What’s going on? SoftBank (Japanese tech conglomerate) updated disappointing quarterly results, which was 40% lower yoy. What does this mean? This shrink is partially due to the large stakes of Chinese companies that Softbank owns. The Chinese government has taken severe measures against local firms with US-listed shares E.g: Didi’s share price have decreased by the same amount…
Tag: Finance
Ep 151: The return of Saudi Aramco and the oil industry
What’s going on? After a tough time, oil producer performance is rising again. The world’s largest, Saudi Aramco, is the latest to report much-improved profit. What does this mean? As major economies reopen, commodity prices have surged: oil is up more than 30% so far in 2021, which is much more optimistic than the deep…
Ep 150: Fintech M&A with Square and Afterpay
What’s going on? Square (US payments giant) announced their plan to buy Afterpay (Australian fintech) for $29bn. What does this mean? Afterpay Afterpay is a buy-now-pay-later company that lets customers spread the cost of an online purchase over a period of time. If customers make payments on time, they don’t have to pay interests on…
Ep 129: Behind the hype in Techcombank stock
What’s going on? Affecting the VN-Index and VN30, Techcombank (TCB) became a powerful stock, orienting the flow of banking stocks and the whole market. From the beginning of October 2020, TCB has been traded in large volumes, matching up to tens of millions of units/day. All securities companies offer a maximum margin trading limit of…
Journal Report 15: Today-I-learn about Accretion/Dilution Analysis
Major steps to conducting an M&A analysis Obtaining a purchase price Estimating sources and uses of funds Creating a pro-forma analysis Obtaining a purchase price The acquirer would need to consider a purchase based on the acquiree’s diluted shares, not basic ones. Uses of funds Purchase price Net debt Transaction fees Net debt (as opposed…
Journal Report 13: Stress testing
Definition A computer simulation technique used to test the resilience of institutions and investment portfolios against possible future financial situations. Helping gauge investment risk and the adequacy of assets, as well as to help evaluate internal processes and controls. E.g: What happens if unemployment rate rises to v% in a specific year? What happens if…
Ep 71: Gold Ain’t Glittering
What’s Going On Here? Gold and silver just had one of their worst weeks since 2017 as investors sent the precious metals’ prices falling. What Does This Mean? Both Better-than-expected quarterly updates from big multinational companies Progress towards a tentative US-China trade deal (reducing import costs and therefore boost companies’ earnings and economic growth), appear to have encouraged…
Ep 70: OK Computer
What’s Going On Here? “Just” $40 billion separates the values of Apple and Microsoft – the world’s largest and second-largest public companies. So here’s hoping Microsoft’s better-than-expected quarterly update will help it become fitter, happier, and more productive… What Does This Mean? Microsoft’s revenue and profit was higher than forecast, and the sky was the limit for the company’s…
Ep 59: Why CEOs Surround M&A Announcements with Unrelated Good News
What is this about? Mergers and acquisitions (M&A) are among the most consequential strategic decisions managers make. But markets often respond negatively to acquisition announcements, which means investors are skeptical about the transactions, their terms, or managerial motivations. Prior research suggests such skepticism may be well-founded: In quarters following acquisitions, CEOs in the U.S. are…
Ep 58: Mobile payments have barely caught on in the US
Key points Compared with China, India and other parts of the world, the U.S. is way behind in adopting mobile payments. It seems odd considering the ubiquity of smartphones in America. But experts say a deeply embedded legacy system and rewards cards make it unlikely that we’ll see a major shift anytime soon. What’s going on…
with HT 