Month: April 2021
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Biden’s Climate Plan Is A Tax On Companies And Individuals
Biden’s 10-Year Climate Plan – which the Administration is pursuing without the approval of Congress – will tax American companies and citizens. We expect: more bogus carbon offsetting programs across all industries (including Technology), higher consumer energy prices and job losses for Americans. This centralized government power grab is also sure to create enormous fraud…
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A Cheaper Way To Play RPA
With RPA pure play UiPath’s (tkr: PATH) recent IPO and lofty valuation we suggest investors consider less expensive Enterprise Software companies that incorporate Robotic Process Automation (“RPA”), into their broader offerings. Pegasystems (tkr: PEGA) and SS&C Technologies (tkr: SSNC) come to mind. See below for links to additional TEK2day articles that cover RPA, IPA (“Intelligent…
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The SPAC Bubble Has Burst. We Have Yet To See The Worst.
We have warned for months (most recently in late March), that the SPAC issuances of the past year-plus were a bubble waiting to burst. The SEC issued accounting guidance on April 12th which essentially classifies warrants issued as part of a SPAC as liabilities rather than as equity instruments. This may lead to a tidal…
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Netflix & Video Games Can’t Happen Soon Enough
As we wrote in September of last year, Netflix (tkr: NFLX), Should Acquire Video Game Publishers. Netflix teased a video game strategy on tonight’s earnings call. Disney (tkr: DIS), proved the model on the feature film side with acquisitions of Pixar, Marvel and Lucasfilm. The video game space will prove no different. After all, hit…
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The Fed’s Vicious Cycle and Gold
I can’t see a way out of the Fed’s inflation problem. The fiscal side of the house needs to inflate its way out of its debt burden. Thus, the Fed will be required to continue to print money both to purchase new Treasury issuances and to control the yield curve. These Fed actions will of…
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AT&T Is Caught In A Pickle. Google Is Benefitting.
We migrated off of AT&T’s (tkr: T) mobile plan over the weekend in favor of Alphabet’s (tkr: GOOGL), Google Fi mobile phone service. Google Fi charges less for unlimited calls and texts: Google Fi charges $20 for unlimited calls and texts per user per month vs. $25 for AT&T; Google Fi charges less per GB…
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The Blood Is On Elon Musk’s Hands
Elon Musk is happy for prospective Tesla customers, sell-side analysts, buy-side investors and his Twitter followers to believe that Tesla vehicles are fully autonomous when that could not be further from the truth (see our earlier article regarding Autonomous vehicle permits). This fallacy helps promote the narrative around Musk as a genius entrepreneur (newsflash: Musk…
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Alphabet Is The AI Alpha Dog
Amazon, Apple and Microsoft will never catch the AI leader. Google’s AI capability will become increasingly sophisticated (we use “AI” as a catch-all for artificial intelligence, machine learning, deep learning and related disciplines), with time and will evolve at a faster rate than Amazon, Microsoft and certainly Apple. Google on-device applications such as Google Assistant,…
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A Corporate Tax Hike Will Be A Double Whammy On Valuations
Consider the Fintech and Information Services sector. Depending upon how you define it, the sector trades at approximately 30x Operating Cash Flow (“OCF”). If Company X generates $1 billion in Operating Cash Flow today, the Net Income input will have been taxed at 28% under Biden’s proposal vs. the current 21% Federal corporate income tax…
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Update: Battle-Tested Software CEOs
We published a piece in March 2020 entitled Battle-Tested Software CEOs, that highlighted a group of CEOs that we believed would hold the line and successfully navigate the COVID waters. Here is our updated thinking regarding that list. Tickers mentioned: AAPL, ADBE, CSGP, CVLT, FISV, MSCI, PYPL, SPGI, SQ, SSNC, VRSK Andy Florance. Founder &…
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