This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Digital Skeptic Saves The Economy

Stocks in this article: F

Yes, divisions between us very much exist. But we now are global village of roughly 3.2 billion mobile phone users, according to MobiThinking, the Irish mobile consulting firm. Each and every one of those users cannot only buy -- but sell -- food, clothing, equities, bonds and everything else via that phone. Voice calls and debit cards turn every phone-connected human into a mini CEO.

That begs the question: In such a tech-blurred world, how persistent can a pecking order really be? The answer: Not very.

So is it really such a stretch to realize that the folks who work for GE (GE) are the same folks who not only buy a GE fridge, but also a share of GE stock? After all, Americans grew up learning about a Henry-Ford-pays-$5-a-day revolution back 1914.

"Henry Ford had reasoned that since it was now possible to build inexpensive cars in volume," says the Ford Motor (F) website, "more of them could be sold if employees could afford to buy them."

Bam! That's the trick to making our economy hum again. Think like Mr. Ford would have in today's Web area: If you manage a company and want to sell more company stock, make sure your employees have the money to buy that stock.

Poof, instant bull market.

Social capital now rules this multiclass age
Now comes the digital-age kicker. In this time of no privacy and uber-analytics, a company such as GE can calculate precisely how much of its stock value comes from this smaller, part-time -- what I'm calling the multiclass -- consumer investor.

I like the weekly sentiment analysis from the American Association of Individual Investors as a source for this stuff, but even with my basic modeling skills I can bake up a pretty darn accurate model. It's easy.

With data such as this, it becomes a no-brainer for public markets to know -- and to hold managers accountable for -- exactly how much of a company's share price comes from the multiclass investor and in turn calculate the exact amount it should pay employees to insure multiclass investor demand for its share price while still having enough profit to grow the business.

And finally we've got real upside: Fortune 1,000 managers will now have no choice but to unlock the reported $3.7 trillion in combined balance sheet cash that's sitting idle in corporate coffers in what The Economist brilliantly calls "Dead Money."

This $3.7 trillion will get injected into a tech-happy economy that will create wealth we have never seen before. This golden age will make our national debt of $16 trillion look utterly manageable.

And that means, friends, I won't have to effing sit through another morning of knuckleheads such as Stockman and Walker ever again.

And trust me, from here, that can't happen a moment too soon.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs