Netflix goes negative for the year, giving up a 46% gain

Shares of Netflix erased all of its 46% gain for the year at its peak and officially entered negative territory on Monday Sep 21 2019.

It’s hard to value these high growth stocks which grow revenue but may not have a wide moat and growing earnings and cash flow. NFLX has rising competition from DIS, CMCSA, AMZN and others.

Netflix goes negative for the year, giving up a 46% gain

Brookfield Invests in Meraas Dubai Retail Portfolio

Canada's Brookfield Asset Management and Dubai's Meraas Holding have agreed to form a joint venture valued at 5 billion dirham ($1.4 billion) to own and operate Meraas' retail assets.

The assets include Dubai sites The Beach, City Walk and La Mer

Brookfield Invests in Meraas Dubai Retail Portfolio.

Palantir to seek at least $26 billion valuation in Fundraising Push

Palantir to seek at least $26 billion valuation in Fundraising Push.

Palantir Technologies is a private American software company that specializes in big data analytics. Headquartered in Palo Alto, California, it was founded by Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp

India Corporate Tax Cut To 25.2% from 35% To Spur Growth

India cuts corporate tax rate to 25% from 35% to make it globally competitive and to spur growth and prevent a recession.

Manufacturing companies that make new investments can also pay only 15% corporation tax.
This makes the rates competitive with China, Korea in Asia and is more inline with US, Canada etc.

Corporate Tax Cut To 25.2% To Spur Growth, Markets Celebrate: 10 Points

MO & PM - Vaping Headline Risk Leads to Attractive Valuation in Tobacco Stocks

MO & PM - Vaping Headline Risk Leads to Attractive Valuation in Tobacco Stocks.

MO is $40 and PM is $72. Assuming regulatory risk is overrated and company can remain viable selling cigarettes and maintain pricing power 10+ years from now today’s valuation would lead to 12+% compound annual return even assuming 5% secular decline in cigarette consumption.

Fair Value for MO $55 and PM $90.

ALGN - Attractively Priced Growth Stock

ALGN is an Attractively Priced Growth Stock. Recent patent expiry schedule and IPO of low end competitor SDC has created a reasonable entry point.

It has some risk and growth doesn’t materialize and business becomes commoditized stock may fall further. But assuming they can grow internationally and maintain a premium brand and keep innovating this company can be a multi bagger over next 5-10 years.

Investment Idea - Altria (MO) Attractively Valued

Investment Idea - Altria (MO) Attractively Valued as a greater than recent decline in cigarette volumes (6% vs 3% average over last 12 years), JUUL vaping issues (35% owned by MO) and uncertainty regarding MO-PM merger have pushed MO to a valuation of 10 times Forward P/E and less than 12 times EBIDTA.

In 2017 when consumer staples as a sector was in favor MO was valued at 22 times P/E. Things have changed a lot in the last 24 months as consumer staples as a sector is out of favor and headline risk around vaping health issues and risks of US FDA regulatory changes have investors on edge. Some MO investors are also worried about a dividend cut if merger with PM closes.

It is not an investment without risk but selling MO puts looks attractive with Jan 2021 $50 puts possibly providing $13.50 premium. A case can be made for MO fair value to be $55 which is 32% above today's share price of $41.5.

CDC Report 2017 - Current Cigarette Smoking Among Adults in the United States