Tobacco Gets Smoked

20-APR-18

Market Scorecard It is no secret that 'Team Vestact' is not a fan of tobacco stocks. We even had a short on British American Tobacco for a while, let's just say that we got smoked. Our view has been that smoking is on the way out, and at some point, the strong cash flows from these companies will disappear. When will that day happen? I am not sure. When it does the exit will not be big enough for everyone. Yesterday Phillip Morris dropped 16% due to disappointing sales numbers.


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Netflix potencial profits

19-APR-18

I did some number crunching on Netflix yesterday to try and understand why the share price has flown so fast. I wanted to see the potential profits this company can make.


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Millions of Subscribers means Billions in Profits

19-APR-18

Market Scorecard With the US markets back in positive territory for the year, it seems that the market changed gear into 'risk on'. Volatility is dropping, bond prices are down, commodity prices are higher and ultimately stock prices are higher.


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JNJ 1Q numbers - lower taxes means higher investment

18-APR-18

Yesterday Johnson & Johnson released 1st quarter results. This is quite a difficult business to understand because of all the moving parts. I will try something different today and use mostly images to explain these numbers.


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Healthy Numbers From JNJ

18-APR-18

Market Scorecard Focus over the last two days has been on the airstrikes in Syria. One side says all their missiles hit their targets, the other says most of the missiles were shot down. Rule number one in politics, choose the 'truth' that best suits you.


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Netflix Subscribers Soar

17-APR-18

Market Scorecard This morning there was a slew of data from China. The country's GDP grew by 6.8%, in line with expectations; industrial production was lower than expectations, but retail sales were above expectations. All in all, mostly net neutral for markets. The S&P 500 returned to positive territory for the year last night, hopefully more green to come!


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Netflix 2Q - Beats expectations

17-APR-18

Last night, after the market closed, one of the high flying stocks of the previous 3-years reported their 1Q numbers. The Netflix share price is up 520% since the start of 2015! High flyers have some big expectations attached to the company, Netflix did not disappoint. This WSJ articles headline sums things up pretty well - Netflix Hasn't Found an Expectation It Can't Beat.


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Shooting the Breeze with Rob

16-APR-18

Market Scorecard Mining stocks on Friday drove our local market higher. For the US market though Wells Fargo and Syrian fears drove their market lower. Over the weekend, after the missile strike on Syria, the US made it clear that it was a one time strike, which made markets 'feel' a bit better. The result was gold, considered a safe haven, dropped in price and futures rose.


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JP Morgan 1Q numbers - big profit growth

16-APR-18

On Friday JP Morgan crushed expectations for their 1Q numbers with revenue of $28.52 billion (up 10%) and Net Income of $8.71 billion (up 35%). Thanks to share buybacks, their EPS was up an even more impressive 44%.


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It's Earnings Season!

13-APR-18

Market Scorecard It was good to see some 'green on the screen' yesterday. I remember last year when it almost got boring talking about how the market was only going up and how there was no volatility. The good news came from President Donald Trump who directed officials to explore rejoining the Trans-Pacific Partnership (TPP); on the condition that the US gets a better deal than it had before he pulled out last year.


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The Trump Tweet Trade

12-APR-18

Market Scorecard Yesterday morning, there was very little market driving news. Then as the US woke up and Trump reached for his phone, to start tweeting, things got interesting. He kicked things off with the following tweet "Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and "smart!" You shouldn't be partners with a Gas Killing Animal who kills his people and enjoys it!".


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The Zuck gets Liked by the Market

11-APR-18

Market Scorecard US markets played catchup with global markets yesterday. All major indices had a strong close by the end. One of the big movers was Facebook, 'The Zuck' staying cool under pressure. Investors liked what they heard, pushing the stock up over 4.5%.


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Xi to the Rescue

10-APR-18

Market Scorecard While you were sleeping Xi Jinping gave a speech, which was music to the market's ears. He said that China would decrease import tariffs and work at enforcing intellectual property of international firms. He went on to say:


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Flipping Flipkart

09-APR-18

Market Scorecard It was 'Jobs Day' on Friday for the US economy. Currently they are on 90 consecutive months of gains to the job market! The overall number of new jobs added was 103 000, lower than expected but not to be worried about due to February having a much higher than average job growth of 326 000. Overall unemployment stayed at 4.1%.


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I'll Raise you $100bn

06-APR-18

Market Scorecard Sigh. . . . Just as it looked like markets had bottomed and global trade would return mostly to normal, Trump came out saying he thinks China is being unfair by matching US tariffs. The US proposed implementing tariffs on $50 billion worth of trade, China responded with their own tariffs on $50 billion worth of trade. Trump now wants to add tariffs to a further $100 billion worth of trade.


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