Post by Admin/YBB on Feb 27, 2021 9:15:02 GMT -6
Pg 10-11: No important meetings reported.
Pandemic stress-tested the R&D capabilities of healthcare industry and results have been good. New vaccines have been approved in record times from Pfizer+ BioNTech, Moderna, J&J [almost], and several others are forthcoming. These successes will reflect positively in other healthcare areas.
Electric air-taxi developer Joby Aviation will soon become public through its acquisition by SPAC Reinvent Technology Partners [RTP]. Launch by 2024 is expected for 4-passenger, 6-rotors, electric VTOL [so, eVTOL] aircraft.
Dr Copper rose to 10-yr high at $9,000/metric ton, +14% YTD.
Data this week: ISM manufacturing PMI, construction spending on Monday; ISM services PMI, ADP employment report, Fed beige book, auto sales on Wednesday; Q4 productivity, durable goods orders, factory orders on Thursday; international trade deficit, consumer credit, jobs report [+200,000], unemployment rate [6.4%] on Friday.
www.barrons.com/magazine?mod=BOL_TOPNAV
Bullish: Citigroup [C; yield 3%; fwd P/E 10.2; P/tBV 0.9; new CEO Jane Fraser, 03/2021- ; lax controls need fixing (past fines by the Fed and OCC; wired $900 million by mistake to hedge funds and cannot retrieve much of that); may close some branches and sell some noncore businesses; needs infrastructure capex; strong in cash management (?) and payment processing; pg 13]; off-price retailer Ross Stores [ROST; fwd P/E 22; no online presence; hurt badly by pandemic but is good recovery play; pg 15].
Bearish: Twitter [TWTR; overvalued or fairly valued at fwd P/S 11; infrastructure rebuilt; more direct-response ads; Dorsey is CEO of both TWTR and SQ; activist Elliott Management; pg 9].
Pg 16: John Rogers, Ariel Investments [1983- ]. This has been a difficult environment for value and contrarian investing. Value has been so out of favor that there is no new generation of value managers to replace the old ones, many value managers have closed shops, and some have turned into growth managers. But post-pandemic recovery, higher rates and inflation will benefit cyclicals [financials, industrials, consumer-discretionary, entertainment/media, etc]. Dividend increases and buyback resumptions are coming.
Pg 19: Changes in global dividends in 2021 may range from -2% to +5%. For 2020, global dividends were down -12%, Europe ex UK -32%, UK -41%, EM -9.5%, but US +2.4%. Explanation for the US was that the US companies eliminated buybacks first and only then reduced the dividends.
Pg 26-29: Barron’s Online Broker Rankings, 2021, #1 to #11: Interactive Brokers, Fidelity, TD Ameritrade [bought by Schwab], E*Trade [bought by Morgan Stanley], Charles Schwab, tastyworks [bought by UK IG Group], Merrill Edge, SogoTrade, TradeStation, Ally Invest, TradingBlock.
Robinson was evaluated but was not assigned a rating. Firstrade, Vanguard, You Invest/JPM didn’t participate.
Pg 30: David Schoenwald and Murray Rosenblith manage global small/mid-cap alternative-energy NALFX/NAEFX. Fund is concentrated, uses ESG factors and invests in yieldcos [these generate electricity and distribute most of cash flow] and manufacturers of wind turbines, etc, but avoids commodities type areas such as solar cells. Its interest rate sensitivity is high.
Pg 31: Cathie Wood’s ARK funds have growing competition for hot money. That and tech tumble [rotation into cyclicals] caused large drops in some ARK funds [ARKK -14.6% for the week]. Recent entrants with innovative/disruptive funds are Fidelity [FGDFX, etc], Goldman Sachs [GINN], Direxion [ MOON], Invesco [QQQJ].
Pg 32: Rising rates are bad for growthy tech stocks. But cyclical techs will benefit from rising rates and Stimulus3: HPQ, ACN, TWLO, MU, DELL, HPE, IBM, CSCO, ORCL, STX.
Pg 33: Being at-home and getting income-support/stimulus checks [$1.8 trillion, and more is coming], Americans have too much cash. Household savings are $1.8 trillion more than normal. Household wealth has also increased due to rising stock and home prices. While some worry that all this extra cash and wealth will be spend suddenly, a more likely outcome will be a mix of spending, debt reduction, savings, investments. Moreover, only 14% of extra cash is held by the bottom 60% in income, the group most likely to spend; the higher income group already knows how to handle extra cash.
Pg 34: Arturo Di Modica passed away at 80 from cancer. He was the creator/sculptor of 3.5-ton Charging Bull that was secretly delivered in front of the NYSE in 1989. He spent $300K for his creation and had to borrow some of that from relatives.
