Back in January, Alphabet decided to take the high ground in its reporting by including Stock Based Compensation (SBC) within its adjusted ‘non-Gaap’ earnings’. As a bit of an old chestnut for analysts and portfolio managers and something the IASB has mandated to be included in IFRS reporting since 2005, it was perhaps no surprise […]
Continue reading
What is an equity, if not a participation in a cash flow stream where the yield can be determined by the prospective growth? With the correct methodology and cleaned up data, the GrowthRater does the heavy lifting for you to provide you with that perspective. The message is simple – BUY growth when it […]
Continue reading
Does anyone not expect a March rate increase? After raising its Q1 GDP estimate from +3.09% to +3.19%, the +227k net private sector job adds reported in yesterday’s non-farm payroll data for February (after the +298k already reported mid-week by ADP), coming after similarly buoyant data released for January, the Fed seems to be setting […]
Continue reading
Following Friday’s results from WPP, there are 3 areas of interest to me as a potential investor, and ones where the GrowthRater model and sensitivity analysis can offer insight on; at least on the latter two. 1. The immediate forecast 2. The longer term growth outlook and therefore rating 3. The volatility or valuation risk […]
Continue reading
Can you guess the stock? Okay, I think you’ve all had a fairly easy ride so far following some of the GrowthRater model portfolio changes that I have posted on this blog, so now you’ll have to do a little work to guess my new position. Just to remind you of some of the […]
Continue reading
The merger of Kraft and Heinz was the combination of two processed foods groups that were nearing the end of the road in terms of organic revenue growth and cost savings. In a world of sub-normal carrying costs for debt and over $1.5bn of additional cost synergies from merging the groups, their PE owners were […]
Continue reading
Goldman have reportedly replaced 600 traders with 200 computer engineers since 2000. The ratio however, doesn’t look very efficient, so presumably they’re working on other projects such as AI, although once this is developed there may not be too much demand then for Javascript developers either. https://www.technologyreview.com/s/603431/as-goldman-embraces-automation-even-the-masters-of-the-universe-are-threatened/ Hopefully, the programming and models will be […]
Continue reading
With a relative lull today in the results deluge, I thought it might be interesting to review how some of last week’s stack up, but from a GrowthRating perspective. As we’ve all had to wade thru far to much verbiage, I’ve kept it simple with some annotated charts and only a very few words. The […]
Continue reading