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Librarian Capital
"Bill Ackman reposted"
"Haitian voodoo is in fact real"
$PSH $PSUS https://t.co/RA075r7p3k
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"Bill Ackman reposted"
"Haitian voodoo is in fact real"
$PSH $PSUS https://t.co/RA075r7p3k
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AkhenOsiris
CNBC grabbing Jensen off the street near White House for 5mins was more informative than D-Sol crap at GS yesterday
Adding video link: cnbc.com/video/2024/09/12/nv…
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CNBC grabbing Jensen off the street near White House for 5mins was more informative than D-Sol crap at GS yesterday
Adding video link: cnbc.com/video/2024/09/12/nv…
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Ahmad Jivraj
Have you heard of the Night Effect?
#TIL The Night Effect = Money invested in US stocks overnight outperforms US stock returns during the day.
It's visualized below. https://t.co/s8tQAHrLaz
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Have you heard of the Night Effect?
#TIL The Night Effect = Money invested in US stocks overnight outperforms US stock returns during the day.
It's visualized below. https://t.co/s8tQAHrLaz
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Quiver Quantitative
BREAKING: Nancy Pelosi just invested in a new LLC, which is acquiring this property in San Francisco.
She has bought into several properties in the SF area.
Full holding list up on Quiver. https://t.co/cYozpdpule
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BREAKING: Nancy Pelosi just invested in a new LLC, which is acquiring this property in San Francisco.
She has bought into several properties in the SF area.
Full holding list up on Quiver. https://t.co/cYozpdpule
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Stock Analysis Compilation
Conestoga on Agilysys $AGYS US
Thesis: Agilysys is set to accelerate growth with its robust software offerings for the hospitality industry, underpinned by a strong subscription model and key client wins
(Extract from their Q2 letter) https://t.co/k902KwrEMW
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Conestoga on Agilysys $AGYS US
Thesis: Agilysys is set to accelerate growth with its robust software offerings for the hospitality industry, underpinned by a strong subscription model and key client wins
(Extract from their Q2 letter) https://t.co/k902KwrEMW
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Hidden Value Gems
RT @HiddenValueGems: Business biographies have usually more insights than annual reports or analyst notes.
Here are 9 lessons that I picked up from reading Shoe Dog by Phil Knight.
🧵👇🏽
#founders #entrepreneurs #Investors
1/11 https://t.co/UdPJ4gCOAm
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RT @HiddenValueGems: Business biographies have usually more insights than annual reports or analyst notes.
Here are 9 lessons that I picked up from reading Shoe Dog by Phil Knight.
🧵👇🏽
#founders #entrepreneurs #Investors
1/11 https://t.co/UdPJ4gCOAm
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Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: A sober valuation analysis on $AMAT 🧘🏽♂️
•NTM P/E Ratio: 26.21x
•5-Year Mean: 17.04x
•NTM FCF Yield: 3.75%
•5-Year Mean: 6.27%
As you can see, $AMAT appears to be trading below fair value
Going forward, investors can receive ~35% LESS in earnings per share & ~40% LESS in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $AMAT is a quality business
BALANCE SHEET✅
•Cash & Short-Term Inv: $7.49B
•Long-Term Debt: $7.08B
$AMAT has a great balance sheet, an A S&P Credit Rating, & 36x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2019: 24.9%
•2020: 27.4%
•2021: 40.0%
•2022: 43.2%
•2023: 34.2%
RETURN ON EQUITY✅
•2019: 35.9%
•2020: 38.5%
•2021: 51.6%
•2022: 53.4%
•2023: 48.0%
$AMAT has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $7.51B
•2023: $26.52B
•CAGR: 13.44%
FREE CASH FLOW✅
•2013: $0.43B
•2023: $7.59B
•CAGR: 33.25%
NORMALIZED EPS✅
•2013: $0.59
•2023: $8.05
•CAGR: 29.86%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 1.22B
•LTM Shares Outstanding: 0.84B
By reducing its shares outstanding 31%, $AMAT increased its EPS by 45% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 47.0%
•LTM Operating Margins: 28.9%
•LTM Net Income Margins: 27.0%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~35% LESS in EPS & ~40% LESS in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $AMAT has to grow earnings at a 13.11% 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 less than the (13.11%) required growth rate:
2024E: $8.24 (2.3% YoY) *FY Oct
2025E: $9.59 (16.4% YoY)
2026E: $10.97 (14.4% YoY)