[Extras from online Friday that didn’t make the weekend paper version]
None
Pandemic stress-tested the R&D capabilities of healthcare industry and results have been good. New vaccines have been approved in record times from Pfizer+ BioNTech, Moderna, J&J [almost], and several others are forthcoming. These successes will reflect positively in other healthcare areas.
Electric air-taxi developer Joby Aviation will soon become public through its acquisition by SPAC Reinvent Technology Partners [RTP]. Launch by 2024 is expected for 4-passenger, 6-rotors, electric VTOL [so, eVTOL] aircraft.
Dr Copper rose to 10-yr high at $9,000/metric ton, +14% YTD.
Data this week: ISM manufacturing PMI, construction spending on Monday; ISM services PMI, ADP employment report, Fed beige book, auto sales on Wednesday; Q4 productivity, durable goods orders, factory orders on Thursday; international trade deficit, consumer credit, jobs report [+200,000], unemployment rate [6.4%] on Friday.
www.barrons.com/magazine?mod=BOL_TOPNAV
Bullish: Citigroup [C; yield 3%; fwd P/E 10.2; P/tBV 0.9; new CEO Jane Fraser, 03/2021- ; lax controls need fixing (past fines by the Fed and OCC; wired $900 million by mistake to hedge funds and cannot retrieve much of that); may close some branches and sell some noncore businesses; needs infrastructure capex; strong in cash management (?) and payment processing; pg 13]; off-price retailer Ross Stores [ROST; fwd P/E 22; no online presence; hurt badly by pandemic but is good recovery play; pg 15].
Bearish: Twitter [TWTR; overvalued or fairly valued at fwd P/S 11; infrastructure rebuilt; more direct-response ads; Dorsey is CEO of both TWTR and SQ; activist Elliott Management; pg 9].
Pg 16: John Rogers, Ariel Investments [1983- ]. This has been a difficult environment for value and contrarian investing. Value has been so out of favor that there is no new generation of value managers to replace the old ones, many value managers have closed shops, and some have turned into growth managers. But post-pandemic recovery, higher rates and inflation will benefit cyclicals [financials, industrials, consumer-discretionary, entertainment/media, etc]. Dividend increases and buyback resumptions are coming.
Pg 19: Changes in global dividends in 2021 may range from -2% to +5%. For 2020, global dividends were down -12%, Europe ex UK -32%, UK -41%, EM -9.5%, but US +2.4%. Explanation for the US was that the US companies eliminated buybacks first and only then reduced the dividends.
Pg 26-29: Barron’s Online Broker Rankings, 2021, #1 to #11: Interactive Brokers, Fidelity, TD Ameritrade [bought by Schwab], E*Trade [bought by Morgan Stanley], Charles Schwab, tastyworks [bought by UK IG Group], Merrill Edge, SogoTrade, TradeStation, Ally Invest, TradingBlock.
Robinson was evaluated but was not assigned a rating. Firstrade, Vanguard, You Invest/JPM didn’t participate.
Pg 30: David Schoenwald and Murray Rosenblith manage global small/mid-cap alternative-energy NALFX/NAEFX. Fund is concentrated, uses ESG factors and invests in yieldcos [these generate electricity and distribute most of cash flow] and manufacturers of wind turbines, etc, but avoids commodities type areas such as solar cells. Its interest rate sensitivity is high.
Pg 31: Cathie Wood’s ARK funds have growing competition for hot money. That and tech tumble [rotation into cyclicals] caused large drops in some ARK funds [ARKK -14.6% for the week]. Recent entrants with innovative/disruptive funds are Fidelity [FGDFX, etc], Goldman Sachs [GINN], Direxion [ MOON], Invesco [QQQJ].
Pg 32: Rising rates are bad for growthy tech stocks. But cyclical techs will benefit from rising rates and Stimulus3: HPQ, ACN, TWLO, MU, DELL, HPE, IBM, CSCO, ORCL, STX.
Pg 33: Being at-home and getting income-support/stimulus checks [$1.8 trillion, and more is coming], Americans have too much cash. Household savings are $1.8 trillion more than normal. Household wealth has also increased due to rising stock and home prices. While some worry that all this extra cash and wealth will be spend suddenly, a more likely outcome will be a mix of spending, debt reduction, savings, investments. Moreover, only 14% of extra cash is held by the bottom 60% in income, the group most likely to spend; the higher income group already knows how to handle extra cash.
Pg 34: Arturo Di Modica passed away at 80 from cancer. He was the creator/sculptor of 3.5-ton Charging Bull that was secretly delivered in front of the NYSE in 1989. He spent $300K for his creation and had to borrow some of that from relatives.
[Extras from online Friday that didn’t make the weekend paper version]
None