- The upcoming new Apple iPhones look like they could become a blockbuster.
- While by no means guaranteed, any inclusion, especially a new one of the phones (or all of them) could significantly impact suppliers.
- Here, we look at two potential suppliers which could significantly benefit from an inclusion of ‘3D sensing’ in the upcoming iPhones.
- We also formulate some thoughts on which one of these is the better buy.
April 13th, 2017 · No Comments
April 12th, 2017 · Comments Off on The Well Of Wealth Creation Is Drying Up
- A big part of economic progress comes from fundamental advances in science.
- With the private sector retreating from fundamental research and the public sector facing cutbacks, the well is decreasing.
- It’s widely unappreciated just how fundamental the public sector has been for the advancement of fundamental research and, as a consequence, innovation and productivity growth.
- Since fundamental research has public good characteristics and is inherently risky, there are sound economic reasons for that.
Comments Off on The Well Of Wealth Creation Is Drying UpTags: Innovation
April 10th, 2017 · Comments Off on Meet The 3 Brothers That Are Ruining South Africa
- South Africa enjoyed a period of solid economic performance in the decade up to the financial crisis.
- After that, things have deteriorated, and recent revelations have brought to light a disturbing level of government capture by three Indian brothers behind the President.
- It will be difficult to turn things around before the elections scheduled for 2019. South Africa could turn populist before then.
- Bonds and the currency will likely suffer more. Stocks could do considerably better.
Comments Off on Meet The 3 Brothers That Are Ruining South AfricaTags: Emerging Markets
April 10th, 2017 · Comments Off on A New Threat To Intel’s Dominance Of The Datacenter
- Intel is still enjoying a near monopoly in server chips powering the fast growing cloud.
- However, with Moore’s Law slowing down and shifting cloud computing needs toward much more sophisticated applications, this lead is under threat.
- Other solutions, like GPUs and FPGAs, and now Google’s TPU can address these shifting cloud computing needs more efficiently.
Comments Off on A New Threat To Intel’s Dominance Of The DatacenterTags: INTC
April 9th, 2017 · Comments Off on Buy Alert In Finisar
- Shares of Finisar sold off on temporary issues and rumors.
- We think the sell-off has gone too far, the company is in good financial health and profits are jumping.
- The shares are fairly cheap and are finding technical support.
Comments Off on Buy Alert In FinisarTags: FNSR
April 9th, 2017 · Comments Off on Buy Into The Sell-Off In Nvidia?
- Nvidia got a downgrade from an analyst and tanked 7.6%.
- These things happen after a stock has run up the way Nvidia shares have.
- While one or two softer quarters are possible, they are by no means a foregone conclusion and the long-term growth story is still as compelling as ever.
- There are simply few companies which have similar positions in some of the biggest growth markets today, like AI, VR, IoT, autonomous cars, etc.
Comments Off on Buy Into The Sell-Off In Nvidia?Tags: NVDA
April 8th, 2017 · Comments Off on The FIZZ Is Getting Frothy
- The chart of National Beverage displays a near parabolic rise.
- There are sound reasons for that in the form of rising sales and increasing margins at half of their business.
- With the shares fully valued and overbought, it’s difficult to see much immediate upside from here though.
- And while we expect the company to keep the party going for some time to come, the longer-term isn’t devoid of risks, and visibility for investors is fairly poor.
Comments Off on The FIZZ Is Getting FrothyTags: FIZZ
April 8th, 2017 · Comments Off on The Brexit Farce
- The UK is embarking on Brexit, a process of truly daunting complexity for which there is a two year time frame that most think is way too short.
- The resulting upheaval will consume British policy making for at least a decade or more.
- We don’t see much upside, but there are significant risks and banana peels on the way.
- While even the British government’s own research shows that the economy will suffer in the process, the pound will absorb much of the shock.
- So we expect British equities to be little affected in general, but bonds and the pound will face structural headwinds.
Comments Off on The Brexit FarceTags: Brexit
April 8th, 2017 · Comments Off on Ubiquiti Networks Short Thesis Doesn’t Add Up
- Ubiquiti does things differently. It generally offers good products for much lower prices compared to the competition, but also enjoys significantly better margins.
- That seems too good to be true, hence the company has critics.
- But unless there is something big hidden in the figures, we find most of the criticism missing the mark.
- We think that Ubiquiti’s lean business model and apparently top-notch R&D can explain much of their performance.
Comments Off on Ubiquiti Networks Short Thesis Doesn’t Add UpTags: UBNT
April 6th, 2017 · Comments Off on The Essential Micron
- Shares of Micron have been on a tear already since the lows of $9 early last year.
- But the company is on a run that is supported not only by favorable market conditions, but also by at least some more secular trends.
- We compare this run to previous ones and argue that the shares are likely to go higher still.
Comments Off on The Essential MicronTags: MU