Thursday, December 31, 2020
2020's biggest winners on both S&P 500, Nasdaq 100
2020's biggest winners on both S&P 500, Nasdaq 100
Sunday, December 20, 2020
Barron’s Top Picks 2021
Barron's mentions
The publication's top ten stocks for 2021 list has a value bent and are as below:
1. Berkshire Hathaway (NYSE:BRK.A),
2. Alphabet (NASDAQ:GOOG),
3. Apple (NASDAQ:AAPL),
4. Coca Cola (NYSE:KO),
5. Goldman Sachs Group (NYSE:GS),
6. Newmont (NYSE:NEM),
7. Eaton (NYSE:ETN),
8. Graham Holdings (NYSE:GHC),
9. Madison Square Entertainment (NYSE:MSGE) ,
10 Merck (NYSE:MRK)
Monday, December 14, 2020
Three of the 10 biggest tech IPOs have happened in 2020
Three of the 10 biggest tech IPOs for U.S. companies, in terms of capital raised, have taken place this year.
Tuesday, November 10, 2020
Saturday, October 3, 2020
Hims & Hers to Become Publicly-Traded via Merger with Oaktree Acquisition Corp. (OAC)
Hims & Hers to Become Publicly-Traded via Merger with Oaktree Acquisition Corp. (OAC)
Hims, Inc. (“Hims & Hers” or the “Company”), a market leading telehealth company, and Oaktree Acquisition Corp. (NYSE: OAC.U, OAC, OAC WS), a special purpose acquisition company sponsored by an affiliate of Oaktree Capital Management, L.P. (“Oaktree”), announced today that they have entered into a definitive merger agreement. Upon completion of the transaction, the combined company’s securities are expected to be traded on the New York Stock Exchange (NYSE) under the symbol “HIMS.”
Him's and Her's Investor Presentation
Him's and Her's Venture Investor Interview
Saturday, September 19, 2020
Powering Online Education - 2U Inc CEO Interview with ARK Invest
2U, Inc. is an American educational technology company that contracts with non-profit colleges and universities to offer online degree programs. The company supplies its client institutions with a cloud-based software-as-a-service platform, coursework design, infrastructure support, and capital.
US Sector ETF Performance 2020 YTD
US Sector ETF Performance 2020 YTD
Technology has been best performing sector in 2020 up 24% even after 10% correction in NASDAQ.
Energy down 43% and Financials down 20% have been worst performing sector ETF.
Tuesday, September 1, 2020
Tuesday, August 11, 2020
ARK Invest Big Ideas Presentation 2020
ARK Invest Big Ideas Presentation 2020
1. Deep Learning — From Vision to Language
2. Streaming Media — The Primary Technology Behind Content Distribution
3. Electric Vehicles — Faster Adoption Than Most Think
4. Automation — Increased Productivity and More Jobs
5. 3D Printing — An Underestimated Technology
6. Autonomous Ridehailing — The Future of Transportation
7. Aerial Drones — A Cost Saver and Potential Life Saver
8. Next Generation DNA Sequencing — The Transformation of Oncology
9. Biotech R&D Efficiency — The Convergence of Technologies in Healthcare
10. Digital Wallets — The Transformation of Banking
11.Bitcoin — An Evolution of Monetary Systems
Saturday, August 1, 2020
FAANG Adds $1.6T in 2020 while Other 495 S&P 500 Stocks Loose $1.6T In Value.
FAANG Adds $1.6T in 2020 while Other 495 S&P 500 Stocks Loose $1.6T In Value. 2020 with COVID-19 has been a year of winners and losers as Tech companies continue to operate with enhanced business demand while most other businesses are shut down and many will not survive this pandemic and recession.
Sunday, July 5, 2020
Brookfield CEO Bruce Flatt on Long Term Investment Outlook After COVID-19
Brookfield CEO Bruce Flatt on Long Term Investment Outlook After COVID-19 in his recent interview with Bloomberg Invest.
Tuesday, June 23, 2020
Abu Dhabi’s ADNOC Sells 49% of Natural Gas Pipeline for $10.3B
Abu Dhabi’s ADNOC Sells 49% of Natural Gas Pipeline for $10.3B to GIP, GIC, Brookfield, OTPP and others.
The pipelines are backed by 20 years of usage contracts to guarantee cash flow.
Tuesday, June 16, 2020
Saturday, June 6, 2020
S&P 500 Erases Loss for Year 2020 After Incredible 50 Day Rally
The furious stock-market rally, already the best-ever over 50 trading days through Tuesday, on Friday pulled the S&P 500 just about even for the year. Including dividends, the index has made you money in 2020, after a 37% collapse, a global pandemic and in a still-constrained economy.
Thursday, June 4, 2020
Amazon in talks to Pay $2B for 5% Stake in Indian Telco Bharti Airtel
Amazon (AMZN) in talks to Pay $2B for 5% Stake in Indian Telco Bharti Airtel. The planned investment, if completed, would mean Amazon acquiring a roughly 5% stake based on the current market value of Bharti, which is India’s third-largest telecoms company with more than 300 million subscribers.
