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Entries from April 2017

For Finisar And Others, The Optical Network Selloff Seems To Be Largely Optical

April 23rd, 2017 · No Comments

A big selloff in optical networking stocks doesn’t seem to be based on hard facts. It mostly seems related to unconfirmed concerns about a China slowdown, but this seems a matter of timing, the demand is still likely to materialize. Meanwhile, some of the companies, like Finisar, have been slaughtered too briskly, ignoring cheap valuations […]

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Tags: FNSR

The Great Unwinding

April 23rd, 2017 · No Comments

The Fed (and other central banks) has amassed a great amount of assets, bloating its balance sheet. The Fed has started signaling to the markets that it is considering starting to unwind some of this. How did the Fed get here and what are the risks of this unwinding of its bloated balance sheet? We’ll […]

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Tags: Monetary policy

Play The Chinese Steel Cycle With ArcelorMittal

April 19th, 2017 · No Comments

The steel sector is plagued by price swings that are to a great extent produced by China, alternating acceleration and slowdown of demand. While it’s difficult to get the timing exactly right these cycles are tradable. Longer-term, though, we continue to be firm on ArcelorMittal; the uptrend is still intact. Play The Chinese Steel Cycle […]

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Tags: MT

Is Amazon Cornering Yet Another Platform?

April 19th, 2017 · No Comments

Amazon seems to be on an inexorable rising path. The main reason for this is that management keeps relentlessly focused on the long-term building technologies and platforms that can be leveraged. With the development of voice control devices, AMZN seems to have developed yet another platform with substantial leverage. Is Amazon Cornering Yet Another Platform?

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Tags: AMZN

What Will Keep The Rally Going?

April 18th, 2017 · No Comments

The market rally has stalled on diminished outlook for a Trump reflation and a surprising softening in US economic data. It’s understandable, given the length of the rally and the stretched valuations. But it’s difficult to see any clear catalyst propelling stocks higher in the near future, this is more a market for stock pickers […]

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Tags: The Markets

Destiny Media Is Like A Late-Stage Biotech Company, But One With Limited Downside

April 17th, 2017 · No Comments

Destiny Media has a stable core in the form of a profitable product that is growing again, limiting the downside to the stock price. They have another product in development which addresses a much bigger market, but this is not yet good enough and needs further work. Given the limited downside and considerable upside, what […]

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Tags: DSNY

Lumentum Sell-Off… Should You Buy?

April 17th, 2017 · No Comments

The optical network sector has given up a substantial part of its gains in short order. But the pre-release of Applied Optoelectronics should allay some fears. In the second half of the year, there are multiple tailwinds which should lift most of these stocks. However, the sector is not without some structural problems, and there […]

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Tags: FNSR · LITE

Cypress Vs. Synaptics: What Company Wins From Apple’s Upcoming iPhones?

April 15th, 2017 · No Comments

Getting a slot in an upcoming blockbuster like the new iPhones can be a big boost to small suppliers like Cypress and Synaptics. We look at the chances for both companies, and it turns out that there are also some risks involved. But these risks don’t seem to be evenly distributed over these companies. Cypress […]

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Tags: CY · SYNA

United Airlines: The Structure Behind The PR Disaster

April 14th, 2017 · No Comments

The United Continental ‘reaccomodation’ of a passenger is a symptom of a deeper structural deficit in the industry. The structure pits passengers against shareholders and the first tend to loose out too much, as there are insufficient forces to keep airlines in check in reducing customer comfort. Another result of this is that United shares […]

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Tags: Corporate governance

Market Relief: Trump Turns Out To Be A Mainstream Republican

April 14th, 2017 · No Comments

While we still await details and legislative proposals of the big Trump reflation, markets do have something to celebrate from the White House. There is increasing data subscribing the view that, while perhaps not in rhetoric, Trump’s policies are fairly mainstream Republican policies. Most notable seems the gradual shift away from protectionism and hard money. […]

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Tags: The Markets · Trump