The hottest Stocks Substack posts right now

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Halving came early for mining stocks

Miner Weekly • 0 implied HN points • 02 Oct 23
💰 Finance Stocks Bitcoin Mining Financial News
  1. Bitcoin mining stocks saw a sharp decline of about 50% in Q3, outperforming bitcoin and Nasdaq.
  2. Volatility in mining stocks coincided with equity financing by public mining companies to fuel growth.
  3. Potential in mining stocks lies in choosing operations with low costs, high efficiency, a strong balance sheet, and a track record of delivering on promises.

Interest Rates, Earning Growth and Equity Value: Investment Implications

Musings on Markets • 0 implied HN points • 25 Mar 21
💰 Finance Investment Interest Rates Stocks Economic Growth Market Trends
  1. Interest rates have risen significantly, which affects how investors view stocks. Higher rates can lead to lower stock values, but it depends on whether the rise is due to economic growth or inflation.
  2. Different types of companies react differently to interest rate changes. Young growth companies, which rely more on future earnings, can be hurt more than mature companies during times of rising rates.
  3. The performance of the stock market has been uneven, with some sectors thriving while others struggle. The ongoing shifts highlight the complex relationship between interest rates, economic growth, and stock performance.

January 2018 Data Update 2: The Buoyancy of US Equities

Musings on Markets • 0 implied HN points • 09 Jan 18
💰 Finance Investing Stocks Bonds Data Analysis Economic Trends
  1. US stocks had a strong performance in 2017, achieving a 21.65% return, which surprised many experts. This shows that the equity market can thrive even with various economic and political concerns.
  2. Despite a good year for stocks, the fundamentals improved, with earnings and dividends rising. This suggests that the stock prices are supported by healthier financials.
  3. Looking ahead, there's potential for Treasury bond rates to rise, which could impact equity performance. Investors need to watch changes in tax laws and overall economic conditions as these factors may influence the market.
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Stock Buybacks: They are big, they are back and they scare some people!

Musings on Markets • 0 implied HN points • 22 Sep 14
💰 Finance Stocks Investments Corporate Finance Market Trends Valuation
  1. Stock buybacks have become popular again and can be a way for companies to return cash to their shareholders. It's important to understand how buybacks impact both the company's stock value and the shareholders.
  2. Buybacks can either help or hurt a company's value depending on how they're funded and their effect on investments. If a company uses cash wisely, buybacks can be beneficial; but if they lead to increased debt or poor investments, they can be harmful.
  3. There's a lot of debate about whether buybacks are good or bad for the economy. Critics worry they lead to less investment in businesses, but some argue returning cash this way can actually be a smart move when companies don't have good opportunities for reinvestment.

Valuation Myths: Young companies cannot be valued

Musings on Markets • 0 implied HN points • 18 Nov 13
💰 Finance Investing Valuation Market Analysis Stocks
  1. You can value young companies, even with their uncertainties. It's possible to estimate future earnings and cash flows, so saying they can't be valued isn't accurate.
  2. Value estimates for companies can change over time as new information comes in. This volatility is normal and can even help investors find better opportunities.
  3. Young growth companies aren't always overpriced. With creative and flexible valuation methods, it's possible to find good deals on these companies.

Market Mood Swings: Facebook Euphoria

Musings on Markets • 0 implied HN points • 31 Jul 13
💼 Business Finance Investing Markets Valuation Stocks
  1. Facebook's stock had a rocky start after its IPO. It quickly rose to $42 but then fell below $30, showing investors can be unpredictable.
  2. The company is heavily reliant on advertising for most of its revenue. While it has tried to diversify, advertising still brings in about 84% of its income.
  3. Investors need to stay alert and adapt their strategies. The market can swing from enthusiasm to fear, so buying and holding might not always be the best tactic.

Apple: Thoughts on bias, value, excess cash and dividends

Musings on Markets • 0 implied HN points • 02 Mar 12
💰 Finance Investing Stocks Dividends Market Analysis Corporate Finance
  1. Apple has a huge cash reserve, but it's not necessarily hurting shareholders. The cash can earn low returns, but many investors find it neutral and feel safe with Apple's management.
  2. There are concerns about how Apple uses its cash. With the fear of poor investments, some options like buying companies are being looked at skeptically, while returning cash to shareholders could be a better move.
  3. Apple's best step might be to buy back some of its shares. This would show confidence in its value and manage its cash well, while continuing to focus on creating innovative products.

The Little Book of Valuation

Musings on Markets • 0 implied HN points • 03 May 11
💰 Finance Valuation Investment Investing Valuation Stocks Market Analysis Financial Education Stock Market Financial Analysis Trading Strategies
  1. Valuation can seem complicated, but it's actually quite simple. The goal is to empower investors to learn how to value different types of companies themselves.
  2. Understanding the key factors that drive a company's value is crucial. Identifying these value drivers helps investors create better investment strategies.
  3. The book is designed to be accessible and easy to read, focusing on practical tools rather than overwhelming details. It aims to make valuation understandable for all investors.

High dividend stocks: Do they beat the market?

Musings on Markets • 0 implied HN points • 04 Oct 10
💰 Finance Investing Stocks Dividends Market Analysis Portfolio Management Investing Stocks Dividends Market Analysis Taxation
  1. Investing in high dividend stocks can potentially yield higher returns compared to index funds, but it comes with risks. It's important to carefully choose companies that have stable dividends and solid financial health.
  2. Dividends can be cut by companies, meaning they aren't always reliable income sources. Investors should consider the potential for companies to reduce or eliminate these payments.
  3. Investors should aim for a diversified portfolio of high dividend stocks to minimize risk. This can help protect against downturns in specific sectors or companies.

Who uses preferred stock?

Musings on Markets • 0 implied HN points • 22 Mar 09
💰 Finance Investment Stocks Debt Equity Regulation Investment Stocks Debt Regulation Corporate Finance
  1. Financial service firms like preferred stock because it counts as equity for regulatory purposes. This helps them meet capital requirements even though it’s costly.
  2. Young and growth companies often prefer preferred stock because they are not making money. This way, they avoid the downsides of traditional debt and offer investors potential future benefits.
  3. The existence and use of preferred stock are significantly influenced by regulations and tax laws. Poor laws can lead companies to make unwise financing choices.

Preferred Stock: Fish or Fowl?

Musings on Markets • 0 implied HN points • 21 Mar 09
💰 Finance Investing Stocks Capital Economics Market Analysis Stock Market Capital Structure Dividend Policy Corporate Finance
  1. Preferred stock is tricky because it behaves differently in the U.S. compared to other countries. In the U.S., it mainly gives fixed dividends, while in places like Brazil, it acts more like common stock with variable dividends.
  2. When figuring out a company's cost of capital, preferred stock can be confusing. If it makes up less than 5% of the company's value, it's easier to ignore; if it's more, you need to treat it as a separate source of funding.
  3. Although preferred stock is like expensive debt without tax benefits, some companies still use it to raise money. The reasons for this will be discussed in more detail later.

Is preferred stock equity?

Musings on Markets • 0 implied HN points • 16 Oct 08
💰 Finance Investing Stocks Equity Banking Debt
  1. Preferred stock is a mix of equity and debt. It has a fixed dividend like a bond but is treated differently for taxation.
  2. Investing in preferred stock impacts common stock holders, especially in banks. They may see lower earnings because of the preferred dividends that need to be paid first.
  3. Different countries have different rules for preferred stock in banks. The UK's approach can be tougher on common stockholders compared to the US approach.