Category Archives: Stocks

by | August 8, 2019 · 7:21 pm

The retail apocalypse will continue

Walgreens announced yesterday that they will close 200 US stores. A company that was founded 118 years ago. But Walgreens is not alone. About 12,000 stores are expected to close in the U.S this year.

According to CoStar Group, retailers closed a record 102 million square feet of store space in 2017, but that number was smached in 2018 by closing another 155 million square feet. To sum up; that`s thousands of stores.

So far this year, 29% more stores closings announced than last year, according to Coresight Research. They tracked the 5,864 closings in 2018, which included all Toys R Us stores and hundreds of Kmart and Sears locations.

This year, Sears are planning to close another 21 stores while Kmart will close «only» 5 stores in October. Kmart closed 48 stores earlier this year. That`s nothing compared to Walgreens’ 200 stores. Or Fred`s 442 with another 129 stores.

We have to keep in mind that some of the retailers also are opening new stores while closing locations at the same time. But……

The pain will continue for years to come. According to UBS, if the e-commerce penetration continue to rise up from its 16% level to 25%, about 75,000 stores need to be shuttered within a few years.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | August 7, 2019 · 7:46 pm

Amazon India is in early stage talks to acquire Uber Eats India

Investors lifted Lyft yesterday. Will they do the same with Uber Technologies which is expected to report earnings on Thursday after market close. The report will be for the fiscal Quarter ending June 2019. The consensus EPS forecast for the quarter is $-3,30.

The New York City Taxi and Limousine Commission votes to extend the cap on the number of permitted Uber drivers in the city for an additional 12 months. Earlier this year, NYC enacted minimum wage rules for ride-hail drivers.

Uber thinks it`s unlikely to receive a five-year license to operate in London, but the ride-hail company expects Transport for London to award a another fifteen-month, short-term license.

Amazon India is interested in entering the food delivery business so that it can add it to the list of services it provides and Amazon is in early stage talks to acquire Uber Eats India, according to Business Standard.

Deliveroo which is backed by Uber and Amazon are planning to acquire the Spanish food delivery startup Glovo. The company was last valued at $950 million and they are planning to go public in 2020.

GrubHub and Just Eat are planning to compete with Uber Eats and Amazon-backed Deliveroo, and they`re in the early stages of a $10 billion merger.

Street consensus calls for revenue of $3,3 billion which is up from Uber`s first-quarter revenue of $3,1 billion with an adjusted Ebitda loss of $869 million. Some investors are worried by Uber`s competiton in the global market and they are concerned about the ability to ever reach profitability.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | August 6, 2019 · 8:05 pm

Will investors lift Lyft?

Investors are jumping into the market again and some say you must buy the dip. Can investors lift the Lyft stock to a higher level? Lyft is expected to report earnings on Wednesday 8 after market close.

The company is scheduled to announce Q2 earnings results on Wednesday and EPS Estimate is -$1,66 and the consensus Revenue Estimate is $809,64M. The history of the company is short and so are the company itself. Lyft was founded 7 years ago as Zimride in San Fransico, California.

General Motors is one of the biggest owners with a 6,6% stake but the biggest owner is Rakuten with a 11% stake. Rakuten is a Japanese electronic commerce and internet company based in Tokyo. Its e-commerce platform Rakuten Ichiba is the largest e-commerce site in Japan and among the world`s largest by sales.

Lyft are operating in 640 cities in the U.S and 9 cities in Canada. It develops, markets, and operates the Lyft mobile app, offering car rides, scooters, and a bicycle-sharing system. Lyft is the second-largest TNC with a 28% markets share in the U.S, according to Second Measure.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | July 17, 2019 · 9:30 pm

43% of Morgan Stanley`s total revenue comes from wealthy individuals

You can clearly see how all the banks have different stories to tell, and the next bank to deliver earnings report on Thursday is Morgan Stanley. This is different from J.P.Morgan`s story. Morgan Stanley`s consensus EPS estimate is $1,16, which is -10,8% YoY.

The consensus Revenue Estimate is $10,02 Billion which is -5,6% YoY. 50% of Morgan Stanley`s total revenue comes from Institutional Securities. 43% of their total revenue comes from Wealth Management. 7% of total revenue is made from Investment Management.

There must be a lot of wealthy customers in Morgan Stanley`s portfolio, but wealthy induviduals is followed by financial services (brokerage, investment advisory, financial planning, insurance, securities-based loans etc) to medium-sized businesses and institutioons.

Morgan Stanley is headquartered at Broadway, Midtown Manhattan, New York and CEO James Gorman is not a big fan of Bitcoin, Libra or other crypto currencies. On Wednesday, we saw a Facebook hearings live from Capitol Hill and Mr Gorman is obviously not alone to be negative to crypto currencies.

In an interview with CNBC, he said “Psonally, I am not that exited about new exchanges for currencies or new forms of cryptocurrency. I`ve said this many times, an may be proven dead wrong about this. I don`t get it or see the need for another form of stored value. We have currencies and precious metals and reserve notes. Apparently, there`s a need there, right? But the fact that we are not in that doesn`t bother me at all,” Gorman said.

Fair value of the Morgan Stanley stock is about 20% higher than the current price. Citi upgraded Morgan Stanley to buy. Earning report will be released on Thursday before market open.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | July 16, 2019 · 7:53 pm

Bank of America is “too big to fail” and its cost-cutting strategy is in focus

Bank of America is the second-largest bank in the U.S, and the company is expected to post quarterly earnings on Wednesday before market open. Bank of America is expected to earn $0,76 per share and that`s five cents ahead of the Wall Street.

If this number holds it would be a 12,7% change YoY. Their revenue are expected to be $23,04 billion and that is a whopping 1,9% from the same quarter last year.

The bank have benefited huge from a roring U.S economy and most of the profits is coming from its consumer bank, but all major business segments have increased the profits. All this thanks to healthy loan and deposit growth.

Its net interest income growth have also risen thanks to rising interest rates. Like all other banks, Fed`s change in policy is negative for the bank and a cut in interest rate will decrease NII. Lower interest rate will also trigger a recession, but that`s another story. The Fed is extremely dovish and that in turn will make the banks forward return to decline the next months.

Bank of America is the second-largest bank of the four «too big to fail» money center banks, and its P/E is only 10,85 with a dividend yield of 2,04%. The bank has a streak of 12 conssecutive quarters of beating EPS estimates on the line. The focus this time is its cost-cutting strategy.

The chart for the bank showed a golden cross in late March this year, but that has not been a great signal so far. It remain to see the stock to go higher.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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