Archive

The Enron Scandal Nearly Killed This Company, But Today It's Thriving

By Joel Litman

Thursday, April 30, 2020

Not all exchange-traded funds (‘ETFs’) are created equal… Back in 2015, activist investor Carl Icahn and BlackRock (BLK) co-founder and CEO Larry Fink walked on stage for Delivering Alpha, a CNBC conference. Fink expected he and Icahn were going to have a friendly debate about activism, and he’d have a rare opportunity to score some […]

Investors Are Missing Out on a Potential Double With This Review Firm's 'Network Effect'

By Joel Litman

Wednesday, April 29, 2020

Everyone’s favorite video-conferencing company continues to come under pressure… Zoom Video Communications (ZM) was an early superstar of the conversion of the global workforce to the world of working from home (“WFH”). ZM shares closed 2019 at $68 and were moving steadily higher into 2020. Then in the midst of the rolling announcement of lockdowns […]

This Popular Internet Travel Company Made a Deal With 'Goliath'... And Its Returns Are Sinking Fast

By Joel Litman

Tuesday, April 28, 2020

Across the globe, thought leaders are talking about how embracing working from home (‘WFH’) is the new norm… You can always rely on Harvard Business School (“HBS”) to be at the forefront of thought leadership on changes in the workplace. It has recently published several think pieces on how businesses and employees are adapting to the […]

A Surprising Sign From One of the Most Important Recession Indicators

By Rob Spivey

Monday, April 27, 2020

We’ve received a lot of questions from clients about bankruptcy risk in the oil and gas industry… Specifically, they want to know about stock opportunities in the wake of oil contract prices literally reaching negative levels for the first time in history last Monday. The current slowdown in oil demand is nearly unprecedented, and everybody […]

Don't Overpay for This Maker of the World's New Most Important 'Currency'

By Joel Litman

Friday, April 24, 2020

Warren Buffett has many memorable quotes, but we may soon start hearing one in particular more often… Many of the Oracle of Omaha’s sayings are about the importance of patience in investing, searching for value, or how to think about businesses. But some of them are about the risks of the underbelly of finance… including […]

This 'Best in Class' Auto-Parts Maker Looks Ready to Implode

By Joel Litman

Thursday, April 23, 2020

Even in the midst of the coronavirus pandemic, the valuations for perceived industry ‘gatekeepers’ keep rising…  Despite the lockdown, investors are clamoring to invest in companies that control parts of the economy that are primed to boom over the coming years. Last week, digital-payment platform Stripe announced that it had raised $600 million in funding […]

The Competition Is Gone, Yet This Pharma Giant Is One of the Market's Cheapest Stocks

By Joel Litman

Wednesday, April 22, 2020

Activists have been severely hampered in the current environment… Last week, The Economist published a thoughtful article about the effect of the coronavirus pandemic on activist investors. The crisis has significantly damaged their strategies… Activists are hard-pressed to insist companies merge when other investors might prefer prioritizing raising debt for operations instead of mergers and […]

The Coronavirus Is Surprisingly Good News for This Niche Retailer

By Joel Litman

Tuesday, April 21, 2020

It’s earnings season… and everyone wants to know the implications for the market. After the impressive rally over the past several weeks, you might not be aware that we’re no longer in a bear market. The benchmark S&P 500 Index is down roughly 15% from its all-time high on February 19. And now, we’re entering […]

Here's What Shrinking Earnings Really Mean for the Market

By Rob Spivey

Monday, April 20, 2020

We’ve said it time and time again here in Altimetry Daily Authority… Access to credit (or lack thereof) will be a key driver of whether we recover rapidly from this economic slowdown or not.  Just last week, platform company Airbnb raised $1 billion in debt from investors. This is on top of the other $1 […]

Move Aside, Cash... This Is the Currency of the Future

By Joel Litman

Friday, April 17, 2020

The entire auto industry is worried about a potential drop in prices for used cars… As Bloomberg reports, a surge of used-car inventory is building up, and it could dramatically depress prices for used cars. This may initially sound like a positive for consumers. It means cheaper cars, which means more cash for consumers to […]