently. Because Ikeda has never shakubukued ANYONE! Not ONE of those "world leaders" Ikeda has paid for a photo-op with held DIALOGUES with ever converted... SENSEIFAIL!!
The day the last issue of The Boy of Japan - the December issue - came off the press, the weather was clear and bright outside the Kanda offices of Nihon Shogakkan. Inside, a gloomy silence reigned. As Shin'ichi Yamamoto sat caressingly reading the final product of his work
eeeewwwwwwww
others in the office were whispering among themselves about where they would go to work and what they would do when the company finally collapsed, which it was certain to do within a matter of days.
As a matter of fact, on the very next day, Toda called his staff together to announce the closing of the publishing company and, on a more hopeful note, to explain the nature and policies of the new credit cooperative. All members of the publishing staff who wished to remain were automatically put on the payroll of the credit company as soon as Shogakkan was officially declared closed. Toda had sensed the dissatisfaction and insecurity of his staff members and he held this meeting of explanation in an attempt to calm fears.
Ugh. SUCH awkward writing.
While relating stories of his many years of management experience and the successes and failures he had lived through, he illustrated his points by referring to the basic principles of both communism and capitalism. He explained what a credit cooperative is
We were just told that same information only a few sentences ago...
and went on to relate why he had decided to undertake this kind of enterprise, showing wherein he saw hope for its future development and growth.
Blah blah blah. Lecture, preach, lecture. Ugh.
Yamamoto realized that much of what Toda said was not being sympathetically received by members of the organization who were already planning to quit at the earliest chance.
Why not yesterday? Or right NOW if they truly had such intent?
Nonetheless, he was deeply moved by the speech, especially when Toda concluded with: "All business enterprises are subject to rises and falls. Economics, like all other things, has its own rules, which cannot be ignored. Once those rules are understood, it is effort, enthusiasm, and patience that determine the success or failure of a company.
Wow - pretty OBLIVIOUS to be lecturing/preaching at his staff like this when his OWN company has just failed. No self-awareness at ALL, that Toda!
Meanwhile, Ikeda: "What a man!"
"Hard work is the same in all companies, big and small. As far as my experience teaches, as long as people are not afraid of hard work, even though things may sometimes seem desperate, a way will always be found."
Before adjourning the meeting, Toda instructed Okumura to divide all cash on hand equally and to distribute it among his employees as part of their salaries. None of them ever knew how valuable that money could have been to the firm itself. (p. 203-204)
Another for our #ThatHappened files. The biz is supposedly insolvent, can't pay its bills, is months behind in its bills, yet they have money to pay "an artist" and to hand out as a lovely parting gift for the staff who are just transferring directly over to the new credit cooperative. WHY would he give them the business' money when he'd already given them new jobs to slide right on over into?? Without even a day's loss of pay?? THAT's not competent management.
This is the end of 1949.
What they're also not coming right out and stating plainly is that Toda started up a lending operation, and that he lent money to desperate people as incentive to join his Soka Gakkai.
From around the spring of 1950, the performance of Toda's credit association fell into decline and its business operations were suspended. In August, Toda announced he was stepping down from his position as general director of the Soka Gakkai in order to prevent his business problems from negatively impacting the organization. Source
BOY, THAT ship went down fast! Didn't even make it out of the harbor!
Notice that Ikeda started working for Toda in early 1949. There are reports that Ikeda was involved in collections. Notice that, once Ikeda got involved, Toda became more successful, though it's typically couched in terms of how many more families they convinced to convert. One can only wonder how much of this was because these families were on the hook to Toda because they owed him money. This type of private lending was probably completely unregulated as well - along the lines of the "payday loans" businesses that charge astronomical interest rates and get people caught up in a cycle where they can never pay back their debts and must be constantly borrowing more and more and more. There's a whole "honor code" in Japanese culture that we gaijin have no way of understanding - Japanese people will often go to great lengths and do all sorts of unimaginable stuff just to avoid "losing face" and because they owe someone else. Source
Is it possible that Toda got into one of the prison gangs for a lot of money while he was incarcerated and had to quick pay off some deadly debts? I've seen "Drive" and "Shot Caller" - I know how that works. Pretty quick to drive the credit cooperative straight into the ground, given that he was just a partner AND there was supposed to be a board of directors watching over the operations! Whatever happened to the board and Oi?? See how it's suddenly ALL Toda's?
submitted by BlancheFromage to sgiwhistleblowers [link] [comments]

Will China's PLAN survive contact with the enemy?

The best laid PLANs of mice and men often go awry.

Welcome back to another effortpost by me generally on the developing arms race in East Asia, this time covering the People's Liberation Army Navy, hereafter referred to as the "PLAN", and its massive growth... and... mostly, well, its massive growth. What that means is mostly covered in other posts about how other countries are responding to it. The why is a bit difficult because, well, China is not well known for open debate, or open anything, really, which will turn up repeatedly.

  1. What you [might] need to know about South Korea's ludicrous arms buildup
  2. We shall fight on the seas and oceans, we shall fight with growing confidence and growing strength in the air, we shall defend our island, whatever the cost may be. We shall fight on the beaches.... uh, what do we do after that again?: The Perilous Defensive Position of Taiwan
  3. "You've hit another cargo ship? The Problems with the US Navy: Not all of them begin with "Seven" and end with "th Fleet"."
  4. Will China's PLAN survive contact with the enemy?
  5. Biden's New START and modern nuclear war
  6. First And Last Stand Of The Tin Can Navies [ASEAN + Australia and the smaller adversaries China may contend with]
  7. Boned: Problems in the US Air [and space!] Force
  8. --Unnamed-- effortpost on Japanese military matters, mostly about how weird the JSDF status is
  9. --Unnamed--effortpost on Indian military matters, and why they can't focus on China or buy anything that works
  10. --Unnamed--effortpost on the rest of the PLA, mostly the air force though
  11. --Unnamed--effortpost on the rest of the US Armed Forces, mostly talking about how the marines are changing and the Army's new love affair with INF-busting weapons
  12. Conclusion?

