Archive

A Leader in Car 'Premiumization'

A Leader in Car 'Premiumization'

The Federal Reserve is still seeking ways to reduce financial risk... Here at Altimetry Daily Authority, we regularly discuss the importance of credit markets in economic and equity market cycles. In particular, we've talked about how the corporate cost to borrow helps dictate whether companies will refinance their debts or struggle to refinance them. Last […]
A Different Way of Interpreting Valuation Metrics

A Different Way of Interpreting Valuation Metrics

As long as demand for low-interest bonds remains high, interest rates won't rise – which will fuel growth... Last week, Bloomberg published an article explaining that $8.7 trillion of sovereign bonds maturing this year are likely to be rolled over. The piece highlights that even with that refinancing, investors can't find enough safe bonds to […]
Freedom of Advertising

Freedom of Advertising

In order to boost returns, this popular home-goods retailer is looking beyond operational strategies... Yesterday, Bed Bath & Beyond (BBBY) announced it had completed a sale-leaseback transaction with private-equity firm Oak Street Real Estate Capital, bringing in $250 million in proceeds. Bed Bath & Beyond has seen its Uniform return on assets ("ROA") fall from […]
Corporate Piggy Banks Are Bouncing Back

Corporate Piggy Banks Are Bouncing Back

A new set of numbers highlight who's losing the commercial airline war... Reuters reported last week that Airbus won the volume war with Boeing (BA) last year for the first time since 2011. While Airbus has repeatedly beaten Boeing in terms of orders since 2011, Airbus delivered 863 aircraft in 2019, versus 806 for Boeing. […]
Get Started on Your Favorite Pastime

Get Started on Your Favorite Pastime

This industry is under attack from all sides... The last decade has been the era of the platform and the side-hustle (also known as the "gig economy"). Uber, Lyft, Grubhub, Postmates, TaskRabbit, and other successful "gig" platforms have transformed how consumers interact with the world... and how people think about earning an income. But if […]
When M&A Doesn't Destroy Value

When M&A Doesn't Destroy Value

Here's an attainable New Year's resolution... As we open to the New Year, many folks will be making those same New Year's resolutions... "New year, new me." In reality, we all understand change is hard. That's why resolution failure rates are so high – most searchable statistics say around 80% of resolution commitments end up […]
The Staggering Impact of the 'Illusion of Choice'

The Staggering Impact of the 'Illusion of Choice'

Joel's note: The Altimetry offices are closed tomorrow for New Year's Day, so we'll be back in touch with the next Altimetry Daily Authority on Thursday, January 2. I hope everyone has a wonderful New Year! Boeing (BA) just can't get out of its own way... In the December 20 Altimetry Daily Authority, we highlighted […]
These Investors Are a Great Indicator of Where Stocks Are Headed

These Investors Are a Great Indicator of Where Stocks Are Headed

As regular Altimetry Daily Authority readers know, bear markets don't happen without credit issues... In October, we wrote about how the drop in the cost to borrow for U.S. corporations meant companies were able to refinance debt in 2019 that they hadn't been able to in 2018. The refinancing of near-term debt maturities eliminates the […]
This Phenomenon Affects Every Chipmaker

This Phenomenon Affects Every Chipmaker

Who loses half his money on advertising? Apparently, everyone does... I recently had a great debate with a reader over the origins of a favorite quote of mine: Half the money I spend on advertising is wasted, and the trouble is I don't know which half. It's attributed to two giants of advertising across the […]
The 'Showroom Effect' Almost Killed – and Then Saved – This Amazon Competitor

The 'Showroom Effect' Almost Killed – and Then Saved – This Amazon Competitor

The market still doesn't understand how cheap U.S. Steel (X) is... As we highlighted last week, U.S. Steel is currently priced for bankruptcy. When a company starts to trade at a significant discount to its assets – as U.S. Steel does – this tends to serve as a "floor" for valuations. Last Friday, the company […]