Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
This is the last report on the recently completed third-quarter update. The early financial statements for the fourth quarter are from companies with fiscal quarters ended November. Those financial statements will begin to appear this week.
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The fifth Contrarian Investor Virtual Conference is over, and investors are mulling over the stock picks that were presented. Sean Stannard-Stockton of Ensemble Capital Management was among the presenters. He offered his long thesis for First American Financial, a title insurance company.
(more…)This is a great time to be investing in Tesla – but unfortunately from the short side. Of course, there is risk, a lot of risk. So far this year Tesla has risen over 550 percent and many momentum traders predict a continued upward trend. From our perspective at Cornell Capital, however, the stock has already reached “ludicrous speed.” Never a stock that traded on the basis fundamentals, Tesla Inc’s stock has become so divorced from the underlying economics that it now exists in a kind of valuation twilight zone. At a market capitalization of over $550 billion Tesla currently has an equity value greater than that of the entire automobile industry (excluding Tesla) at the start of 2019.
(more…)No one knows precisely when the COVID-19 pandemic will end. Most experts are hopeful COVID-19 restrictions will end and life will begin returning to normal in the middle of 2021, coinciding with the widespread distribution of an effective vaccine.
Nobody knows what the recovery will look like once COVID-19 and its associated restrictions lift, but it will benefit you to pay attention to that shape. As more and more experts feel they can accurately predict the recovery’s shape, it will give us a better idea of the smartest investment strategy. Here are some economic recovery stages to keep an eye on:
Fannie Mae and Freddie Mac have seen their valuations climb in the days since the Federal Housing Finance Agency finalized the capital rule for them. Common shares of both government-sponsored enterprises climbed more than 30%, while their preferred shares increased by more than 10%.
Analyst Dick Bove of Odeon Capital said he would’ve expected that the preferred shares of Fannie and Freddie would increase more than the common shares, although that’s not what happened. He also continues to assume that a few significant steps would be taken that would impact the valuation of Fannie Mae and Freddie Mac preferred shares.
Bove continues to assume that the so-called “net worth sweep,” which sweeps all of the GSEs’ earnings into the Treasury, would be retired and considered repaid. He also expects that by the end of the year, Fannie and Freddie would owe no additional dividends to the government.
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