Thursday, October 29, 2020

Commentary

Commentary on Emerging Growth stocks and the financial markets in general.

Your Week in a Brief; I have Debt

The real worry for many economists isn’t the debt on the books, which as discussed isn’t a problem so long as payments are manageable, but the “off-balance sheet liabilities,” which are spending commitments that fall outside of the promise to pay back borrowed money. The bulk of these commitments are Social Security, pension guarantees, Medicare, and Medicaid.

Your Week In Brief

Essential. Adjective: absolutely necessary; extremely important. Noun: a thing of absolute importance. It is a...

Your Week In Brief

Barr. Bezos. Hearings. The Fed. Earnings. More earnings. Tweets from the president suggesting he will contest the election.  An...

Your Week In Brief; The Summer of SPACs

"Do you remember the Summer of SPACs?" one day trader asks another after a brief argument over the importance of Apple's now...

Your Week In Brief

Welcome to Groundhog Day. "Will this be the day when investors sell off and take some profits?"

Out with the Old, In with New to The Street

Growing relationships with investors lead to more profitable and liquid investments. But in the Covid-19 era, how can new relationships be established and current relationships flourish? Companies are now more than ever challenged to keep attracting a new audience without neglecting their current base, and at the same time keeping everybody up to date on new developments and events.

Your Week In Brief; I’m feeling Luckin

Most of us know the story of Luckin Coffee. In a nutshell, the company was supposed to be the Starbucks of China, giving the American coffee giant a run for its money on the Mainland. The Beijing-based company launched in 2017 and quickly grew its stores and pick-up locations to rival Starbucks (Nasdaq: SBUX) in China. The stock exploded in popularity. And then, it just exploded.

Your Week In Brief; On the Road Again

"All he needed was a wheel in his hand and four on the road." –Jack Kerouac. 

Your Week In Brief A Reversal of Stock Splitting Philosophy

Stock splits do not affect the value of a company. An arithmetical, not alchemic formula, if you have one pen and split...

Your Week In Brief; Big Trouble in Little Hollywood

The stock was in the green this week after releasing another denial of fraud allegations levied at the company courtesy of Wolfpack Research back in April. Citing in-person surveys of more than 1,500 people and Chinese credit reports of iQiyi’s VIEs and WFOEs, the short seller claimed that the Chinese entertainment platform overstated its user numbers and inflated its revenues in SEC filings by as much as 261.7% pre-IPO. Further, in 2019, Wolfpack estimated that iQiyi inflated revenue by 27% to 44%. Are they another Luckin Coffee? Maybe. But like Luckin, iQiyi can be both a liar and long-term winner. The SEC launched a probe into iQiyi and its parent company, Baidu (Nasdaq: BIDU).

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