Food for Thought #28 // Links🔗

This time the most interesting content I stumbled over includes: UK stocks, r/wsb, DTCC, …

Swen Lorenz with his newest weekly dispatch* about the potential of the UK stock market.

The undercover fund manager shares 12 good quotes from Phil Fischer’s Common Stocks and Uncommon Profits.

Marc Rubinstein from netinterest about the most powerful entity you’ve never heard of in WTF is DTCC? The Story of Clearing currently is of interest for everyone after the r/wsb, GME and other tickers frenzy resulted in some market stress.

  • The Economist had some good write-ups about the topic and in general about dynamics in financial markets
    • Transfer of Power explains how technology drstically reduces the illiquidity (premium) of asset classes like PE, real estate and even some bonds (via ETFs).

Tobias Carlisle shares a great longterm performance chart that is quite reassuring for value focused investors.

Company news

  • Bolloré (BOL FP) plans to sell BlueSG Pte, its Singaporean electric-car sharing startup for an undisclosed amount to Goldbell Group.
  • Check Point (CHKP US) reported strong Q4 results and FY 2020 results.
    • High transition rate indicates good, close customer relationships (with partners)
    • CHKP continues to make corporate IT security departments’ work as simple as possible in an increasingly complex world (one instead of many vendors)
    • billings were strong in Q4
    • continues to hold $4bn net cash, equivalent to 24% of m cap ($16.5bn 18.4bn)
      • after net share buybacks of $1.1bn in FY 2020
    • shares nonetheless down -10% during the day
      • due to dissapointing guidance
      • I added more shares
  • Pandora A/S (PNDORA DC) reported Q4 and FY 2020 results (ar 2020)
    • Programme NOW comes to an end, top line growth is next
    • Q4 (US) data suggests that underlying growth is positive, with
      • shift in wallet spent mix effect < store closures etc.
    • many management turnover (-), but pandemic was extremely well managed
      • taking care of employees (9/10 rate its response +)
      • securing liquidity
      • additional space, stretching peak season, online
    • shares fluctuated and ended the day lower
      • conservative guidance was states as reason
  • Softbank (9984 JP), in Jan bought back JPY 188bn ($2bn)
    • with buy backs being this high it is hard to see a severe price downside
    • I am looking forward to the next results to get a grasp on an updated SOTP
    • all IPOs are doing well (lastly Auto1 in Germany)
  • Sberbank (SBER) reported solid net income for Jan under RAS
  • Gilead (GILD US) reported solid results and
    • remdesivir is given to every second hospitalized patient
    • expects 2021 EPS of $6.75 to $7.45 (consensus was for $6.77)
      • for a 9x P/E (midpoint)
    • boosted its first-quarter dividend by 4.4%

Best and happy investing, s4v


* marks an affiliate: if you want to become a paying member to Swen’s world-class content please use my link. hte price for you is the same. I might receive a referral bonus (money).

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