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Entries from May 2018

Italy’s Coming Stealth Eviction From The Eurozone

May 30th, 2018 · Comments Off on Italy’s Coming Stealth Eviction From The Eurozone

The fiscal plans of the incoming Italian government will trigger a bond crash, capital flight, a bank run and a clash with the EU. They are simply not compatible with staying in the euro. Since an Italian debt crisis is already a matter of time anyway, minds have to concentrate on orderly ways out of […]

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Tags: Eurocrisis · Italy

3 Vicious Cycles Threatening To Blow Up Financial Markets

May 29th, 2018 · Comments Off on 3 Vicious Cycles Threatening To Blow Up Financial Markets

Despite economic tailwinds and a massive bond buying program by the ECB, Italy hasn’t been able to even dent its debt/GDP ratio. When the ECB ends its bond buying program and/or economic tailwinds turn and the new government embarks on fiscal largess, things will turn pretty rapidly. The eurozone framework makes the situation that much […]

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Tags: Eurocrisis · Italy

Tableau Still Lacks Leverage

May 29th, 2018 · Comments Off on Tableau Still Lacks Leverage

Growth is still very solid and the picture is considerably better due to a business model change. But we don’t see any leverage on the horizon with margins flat to downward and share-based compensation exceeding free cash flow. There is still substantial dilution. While we suppose leverage will kick in at some point, the lack […]

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Tags: DATA

All Systems Go At KEMET

May 29th, 2018 · Comments Off on All Systems Go At KEMET

Here is a company that is producing at full capacity in sectors characterized by excess demand. Investors worry that the excess demand can turn, but management has given us a few good reasons not to overly worry here as it’s unlikely to disappear any time soon. What the company is doing is raising CapEx substantially, […]

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Tags: KEM

Alteryx Offers A Good Entry Point Here

May 29th, 2018 · Comments Off on Alteryx Offers A Good Entry Point Here

The company is marching ahead, growing at a 50% pace leaving a trail of happy customers in its wake. The shares are off significantly from the highs due to the issue of senior notes, but we think this offers an opportunity. The shares are expensive, but this is hardly surprising given the opportunities that face […]

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Tags: AYX

The Stars Are Aligning For Himax

May 27th, 2018 · Comments Off on The Stars Are Aligning For Himax

It looks like Himax is going to enter a period of more sustained growth, with most of its traditional products growing in the second half. More importantly, next year the company has multiple opportunities in high-growth markets with products commanding high ASPs and margins. So we think a sense of cautious optimism is warranted here […]

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Tags: HIMX

SHU Portfolio: Baozun Can Afford To Invest In Its Future

May 27th, 2018 · Comments Off on SHU Portfolio: Baozun Can Afford To Invest In Its Future

Investors seem to worry that management’s intention to invest more will come at the expense of margins and profits. The growth of the company and the higher margins, which are the result of the change in business model, allow the company to invest and still expand margins. Q1 results demonstrated that once again and the […]

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Tags: BZUN · SHU Portfolio

Headwinds Turn Into Tailwinds At Silicon Motion

May 27th, 2018 · Comments Off on Headwinds Turn Into Tailwinds At Silicon Motion

The NAND flash shortages and price increases are gone and could develop into accelerated price declines. That is, headwinds are turning into tailwinds, and the company is well positioned to profit from several trends in flash memory. The stock isn’t expensive and pays a pretty good dividend to boot. Source: Headwinds Turn Into Tailwinds At […]

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Tags: SIMO

TripAdvisor’s Green Shoots, Can They Last?

May 22nd, 2018 · Comments Off on TripAdvisor’s Green Shoots, Can They Last?

With all the potential of a platform business model and the large amount of users TripAdvisor always had enormous potential. But the company hasn’t done too well yet, struggling to find the right formula. But the latest quarter shows signs of gradual improvements and some parts of the business which are actually taking off. Source: […]

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Tags: TRIP

SHU Portfolio: There Is A Bright Light At The End Of The Inseego Tunnel

May 22nd, 2018 · Comments Off on SHU Portfolio: There Is A Bright Light At The End Of The Inseego Tunnel

The company’s financial results are still marred by the decline of the legacy MiFi business. But the restructuring has paid off already and the company already has several businesses growing at a significant pace. Their aviation business already has accumulated big contracts, but these take time to ramp. Even the MiFi decline can easily turn […]

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Tags: INSG