Glossary:
PLA = People's Liberation Army = the armed forces of the People's Republic of China, or China
PLAN = People's Liberation Army Navy = the naval forces of the PLA
PLANAF = People's Liberation Army Navy Air Force = the air force of the navy of the PLA
Ashm = Anti-ship missile, cruise missile unless specifically described as otherwise--there's only one anti-ship ballistic missile in existence and its efficacy and whether or not it functions is questionable
CIWS = close-in weapons system, like the Phalanx gun or Goalkeeper
VLS = vertical launch system for missiles
AEGIS = Aegis Combat System if described specifically in that context, a US naval warfare system, but we'll usually be talking about "Chinese AEGIS", which is a nomiker used by the Chinese media in particular comparing the Type 346 radar to the AN-SPY family, with which it shares numerous technical characteristics--but how comparable the "Chinese AEGIS" system is to what the US uses is a complete unknown.
SAM = Surface-to-air missile, in this case usually a S-300 derivative
First Island Chain = The islands, stretching from Malaysia, Singapore, Indonesia, the Philippines, Taiwan, and Japan, which keep China inside its littoral seas much as the GIUK [Greenland-Iceland-UK] gap has kept various continental powers out of the Atlantic.


Some PLAN equipment you might see described--the nomenclature is confusing and a relic of the cultural revolution, and as a result China now has more Types than the British.
Type 003 = China's new conventionally powered supercarriers, currently under construction
Type 002 = China's first truly "operational" carrier
Type 001 = China's first carrier, built on a Soviet hull purchased from Ukraine ostensibly to make a floating casino
Type 055 = Guided-missile cruiser, though generally called a destroyer it's probably more descriptively labeled a cruiser
Type 052D = Guided-missile destroyer using "Chinese AEGIS"
Type 052/051B/052B/052C = the gradual progression of evolving Chinese naval tech, largely built as practice/demo ships like the Type 001. Some of the earlier ones are steam-powered but by the Type 052C you have something almost as advanced as the Type 052D, albeit with turbine problems
Type 054A = the standard modern frigate of the PLAN
Type 053[anything] = old PLAN frigates
Type 096 = China's newest SSBN class, under construction
Type 094 = China's first functional SSBN class, very noisy
Type 092 = China's first "SSBN", believed to have never left port with an actual nuke on board
Type 095 = China's newest SSN class, under construction
Type 093 = China's current SSN class, noisy
Type 091 = China's first SSN class, dumb dumb dumb and is at a 1950s tech level
Type 039[A] = China's new SSK class
Kilo = China's older SSK class, imported from Russia
Sovremenny = China's first capable anti-air destroyers, imported from Russia


1. The Last Time A Rising Navy Challenged A Dominant Foe

The last time we've seen something like this was in the late 19th century. After the First World War shipbuilding was restricted by the landmark Washington Naval Treaty, one of the first great arms control treaties, and during the Cold War the Soviet Union never really had any hopes of surpassing American naval power. China, however, seems intent on replacing the US as the world's dominant naval power, or at least building a force that can stop the US Navy, even combined with the forces of Japan and other regional allies.

The nations in question, of course, in the last naval arms race, were the United Kingdom and a newly-unified Germany. Germany never reached the level of the UK, but seriously threatened it. Previously the UK had maintained a policy of having more ships than the next two largest fleets combined, but this was no longer possible, and the UK legitimately was fearful for its naval supremacy. It didn't last too long in the end--under a decade--and a resumption was foiled by first a world war and then the Washington Naval Treaty. The impact of the arms race, though, was massive. It set Germany and the UK at odds with each other, it resulted in a general buildup of warships pretty much everywhere [South America was, believe it or not, one of the biggest offenders there], established Germany for a time as the world's second naval power, having eclipsed both France and Russia and turning a small coastal defense navy into something that was able to defeat the Royal Navy itself, though never comprehensively enough to change the course of the first world war.

China dwells in a much different situation than Germany did at the turn of the last century, so we can only extend the analogy so far--substituting in Japan for the UK, India for Russia, and so on is possible but not, in my view, educational. However, we can see many of the same elements playing in here. China seems intent on replacing the US as a dominant power, or at least as regional hegemon--the ancient tributary system seems to lie fairly heavily on Chinese minds--and in order to do that, it must be able to have some degree of power projection and the capability to deny the US Navy access to areas within the first island chain. It remains to be seen, however, how successful that quest will be. Much as with the dreadnought battleships, I wouldn't be surprised if we never actually do find out if most of the shiny naval toys people have built actually work. But their mere existence shows the mutual hostility developing in the region and demonstrates the size of the Chinese threat.

Another lesson learned here is that China, like Germany, may not develop a naval force capable of defeating the US comprehensively, but only partially, and that one of the powers--in this case, China--might be pressured to strike first before the US Navy can close the gap. That ~2030 gap I talked about in my last post is, I think, an especially vulnerable point, because China may look at a degraded, but rejuvenating US Navy, then at their own capable forces, and decide to strike then in Taiwan and the South China Sea, only to back down when the US Navy again eclipses them. Whether or not that will happen, we will see--but I find it a very dangerous and perhaps likely possibility.

2. What the PLAN looked like 20 years ago

The PLAN has undergone an absolutely stunning evolution in the past two decades. In the Third Taiwan Strait Crisis the US could intimidate China with a pair of aircraft carrier strike groups and China could do pretty much nothing about it. Now the US is afraid of sending anything more than a destroyer through the strait.

Twenty years ago, the PLAN was a bit of a joke. Even Taiwan figured it could hold the seas against the PLAN. It consisted of a few tens of outdated coastal-defense frigates, some Soviet-era diesel-electric subs, and a large number of unsophisticated missile craft. The pride of the Chinese fleet were a handful of destroyers assembled using cobbled-together Western technology--copied French missiles, American gas turbines, the lot. According to American accounts at the time, the instructions for the equipment hadn't even been translated. The most advanced ship in the fleet used steampower. There were nuclear submarines, but of 1950s quality. Of particular note was the fact that the Chinese fleet had no area air defense capabilities--their premier surface-to-air-missile was an unlicensed knockoff of the French Crotale, and couldn't shoot anything outside of visual range, at high altitudes, or really doing anything more sophisticated than trying to kill their ships with low-altitude dumb bombing runs.

In the past twenty years, however, the PLAN has, much like the German Navy towards the end of the 19th century, gone from an afterthought to the world's second most powerful force. It began, as modern China's military capabilities almost all began, with the looting of the former Soviet Union for naval technology. While Soviet naval tech was generally lacking, it was much better than anything else China could get its hands on after the arms embargo placed on it in the 1990s by the US and Europe in response to Tienanmen and the end of the Cold War. China bought Soviet diesel submarines, Soviet air-defense destroyers, and Soviet aircraft carriers, which it promptly left lying around [and turned one of them into a theme park]. This was combined with copies of various pieces of Western, mostly European, technology for everything from sonars to surface-to-air missiles. China then began developing its first modern indigenous surface combatants, the Type 052C, but there were still problems. The engines were Ukrainian and had reliability trouble, the gun jammed, there was no VLS.