Tuesday, June 2, 2020
Brookfield, GIP near $15B Abu Dhabi gas pipeline deal - FT
Brookfield, GIP near $15B Abu Dhabi gas pipeline deal - FT.
Brookfield, GIP Consortiums each would invest at $15B valuation for 49% stake each. The GIP consortium also includes Italian infrastructure operator Snam SpA, Ontario Teachers’ Pension Plan, Singapore sovereign fund GIC Pte and South Korea’s NH Investment & Securities Co.
Sunday, May 24, 2020
Bear Market Rally or New Bull Market?
Jury is still out on whether this is a Bear Market Rally or New Bull Market. S&P 500 corrected by 35% and is now only down 15% from Feb 2020 peak. Tech Mega Caps are highly valued and value stocks and non tech economy stocks are beaten down.
Time will tell as there is a disconnect between stock market and current economy and there are various outcomes possible in terms of COVID-19 Vaccine and Treatment availability timelines.
Friday, May 22, 2020
Reliance Industries Jio Platforms Raises $10B at $60B Valuation
Reliance Industries Jio Platforms Raises $10B at $60B Valuation. Major Investors include FB, KKR and other US based Private Equity Investors.
This is a bet on the Digitization of Indian Economy.
Saturday, March 14, 2020
Tuesday, March 10, 2020
S&P 500 Corrects 7.5% to 2740 - Values Abound for Long Term Investors
S&P 500 Corrects 7.5% to 2740 for a total correction of 19% from 3394. Admittedly this correction is from an elevated level and there is near term uncertainty due to COVID-19 impact on economy. However for Long Term Investors Values Abound in the market including highest quality companies trading at attractive valuation, especially compared to 0.6% yield on US 10 Year Bond Rate.
A snap back of US 10 Year Yield above 1% and containment of COVID-19 Virus are catalysts needed to signal the bottom on this correction.
SPY 1 Year Chart
SPY 5 Year Chart
Blackstone in talks for $4B deal to take SOHO China private ($8.7B Enterprise Value Including $5.7B Debt)
Blackstone in talks for $4B deal to take SOHO China private ($8.7B Enterprise Value Including $5.7B Debt). BX will pay a 100% premium to depressed share price for this office developer.
Blackstone in talks for $4B deal to take SOHO China private
Blackstone in talks for $4B deal to take SOHO China private
Sunday, March 8, 2020
Oil Set to Crash to $32 per Barrel as Russia and Saudi Arabia Declare War on US Shale
After OPEC and Russia failed to agree on Oil Cuts WTI and Brent are set to open $10 lower to $32.
Oil Price 70 Year Chart
Friday, March 6, 2020
Updated Thoughts on Corona Virus Impact on Economy and Stock Market
Updated Thoughts on Corona Virus Impact on Economy and Stock Market
As the fear, psychology and change in customer behavior takes deeper hold due to Corona Virus affecting Travel, Leisure and other industries, I think Impact on Economy and Stock Market could be more than I initially anticipated.
It is a fact that regular flu (Influenza Virus) will kill multiple times more people than Corona Virus, it also seems to be the case that human behavior to first one is ignorance but to the second one is fear. If this behavior of people cancelling vacations, business conferences, events at entertainment and sports venues continues there will be job losses in these sectors. The cutting of interest rates by US Fed to 0% is also stoking more fear in the market as long term bond yields fall with US 10 year at 0.8% and 30 year below 1.5% the stock market could tumble further down making new lows than Feb last week low of 2820 on S&P.
Time to hold on to your assets and ride out the turbulence in the markets that could last a while.
Contagion from fear will likely affects all sectors of the economy unless sentiment turns. Irony will be that it won’t be the Corona Virus that causes the recession but the human reaction and psychology to it that might.
Thursday, March 5, 2020
Blackstone’s India Plans - Steve Schwartzman Interview
Excellent Interview by Steve Schwartzman Founder and CEO of Blackstone (BX).
India’s Yes Bank Fails, RBI Takes Over Board
India’s Yes Bank has failed due to bad loans and RBI Takes Over it’s Board. India’s Banking Sector crisis and recession has been ongoing for last 2 years. A global recession could cause more trouble to Indian Banks where public sector banks hold billions of dollars worth of bad loans. Vulture Investors are ready to pounce when prizes assets are sold by the banks.
The government on Thursday imposed a withdrawal limit of Rs 50,000 for depositors of beleaguered private lender Yes Bank.
The government on Thursday imposed a withdrawal limit of Rs 50,000 for depositors of beleaguered private lender Yes Bank.
Berkshire Hathaway pulls out of $7B LNG project in Canada
BRK.B: Berkshire Hathaway pulls out of $7B LNG project in Canada
The Trudeau Liberal Govt continues to be a disaster in managing the Canadian Economy. Investment and Investors are fleeing the country like never before.
'Bond King' Gundlach says Fed panicked and rates are 'headed toward zero'
'Bond King' Gundlach says Fed panicked and rates are 'headed toward zero'
Jeff Gundlach CEO and Founder of DoubleLine Capital thinks US 10 year bond yield will head to 0% just like Euro and Japanese Govt bonds.
