Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Labour has comfortably won the London mayoral contest with Sadiq Khan securing an unprecedented third term in office, adding to the electoral gloom hanging over Rishi Sunak’s Conservatives. Speaking after his victory was declared, Khan…
blackred Investment Thesis Danaher Corporation’s (NYSE:DHR) core sales growth rate is expected to turn positive as 2024 progresses, with customer inventory destocking ending by the second half of 2024 in the bioprocessing business and improving order trends in the Biotechnology and Life Sciences segments. Further, the strength in the Diagnostics segment and easier Chinese business…
tobiasjo Reinvestment Risk Reinvestment risk is the risk that when your term preferred stocks or your bonds mature that you will not be able to reinvest that money at similar or better yields because interest rates have fallen. This will result in the decline of your future income. At our service, we offer a recommended…
Kosal Hor/iStock via Getty Images Summary Following my coverage of J.B. Hunt Transport Services (NASDAQ:JBHT) (published on 5th Feb 2024), that I recommended a buy rating as I was positive about the growth recovery trend, which I thought was evident in the intermodal [IM] segment volume performance, this post is to provide an update on…
SlavkoSereda/iStock via Getty Images In the world of closed-end funds, (“CEFs”) there are three types of fund structures. Perpetual: As it sounds, the fund has a perpetual mandate and continues to operate ‘forever’ Term: This fund has a specified date in the future when it will self-liquidate at NAV. Target Term: This type of fund…
LeoPatrizi PNM Resources, Inc. (NYSE:PNM) is an energy holding company whose two regulated utilities collectively provide electricity to over 800,000 homes and businesses in New Mexico and Texas. PNM Resources has two regulated utility segments, PNM, a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets, and TNMP, an electric transmission…
Aerial view of production and engineering facility of automotive company Magna Powertrain Photofex/iStock Editorial via Getty Images In our last coverage of Magna International (NYSE:MGA), (TSX:MG:CA) we had a bullish outlook. That outlook was tempered by the risks facing the company and we suggested that the best way to play this was via defensive covered…
BlackRock CEO Larry Fink has made bullish remarks about Bitcoin today on Fox Business, stating that their spot Bitcoin ETF, $IBIT, is experiencing unprecedented growth, making it the fastest-growing ETF ever. JUST IN: BlackRock CEO Larry Fink says their spot #Bitcoin ETF "is the fastest growing ETF in the history of ETFs." 🚀 pic.twitter.com/J6g7XrYWCU —…
Dilok Klaisataporn Crescent Capital (NASDAQ:CCAP) could be the right option for a dividend portfolio due to its potential to generate solid returns over the long term. Moreover, the BDC offers downside protection as its debt investment portfolio is substantially diversified with an average investment size of 0.5% and a high concentration on non-cyclical sectors. Moreover,…
eyewave Investment action I recommended a buy rating for Nestle (OTCPK:NSRGY) when I wrote about it the last time, as I believed in the value of its famous brands that have strong equity value. I also believed that an improvement in volume and gross margin would drive the share price up in the near term….
Darren415 Written by Nick Ackerman. Main Street Capital (NYSE:MAIN) recently announced its Q4 and full-year 2023 results. They delivered solid results and helped support why they are considered one of the best in the business development company (“BDC”) business. As an income-focused investment, they have been able to deliver not only a steady but also…
Violka08/iStock via Getty Images Bitcoin (BTC-USD) is back above $60k. Roughly seven weeks after spot ETF approvals in the United States, the coin has printed six consecutive monthly gains and a whopping 157% low to high return dating back to September 2023. Naturally, when Bitcoin rallies like this, stock market investors often look for equity-based…
Future Publishing/Future Publishing via Getty Images Since the initial publication of my investment thesis about PDD Holdings (NASDAQ:PDD), the stock has rallied almost 40%. After I wrote my investment thesis, PDD reported a blowout quarter for Q3 of 2023, which I wrote about after the Q3 earnings release. Since then, there have been some recent…
Andrii Yalanskyi Kimball Electronics’ (NASDAQ:KE) Q2 Results missed analyst expectations, and the stock has significant risks related to its momentum and revisions at this time. Over the long term, I believe returns from the shares could be quite good. However, the potential for short-term downside is enough to stop me from making an investment. Operations…
miniseries I last wrote on John Wiley & Sons (NYSE:WLY) in July 2023, and I saw many issues at that time; hence, I saw no buying opportunity in it, which turned out to be true. It has moved around 0.7% in these six months, and even now, I expect that it might not provide returns…
ryasick Horizon Technology Finance (NASDAQ:HRZN) is a well-run BDC that invests in a small number of core industries that are historically neglected by the banking community. The BDC runs a tech-focused investment strategy and has seen double-digit net investment income growth in the last year. Although I expect weaker NII growth in FY 2024, Horizon…
Hitoshi Nishimura/The Image Bank via Getty Images The GEO Group (NYSE:GEO), a rehabilitation facilities company, has seen its share of adversity of the past few years. The company had to switch its corporate structure from a REIT to a C Corp, and consequently eliminated its dividend. Additionally, GEO has had to endure regulatory challenges and…
Andrii Dodonov Introduction Eagle Point Income (NYSE:EIC) is an investment company focusing on the BB tranches of CLO debt. And just like in my previous article, I’d like to refer you to Steven Bavaria’s articles which often provide excellent reads as he is very capable in explaining CLO tranches and the implications in layman’s terms….
