A General Risk Framework

According to academia, the cost of equity can be calculated using the CAPM, a central model to modern financial theory. But even Damodaran critizes this as a statistical approach usually considered too narrowly. Damodaran tends to and recommends to think about business risk in a more general sense first, without applying sophisticated and data-heavy statistical methods (which might have its place).

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Initiation of a Series of Quickies on new companies

I already know several parts of my review of the current year. One part will be about missed opportunities to act quickly and buy shares of ‘known’ companies at low prices during the pandemic induced market sell-off in March an April. Thus, I decided it is essential to have a rough view or an initial understanding of a higher number of companies …

News: Nvidia in advandced talks to buy Arm from SoftBank Group

Nvidia seems to be in ‘advanced discussions’ to buy Arm from SBG, which bought the company in 2016 for $ 32 bn. This could become the largest deal ever in a consolidating semiconductor indutry…

News: Europe’s $ 36 bn in airline bailouts

Bloomberg reports that European airline bailouts might come with (ESG, but predominently E-) strings attached. This could herald the start of lower emission travel …

How did the Corona Virus affect Check Point Software Technologies in Q1 2020?

CHKP today announced its financial results for the first quarter ended March 31, 2020. A solid performance, without major surprises, despite corona. I like!

News📰: Speedcast🛰️ files for Chapter 11 bankruptcy

Speedcast International, an Australian network service provider leasing capacity on more than 80 satellites, files for chapter 11 bankrupty. One of the stated reasons is the weak cruise and oil markets.

Quickie📢: Softbank Groups recent One Month Performance

Softbank Group (9984 JP) fell to a recent low of 2,687 JPY on March 19. Reseasons were the corona crisis hitting its portfolio of startups and mounting credit fears. Since then it recovered strongly, currently trading for 4,735 (+76%). Developments taking place were manyfold, such as …

News📰: Gilead to Buy Arcus Stake

Gilead Sciences Inc. considers acquiring a stake in Arcus Biosciences Inc., a cancer therapeutics company, that is backed by Alphabet (Google). Arcus’ therapies target small molecules, aimed at helping shrink tumors.

News📰: AVI takes a stake in Softbank Group as it is too cheap to ignore

After Elliott, another activist Investor invests in SBG as discount to NAV is too big to persist and proposes steps to increase shareholder returns.

News📰: Softbank Group spends 500 bn JPY on Share Buy Backs

Softbank Group Corp or SBG (9984 JP) plans to spend 500 bn Yen (c. 4.8 bn$) on Share Buy Backs, potentially purchasing about 7% of currently Oustanding Shares that will then be retired.

• This plan follows Elliots proposal, the amount falls way short though
• Share Buy Backs should (in theory) help closing the Valuation gap (NAV minus fair value)
• I like the news, especially after the strong sell off

News📰: Pandora AS Cuts 180 Jobs, Part of Strategic Reorganization

180 employees will leave Pandora as part of its Programme Now turnaround plan.

News📰: Gilead Buys Forty Seven for $ 4.9 bn

Gilead Sciences Inc. (which shares I currently own) will likely buy Forty Seven Inc. for c. 4.9 bn USD* or $ 95.50 per Share, representing a premium of 96% to the Thursday closing price.

Pandora will report FY 2019 on Feb 2nd

Pandora will release its Anual Report 2019 on February 2nd, 2020. Since some analysts already revised their estimates upwards (Adj EpS, EpS GAAP, Revenue) after Pandora recently released preliminary Q4 Financials which were perceived very positive, I believe …