Offshore
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Brandon Beylo
Tin Barons.
Let’s ride.
#tin https://t.co/i3IU6rGRSA
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Tin Barons.
Let’s ride.
#tin https://t.co/i3IU6rGRSA
#Tin price: 31205 (+2,410, +8.37%)
3:15pm London $Tin https://t.co/bAY5wJPYfN tweet
Offshore
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Brandon Beylo
My daughter was born Sunday at 1AM.
Since then, commodities have ripped and haven’t looked back.
Maybe, just maybe she’s the Commodities Mahdi. https://t.co/OyZf0lu04O
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My daughter was born Sunday at 1AM.
Since then, commodities have ripped and haven’t looked back.
Maybe, just maybe she’s the Commodities Mahdi. https://t.co/OyZf0lu04O
tweet
Offshore
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Daniel
RT @MnkeDaniel: This is Stan Druckenmiller.
He is one of the best Hedgefund Managers of all time!
He achieved a 30% annual return for over 30 years.
Here are his 7 Investment Principles: https://t.co/Ozdxg9oeZJ
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RT @MnkeDaniel: This is Stan Druckenmiller.
He is one of the best Hedgefund Managers of all time!
He achieved a 30% annual return for over 30 years.
Here are his 7 Investment Principles: https://t.co/Ozdxg9oeZJ
tweet
Offshore
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Dimitry Nakhla | Babylon Capital®
A sober valuation analysis on $PYPL 🧘🏽♂️
•NTM P/E Ratio: 12.93x
•All-Time Mean: 30.56x
•NTM FCF Yield: 7.49%
•All-Time Mean: 4.79%
As you can see, $PYPL appears to be trading below fair value
Going forward, investors can receive ~136% MORE in earnings per share & ~56% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $PYPL is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $14.06B
•Long-Term Debt: $9.68B
$PYPL has an excellent balance sheet, an A- S&P Credit Rating, & 13.96x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 12.4%
•2020: 11.5%
•2021: 13.6%
•2022: 12.7%
•2023: 14.8%
RETURN ON EQUITY✅
•2019: 15.2%
•2020: 22.7%
•2021: 20.0%
•2022: 11.5%
•2023: 20.5%
$PYPL has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2015: $9.25B
•2023: $29.77B
•CAGR: 15.73%
FREE CASH FLOW✅
•2015: $1.82B
•2023: $4.22B
•CAGR: 11.08%
NORMALIZED EPS✅
•2015: $1.29
•2023: $5.10
•CAGR: 18.74%
SHARE BUYBACKS✅
•2015 Shares Outstanding: 1.23B
•LTM Shares Outstanding: 1.11B
By reducing its shares outstanding by 9.7%, $PYPL increased its EPS by 10.7% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 39.6%
•LTM Operating Margins: 16.3%
•LTM Net Income Margins: 14.3%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~136% MORE in EPS & ~56% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $PYPL has to grow earnings at a 6.47% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly below the (6.47%) required growth rate:
2024E: $5.13 (0.6% YoY) *FY Dec
2025E: $5.64 (9.9% YoY)
2026E: $6.11 (8.4% YoY)
$PYPL has an ok track record of meeting analyst estimates ~2 years out, but let’s assume $PYPL ends 2026 with $6.11 in EPS & see its CAGR potential assuming different multiples
18x P/E: $109.98💵 … ~20.4% CAGR
16x P/E: $97.76💵 … ~15.3% CAGR
14x P/E: $85.54💵 … ~9.9% CAGR
As you can see, $PYPL appears to have attractive return potential if we assume >14x earnings & aggressive return potential if we assume >16x earnings
The 🔑 here is not for $PYPL multiple to regress to its mean. Instead, a slight increase in the multiple (well-below it’s historical average) would suffice & I believe is more than reasonable & is still within the realm of a strong margin of safety
There’s still a ton of negative sentiment around $PYPL and this sentiment can be flipped in just a couple of quarters if management continues to make progress towards its goals
I believe they will — however, investors concerned with the “turnaround risks” associated with $PYPL can still benefit through proper allocation & allocate a smaller % to $PYPL
Today at $66💵 $PYPL appears to be a strong consideration for investment
#stocks #investing
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𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲.
