A thread of companies that spent more on capex than in 2019:
(reminder, Tesla is supposedly currently disrupting the entire auto market, semitruck market, lithium battery market, solar market, and is the leader in FSD)
For reference, spent $1.33 billion on Capex in 2019 (via @stockrow1)
1. Ford
Ford spent $7.6 billion on capex in 2019. They are a direct competitor to Tesla
2. General Motors
GM spent $10.69 billion on capex in 2019. They are a direct competitor to Tesla
3. Caterpillar
Caterpillar spent $1.5 billion on capex in 2019. They sell construction equipment and have little-to-zero new initiatives
4. Target
Target spent $3 billion on capex in 2019.
5. CVS
CVS spent $2.5 billion on capex in 2019.
6. Pepsico
Pepsico spent $4 billion on capex in 2019. They sell soft drinks and potato chips
7. Proctor & Gamble
P&G spent $3 billion on capex in 2019. They sell consumer packaged goods.
8. 3M Company
3M spent $1.6 billion on capex in 2019. This is the company that makes post-it notes
9. Fedex
Fedex spent $5.4 billion on capex in 2019
10. GE
GE spent $2.4 billion on capex in 2019.
Why is this relevant?
Investors brag Tesla is disrupting every industry.
They also brag that the company is generating free cash flow.
Tesla's historical capex spend indicates those statements contradict each other and that one of them is not true
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But I think the stock is cheap, especially compared to the broad indices
Here's why ⬇️
Current market cap: $4.89 billion
Net out cash and debt
Estimate Vivian stake at $300 mil
Use market values for $ANGI and $MGM (both deserve to trade at their current multiples IMO)
You are left with ~$1.17 billion
Yes, I get it. This is a "sum of the parts" (SOTP) that you all hate
SOTP apparently don't "work" (I've never known what that means). I don't really care, if value is getting created on a per-share basis I will rest easy as a shareholder
"Regarding the balance between maximizing IP value and the risk of causing devaluation, it is important to continue developing projects one by one, being careful to prevent excessive exposure of the IP and to not let down our game fans, given their expectations...
Shares of Nelnet $NNI recently hit all-time highs and are now up on the year
But the stock is still incredibly cheap
Here's why⬇️
For context, as of this writing, $NNI has a market cap of $3.54 billion
Over the next decade-plus, Nelnet is going to receive steady cash flow from its securitized student loan portfolio, estimated to be around $1.66 billion
Since student loans are backed by the federal government, investors should have extreme confidence in this cash flow
Yesterday we released our monthly Arch Capital episode outlining why we own $ADSK
Here are X reasons why we think the stock is cheap today and why we believe it is possibly the highest-quality software company in the world right now⬇️
First, make sure to check out our fund website and read our disclosure:
BIM (Building Information Modeling) is growing in popularity due to government mandates and industry trends but is still at less than 50% penetration in most markets
This growth should only continue over the next five years and beyond
Nintendo just released its annual 50-page investor presentation
Here are 11 big takeaways from the report $NTDOY
1. FY 2023 revenue and net profit guidance were raised, mainly due to Fx movements
Hardware guidance was reduced due to semiconductor constraints, but (most importantly) software/game unit guidance was unchanged
2. 30% of Switch purchases are now from households that already had a Switch system, either to upgrade to the OLED model or to have multiple in the family
This bodes well for the demand of the Gen 2 Switch, which will likely come out within the next 1 - 3 years