1/8 Amazing vid from @EPBResearch

Debt #Crisis - Yup, It's Coming. Check it our ⬇

2/8 What we've been saying: banks and the consumer are no longer the problem. #Banks are the new utilities.

1/10 Have you read our recently published #whitepaper?

The Art of #Stock Picking #Returns

Highlights below ⬇ 2/10 “We’ve had 40+ years where all the money went into broadband, or internet, or #Netflix or the cloud and no money went into basic productive capacity…”

–Robert Friedland, CEO, Ivanhoe group of companies

1/19 @ttmygh of the wonderful Things That Make You Go HMMMM newsletter just wrote a scathing piece on the emerging #pension fund disaster in lagged marks from private #equity.

loom.ly/YyomXW4 2/19 As he explains:
#PrivateEquity is taking down Pension Funds as they struggle to keep the game of hot-potato going. “Hot potato” being the business practice of selling slices of companies back and forth to one another at ever higher #valuations.

From @MarketWatch

Interest in #EVs is outpacing infrastructure development

loom.ly/EhmwHWg 2/4 In our piece, The Role of Critical Minerals in Clean Energy Transitions we stated, " The electrification of transportation is going to require a massive amount of #mining. The stocks are incredibly cheap."

kailashconcepts.com/white-papers/t…

1/7 This was a FASCINATING article from @FortuneMagazine

Overconfident #tech #CEOs have overpaid for ‘box tickers’ and ‘taskmasters.’ Here’s why the real ‘creators’ will survive the mass #layoffs

yahoo.com/entertainment/… 2/7 "$CRM CEO Marc #Benioff and $META CEO Mark #Zuckerberg have admitted that they hired too many employees under the assumption that the growth their #sector experienced during the pandemic would continue."

1/21 Let's talk about $WE. Last month @SeekingAlpha reported that WeWork could declare bankruptcy in 2023. They have a $ problem.

loom.ly/roQICwI twitter.com/i/web/status/1… 2/21 Their analysis of WeWork's failed business model is spot on.

"The problem for $WE is the margin between what they pay and what they receive from their #customers has not been enough to cover the very large administrative/marketing/advertising #expenses."

1/6 It's not that complicated. When a company issues #stock to employees or the public, it increases shares outstanding and dilutes #earnings per share. 2/6 Give the #stock to the employee, and the cash doesn’t show up on the balance sheet. Robbing Peter to pay Paul. In #broaddaylight

1/4 Anyone see this from @WSJ @TokyoWoods?

#EV assembled outside North America could qualify for subsidies if purchased for lease by #businesses

loom.ly/k-NvAPk 2/4 #Market Prices Suggest the Movement to a Green #Grid Will Fail

1/14 This piece from @latimes @hiltzikm about the #southwest meltdown is a must-read ⬇

Southwest’s meltdown was born in America’s cheapskate corporate culture

loom.ly/wzy4k30 2/14 "The short answer is their underinvestment in preparation and planning. For decades, Big Business has been squandering its resources…instead of spending on workers and infrastructure. There’s not enough give in the system, so when crisis comes, it doesn’t bend, but breaks."

1/7 Must read article by @kayewiggins @FinancialTimes on how the #volatilitylaundering complex has built & sold a pile of CDOs (they changed the "D" to an "F")

on.ft.com/3GP1wkN 2/7 Since there is no disclosure or reporting it’s tough to tell where the bodies are.

The article explains how "CFOs introduce another layer of leverage" in a PE pyramid built on debt.

Which might be suboptimal....

1/ In this Wednesday edition of the #KCRDailyThread: Investors have shown some newfound interest in large-cap growth stocks. Understandable. They’ve sold off.

#GrowthStocks #StockMarketInvesting #Investing 2/ But how much? The chart below divides the market cap of the 30 largest growth stocks by GDP.

#KCRDailyThread

1/ The chart below shows the cumulative taxes expensed by the constituents of the S&P’s energy sector vs. Apple.

Legendary for their tax evasion skills, KCR has not heard our politicians propose a windfall profits tax on Apple.

https://twitter.com/Josh_Young_1/status/1587113585238573057

2/ Buying a new iPhone is nice. Keeping your home warm and eating food requires energy. That is non-negotiable. The world is structurally short of hydrocarbons due to the explosion of ESG investing and empirically failed government policies.

In our Friday edition of the #KCRDailyThread: 1/ $AMZN CEO Andrew Jassey is in the hot seat 🔥

2/ Exactly 1 year ago today, we published this rant: Andrew Jassy Amazon's Next Bob Nardelli?

kailashconcepts.com/andrew-jassy-a…

1/ Terrific chain. Simple “positive” & “negative” examples of how to clean up ESG.

One positive example follows below. 👇

https://twitter.com/LynAldenContact/status/1582483257030979584

2/ Engineers have nearly doubled fuel economy despite exploding vehicle size, weight and horsepower due to consumer preference for bigger, safer faster cars

This is proof of superb R&D by automotive OEMs

1/ In this Wednesday edition of the #KCRDailyThread: Unpopular Empirically Informed Views.

#InvestmentStrategies #InvestingStrategy #StockMarketAnalysis 2/ #KCRDailyThread

1/The new math of "BEATS" by broken growth stocks

$NFLX surprised to the upside on subscribers sending the stock's market cap up ~$16bn after hours.

With revs up just 6% YoY, Op Profit -13% and EPS -4%, the ebullience is all in the subscriber story....

https://twitter.com/charliebilello/status/1582482052846620672

2/...and then the company said they were going end guidance for paid membership, choosing instead to focus on sales, operating income, operating margin, net income and EPS

1/ @DoombergT put out one of the best summaries of the tremendous success created by massive chemical facilities like BASF’s in Germany that most of us never have to see. @DoombergT 2/ Barring some very good fortune we are all going to be learning about the business of chemical plants.

doomberg.substack.com/p/moribund-ver…

1/ Let's look at a 2021 Summary... Market Cap to GDP hits 234% by November – a full 59% higher than the dot com bubble peak. 2/ By December, 10 year stock market returns hit 200+ year peaks with the Shiller PE hitting 39x.

1/ Historically, investors in large cap core index funds had the bulk of their money invested in stocks with reasonable valuations with negligible exposure to stocks valued over 10x price to sales.

#stocks #investors #growthfunds 2/ As the below chart shows, that is no longer true today.

Should evoke caution for those using index fund investment strategies with large cap core exposure to make sure they are consistent with your investment objectives, risks, and other goals.

1/ An update of a thread posted last month... 😉 2/ I’m staring at a list of stocks in the S&P 500 Index. The results are sorted by their weighting in the index from largest to smallest. At a 6.97% weight, $AAPL is at the top.

1/  By June 8th of this year, the S&P500’’s Energy stocks were up 70% in a -13% market.   From June 8 to June 24th the sector fell -22%.  That’s 11 trading days. 2/ Not really surprising considering the relative performance.