Archive

February. 2020

Dividend Risks Are Overblown for This Energy Giant

By Rob Spivey

Altimetry Daily Authority,
Thursday, February 27, 2020
U.S. corporate credit profiles look healthy, but China may be a different story… In yesterday’s Altimetry Daily Authority, we discussed how the U.S. economy and market remain strong – even in the face of the threat of the coronavirus outbreak impacting global growth. But as Bloomberg reports, the risk of a credit crunch may be […]

Investors Are Panicking... But the Data Tell Us to Stay Calm

By Joel Litman

Altimetry Daily Authority,
Wednesday, February 26, 2020
Joel’s note: Considering the recent volatility in the market, we’re stepping aside from our normal format of the Altimetry Daily Authority today to focus on a broader view of the macro environment. The volatility over the past week has a lot of investors spooked… We spend a lot of our time with our institutional clients […]

This Homebuilder Is Much Stronger Than Wall Street Thinks

By Joel Litman

Altimetry Daily Authority,
Tuesday, February 25, 2020
Another bank is joining the online brokerage industry… Last week, Morgan Stanley (MS) announced that it’s acquiring E-Trade Financial (ETFC) for $13 billion. This news comes just a few months after another banking and brokerage giant, Charles Schwab (SCHW), agreed to buy TD Ameritrade (AMTD) for $26 billion. This is a great move for both […]

Listening to Management Tells Us a Lot About Where the Market Is Heading

By Joel Litman

Altimetry Daily Authority,
Monday, February 24, 2020
What’s next for Dean Foods? In the February 20 Altimetry Daily Authority, we used the dairy producer as an example of how volatile commodity prices and changing consumer preferences can drive a company to bankruptcy. The next day, we explained how Dean Foods was still able to produce dairy products despite entering into Chapter 11 […]

Bankruptcy Isn't Always a 'Kiss of Death'

By Joel Litman

Altimetry Daily Authority,
Friday, February 21, 2020
The NBA is embracing disruption… and that’s not a surprise. The NBA All-Star Game last weekend was a major hit. A new format gave the game a competitive edge that hadn’t existed in decades. Many of the professional sports leagues in the U.S. are attempting to innovate in an effort to try to bring more […]

Investors Aren't Getting a Discount on This Commodity-Dependent Business

By Rob Spivey

Altimetry Daily Authority,
Thursday, February 20, 2020
Here at Altimetry, ‘commodity’ is a bit of a dirty word… It’s due to the fact that throughout history, commodities have always proved to be difficult businesses. Consider a few factors that are true about most, if not all commodities… First, they’re usually basic raw materials like agricultural crops or metals. For example, wheat, rubber, […]

A 'Ship of Theseus' Transformation

By Joel Litman

Altimetry Daily Authority,
Wednesday, February 19, 2020
Coronavirus hasn’t become an excuse for guidance, and that’s a good sign… Market-research firm CB Insights conducted an analysis of recent earnings call transcripts and identified only six instances of “coronavirus” being mentioned on calls since the outbreak. The analysis also showed that the usage of the term “pandemic” hadn’t seen a major spike. Compare […]

This Cell Tower Company Should Listen to Jack Welch's Rules

By Joel Litman

Altimetry Daily Authority,
Tuesday, February 18, 2020
Another ‘platform’ can’t stay profitable… We’ve spent a decent amount of time here in Altimetry Daily Authority highlighting the issues with platform businesses that don’t make money, like ride-hailing company Uber (UBER) and food-delivery service Grubhub (GRUB). Just last week, another platform primed for an initial public offering (“IPO”) joined the loss-making crew… Accommodation business […]

This Iconic Automaker Is Stronger Than Investors Realize

By Rob Spivey

Altimetry Daily Authority,
Friday, February 14, 2020
Joel’s note: The Altimetry offices are closed on Monday for Presidents’ Day, so look for the next Altimetry Daily Authority on Tuesday, February 18. The responses have been flooding in all week… We want to thank all our readers for responding to Tuesday’s article, where we mentioned the discussion in the Democratic presidential debates about […]

