Operating at the Intersection of Technology and the Capital Markets
Month: August 2020
In the midst of the most exuberant Tech bubble in history we offer an alternative. We have updated our list of FinTech names, some of which are reasonably valued. Click on the thumbnail below to access the table in large format. Subscribers may access the table in spreadsheet format behind the paywall ($19.99). Click on … Continue reading Capital Markets FinTech UpdatePremium
We are approximately 6 months away from announcing our CEORater 2020 Technology CEOs of The Year. Selecting this small group of winners will be difficult as a number of Technology CEOs have successfully navigated COVID's stormy seas while delivering strong operating results. 2020 will also mark the inaugural class to the CEORater CEO Hall of … Continue reading Looking Forward to Announcing CEORater’s 2020 Technology CEOs of the Year
Walmart (tkr: WMT) can do better than to jointly acquire TikTok with Microsoft (tkr: MSFT). A TikTok acquisition is fraught with risk. Our preference would be for Walmart to acquire a leading retailer in a growing category. AutoZone (tkr: AZO) is one such example. Premium article. 539 words. $9.99 One of the first things you … Continue reading Walmart Can Do Better than to Acquire TikTokPremium
Fed Chair Powell's comments on Thursday were in-line with our perspective published on Wednesday. The Fed will continue to work to "stimulate" the economy (it can't of course, it can only inflate asset prices). However, every time Chairman Powell mentioned "full employment" in his speech I couldn't help but think of the job dislocation that's … Continue reading Dovish Fed Policy Speaks to A Weak Economy and Permanent Job Dislocation. We Propose A Solution.
Large Financial Institutions should acquire FinTech companies. Doing so would enable FI's to diversify beyond the depositary services business which will continue to suffer in a prolonged low interest rate environment. We won't lay out the entire FinTech ecosystem, but here are several examples. Capital Markets: FactSet (tkr: FDS) and SS&C Technologies (tkr: SSNC). FactSet … Continue reading Banks Should Acquire FinTech Companies
We expect Federal Reserve Chairman Powell to reiterate: 1.) the Fed's near zero interest rate policy for the foreseeable future, 2.) the Fed's willingness for market intervention. Further, we expect the Fed to provide guidance concerning its CPI increase tolerance level. Historically that tolerance level has been 2%. We will clearly overshoot a 2% CPI … Continue reading Tomorrow’s Fed Meeting Will Be More of The Same
The drama around former McDonald's (tkr: MCD) CEO Steve Easterbrook could have been avoided if the Board had been engaged. Similarly, the company's HR function failed. Self-preservation is to blame. Ironically, McDonald's Board is at risk of being purged and HR leadership has already turned over under new MCD CEO Chris Kempczinski. How is self-preservation … Continue reading McDonald’s: Cultural Rot Starts At The Top
We believe large insurance carriers could bolster their valuations by taking equity stakes in leading InsurTech, AutoTech, PropTech, HealthIT, FinTech and CyberSecurity companies. Sound too ambitious? Sounds rational to us. First, an announcement: We have launched a new Data & Analytics advisory service - "On-Demand CAO" - which is primarily geared to mid-market insurance carriers. … Continue reading Insurers as Acquirers and TEK2day’s “On-Demand CAO” Service
WarnerMedia ("WM") and AT&T (tkr: T), leadership teams should take note. WM/AT&T completely botched its summer movie release schedule, failing to adapt to the post-COVID reality. The company took the "wait-and-see" approach rather than controlling that which it could. The result? Market share lost to Netflix and DisneyPlus. WarnerMedia's summer tentpole film - Tenet - … Continue reading Muscles, Viruses, Nature and People Adapt. So Do The Best Leadership Teams.
Lyft decided to suspend its rideshare service in California after being ordered to account for drivers as employees. Uber may be next. It is unlikely that Uber or Lyft could ever operate profitably were they both forced to account for all drivers as employees. In equity and fixed income analysis we have the "consolidation" principle … Continue reading Lyft Tapped Out In California. Uber May Be Next.
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