DoubleLine Capital is 20% owned by Oaktree which is 61.2% owned by Brookfield
CNBC: 'Bond King' Gundlach says Fed panicked and rates are 'headed toward zero'
Wednesday, March 4, 2020
Brookfield Infrastructure sweetens bid for Cincinnati Bell to $13.50 per share $2.8B Enterprise Value
Brookfield Infrastructure sweetens bid for Cincinnati Bell
Brookfield Infrastructure sweetens bid for Cincinnati Bell to $13.50 per share $2.8B Enterprise Value matching offer fro Macquarie Infrastructure and Real Assets.
Brookfield Infrastructure sweetens bid for Cincinnati Bell
Brookfield Infrastructure sweetens bid for Cincinnati Bell to $13.50 per share $2.8B Enterprise Value matching offer fro Macquarie Infrastructure and Real Assets.
Brookfield Infrastructure sweetens bid for Cincinnati Bell
Toronto Home Prices Surged 17% YOY Feb 2020 to C$910K - Closing In on Apr 2017 Peak Value C$921K
Toronto Home Prices Surge
Toronto Home Prices Surged 17% YOY Feb 2020 to C$910K Closing In on Apr 2017 Peak Value of C$921K. Number of sales were up 45% year over year in Feb 2020. With US Fed cutting interest rates by 0.50 to 1% and US 10 year bond at 1%, Bank of Canada was forced to follow suit with a 0.50% cut as Canada and US economies are tightly integrated. This has reduced the mortgage rates with first RBC lowering its Prime Rate to 3.45% from 3.95% and all other Canadian banks following suit. I believe Canadian House Prices will continue to be elevated until rates rise or a recession causes job losses.
Toronto Home Prices Surged 17% YOY Feb 2020 to C$910K
Toronto Home Prices Surged 17% YOY Feb 2020 to C$910K
Tuesday, March 3, 2020
US Fed Funds Rate Cut to 1%, US 10 Year Bond Yields 1%
Today US Fed Funds Rate was Cut to 1% after a reduction of 0.5% to counter impact of Corona Virus on the economy.
US 10 Year Bond Yield - 50+ Year History
US Fed Funds Rate
US 10 Year Bond Yield also dipped below 1% for the first time in history. It is looking like US 10 year bond rate may keep going down to yield 0% like Euro and Japan.
In this environment stocks which can produce 6-8% return over the long term look attractive with earnings yield spread of equities over bonds being +5%. Avoiding companies with exposure to travel and buying well capitalized companies with long term growth runway and competitive advantages is the way to go.
US 10 Year Bond Yield
US 10 Year Bond Yield - 50+ Year History
US Fed Funds Rate
Friday, February 28, 2020
Corona Virus Selloff an Overreaction - Now is a Good Time to Buy Stocks
Corona Virus Selloff an Overreaction - Now is a Good Time to Buy Stocks
If interest rates remain low like now with US 10 year treasury bond yielding 1.18% and Euro and JPY 10 year debt yielding 0%, people will flock back to stocks of great businesses and stock market will reach heights again as good businesses continue to generate cash and grow intrinsic value. The only reliable way to retain value and to make income is to buy stocks or invest in alternative investments.
I believe this is a good time to buy stocks of world leading companies with low debt and competitive moats.
US S&P 500 Index 1 Year Chart
US 10 Year Treasury Bond Yield 20 Year Chart
Thursday, February 27, 2020
S&P 500 In Correction Territory
S&P 500 In Correction Territory after falling from 3390 to 3300 on 27Feb2020. This has been the fastest 10% correction ever for S&P 500 as the recent high was made just a week ago on 19Feb2020.
It has to be kept it mind that this correction is happening after a strong 2019 when S&P was up 30%. However in the same time the 10 year and 30 year US Treasury Bonds have collapsed to 1.25% and 1.8% yield compared to a year ago when 10 year and 30 year US Treasury Bonds has 2% and 3% yield. Given that and low interest rates exist across the world and investors have no where to go for decent return a higher multiple in stocks is understandable.
The worst hit sector has been Travel and Leisure with 30% correction. This includes Cruise, Travel Booking and Airline stocks. The outlook is challenging for these companies near term. Also Banks, Semiconductors, Industrials and Metals/Commodity sectors are in correction territory with 10-14% losses. Oil and major commodities are down which should help most of the economies recover. Healthcare and Consumer Staples and Utility stocks are at close to 7-10% correction.
The all important Tech sector also has had a 10% correction with major names including AAPL, GOOGL, FB, AMZN, MSFT all retracting from 52 week highs.
The near term future is uncertain as there is some chance the Corona Virus could become a pandemic and push some regions and possibly global economy into slower growth or a recession. However I believe the long term fundamentals for strong companies outside travel sector remain good especially if interest rates remain low over next 3-5 years. In a way this correction could turn out to be healthy for the market as it shakes out complacency and resets expectations of investors.
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