David Fuller and Eoin Treacy's Comment of the Day
Category - Autonomies
Secular Bull Market Investment Candidates Review February 2021
Why Amazon May Fill Its Own Shopping Cart With Buybacks
This note from Bloomberg may be of interest to subscribers. Here is a section:
Amazon.com Inc.’s equity performance has far exceeded the S&P 500 Index over the past five years, yet buybacks may be the best use of capital in the near term as financial flexibility grows and excess cash builds, according to Bloomberg Intelligence’s Robert Schiffman. With consensus free cash of almost $42 billion in 2021 and $58 billion in 2022 -- the e-commerce giant’s share-repurchase authority has gone unused since 2016 -- cash could exceed $100 billion over the next two years. The company is scheduled to report fourth-quarter earnings after the close of trading Tuesday.
DoubleLine Round Table 2021
Section 1 Global Macroeconomy: State of Play and Outlook Part 1 and Part 2
Section 2: Financial Markets Part 1 and Part 2
Section 3: Best Ideas
Email of the day - on the early stages of a secular bull market.
Until the beginning of last year you often spoke on the theme of the early stages of a secular bull market. David had begun speaking about it as long as 4 years ago. But with the onset of the pandemic, you have been largely silent about it. Has it stalled or, in your view, already peaked?
Rolls-Royce to Shelf Next-Generation Propulsion Engine After Testing Ends in 2022
This note from the Financial Times may be of interest to subscribers. Here it is in full:
Rolls-Royce Holdings PLC will shelf its next-generation UltraFan engine program and halt investment until a new aircraft is launched as the industry grapples with low demand for new airplanes, the Financial Times reports.
--The British engineering giant will finish testing the new engine in 2022 but will then put the program "on ice," including postponing the search for an industrial partner for the new propulsion system, according to the FT.
--Rolls-Royce Chief Executive Warren East said he expects a significant delay until the new aircraft appear as the industry reels from the acute shock of the coronavirus pandemic, the FT reports.
Lidar Makers Jump After Report on Apple's Autonomous Car Plans
This article by Divya Balji and Crystal Kim for Bloomberg may be of interest to subscribers. Here it is in full:
Some lidar suppliers gained Tuesday after Reuters reported that Apple Inc. plans to build a self-driving car for consumers and is tapping outside partners for elements of the system as it develops its own battery technology.
Apple is approaching companies for some parts, including lidar sensors that provide autonomous cars with a real-time, 3-D view of the world, the report said, citing unidentified people familiar with the matter.
Lidar supplier Luminar Technologies Inc. rose as much as 12% on Tuesday, while Velodyne Lidar Inc. surged 16%. Blank-check firms that are bringing more lidar players to the market also advanced: InterPrivate Acquisition Corp. climbed 17%, while Collective Growth Corp. jumped as much as 24%.
Apple has been working on driverless car technology since 2014, but pared back its ambitions from a full-fledged vehicle in 2017, Bloomberg News has reported. Since then, Apple has been working on the underlying autonomous system. The company has been deciding whether to attach this system to its own car, or existing vehicles, or to partner with an established carmaker, Bloomberg News reported earlier this month.
Chinese EV Makers Trade at High Valuations, Helped by Tesla and National EV Targets
This note from Dow Jones may be of interest to subscribers. Here is a section:
NIO, BYD and Xpeng are examples of Chinese electric-vehicle makers that have surged in value, buttressed by national targets regarding electric vehicles on the road and investors' search for the next EV titans. The American depositary receipts in these companies have surged this year and the meteoric rises put their valuations in line with large traditional car makers, such as General Motors and Ford Motor. To help cut carbon emissions, China aims for EVs to make up 20% of car sales by 2025, and 50% by 2035. Tesla's success this year has also fueled investor appetite for the technology. Investors should be aware though that most Chinese upstarts are unprofitable, The Wall Street Journal reported, and they are also selling far fewer vehicles than major automobile groups.
Disney Shares Hit Record on Forecast of Streaming Surge
This article from Bloomberg may be of interest to subscribers. Here is a section:
In a presentation to investors Thursday, the world’s largest entertainment company outlined plans for dozens of new movies and TV shows from those major brands, with an eye toward becoming a streaming behemoth in four years. The company expects its program spending to reach $14 billion to $16 billion annually by then.
Disney+, the entertainment giant’s flagship streaming platform, also is getting a price hike. The U.S. monthly rate will climb $1 to $8 in a move that executives telegraphed earlier this year. In Europe, the price will rise 29% to 9 euros ($11) a month, although there it is getting additional content aimed at adults.
Shares of Disney rose as much as 11% to a record $171 in New York trading Friday. The stock has about doubled since March on the strength of the streaming business.
“The enormous success of Disney+ inspired us to be even more ambitious,” Executive Chairman Bob Iger said at the event. “Our pipeline is much more robust than we initially anticipated,” he said, adding that the Disney+ cadence should soon hit 100 new titles per year.