It is really in the last ten years that things have begun to move extremely quickly, and even only in the latter portion of the decade. In 2012 the Type 001 Liaoning entered service, and although it remains more of a training ship than an operational vessel, and is held back by a poor carrier aircraft, the mere fact that China "built" a carrier was a surprise to many. In 2014 the first Type 052D destroyer came online. It had learned the lessons from the Type 052C, and in just the last six years at least ten have entered service, with a class size of about 23 expected. This rapid expansion is what has frightened competing navies the most--in a little over a decade, the PLAN is constructing more destroyers than the British, French, and Australian navies have in service combined. It is also building the Type 055, which has generally been called a "destroyer" despite being more aptly described as a cruiser in line with the Ticonderoga-class. China has also built 30 modern frigates in the past decade, which has also swelled its numbers, along with numerous smaller corvettes, submarines, and so on.

This is why the PLAN has become such an object of concern. While it cannot challenge the US Navy yet, at least outside its littoral zones, the decline of the USN and rapid expansion of the PLAN means that it is a serious threat. And the speed at which it has developed has made many fearful. As recently as 2010, the idea of China operating an aircraft carrier or modern destroyers seemed distant, possibly preposterous. Now China speaks openly of having a six-carrier fleet in the 2030s, although, as with many of China's plans to operate full US-replicated tech and doctrine, these may have somewhat caved to realism. China is mighty, but it has already done the easy part--the last part is much harder, in economics and in military matters. Building the software, the institutional knowledge, the hardware to compete with the US Navy will prove difficult.

3. What the PLAN looks like now--submarines

Submarines are one of the PLAN's weak spots, particularly nuclear submarines. China is, however, making some fairly rapid advances in this area.

Their nuclear submarine program has been considered a bit of a joke for some time. In the late 1950s when all the cool kids great powers were getting nuclear submarines, China decided [or at least Mao did] that China needed nuclear submarines too. About 16 years later, the product of this effort finally emerged as the Type 091 submarine. Based on 1950s technology, with poor radiation shielding and basically nothing done in the name of noise reduction, and not even a teardrop hull, the Type 091 was probably more of a threat to the sailors who were on it than anyone else, except maybe the two Tench-class submarines that Taiwan operates, which use 1940s technology and are the world's longest-serving submarines, though they're mostly used for training nowadays. Even then, my money would be on the Tench despite the upgrades the PLAN has made to the Type 091. There's only so much you can do to put lipstick on a pig.

China also produced an SSBN, the Type 092, which was probably the only submarine more useless than the Type 091. About the only useful thing it did for the PLAN was that it served as a test platform for SLBM launches. Reports suggest that the Type 092 is the noisiest SSBN ever made, and is thought to have only ever undertaken a single patrol. It stayed at port for so long that it was thought to have sunk in an accident. And the experience turned the PLAN off from building SSBNs for over twenty years, until the Type 094 came online in 2007.

More recent submarines are growing in capability, though. The Type 094 is not the noisiest SSBN ever made, and may not even be the noisiest in current service--that honor going to the Delta III operated by the Russian Navy, which uses 1970s technology, and, which, according to the US Office of Naval Intelligence, is about as noisy as the Type 094. The Type 093 is also moderately capable--it actually functions and can fire anti-ship missiles. However, the Type 093 is still considered only comparable to the Soviet Victor III class, again using 1970s technology. Future submarines have not yet been seen, but expectations are that China will make another step forward to late 1980s or early 1990s tech levels, producing something on par with the Los Angeles or Akula for the first time.

China also operates a fairly capable fleet of coastal diesel-electric submarines. While some are quite old--the Type 035--most are pretty average for the global submarine force, a mix of Kilos and domestic AIP designs. The large number of boats in operation and their anti-ship missile capability means that these should be considered a real threat, at least in the littoral waters near to China, but they aren't decisive by any means, especially since China is facing off against such threats as Japan's Soryu class, probably the most advanced diesel-electric sub in existence.

In conclusion, the PLAN is still pretty weak on the submarine front--weaker here than on anything but its carrier force, but its capabilities are advancing rapidly and should not be underestimated.

4. What the PLAN looks like now--surface combatants

The surface fleet is definitely the most impressive and capable portion of the PLAN, no questions about it. China once had a fleet consisting mostly of coastal frigates and missile boats. As recently as 2000, its fleet had no real area-air-defense destroyers, and no SAMs that could operate outside visual range. Now, though, the PLAN operates tens of advanced guided-missile destroyers, advanced frigates, and still retains a large number of small, stealthy missile boats.

The major focus of Chinese warships appears to be on anti-air, with anti-surface being a somewhat secondary concern for all but the smallest vessels. This makes sense when you realize that the primary focus is, at least for the moment, on using land-based aircraft to strike against hostile fleet formations using long-range anti-ship missiles, in a very Soviet sort of way--"Backfire raids" using long-range land-based aircraft with anti-ship missiles were one of the US Navy's major concerns during the Cold War, and the very reason for the F-14's existence along with the AIM-54 Phoenix it carried. However, China has been developing anti-surface capabilities as well using ashms and land-attack cruise missiles [generally the same thing, actually]. Since China has finally developed a VLS system that allows it to use the same launcher for multiple missiles, its most recent ships have become more versatile in that role.

How effective these ships are at that task is, however, a relatively open question. Their radars at least seem to quite sophisticated, using flat-panel AESA, and have been dubbed "Chinese AEGIS" by the highly reliable Chinese domestic media. The basic platform their surface-to-air missiles are based on also seems to be fairly capable--the HQ-9 is an S-300 derivative, a respectable SAM system though, again, how capable it is against opponents in an active electronic warfare environment is questionable, and it has basically no capabilities against stealth aircraft like the F-35 as far as anyone knows. The efficacy of their CIWS, again, is open to question. Really this is true of everything about the modern PLAN, and PLA in general. The PLA is secretive, has not exported most of its hardware, and has developed largely independently of foreign militaries, though it is definitely influenced by them. Now that the PLAN has moved away from simply copying foreign hardware and patching it together, its capabilities are much harder to discern.