Juanmonino Investment thesis Our current investment thesis is: U-Haul’s (NYSE:UHAL) diversified revenue stream and strong business model positions it perfectly as a long-term compounder. The company has a strong asset base that is growing rapidly, alongside a market-leading position in the UK. We suspect it can continue to grow at a similar rate to historically…
Drazen_ Summary Readers may find my previous coverage via this link. My previous rating was a hold, as I believed Petco Health and Wellness Company (NASDAQ:WOOF) was going to see negative near-term performance. I also expected the possibility of WOOF missing guidance if management cut prices more aggressively than expected. I am reiterating my hold…
tadamichi Western Asset Global Corp Defined Opportunity Fund (NYSE:GDO) is a foreign bond fund that invests in mostly corporate bonds of investment grade quality. The key thesis on the fund is that it fits our current investment strategy of higher-quality, longer-duration helping to lock in yields. Additionally, this is a term fund structure that self-liquidates…
Filograph Invesco Senior Loan ETF (NYSEARCA:BKLN) is a high-yield fund with the goal of generating income while keeping share price stable. This may be a decent place to park your cash for the short term while you are trying to decide where to deploy that cash but its long-term performance is questionable so I might…
Iuliia Korniievych /iStock via Getty Images Great Lakes Dredge & Dock (NASDAQ:GLDD) offers dredging services. GLDD posted Q3 FY23 results with a significant drop in revenues. There are some positives and negatives in this quarter. After assessing all the factors, I think GLDD can be risky in the short term. So it would be best…
ollo/E+ via Getty Images We maintain a neutral sentiment on Zoom Video Communications, Inc. (NASDAQ:ZM). Investors got excited last quarter when Zoom beat expectations and guided higher for FY on enterprise business strength, but October quarterly results and management’s guidance for its January quarter confirm our negative thesis that weak enterprise spending will likely continue…
Pratchaya I came across M-tron Industries (NYSE:MPTI) by chance when I was researching a wide range of IT companies. MPTI ranked first not only in its industry (21 companies), but in the sector as a whole (566 companies) based on Seeking Alpha’s Quant System. Seeking Alpha, MPTI MtronPTI, originally established in 1965, is a $105-million…
PM Images Written by Nick Ackerman, co-produced by Stanford Chemist. We are entering what should be the final year for the Miller/howard High Income Equity Fund (HIE), with an anticipated liquidation in November 2024. The fund is a closed-end fund with a term structure, and when liquidation takes place, that means the discount that the…
andresr/E+ via Getty Images While most tech stocks have seen a renewed bull rally over the past week as interest rate fears have subsided, Zillow (NASDAQ:Z) has gone the opposite way. The leading online real estate database fell sharply after reporting Q3 results, bringing YTD gains to just over 10% – below the performance of…
In recent weeks, the Salvadoran media has been abuzz with speculation that Bitcoin Country President Nayib Bukele will step down from his current role to pursue a second term in office. This move hinges on obtaining a special license from the Salvadoran Legislative Assembly, a process that requires three-quarters approval from the body. Previously, it…
Jay Yuno Why Anta? Global sportswear leaders like Nike (NKE) and Adidas (OTCQX:ADDYY) have been able to generate high ROICs (>20%) in their peak years. I decided to analyse the Chinese footwear market to see if a similar trend could play out there and I found that ANTA Sports Products Limited (OTCPK:ANPDY) is the best…
Darren415 Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company (“BDC”) sector from both the bottom-up – highlighting individual news and events – as well as the top-down – providing an overview of the broader market. We also try to add some historical context…
JHVEPhoto UGI Corporation (NYSE:UGI) unveiled a complex financial narrative in Q3 2023, marked by significant variances in its earnings. This report showcased a decline in both GAAP diluted EPS and adjusted diluted EPS when set against the backdrop of the previous year’s figures. Despite the stability in its year-to-date EBIT, the contrasting earnings per share…
grandriver Thesis The ProShares UltraShort Bloomberg Natural Gas ETF (NYSEARCA:KOLD) is a commodities exchange traded fund. The vehicle falls in the leveraged products category, aiming to provide investors with the -2x daily performance of U.S. traded Natural Gas: ProShares UltraShort Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two…
jamesteohart/iStock via Getty Images Summary This post is to provide my thoughts on Capgemini (OTCPK:CAPMF) business and stock. I am recommending a hold rating as I await better visibility into the timing of growth reacceleration. While I am confident regarding the structural growth story of Capgemini, I believe the market is focused on the near-term…
RudyBalasko/iStock via Getty Images Roma Caput Mundi About fifteen years ago I was making a facsimile of a 16th-century illuminated codex for the publishing house with which I was collaborating, and this codex was housed in the Casanatense Library in Rome. For a few months I went to the capital quite often, checking the fidelity…