Combatting Consolidation in the Rail Industry

By Joel Litman

Altimetry Daily Authority,
Thursday, February 13, 2020
Astronomers aren’t the only ones who should be worried about start-up satellite initiatives… The New York Times ran an interesting article last Thursday on the concerns astronomers have about OneWeb, SpaceX’s Starlink, and other satellite initiatives from the likes of Facebook (FB) and Amazon (AMZN). More and more companies are building competing offerings to canvas […]

Wall Street Is Massively Understating This Advertising Conglomerate's Profitability

By Joel Litman

Altimetry Daily Authority,
Wednesday, February 12, 2020
It’s your last chance to register for tonight’s big event… Our friend Dr. Steve Sjuggerud over at Stansberry Research is hosting a free, can’t-miss event tonight where he’ll discuss the future of this historic bull market. His “Melt Up” thesis has been spot-on as the market has grinded higher… and tonight, he’s announcing an important […]

Reinvent Your Way to Higher Returns Than Wall Street Thinks

By Rob Spivey

Altimetry Daily Authority,
Tuesday, February 11, 2020
The current discussions about ‘debt forgiveness’ programs have a historical precedent… Here at Altimetry, we employ several current college students and recent graduates, thanks to our relationship with the great co-op program at Northeastern University. (As a graduate of the program myself, I’ll admit I’m biased in talking about how great it is.) Due to […]

Student Loans Are a Misleading Economic Signal

By Rob Spivey

Altimetry Daily Authority,
Monday, February 10, 2020
Financial models are only as good as the assumptions that drive them… It’s one of the first things we teach our MBA students. If you forecast a company’s revenue and profits and investments without an understanding of the factors that power those metrics, the financial model is as likely to be accurate as a blind […]

Investors Should Embrace Artificial Intelligence... And This Medical-Devices Firm Proves It

By Joel Litman

Altimetry Daily Authority,
Friday, February 7, 2020
Many investors are concerned about the long-term effects of the coronavirus outbreak on financial markets… In yesterday’s Altimetry Daily Authority, I discussed the direct impact of the coronavirus on my global travel over the past week. The disruption brought two things to the forefront: How much more the world is interconnected today than ever before, […]

We Expected Spinoff 'Growing Pains' for This Medical-Devices Firm

By Joel Litman

Altimetry Daily Authority,
Thursday, February 6, 2020
Coronavirus concerns hit close to home this week… I spend a lot of time flying between Asia and North America… I’m often meeting with our clients in the U.S. and making sure our operations in Manila are running smoothly. The world has been blessed over the past 30 years as it has gotten smaller at […]

Wall Street Is Wrong About This Trillion-Dollar Tech Giant

By Joel Litman

Altimetry Daily Authority,
Wednesday, February 5, 2020
It happens to everyone… and it can be frustrating. When asked about something you know but can’t remember the answer to, maybe you responded with something along the lines of, “I’ll remember it later and let you know.” But have you ever wondered why you tell someone that? We have a saying here at the […]

The Milkman Delivery Model Still Has Value

By Rob Spivey

Altimetry Daily Authority,
Tuesday, February 4, 2020
We’re not the only ones who are still bullish on this market… Regular Altimetry Daily Authority readers know all the macro data we look at is telling us to stay optimistic about the market. And we’re not alone… Our friend Dr. Steve Sjuggerud over at our corporate affiliate Stansberry Research is hosting a free online […]

Another Leading Credit Indicator... From 'Loss Aversion'

By Joel Litman

Altimetry Daily Authority,
Monday, February 3, 2020
A bad industry beats a great manager every time, but maybe not a great investor… Last week, the legendary Warren Buffett announced that he was selling Berkshire Hathaway’s entire portfolio of newspapers – including the Buffalo News – to Lee Enterprises. The Buffalo News is integral to Buffett’s lore. He purchased the paper in 1977 […]
Joel Litman

Sign up to receive Altimetry Daily Authority straight to your inbox.