However, they should be taken as a very real threat, and not written off. My guess would be that their warships are about as capable as most of their non-American counterparts, save those equipped with AEGIS, but that's all my guess is---a guess.

5. What the PLAN looks like now--carriers

The PLAN currently has two carriers in service, and two more known to be under construction, and most suspect that it will build several more. However, at the moment, the PLAN's carrier force is largely a paper tiger, designed around training. The first carrier, the Type 001, basically was a "how do you build a carrier" kit bought from Russia, possibly by accident--the "fully functional" Minsk ended up as a theme park, believe it or not. The hull was purchased from Ukraine and then completed in China years later. It is also believed that the PLAN may have learned some things about aircraft carriers from the HMAS Melbourne, which was sold to a Chinese firm for scrapping--rumor has it the PLAN had no clue this had happened and then had a field day looking at all the stuff that hadn't been taken out. This was back in the old days when nobody could imagine that China would have an aircraft carrier. The Type 002, however, is built from scratch, but isn't particularly capable especially as it's a ski-jump carrier, leaving the Type 003 the first carrier which will prove actually useful.

The main thing holding China's carrier fleet back, though, is a lack of a suitable aircraft. Originally China was considering purchasing Su-33s from Russia, hardly a good carrier-based aircraft but functional, but after Russia discovered that China had been mucking about building a Su-27 derivative without asking the deal fell through [China tells a different story, saying that Russia demanded exorbitant amounts to reopen production which it was unwilling to pay for a nearly obsolete aircraft]. As a result China operates the J-15 as its naval fighter, with... less than stellar results. It's extremely heavy, and, if it takes off from the carrier, has minimal range if carrying anything at all--it can't take more than two short range air to air missiles into the sky to fight enemy aircraft. However, the J-15 isn't really intended for combat service--it's intended to teach China how to run carriers, and it seems to work well enough for that task, aside from the multiple fatal crashes. There is, however, thought to be a new carrier fighter in the pipeline--most say the J-31/FC-31, which has reduced RCS and a number of carrier-unique features, is being pitched as a carrier-based aircraft and will serve as China's carrier fighter in the future. China also lacks any fixed wing carrier-based airborne early warning, which could prove troublesome--a lack of AEW means that its view is limited by the horizon--and has no resupply aircraft like the C-2 Greyhound. As a result, for the moment at least, China lacks an effective carrier force, but it is likely to continue developing rapidly in the next decade and become a fairly substantial threat. Remember that as recently as 2010, a Chinese aircraft carrier seemed preposterous to many people, and now they have two.

6. Some attention to land-based aircraft

Land-based aircraft as a naval weapon are not generally used by the US, which has never had a reason to develop them as a doctrinal focus. Sure, you could potentially envision them as being used, and there even were situations where they were utilized, but it just wasn't generally a priority or how things were done. For China, though, taking influence from the Soviets, and lying on littoral seas with hostile powers in the First Island Chain, land-based aircraft and missiles are a key part of doctrine. Although this is often viewed as a new thing, called A2/AD [anti access/area denial], it's really the result of a long historical evolution of naval power, probably most refined by the Soviet Union. As a result, land-based naval aviation plays an important role, firing anti-ship missiles at standoff distances at enemy vessels, and shore-based launchers of anti-ship missiles are also an important weapon. The combination of these systems means that venturing within China's littoral seas is a dangerous proposition during war, and some waters, like those of the Taiwan Strait, are effectively considered closed at this point in the event of hostilities breaking out. For this reason air superiority is also important in this sort of naval warfare, as if either side gains air superiority it can pummel its opponents with air-launched anti-ship missiles. China's capabilities in this area are sophisticated and should not be underestimated, but they are unlikely to go through a rapid period of growth like the PLAN's fleet.

And a brief note dedicated entirely to the DF-21D "Carrier killer" that the PLA likes to show off. It's a pretty impressive capability, on paper, using a ballistic missile to hit a carrier. The CEP [circular error probable] means that it could even happen, presuming that an aircraft carrier was good enough to sit in one place, not moving, long enough to be detected by China. Aircraft carriers look big, but the seas are huge, and they're surprisingly hard to find. They also move quite fast, in excess of of 35mph/55kph, and thus by the time the ballistic missile has launched it might well be out of range given the fact that ballistic missiles are not particularly known for their maneuverability in terminal stages, at least not in the realm of miles. The DF-21D is not a particular threat to the modern aircraft carrier. It could potentially be one if it evolves into a hypersonic boost-glide vehicle, but that's a whole additional can of worms, that I might address a different day.

7. The PLAN's plans for the future--what will it look like in 2030?

Unfortunately the PLAN is not exactly the most open of navies, as I've repeatedly mentioned. There are no public debates over acquisitions programs, no big fleet shape plans, relatively little detail.

However, a few things are fairly sure bets or publicly announced.

China has repeatedly announced plans to build a six-carrier force, including the Type 001 and Type 002, but also a pair of Type 003 [already under construction] conventionally powered supercarriers and a pair of Type 004 nuclear powered supercarriers. However, it seems that the Type 004 is currently on hold. Why, exactly, is unclear, but it seems to be technical difficulties, which are not particularly surprising given that China's experience with nuclear maritime propulsion seem to be rather limited and have had poor results in their submarine fleet. The costs were also expected to be too high--China does not have an unlimited quantity of money, despite what it may flaunt, and nuclear carriers are expensive to develop especially given that China has not built a nuclear-powered surface ship before.

A new carrier-based fighter is almost certainly in the cards because the J-15 is pretty much useless. The FC-31 seems by far the most likely candidate but it could be another aircraft we haven't seen yet. The addition of this aircraft will greatly improve the PLAN's capabilities.

China also has two Type 075 amphibious assault ships/LHDs under construction, and I would expect this class to be much more prolific. These ships are much more affordable than the full carriers, and focus on areas in which China is particularly concerned--amphibious assaults, say, on islands in the South China Sea or on Taiwan, and anti-submarine warfare, which is of particular importance given that submarines cannot be easily halted with land-based anti-ship missiles and air-launched cruise missiles provided for in their area denial doctrine--submarines are one of the few things that can slip through that net.

The surface combatant fleet is likely to continue growing, but I am not sure if it will swell much beyond the ~23 Type 052D ships planned and the 8 Type 055s. We're likely to see the retirement of the classes preceding the Type 052C destroyer and the Type 054 frigate, and they may be offloaded to Bangladesh, Myanmar, or Pakistan--there is substantial precedent here, and it seems that China is interested in expanding the naval capabilities of its partners around India.

The submarine fleet is likely to see rapid expansion if the PLAN is satisfied with the Type 095 and Type 096 classes, and we're likely to see more diesel-electric subs built as well. Submarines are generally quite good at fighting submarines and conducting area-denial missions, and the large and capable subsurface forces of Japan, Korea, and the United States means that this has to be an area the PLAN invests more in--and the fact that several Southeast Asian nations are also looking at acquiring submarines makes the issue more pressing.

8. Conclusion

China has in the past decade gone from a third-rate navy to perhaps the greatest threat the US Navy has faced since the Second World War. This has significant geopolitical implications, and has resulted in neighbors scrambling to overhaul their naval forces. The growth of the PLAN means that the US can no longer easily defend Taiwan or the South China Sea, or any of China's littoral waters. This, more than anything else, is what has everyone scrambling in the US talking about "great-power competition" because denying access to the US Navy and working on power projection, an inherently naval thing, is essentially a clear sign that China is looking to directly compete with the United States. Underestimate the PLAN at your own peril.

I hope to have more detail and citations in future posts, but unfortunately the PLAN is very secretive [yes, I've said that fifty times already] and this is a pretty big topic to discuss without going into details about all sorts of naval tidbits. Thanks for reading the fourth post in what I hope will be a fairly substantial series, probably around ~12 posts.

9. Citations

James Holmes, "The Danger Zone In Naval Arms Races"
USNI, Report to Congress on Chinese Naval Modernization
Hans Kristensen, China's Noisy Nuclear Submarines
Eric Wertheim, China's Type 052D Destroyer is a potent adversary
Robert Farley, Let's Talk About The Chinese Navy's Type 055 Destroyer
Ryan Pickrell, Chinese fighter jet holding China back as it builds carrier fleet
Look, much more here is based on loose speculation, more unreliable sources, and stuff I've picked up over the years, because public info is limited. So take everything I say with a grain of salt, but understand that it's the best information I know of.
submitted by AmericanNewt8 to neoliberal [link] [comments]

Half-Life: Wastelands [Chapter 1 - In Transit]