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A sober valuation analysis on $PYPL 🧘🏽♂️
•NTM P/E Ratio: 12.93x
•All-Time Mean: 30.56x
•NTM FCF Yield: 7.49%
•All-Time Mean: 4.79%
As you can see, $PYPL appears to be trading below fair value
Going forward, investors can receive ~136% MORE in earnings per share & ~56% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $PYPL is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $14.06B
•Long-Term Debt: $9.68B
$PYPL has an excellent balance sheet, an A- S&P Credit Rating, & 13.96x FFO Interest Coverage
RETURN ON CAPITAL✅
•2019: 12.4%
•2020: 11.5%
•2021: 13.6%
•2022: 12.7%
•2023: 14.8%
RETURN ON EQUITY✅
•2019: 15.2%
•2020: 22.7%
•2021: 20.0%
•2022: 11.5%
•2023: 20.5%
$PYPL has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2015: $9.25B
•2023: $29.77B
•CAGR: 15.73%
FREE CASH FLOW✅
•2015: $1.82B
•2023: $4.22B
•CAGR: 11.08%
NORMALIZED EPS✅
•2015: $1.29
•2023: $5.10
•CAGR: 18.74%
SHARE BUYBACKS✅
•2015 Shares Outstanding: 1.23B
•LTM Shares Outstanding: 1.11B
By reducing its shares outstanding by 9.7%, $PYPL increased its EPS by 10.7% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 39.6%
•LTM Operating Margins: 16.3%
•LTM Net Income Margins: 14.3%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~136% MORE in EPS & ~56% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $PYPL has to grow earnings at a 6.47% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2024 - 2026 EPS growth over the next few years to be slightly below the (6.47%) required growth rate:
2024E: $5.13 (0.6% YoY) *FY Dec
2025E: $5.64 (9.9% YoY)
2026E: $6.11 (8.4% YoY)
$PYPL has an ok track record of meeting analyst estimates ~2 years out, but let’s assume $PYPL ends 2026 with $6.11 in EPS & see its CAGR potential assuming different multiples
18x P/E: $109.98💵 … ~20.4% CAGR
16x P/E: $97.76💵 … ~15.3% CAGR
14x P/E: $85.54💵 … ~9.9% CAGR
As you can see, $PYPL appears to have attractive return potential if we assume >14x earnings & aggressive return potential if we assume >16x earnings
The 🔑 here is not for $PYPL multiple to regress to its mean. Instead, a slight increase in the multiple (well-below it’s historical average) would suffice & I believe is more than reasonable & is still within the realm of a strong margin of safety
There’s still a ton of negative sentiment around $PYPL and this sentiment can be flipped in just a couple of quarters if management continues to make progress towards its goals
I believe they will — however, investors concerned with the “turnaround risks” associated with $PYPL can still benefit through proper allocation & allocate a smaller % to $PYPL
Today at $66💵 $PYPL appears to be a strong consideration for investment
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲.
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Offshore
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Brandon Beylo
Tin is breaking out of its massive base.
Imagine what could happen to price if Indonesia YOLOs their export ban AND AI-based demand explodes higher.
We are patiently long $AFM.V https://t.co/oKfXK1r4L9
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Tin is breaking out of its massive base.
Imagine what could happen to price if Indonesia YOLOs their export ban AND AI-based demand explodes higher.
We are patiently long $AFM.V https://t.co/oKfXK1r4L9
I will say this again.
This #tin chart is one of the most bullish developments in commodities.
Read my Tin Industry Deep Dive in the reply below.
$AFM.V $MLX https://t.co/2jSIKmP7E5 tweet
Offshore
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The Long Investor
$INTC has come out swinging against $NVDA.
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$INTC has come out swinging against $NVDA.
Intel $INTC just unveiled its new AI accelerator processor called Gaudi 3
Intel says the accelerator delivers "50% on average better inference and 40% on average better power efficiency than Nvidia H100 – at a fraction of the cost" https://t.co/XGd0ag3kiV tweet
Offshore
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Brandon Beylo
RT @finanzasanonima: Brandon bringing way to much value to twitter.
You better follow him for amazing tips and market knowledge.
I've learned tons.
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RT @finanzasanonima: Brandon bringing way to much value to twitter.
You better follow him for amazing tips and market knowledge.
I've learned tons.
Imagine bringing on a new mine right when the underlying commodity inflects higher.
That’s what Alphamin $AFM.V is doing right now.
2024 will look VASTLY different than 2023. https://t.co/AamfvnJlCS tweet