canbalci Vanguard Financials Index Fund ETF Shares (NYSEARCA:VFH) is a passively managed sector specific ETF. I believe this fund offers some opportunities as well as some risk factors in the short term and I generally see it as a mixed bag as I’ll explain in the remainder of the article. The fund invests in close…
mr.suphachai praserdumrongchai/iStock via Getty Images Last month I wrote an article on auto-tech, featuring Nvidia (NVDA), Telsa (TSLA) and Qualcomm (QCOM), positing that autos would be one of the largest users of semiconductors in the future — for automakers to have any serious chances of succeeding in building an autonomous vehicle. Tesla alone is spending…
Tom Werner Back in July, we wrote about the soon to be realized gains we saw in purchase of PennyMac Mortgage Preferred A (PMT.PR.A) when the shares convert from fixed to floating rate in March of 2024. We found the terms of conversion unambiguous, but on August 25th, PennyMac management announced that the demise of…
phototechno Investment thesis Our current investment thesis is: Endava has achieved impressive growth, well in excess of its peers, while also having superior margins, driven by an alternative approach to competition. The company has developed a strong brand, is focused on complex transformational exercises, is active in conducting M&A, and seeks to recruit high-performing individuals….
Andres Victorero Transcript Government bond yields have surged this year, with long-term U.S. yields hitting 16-year highs in August. We think short-term government bonds now appeal more to us than investment grade credit over the long run. Yet, we still see risks to long-term bonds. Here’s why: 1) Comparable income The yield rise in short-term…
Cloud maybefalse/iStock Unreleased via Getty Images Around four years back, I wrote an article on Alibaba : Significant Upside Left For Long Investors and argued that Alibaba (NYSE:BABA) has huge long-term potential. A lot has changed since then, both from the company front and the overall China growth scenario. In my view, Alibaba stock was…
Hollie Adams Investment thesis Our current investment thesis is that easyJet (OTCQX:ESYJY) has been a consistent performer in the budget European segment, operating highly popular routes, a solid business model, and a respectable financial performance historical (which we assume the business will normalize toward following a period of disruption). easyJet stacks up well relative to…
TERADAT SANTIVIVUT Written by Nick Ackerman, co-produced by Stanford Chemist. BlackRock 2037 Municipal Target Term Trust (NYSE:BMN) came to the market on October 26th, 2022. The fund is a bit unusual in that it went for the target term structure rather than the more common term structure in the last several years for closed-end funds….
PeopleImages/iStock via Getty Images Investment Thesis Bright Horizons Family Solutions (NYSE:BFAM) is one of the largest providers of day care services in the US with ~70% of revenues coming within the country. It had a strong track record of organic growth mixed with acquisitions with COVID significantly hampering its core full service day care service…
Darren415 Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund (“CEF”) market activity from both the bottom-up – highlighting individual fund news and events – as well as the top-down – providing an overview of the broader market. We also try to provide some historical context as well as…
Nadzeya Haroshka/iStock via Getty Images So far, it has been a “show me” story during the Q2 earnings season. Already ripe with rich year-to-date rebounds, companies have been expected to post virtually perfect results just to hold their share prices. Amid generally frothy markets, however, I continue to believe that attractive opportunities exist in individual…
niphon/iStock via Getty Images By Brian Nelson, CFA Stock prices and returns of a company are a function of its cash-based sources of intrinsic value: net cash on the balance sheet and future expected enterprise free cash flows (and changes in them). A stock price is reduced by the amount of a dividend payment once…
JHVEPhoto Elevator Pitch I award a Buy investment rating to Jones Lang LaSalle Incorporated (NYSE:JLL) shares. Earlier, I wrote about JLL’s profitability outlook, the company’s capital allocation approach, and its creation of a new CTO (Chief Technology Officer) position in my article published on May 22, 2023. My attention turns to Jones Lang LaSalle’s long-term…
Darren415 Welcome to another installment of our Preferreds Market Weekly Review, where we discuss preferred stock and baby bond market activity from both the bottom-up, highlighting individual news and events, as well as top-down, providing an overview of the broader market. We also try to add some historical context as well as relevant themes that…
Wirestock/iStock Editorial via Getty Images Since the last time I covered the pharmaceuticals giant AstraZeneca (NASDAQ:AZN) (OTCPK:AZNCF) in May this year, its share price is almost back to where it was when I wrote. Even at the time, there seemed little short-term upside to the stock. In fact, it fell by almost 10% in the…