Prologue
It is now the nineteenth year of the Combine's occupation on Earth.
The planet's resources have been sucked dry by the Combine, and many species have come to extinction as a result of the Black Mesa Disaster & Combine Threat.
Many areas of the world have been cut off from one another. Most notably: What used to be the United States of America.
No one has lived in the States since shortly after the Combine invasion, when all Citizens were moved out due to an overabundance of Xen Wildlife, on top of the area becoming mostly uninhabitable by humans due to the effects of the Seven Hour War.
However... One Resistance Faction has been tracking an unusual series of Combine Shipments... And it has lead them straight to the U.S. Wastelands.
Chapter 1 - In Transit
Light peers through the windows of a worn-down Library. Bookcases have been toppled over, and the remains of piles of books have been strewn across the floor. A group of six stands around a table, with a map laid out on top of it. “We've tracked all of the Combine's shipments in a fifteen-mile radius for the last month.”, Agnes begins. “All shipment schedules & routes add up... except for one.” Daniel scoffs. “So? Maybe they screwed up a shipment. Maybe we screwed up a shipment.” Agnes shakes her head. “Nope... We didn't hit this one. And if we had, I wouldn't be bringing it up now.”
Agnes picks up a red marker and draws circles around specific areas. “This is where the Combine Shipments coming in from outside of City 11 usually show up. Then, they're unloaded and moved to these warehouses. For those that travel outwards, the shipments are taken from... these points... and packed onto the Razor Trains, which travel along the regular rail systems. But here's the interesting part.” She draws a line from a station to a rail system. “A couple of days ago, a Razor Train branched off from the regular routes... To a rail system that I've never seen used before.” “Maybe ye just missed it.”, Daniel says. “Maybe you just missed my point. That rail system... I cross-referenced with older maps & Combine Terminals... and despite the Combine's modification of the rail systems in the past... I can confirm that shipment was headed into the US.”
Evan tilts his head. “America? But... it's been cut off for almost decades now, are you sure?” Agnes nods. “Positive. I also noticed the Combine's regular shipment schedules falling out of sync after the first train took off. They must be moving supplies. But why?” Amelia steps forward. “Are they reopening the states? I mean, that was a pretty big area.” Evan shakes his head. “That wouldn't make sense. They have more than enough space for all the remaining humans in the current Cities. 'Sides, it's not like they'd care. The fewer people around, the more they can get away with.” Daniel nods in agreement. “Aye, that's true... plus, I'm sure the Breencasts would've been spoutin’ some bullshit about "Our benefactors resurrecting this once great nation!” Daniel makes a mocking salute.
“They seem to be scattered”, Agnes began. “We may be able to use that to our advantage. Maybe figure out what they're planning, and get word back to Black Mesa East once we're back.” “Hold on, hold on, hold on”, Daniel replies. “What do ye mean “once we're back”?” Agnes steps back from the table. “You all ready for a road trip?” Daniel does a double-take. “...We’re going now?”, he asks her. Agnes nods. “Why else would I have called everyone over here? Everyone, get your game faces on. We move in on Quesnel Station in five.” Daniel rubs his eyes, sighing. “And here I thought I’d get to sleep today.”
Agnes whistles loudly. “Alright, everybody, let’s get a move on!” She pulls a bag over her shoulder, & opens the library warehouse’s sliding door. The group exits the library, making their way across the street, and using a ladder to get onto a nearby rooftop. Emma kneels and pulls out a pair of binoculars. “No CP ‘til we get to the checkpoints ‘tween Reid and Barlow. Don’t think we can sneak around. We’ll have to create a diversion of some kind.”, she says. “Daniel, Amelia, you got it covered?”, Agnes questions. “Yep.”, Daniel replies. “We’ll draw ‘em away & link up with you two at St. Andrew’s.” “Alright. Let’s go.”, Agnes says.
They drop down, carefully heading between buildings until they get to an abandoned casino near the Combine checkpoints. “Okay… You guys will have to lure them down Barlow and shake ‘em off. Just be sure to avoid going towards Cariboo Highway, or else the forcefields’ll cut you off.”, Emma tells them. “Got it.”, Amelia replies. “C’mon, Danny.” The two dash between buildings and get between the two checkpoints. Daniel picks up a can and chucks it at a Metrocop. “Sorry! Thought you were a Cremator!” The Metrocop raises his Stunstick, dashing after Danny & Amelia. “We’ve got a 10-31 at checkpoint 5A, 2 suspects. Officers in pursuit. Code 1.” Over the Metrocop’s radio, the Overwatch AI responds. “Overwatch acknowledges. Detain and deliver sociocide verdict immediately.”
Daniel and Amelia dash away, and the rest of the group sneaks past the checkpoint, making their way around a building until they make it to the church. Shortly thereafter, they are met once more by the two. Amelia dusts her hands. “They’ll be searching that block for a while. Let’s make ourselves scarce.” Agnes nods, patting her on the back. “Good work.” The group proceeds across the city until they get to Quesnel Museum. Agnes puts a hand out, motioning the group to halt. “Alright. Let’s take extreme caution here. Combine patrols are usually swarming around this place. Emma?” Emma pulls out her binoculars, scanning the area. “We’ll need a way through the forcefield. Scanners are patrolling the front of the building. But it looks like there’s a Combine APC up the road. Some CPs taking an unapproved break, it seems. If we can commandeer that APC, we can cross the highway into the station.” Agnes bites her lip. “That creates a complication. They’re out in the open, they’ll see us coming from a mile away.”
Evan smiles. “They’ll see us coming from a mile away, sure… You guys remember that Snark infestation in the vents? I… may have kept some of ‘em.” Evan pulls out a jar with a Snark inside of it. Emma stares at Evan with a stunned expression. “You kept live Snarks in our headquarters?” Evan shuffles his feet. “I mean… I separated them.” Emma rolls her eyes, and Agnes shrugs. “It’s worth a shot, I guess.” She puts a hand on Evan’s shoulder. “Soon as you get close enough, lure them towards you, unleash the Snarks, then get the hell away as fast as you can.”, she tells him. “Yeah. I was hoping I’d get to use these guys on something… y’know, bigger. But I guess I’ll have to make due. Part of me is gonna miss you, little guys.” Evan pats the Snark Jar. The Snark hisses, and the group exchanges concerned glances.
Evan heads down the road towards the CPs. He waves his arms, reaching into his jacket pocket. “Hey! Hey!” The Metrocops turn their attention towards him. “What the-- Hey! Stop right there!” The cops draw their pistols, slowly approaching him. “Take your hand out of your jacket now!” Evan chuckles. “If you say so… I have to warn you, though. These guys get cranky when they aren’t fed.” Evan pulls the Snark jars out from his jacket and tosses them onto the ground before running back and hitting the pavement. The jars shatter, and the Snarks immediately leap towards the CPs. The Metrocops scream, firing on the Snarks, but miss their shots. Their body armor is easily torn apart by the Snarks, allowing the aliens to feast on their exposed flesh.
One of the Metrocops runs for the APC. He hastily unlocks the door just before getting their head slammed through the glass by Agnes, knocking them unconscious. Agnes pulls the CP’s mask off, cupping her hands over her mouth. “Evan, get over here fast!” Evan sprints away from the Snarks and dives into the back of the APC. Emma hops into the driver’s seat, looking over the controls. “Uhhh, uh, shit. Does anyone here know how to drive?!” Agnes scoots her over, taking the driver’s seat. “Learned just before the invasion. Though it’s been a long time since I’ve driven…” She puts the APC in Drive, and speeds off just as the Snarks leap towards it.
“Okay… Almost there.” Agnes puts the CP’s mask on while keeping one hand on the wheel. “Emma, keep your head down. We can’t risk anyone seeing us on the way in.” Emma ducks down as they pull into the station. Justin whispers from the back. “I know this is serious, but I just gotta say, your voice sounds really cool in that mask.” “Zip it.”, Agnes responds as she pulls up in front of the main building. It is then that she notices a CP Officer signaling them to stop. Agnes feels her stomach drop as she slows down next to him, rolling the window down.
The Metrocop looks up at her. “There you are. Mind explaining to me what took you so long? We’re almost behind schedule, everything else has been loaded. And--Hey, where’s the rest of your patrol?” Agnes swallows. “Uhh… Some… Some Citizens caused a bit of a ruckus earlier. They had to provide some extra backup. Sorry.” “Just get the damn supplies over to James before you get us both in trouble.” The cop points his stunstick towards a Metrocop nearby. “Got it. Th--...Thank you..?”, she says, biting down on her lip after letting that slip out. The cop simply shakes his head as she drives off. “Dumbass is gonna get himself killed.” Agnes pulls up towards “James”.
“Took you long enough. Do you have that last supply shipment?” “...Yeah… Yeah. I’ll unlock the back for you.”, she tells him. James motions another Metrocop over, and they head towards the back of the vehicle. Agnes pulls the sliding door open. “Get ready.”, she says as she unlocks the back doors. The Metrocops pull them open, only to get dragged into the back of the vehicle by the others. Daniel slams the doors shut, and the rest of them knock the two cops unconscious. Daniel turns his head towards the driver’s seat. “Agnes? You did not think this through very well.” “There are only six of us, what do you expect me to do? Just drive through the front gates and gun everyone down?”, she scoffs. “That’d make things easier.” She shakes her head. “We don’t get things easy nowadays. Now, uh… Hmm… Hey, Emma, most Metrocop suits are tailored to the average height of the adult male, right?” Emma pops her head up. “Uh… Yeah. Why?” Agnes turns towards the back. “Danny, Evan? You two are gonna get us on that train.” The two raise their heads. Daniel blinks. “Excuse me?” “Get in uniform.”, she tells him. Daniel sighs. “Weirdest feckin’ day of me life.”
After Daniel and Evan get in the CP uniforms, Amelia and Justin tie up and gag the CPs with spare rope. Agnes turns to the others. “Alright. Emma, sneak into the back. Here’s how we’re gonna get on board.” Emma steps around the other side of the APC and climbs into the back of the vehicle. Agnes continues. “I’m gonna pull up to the loading bay. Soon as you two step out, I want you to stack cargo up to provide some cover for the others to board the train. After that, you two are gonna load the cargo onto the train, and the rest of you are gonna hide inside those Combine crates.” Daniel looks at her. “That is a really shoddy plan.” She glares at him. “Daniel, I swear to god, I will come back there and stick my foot up your ass if you don’t stop complaining today. Get out there. Now.”
Danny and Evan hop out of the APC, stacking supply crates on top of one another. The group sneaks aboard the train, climbing into the supply crates that get loaded on board. Agnes carefully makes her way under the vehicle, and Daniel helps her to her feet. She climbs into the train car. “Soon as this thing gets going, you two sneak onto the back of the train car, and I’ll open it from the inside. Got it?” The two nod. Agnes hides behind some crates, and Daniel continues loading cargo. “Feckin’ hell, what do they put in these things?” “Considering some of the things I’ve seen?”, Evan asks. “I, for one, do not want to know.”
They finish loading cargo and Evan waves to the other Metrocops. “We’re good to go!” The train car’s folding door closes, and the train begins moving. When the other Metrocops turn their heads, Danny & Evan hop up onto the platform. Agnes opens the door, and they step inside. “Okay... We’re clear.” Agnes opens the Combine supply crates, and Emma pops her head out, gasping for air. “God damn it, those things are airtight!” Agnes quickly opens the rest of the crates, and helps everyone out. “Alright, everyone… Next stop: The United States.”
submitted by Hurricaden to HalfLife [link] [comments]