$AMAT has a decent track record of meeting analyst estimates ~2 years out, so let’s assume $AMAT ends 2026 with $10.97 in EPS & see its CAGR potential assuming different multiples
28x P/E: $307.16💵 … ~16.6% CAGR
26x P/E: $285.22💵 … ~13.1% CAGR
24x P/E: $263.28💵 … ~9.5% CAGR
22x P/E: $241.34💵 … ~5.6% CAGR
As you can see, $AMAT appears to have attractive return potential if we assume >26x earnings, a multiple well above its 10-year mean & on the higher end of its historical range
Of course demand for semiconductor equipment & materials is expected to see a huge increase over the next several years & this has gotten priced in, to an extent
So $AMAT could justify its current multiple if estimates continue to be fairly aggressive & the company executes
However, those looking to accumulate today leave themselves with no margin of safety — and we know how volatile semiconductors can be at times of uncertainty
Today at $215💵 $AMAT appears to be a bit rich
I’d reconsider $AMAT closer to 20x NTM earnings or at $160💵 (roughly 24% below todays price)
#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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RT @DimitryNakhla: A sober valuation analysis on $AMAT 🧘🏽♂️
•NTM P/E Ratio: 26.21x
•5-Year Mean: 17.04x
•NTM FCF Yield: 3.75%
•5-Year Mean: 6.27%
As you can see, $AMAT appears to be trading below fair value
Going forward, investors can receive ~35% LESS in earnings per share & ~40% LESS in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $AMAT is a quality business
BALANCE SHEET✅
•Cash & Short-Term Inv: $7.49B
•Long-Term Debt: $7.08B
$AMAT has a great balance sheet, an A S&P Credit Rating, & 36x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2019: 24.9%
•2020: 27.4%
•2021: 40.0%
•2022: 43.2%
•2023: 34.2%
RETURN ON EQUITY✅
•2019: 35.9%
•2020: 38.5%
•2021: 51.6%
•2022: 53.4%
•2023: 48.0%
$AMAT has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2013: $7.51B
•2023: $26.52B
•CAGR: 13.44%
FREE CASH FLOW✅
•2013: $0.43B
•2023: $7.59B
•CAGR: 33.25%
NORMALIZED EPS✅
•2013: $0.59
•2023: $8.05
•CAGR: 29.86%
SHARE BUYBACKS✅
•2013 Shares Outstanding: 1.22B
•LTM Shares Outstanding: 0.84B
By reducing its shares outstanding 31%, $AMAT increased its EPS by 45% (assuming 0 growth)
MARGINS✅
•LTM Gross Margins: 47.0%
•LTM Operating Margins: 28.9%
•LTM Net Income Margins: 27.0%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~35% LESS in EPS & ~40% LESS in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $AMAT has to grow earnings at a 13.11% 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 less than the (13.11%) required growth rate:
2024E: $8.24 (2.3% YoY) *FY Oct
2025E: $9.59 (16.4% YoY)
2026E: $10.97 (14.4% YoY)
$AMAT has a decent track record of meeting analyst estimates ~2 years out, so let’s assume $AMAT ends 2026 with $10.97 in EPS & see its CAGR potential assuming different multiples
28x P/E: $307.16💵 … ~16.6% CAGR
26x P/E: $285.22💵 … ~13.1% CAGR
24x P/E: $263.28💵 … ~9.5% CAGR
22x P/E: $241.34💵 … ~5.6% CAGR
As you can see, $AMAT appears to have attractive return potential if we assume >26x earnings, a multiple well above its 10-year mean & on the higher end of its historical range
Of course demand for semiconductor equipment & materials is expected to see a huge increase over the next several years & this has gotten priced in, to an extent
So $AMAT could justify its current multiple if estimates continue to be fairly aggressive & the company executes
However, those looking to accumulate today leave themselves with no margin of safety — and we know how volatile semiconductors can be at times of uncertainty
Today at $215💵 $AMAT appears to be a bit rich
I’d reconsider $AMAT closer to 20x NTM earnings or at $160💵 (roughly 24% below todays price)
#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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App Economy Insights
$ADBE Adobe Q3 FY24:
• RPO +15% to $18.1B.
• Creative ARR +12% to $13.4B.
• Document Cloud ARR +26% to $3.3B.
• Revenue +11% to $5.4B ($40M beat).
• Non-GAAP EPS $4.65 ($0.11 beat).
Q4 FY24 revenue ~$5.55B ($5.60B expected). https://t.co/iWOXJwoSP4
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$ADBE Adobe Q3 FY24:
• RPO +15% to $18.1B.
• Creative ARR +12% to $13.4B.
• Document Cloud ARR +26% to $3.3B.
• Revenue +11% to $5.4B ($40M beat).
• Non-GAAP EPS $4.65 ($0.11 beat).
Q4 FY24 revenue ~$5.55B ($5.60B expected). https://t.co/iWOXJwoSP4
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Librarian Capital
RT @HankAzaria: Chief Wiggum, Springfield PD, here… they’re doing WHAT? https://t.co/KiK3srkb0i
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RT @HankAzaria: Chief Wiggum, Springfield PD, here… they’re doing WHAT? https://t.co/KiK3srkb0i
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