Mike S. Newton, CIM FCSI Global X Social Media Ind. ETF SOCL-Q COMMENT Nov 06, 2013

Down from about $21. They just picked up about 4.5% of Twitter (TWTR-N). He is forecasting 19% increase in ad revenues from social media sites, about $9.2 billion in 2016.

(Market Call Minute.) He never buys products so he can never recommend an ETF. On social media he is not smart enough to know which one to use.

(Market Call Minute.) Social media. 87% of Fortune 100 companies use it. $9.2 billion in ad revenues probably in 3 years.

The only trouble with this is that it is a little too much niche and has really, really high multiples and there is a lot of risk that goes with this. He would not be buying this.

Likes this very much because there are always new companies coming to the market, and this company is buying them. If you own, he wouldn’t buy more. Looking at the dynamics around social media companies, we need some social media stocks in the portfolio, and this ETF would be the less risky way to do it.

He sold all his social media stocks in March, and then re-bought them all 3 weeks later. Keep your eye on it and Trade it, don’t Hold it.

Canadian social media ETF containing things like Facebook and Twitter? There is none in Canada that he is aware of, but there is SOCL-Q in the US. Valuation on these are awfully high. When he sees people that are fans of social media, etc., he gets leery about the valuations.

Social Media Stocks. Looked at TWTR-N’s announcement. 23% increase in customer base, but it was 30% last year. FB-T is having real problems.

(A Top Pick Nov 27/13. Down 1.29%.) You have to believe in the social media area. 78% of all of us use social media. 87% of the top Fortune 100 companies use social media. 58% of small businesses use it every single day. There is going to be a 19% increase in advertising on social media websites. You have to be in this one.

Educational Segment. An ETF that plays the broader social media stocks. How much of these holdings are you using and paying? How much corporate tax they pay. The question here is anti-trust. There was a push in the 1970s and in the 1990s with Microsoft. The US government filed a lawsuit against Google recently. There is a secondary issue which relates to the first amendment. Depending on how you look at it, it can be very bullish or bearish. Ultimately, governments will be looking hard at this. For now, it could be an interesting play from the short side. The market is not paying enough attention to government risk.