How Renminbi Funds Took Over Chinese Private Equity (Part 1)
Outbid, outspent and outhustled Renminbi-denominated private equity funds basically didn’t exist until about five years ago. Up until that point, for ten golden years, China’s PE and VC industry was the exclusive province of a hundred or so dollar-based funds: a mix of global heavyweights like Blackstone, KKR, Carlyle and Sequoia, together with pan-Asian firms […]
Dynamite Comes In Small Packages: 10 Small Caps For Explosive Returns
Introduction Investing in small-cap stocks is not for everyone. My definition of small-cap is a company whose market is $5 billion or less.However, for those brave souls that are willing to assume a little more risk, they can, under the right conditions, be a very profitable choice. Nevertheless, and in the general sense, small caps […]
Chipotle Downgraded To Neutral From Buy At Goldman
Goldman Sachs analyst Karen Holthouse downgraded Chipotle Mexican Grill to Neutral saying near-term risks “are mounting.” The analyst sees “on-going cost risk” from Chipotle’s promotional strategy that relies on coupon drops. Further, she points out that even normal events carry the risk of reducing traffic. As an example, Holthouse notes that Chipotle cleaned a store […]
Chinese Automakers Are Set To Disrupt This $75 Billion Market
You probably already know that China is the world’s largest car market. But what you might not know is that China’s leaders are pushing that nation’s automakers to improve their fuel standards. So by 2020 we should see the average Chinese-made car using 39% less fuel than models from 2008. To meet this mandate, Chinese firms will […]
Morning Call For April 1, 2016
OVERNIGHT MARKETS AND NEWS June E-mini S&Ps (ESM16 -0.45%) are down -7.50 points (-0.37%) this morning due to a sharp sell-off in European and Japanese stocks. The Euro Stoxx 50 index this morning is down -2.04%. The Nikkei index today fell by -3.55% on a disappointing Tankan report, which indicated weak Japanese business confidence. The […]
Intrinsic Value And The Margin Of Safety
“confronted with a challenge to distill the secret of sound investing into three words, we venture the motto, Margin of Safety” Benjamin Graham, The Intelligent Investor Of all the concepts that a value investor holds dear, intrinsic value and the “margin of safety” are the most sacred. These ideas form the bedrock of what Benjamin Graham […]
Major Asset Classes (March 2016) Performance Review
Global markets snapped back sharply in March, posting the first run of across-the-board monthly gains for the major asset classes in nearly two years. Leading the markets higher: emerging market stocks (MSCI EM), which surged more than 13% last month—the biggest monthly advance in years for the index. Even the persistent bear market in broadly […]
Australia Could Witness 50BP Of Rate Cuts By August: Macquarie
With the Reserve Bank of Australia focusing on inflation targeting rather than growth or income maximizing, an analyst at Macquarie anticipates 50bp worth of rate cuts (of 25bp each) across May and August. After meeting with investors in the U.S. and Canada to discuss the Australian and New Zealand economic outlooks, James McIntyre of Macquarie Securities (Australia) pointed […]
The S&P 500, Dow And Nasdaq Since Their 2000 Highs
The request is for real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite. Here two overlays — one with the nominal price, excluding dividends, and the other with the price adjusted for inflation based on the Consumer Price Index for Urban Consumers (which is usually just refer to as the CPI). The […]
Japanese Business Confidence Wanes
2016 was greeted with a bout of nerves over the fate of the Chinese economy and, perversely, a weak oil price. To a first approximation, American markets have recovered the ground lost, but European and Japanese markets remain well below the values seen at New Year. At any time when markets get panicky, investors pour […]
