“Bubble-Like Stock Valuations Miss $3.4 Trillion in Hidden Assets” – or Why Intangibles Matter

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This week, in Bubble-Like Stock Valuations Miss $3.4 Trillion in Hidden Assets, Bloomberg detailed how traditional accounting can make a company’s fundamentals “look a lot worse than they are.” In the article, New York University’s Professor Baruch Lev weighs in. “You get numbers which are highly inflated for some companies and are understated for other […]

Semiconductor Leadership Highlights the Rotation Into Value Stocks

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Semiconductor and semiconductor capital equipment stocks have been stellar performers lately, a trend we have been a bit slow to recognize. So, I decided to do a deep dive on semis and semiconductor capital equipment stocks to see if there is opportunity left to capture. Indeed, when I combine the developed and emerging market industry […]

Sitting Here in Limbo

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In observing the equity markets over the last several weeks, we cannot help but be reminded of the Jimmy Cliff song, “Sitting Here in Limbo”, which was famously covered by Jerry Garcia. The first two lines go like this: “Sitting here in limbo, like a bird without a song Sitting here in limbo, but I […]

Divergent Path of US Corporate Profits

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Yesterday we got the latest glimpse into US corporate profitability. Depending on the series observed, corporate profits are either flat-lining or rising. Before-tax corporate profits, the blue series in the chart below, are actually net down by $32 billion from the peak in 2014. Yet, after-tax profits are up about $130 billion from that same […]

Geopolitics Update: Trade War, Tariffs & the Coming Tech Implosion

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As the Trump administration’s on-again, off-again trade war with China continues to create uncertainty for investors, we sat down with geopolitical strategist Peter Zeihan to learn more about the tariff program and what it could mean for the US economy. Similarly, we discussed the changing outlook for Silicon Valley technology firms — especially Tesla, Facebook, Twitter […]

Customer Franchise, the Most Valuable Asset: Here is How to Value It

“Subscribers Are the New, New Thing in Business” declared The Economist (April 11, 2018). The magazine says that “Subscription models are seen by many investors and executives as the holy grail, because they promise a recurring stream of revenue…. The attractions of subscription businesses are obvious. Firms can predict the future better and build deeper relationships with […]