Tag Archives: Stocks

Big Tech Is Doing Very Well

We have been taking some profits on big tech recently, but the numbers in this link show why big tech share prices have done extremely well over the past year:

LINK: Big Tech Earnings and Revenue Growth

Are you surprised that Facebook grew its profits the most? We’re not. It validates the point that their network is a brilliant platform that has only begun to be monetized.

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Will Spotify be the next hot IPO?

According to NY Times, Spotify has finally signed agreement with Universal Music Group. It’s world’s biggest record company whose artists include Lady Gaga, U2, Drage. And this has been their biggest obstacle to going public.

Spotify has been valued at more than $8 billion, it has 50 million paying subscribers and 50 million listening for free. Those listening for free have been paying by listening to ads.

We’ll keep an eye on Spotify as recently there are limited number of enticing IPOs.

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Amazon reaches new highs

It seems that Amazon is unstoppable. Of course it isn’t but it may seem so.

There are plenty of articles that help Amazon go even higher, such as:

It’s most ambitions sports deal to date Amazon wins streaming rights to 10 NFL games

Amazon launches Amazon Cash, a way to shop its site without a bank card Link

Also, absence of bad press helps.

We’ve been writing about Amazon for quite some time and perhaps mentioning it too often. It’s been very profitable position for our clients and we’re still bullish.

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European Banks

According to Goldman Sachs, currently 3 themes that make European banks attractive: 1) the potential of rising rates, 2) the valuation gap between US and European banks, and 3) decreasing political risks.

Our opinion coincides with that of Goldman Sachs.

  1. All Signals Point Towards Higher Interest Rates

Recent pickup in Eurozone inflation has alleviated concerns that Europe could be facing the threat of inflation. Prices are rising, as is economic growth.

Here is a chart of European inflation:

Eurostat Eurozon MUICP AllItems YoY Flash estimate NSA (Source: Bloomberg)

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Global Outlook Improves

As market commentators attempt to deride the “Trump rally”, they are actually missing the broader picture of the multi-faceted economic growth that is going on globally.

Scott Grannis provides some great commentary and charts in the following blog post:
LINK: Global Outlook Improves

Here’s a interesting comparison between US and European stocks and industrial production:

Oh, and by the way, emerging market stocks are doing best of all:

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The Most Expensive SUV in the World

Daimler is coming out with the most expensive SUV in the world.

Here’s more pictures of the newest Daimler’s models: LINK

Release of such extravagant models won’t bring much direct revenue growth. It does make a lot of press and increases brand awareness. For luxury car producers brand awareness is of the most valuable assets and Daimler is doing a great job at promoting itself.

We’ve liked Daimler for quite some time. We took interest in it when price was at its lows and no one cared about Daimler.

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How Major Asset Classes Performed In January

In a world inundated with terms like ‘alternate facts’ and ‘post truth’ we take comfort in numbers.

Our business is simple, you make money for your clients or you don’t. No amount of academic accreditations, algorithms or excuses can compensate for not making successful investment decisions (see ‘Long Term Capital Management’…).

Here is how major asset classes performed in January:

LINK: Major Asset Class Performance January 2017

And here is the performance of our top equity holdings:
top 10

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