Half-Life: Wastelands [Chapter 1]

Note: Reposting bc I posted it at like 1 AM yesterday and almost nobody saw it
Prologue
It is now the nineteenth year of the Combine's occupation on Earth.
The planet's resources have been sucked dry by the Combine, and many species have come to extinction as a result of the Black Mesa Disaster & Combine Threat.
Many areas of the world have been cut off from one another. Most notably: What used to be the United States of America.
No one has lived in the States since shortly after the Combine invasion, when all Citizens were moved out due to an overabundance of Xen Wildlife, on top of the area becoming mostly uninhabitable by humans due to the effects of the Seven Hour War.
However... One Resistance Faction has been tracking an unusual series of Combine Shipments... And it has lead them straight to the U.S. Wastelands.
Chapter 1 - In Transit
Light peers through the windows of a worn-down Library. Bookcases have been toppled over, and the remains of piles of books have been strewn across the floor. A group of six stands around a table, with a map laid out on top of it. “We've tracked all of the Combine's shipments in a fifteen-mile radius for the last month.”, Agnes begins. “All shipment schedules & routes add up... except for one.” Daniel scoffs. “So? Maybe they screwed up a shipment. Maybe we screwed up a shipment.” Agnes shakes her head. “Nope... We didn't hit this one. And if we had, I wouldn't be bringing it up now.”
Agnes picks up a red marker and draws circles around specific areas. “This is where the Combine Shipments coming in from outside of City 11 usually show up. Then, they're unloaded and moved to these warehouses. For those that travel outwards, the shipments are taken from... these points... and packed onto the Razor Trains, which travel along the regular rail systems. But here's the interesting part.” She draws a line from a station to a rail system. “A couple of days ago, a Razor Train branched off from the regular routes... To a rail system that I've never seen used before.” “Maybe ye just missed it.”, Daniel says. “Maybe you just missed my point. That rail system... I cross-referenced with older maps & Combine Terminals... and despite the Combine's modification of the rail systems in the past... I can confirm that shipment was headed into the US.”
Evan tilts his head. “America? But... it's been cut off for almost decades now, are you sure?” Agnes nods. “Positive. I also noticed the Combine's regular shipment schedules falling out of sync after the first train took off. They must be moving supplies. But why?” Amelia steps forward. “Are they reopening the states? I mean, that was a pretty big area.” Evan shakes his head. “That wouldn't make sense. They have more than enough space for all the remaining humans in the current Cities. 'Sides, it's not like they'd care. The fewer people around, the more they can get away with.” Daniel nods in agreement. “Aye, that's true... plus, I'm sure the Breencasts would've been spoutin’ some bullshit about "Our benefactors resurrecting this once great nation!” Daniel makes a mocking salute.
“They seem to be scattered”, Agnes began. “We may be able to use that to our advantage. Maybe figure out what they're planning, and get word back to Black Mesa East once we're back.” “Hold on, hold on, hold on”, Daniel replies. “What do ye mean “once we're back”?” Agnes steps back from the table. “You all ready for a road trip?” Daniel does a double-take. “...We’re going now?”, he asks her. Agnes nods. “Why else would I have called everyone over here? Everyone, get your game faces on. We move in on Quesnel Station in five.” Daniel rubs his eyes, sighing. “And here I thought I’d get to sleep today.”
Agnes whistles loudly. “Alright, everybody, let’s get a move on!” She pulls a bag over her shoulder, & opens the library warehouse’s sliding door. The group exits the library, making their way across the street, and using a ladder to get onto a nearby rooftop. Emma kneels and pulls out a pair of binoculars. “No CP ‘til we get to the checkpoints ‘tween Reid and Barlow. Don’t think we can sneak around. We’ll have to create a diversion of some kind.”, she says. “Daniel, Amelia, you got it covered?”, Agnes questions. “Yep.”, Daniel replies. “We’ll draw ‘em away & link up with you two at St. Andrew’s.” “Alright. Let’s go.”, Agnes says.
They drop down, carefully heading between buildings until they get to an abandoned casino near the Combine checkpoints. “Okay… You guys will have to lure them down Barlow and shake ‘em off. Just be sure to avoid going towards Cariboo Highway, or else the forcefields’ll cut you off.”, Emma tells them. “Got it.”, Amelia replies. “C’mon, Danny.” The two dash between buildings and get between the two checkpoints. Daniel picks up a can and chucks it at a Metrocop. “Sorry! Thought you were a Cremator!” The Metrocop raises his Stunstick, dashing after Danny & Amelia. “We’ve got a 10-31 at checkpoint 5A, 2 suspects. Officers in pursuit. Code 1.” Over the Metrocop’s radio, the Overwatch AI responds. “Overwatch acknowledges. Detain and deliver sociocide verdict immediately.”
Daniel and Amelia dash away, and the rest of the group sneaks past the checkpoint, making their way around a building until they make it to the church. Shortly thereafter, they are met once more by the two. Amelia dusts her hands. “They’ll be searching that block for a while. Let’s make ourselves scarce.” Agnes nods, patting her on the back. “Good work.” The group proceeds across the city until they get to Quesnel Museum. Agnes puts a hand out, motioning the group to halt. “Alright. Let’s take extreme caution here. Combine patrols are usually swarming around this place. Emma?” Emma pulls out her binoculars, scanning the area. “We’ll need a way through the forcefield. Scanners are patrolling the front of the building. But it looks like there’s a Combine APC up the road. Some CPs taking an unapproved break, it seems. If we can commandeer that APC, we can cross the highway into the station.” Agnes bites her lip. “That creates a complication. They’re out in the open, they’ll see us coming from a mile away.”
