Download PDF Introduction on recent market developments After a subdued performance of equities in 2022 (-18.01% dividends adjusted), January has seen a significant turning point for US equities, given the recent strong rally. This article will briefly summarize what happened in markets this last month, outlining the causes of the Read more…
Download PDF Introduction In view of the coming season of earnings releases we analyze the famed British carmaker Aston Martin, and we propose: 1) a long investment on its equity based on a successful execution of its multi-year turnaround plan, and 2) a trade idea on the implied vol of Read more…
Download PDF Introduction The price-to-earning ratio, known as P/E ratio, is one of the most basic valuation measures. It measures how expensive a company is relative to the earnings per share (EPS). In simple words, it measures how much an investor is paying for a stock compared to each dollar of Read more…
Download PDF Introduction An ATM equity long straddle position is delta neutral. If systematic risk is the only factor predicting expected returns, a delta neutral strategy should have an expected return equal to the risk-free rate. In this article we will review academic literature suggesting that not only is this Read more…
Stocks have risen sharply since 2011, while earnings have lagged Consider this: Since the beginning of 2011 the S&P 500 has risen by more than 60%. On the contrary, aggregate GAAP earnings of the companies included in the index have actually dropped, while Non-GAAP income (a measure that generally smoothes Read more…
Together with flowers and good weather, spring brings about also first quarter results of a year where European QE plays the lion role. With surging volatility, stocks at their highest, and regulatory fines fading out, banks can eventually present to shareholders decent results. Indeed, the last years, which have been Read more…
US US equities climbed to new heights as the week drew to a close with the Nasdaq Composite surpassing its previous peak of 5048.62 points from the year 2000 that marked the height of the dot-com era. The tech-heavy index advanced 3.2% over the last 5 days to close Friday’s Read more…
Oil has been completely crushed after peaking this summer: much has changed since our last article earlier this year (https://bsic.it/oil-quo-vadis/). Weakness in the price of crude was triggered by fear of a global slowdown: China growing at its lowest rate since 2009 (only 7.3%), together with cuts in economic forecast Read more…
The Story Adidas Stock has been totally crushed since July, losing more than 20%, underperforming the sector. The down trend was triggered by a profit warning due to Russian Ruble instability and the restructuring of its Golf Brand “Taylor Made”. In particular Ukraine political instability in late summer led to Read more…
Pirelli has been under the spotlight since the beginning of the past week. The company, which is among the main players in the global tyre industry and leader in the high-end segment of the sector, has been characterised by a reorganisation of the shareholders structure. Rosneft, the biggest oil producer Read more…
After a difficult year, Apple – almost flat YTD compared with a 27% rally in S&P500 – seems to be on its way to recovery. Since Q4 earnings release the stock has already rallied 10%, but especially this week a new wave of optimism has pushed the stock higher. There 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…
After a long ride south, investors are now given the highly debated Q1 results, which did not seem to bring enough surprise to trigger a turnaround in the stock. However, what we see is indecisive investors frenetically buying and selling the stock on expectations of a short-lived rebound, hindered by Read more…