After a difficult year, Apple – almost flat YTD compared with a 27% rally in S&P500 – seems to be on its way to recovery. Source: Thumbcharts.com Since Q4 earnings release the stock has already rallied 10%, but especially this week a new wave of optimism has pushed the stock Read more…
In the last quarter report, IBM announced revenues for $23.7bn (consensus $24.75bn) EPS at $3.99 (consensus $3.96), a light and shade result that followed a similar quarter (Q2), with a beat on earnings per share ($3,91) and a miss on revenues ($24,9bn) and the weakest quarter of the last years Read more…
Alibaba, the Chinese business to business e-commerce giant, is expected to file for an IPO in the next quarter; this highly expected IPO, that is valued at around US$190-200bn has already a huge impact in public markets, precisely in two tech corporations: Softbank and Yahoo!. Even if the financial situation Read more…
Thursday 21th after the closing bell Pandora Media (P) released its quarterly earnings that beat top-line estimates: Revenues jumped 50.3% year over year to $180.4 million, which beat Consensus Estimate of $174.76 million. Eps was 0.06 in line with estimates. The implied volatility of the stock due to the earning release Read more…
In our Special Report (https://bsic.it/2013/10/19/bsic-special-report-twitter-ipo/), we analyzed Twitter’s characteristics, comparables and ratios. We valued Twitter shares at approximately 25$, really close to the final offering price (26$). After the IPO, Twitter’s share price dramatically soared to 45$, an unbelievable 72% surge: Source: Bloomberg Analysts seem to agree with our view, Read more…
Months of rumours have finally come to an end: Twitter is joining the ranks of listed internet companies with an IPO in Q4 2013. The market is hyped up and ready to go, but is this offering destined for ridicule as Facebook’s was? Correctly valuing Twitter is of paramount importance Read more…
The European debt crisis seems to have taken the way of recovery and the rates for European government bonds reflect a positive economic outlook in the Euro area. The Euro Stoxx 50 Index includes Europe’s leading Blue-chips companies. Actually, these companies are considered as safe as AAA European countries (Germany, Read more…
Rumors about the plans to expand Itunes Radio to more English-speaking countries other than US by early 2014 led to a turbulent week for Pandora, the music streaming industry leader. With about 72 million active users, Pandora has been the first music streaming website to go public. This year Pandora Read more…
After the huge operating loss and the consequent job-cutting of the second quarter, Blackberry received an offer to go private by Fairfax Financial Holdings Limited for $9 per share. Fairfax holds the 9.9% of Blackberry and is doing the due diligence; on November 4th the company will give more details. Read more…
Not so long ago, prices of oil, steel and gold (just to name a few) were thought to continue floating upwards forever as China entered its third decade of growing with breakneck speed. However, commodity prices have been deteriorating since 2008-2009, in line with sluggish growth and fall in demand Read more…
Last week we suggested shorting three Japanese financials in light of the 10-years JGB price fall, going at the same time long Olympus Corp. and the Nikkei index, in case no more easing was announced on Tuesday night. Kuroda kept monetary policy on hold and so we entered the trade Read more…
INTRODUCTION During last months in Japan, extreme monetary policies – also known as Abenomics – implemented by the duo Abe-Kuroda to fight deflation and give a kick to the stagnant economy, have caused a huge reaction all over the markets: the Yen has been slashed, Nikkei index has been skyrocketing Read more…
Elon Musk’s creation, after having beaten analysts’ estimates just 11 days ago following the release of its first quarter earnings – which proved to be way beyond expectations – is now on a tough up-going rally. Surely this trade should have been implemented earlier but we believe there is still Read more…
On March 15th the merger was approved by the boards of the two companies, based on an exchange ratio of 1 newly issued ordinary share in Atlantia for 9 ordinary shares in Gemina. Atlantia shares seemed to be quite overvalued (8,9x the adjusted EBITDA; 7,5x for Gemina), but since March Read more…
Given the turbulence in the implied volatility observed in the aftermath of Apple’s Q1 results, we adopt a sophisticated quantitative model to better understand its dynamics. What we have observed so far in the option market is a large decrease in the 1-month implied volatility, and a sustained level of Read more…