Evan smiles. “They’ll see us coming from a mile away, sure… You guys remember that Snark infestation in the vents? I… may have kept some of ‘em.” Evan pulls out a jar with a Snark inside of it. Emma stares at Evan with a stunned expression. “You kept live Snarks in our headquarters?” Evan shuffles his feet. “I mean… I separated them.” Emma rolls her eyes, and Agnes shrugs. “It’s worth a shot, I guess.” She puts a hand on Evan’s shoulder. “Soon as you get close enough, lure them towards you, unleash the Snarks, then get the hell away as fast as you can.”, she tells him. “Yeah. I was hoping I’d get to use these guys on something… y’know, bigger. But I guess I’ll have to make due. Part of me is gonna miss you, little guys.” Evan pats the Snark Jar. The Snark hisses, and the group exchanges concerned glances.
Evan heads down the road towards the CPs. He waves his arms, reaching into his jacket pocket. “Hey! Hey!” The Metrocops turn their attention towards him. “What the-- Hey! Stop right there!” The cops draw their pistols, slowly approaching him. “Take your hand out of your jacket now!” Evan chuckles. “If you say so… I have to warn you, though. These guys get cranky when they aren’t fed.” Evan pulls the Snark jars out from his jacket and tosses them onto the ground before running back and hitting the pavement. The jars shatter, and the Snarks immediately leap towards the CPs. The Metrocops scream, firing on the Snarks, but miss their shots. Their body armor is easily torn apart by the Snarks, allowing the aliens to feast on their exposed flesh.
One of the Metrocops runs for the APC. He hastily unlocks the door just before getting their head slammed through the glass by Agnes, knocking them unconscious. Agnes pulls the CP’s mask off, cupping her hands over her mouth. “Evan, get over here fast!” Evan sprints away from the Snarks and dives into the back of the APC. Emma hops into the driver’s seat, looking over the controls. “Uhhh, uh, shit. Does anyone here know how to drive?!” Agnes scoots her over, taking the driver’s seat. “Learned just before the invasion. Though it’s been a long time since I’ve driven…” She puts the APC in Drive, and speeds off just as the Snarks leap towards it.
“Okay… Almost there.” Agnes puts the CP’s mask on while keeping one hand on the wheel. “Emma, keep your head down. We can’t risk anyone seeing us on the way in.” Emma ducks down as they pull into the station. Justin whispers from the back. “I know this is serious, but I just gotta say, your voice sounds really cool in that mask.” “Zip it.”, Agnes responds as she pulls up in front of the main building. It is then that she notices a CP Officer signaling them to stop. Agnes feels her stomach drop as she slows down next to him, rolling the window down.
The Metrocop looks up at her. “There you are. Mind explaining to me what took you so long? We’re almost behind schedule, everything else has been loaded. And--Hey, where’s the rest of your patrol?” Agnes swallows. “Uhh… Some… Some Citizens caused a bit of a ruckus earlier. They had to provide some extra backup. Sorry.” “Just get the damn supplies over to James before you get us both in trouble.” The cop points his stunstick towards a Metrocop nearby. “Got it. Th--...Thank you..?”, she says, biting down on her lip after letting that slip out. The cop simply shakes his head as she drives off. “Dumbass is gonna get himself killed.” Agnes pulls up towards “James”.
“Took you long enough. Do you have that last supply shipment?” “...Yeah… Yeah. I’ll unlock the back for you.”, she tells him. James motions another Metrocop over, and they head towards the back of the vehicle. Agnes pulls the sliding door open. “Get ready.”, she says as she unlocks the back doors. The Metrocops pull them open, only to get dragged into the back of the vehicle by the others. Daniel slams the doors shut, and the rest of them knock the two cops unconscious. Daniel turns his head towards the driver’s seat. “Agnes? You did not think this through very well.” “There are only six of us, what do you expect me to do? Just drive through the front gates and gun everyone down?”, she scoffs. “That’d make things easier.” She shakes her head. “We don’t get things easy nowadays. Now, uh… Hmm… Hey, Emma, most Metrocop suits are tailored to the average height of the adult male, right?” Emma pops her head up. “Uh… Yeah. Why?” Agnes turns towards the back. “Danny, Evan? You two are gonna get us on that train.” The two raise their heads. Daniel blinks. “Excuse me?” “Get in uniform.”, she tells him. Daniel sighs. “Weirdest feckin’ day of me life.”
After Daniel and Evan get in the CP uniforms, Amelia and Justin tie up and gag the CPs with spare rope. Agnes turns to the others. “Alright. Emma, sneak into the back. Here’s how we’re gonna get on board.” Emma steps around the other side of the APC and climbs into the back of the vehicle. Agnes continues. “I’m gonna pull up to the loading bay. Soon as you two step out, I want you to stack cargo up to provide some cover for the others to board the train. After that, you two are gonna load the cargo onto the train, and the rest of you are gonna hide inside those Combine crates.” Daniel looks at her. “That is a really shoddy plan.” She glares at him. “Daniel, I swear to god, I will come back there and stick my foot up your ass if you don’t stop complaining today. Get out there. Now.”
Danny and Evan hop out of the APC, stacking supply crates on top of one another. The group sneaks aboard the train, climbing into the supply crates that get loaded on board. Agnes carefully makes her way under the vehicle, and Daniel helps her to her feet. She climbs into the train car. “Soon as this thing gets going, you two sneak onto the back of the train car, and I’ll open it from the inside. Got it?” The two nod. Agnes hides behind some crates, and Daniel continues loading cargo. “Feckin’ hell, what do they put in these things?” “Considering some of the things I’ve seen?”, Evan asks. “I, for one, do not want to know.”
They finish loading cargo and Evan waves to the other Metrocops. “We’re good to go!” The train car’s folding door closes, and the train begins moving. When the other Metrocops turn their heads, Danny & Evan hop up onto the platform. Agnes opens the door, and they step inside. “Okay... We’re clear.” Agnes opens the Combine supply crates, and Emma pops her head out, gasping for air. “God damn it, those things are airtight!” Agnes quickly opens the rest of the crates, and helps everyone out. “Alright, everyone… Next stop: The United States.”
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