For some companies, debt repayments are taking priority over innovation and other operational initiatives. Aside from zombie companies going bankrupt as a result of the Fed holding rates higher for longer, there is an entire class of Technology companies that will continue to suffer as a result of higher interest rates for longer. Take SS&C … Continue reading When Debt Payments Take Priority Over Investing In The Business
We have folded our CEORater-related content under our TEK2day brand. TEK2day will publish more content to YouTube in the coming weeks. Our YouTube content won't necessarily be published as a TEK2day podcast. We occasionally publish our content to LinkedIn, but not all of our content. The best way to find our content is here at … Continue reading TEK2day: All Things Technology & Capital Markets-Related
I'm happy to see the ESG backlash of late. I'm equally happy to see BlackRock's Larry Fink having to fight off of the back foot. Fink's corner may have thrown in the towel in fact. I agree with Lynn Forester de Rothschild - throw ESG in the dustbin (video below). Great management teams (the "G" … Continue reading Throw ESG In The Dustbin
If you have enjoyed our writings and research on CEO Personality Analytics, you may enjoy the Apple TV+ documentary about former Nissan Renault Chairman and CEO Carlos Ghosn. We link to the trailer below (view this article on our Website to view the trailer and the recent Forbes interview with Mr. Ghosn). We have also … Continue reading CEO Personality Analytics – The Case of Carlos Ghosn
PLTR attached itself to the AI hype and remains overvalued. Way overvalued. We wrote about PLTR last week (HERE). Last night's EPS reprt should be no surprise (Hype can't produce growth). What is fair value for an Info Services company like PLTR (Palantir is simply a predictive analytics firm with a Software wrapper) that is … Continue reading Palantir Remains Overvalued. Way Overvalued.
Investors finally figured out that ZoomInfo (ticker: ZI), wasn't really a long-term growth story and that once corporate buyers began to pull back on Sales & Marketing spend, ZI would feel the pain. Further, I've always questioned what ZoomInfo considered to be organic revenue. ZI's Q3 2023 Revenue outlook calls for approximately 7-8% revenue growth … Continue reading ZoomInfo (ZI) Won’t Be The Last Outlook Haircut
I haven't seen the detailed sell-side estimates for SS&C Technologies (SSNC), but I am willing to wager that the sell-side did not properly model rising interest expense, thus SSNC missed on the EPS line. Also, SSNC ought to have used its inflated stock back in 2021 to pay down debt. Can't say I did not … Continue reading Can’t Say I Did Not Tell You So
If you plan to run the credit risk exercise that I mentioned at a high level last week (HERE), the exercise is not a simple one. For example, if Company ABC issued a 5-Year note in August 2020 when the 5-Year Treasury was at 0.19% and credit spreads where at "Y", it would be incorrect … Continue reading Credit Spreads Will Widen The Longer The Fed Maintains Elevated Rates
A fun exercise for investors will be to review their portfolio holdings for companies that carry debt that is scheduled to mature over the next several years. Companies will have to decide if they wish to pay off the debt which in many cases will involve large, dilutive equity offerings to generate the necessary cash, … Continue reading Corporate Credit Risk Fun: Sometimes I Am Right.
Here is our weekly update on the Fed's back door QE program, also known as the Bank Term Funding Program (BTFP), also known as a bank bailout program. The Bank Term Funding Program (BTFP, bail out/QE) had approximately $103.1 billion in outstanding loans as of Wednesday this week, up from $102.7 billion (+ $0.4 billion) a week … Continue reading Weekly Update: Bank Term Funding Program