A general catch-up on the looming recession, Tech earnings, Stagflation and more. Buy a copy of our Amazon Kindle book here: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M
A quick review of our recent TEK2day published written content. Learn more at TEK2day.com
Scott Kurland and Dan Pallone of SS&C Technologies (ticker: SSNC), joined the TEK2day Podcast to cover the insurance industry as it relates to insurance carriers investing in alternative asset classes in the pursuit of yield. We recently covered this topic in our TEK2day Spotlight report “THE EVOLVING INSURANCE INDUSTRY” which SS&C was kind enough to sponsor. SS&C recently published an e-book “10 CONSIDERATIONS THAT ‘LEND’ CREDIBILITY TO PRIVATE MARKET INVESTING”, that covers similar subject matter. Both the e-book and our spotlight report may be accessed below. Access the SS&C e-book here: https://www.ssctech.com/resources-insights/pdfs/10-considerations-private-market-investing Access the TEK2day Spotlight report here: https://tek2day.com/2021/07/29/tek2day-spotlight-the-evolving-insurance-industry/ For more TEK2day content visit https://tek2day.com/ For more on SS&C Technologies visit https://www.ssctech.com/ The TEK2day Podcast is available across all popular podcast playing platforms including Apple and Spotify: Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408 Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b Check out our parent company – CEORater – where you may anonymously rate your company and CEO at CEORater.com Visit CEORater on LinkedIn: www.linkedin.com/company/ceorater
A Win for Intuit. A Loss for Facebook: Intuit (ticker: INTU), recently announced that it had agreed to acquire Mailchimp, the marketing platform used by small and medium-sized businesses (we are a Mailchimp customer). Intuit is in the business of serving the SMB market. Facebook (ticker: FB), also serves SMBs and made a smart acquisition last year (Kustomer acquisition) to bolster its SMB offerings. Mailchimp is the type of company that would have been a financial rounding error for Facebook in the near-term, yet would have tightened Facebook’s grip on the low-end of the market while simultaneously providing FB with the means to extend up market. Thus, missing this deal was a strategic blunder for Facebook. For more TEK2day content visit TEK2day.com The TEK2day Podcast is available across all popular podcast playing platforms including Apple and Spotify: Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408 Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b Check out our parent company – CEORater – where you may anonymously rate your company and CEO at CEORater.com Visit CEORater on LinkedIn: www.linkedin.com/company/ceorater
Elevated prices of goods and services are largely here to stay as a result of the Federal Reserve having dramatically inflated the money supply beginning in Q2 of 2020. These persistent price increases combined with stalling real GDP growth translate to stagflation. In April we wrote in our Amazon Kindle book that Stagflation Is Imminent. Stagflation is now here. Purchase a copy of our book “Stagflation Is Imminent”, here for only $9.99: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M Read about the origin and evolution of the word “inflation” here: https://drive.google.com/file/d/1aUAXj0ooKmbIONVZXMu9vbKUCkmsEqS1/view?usp=sharing Read about the Atlanta Federal Reserve’s Real GDP measure here: https://www.atlantafed.org/-/media/documents/cqer/researchcq/gdpnow/RealGDPTrackingSlides.pdf For more TEK2day content visit TEK2day.com The TEK2day Podcast is available across all popular podcast playing platforms including Apple and Spotify: Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408 Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b Check out our parent company – CEORater – where you may anonymously rate your company and CEO at CEORater.com Visit CEORater on LinkedIn: www.linkedin.com/company/ceorater
Quality Companies Outperform Over The Long-Term We will say it until we are blue in the face: Management Teams Matter. A high quality management team starts with a high-quality CEO. Quality management teams build quality companies. They do the hard, tedious work required to build the best products and processes in order to deliver maximum customer value. CEOs of these companies typically share certain attributes. For example, they invest for the long-term and work to drive long-term shareholder value. They will not for example chase a short-term “hype” opportunity to drive short-term gains as MicroStrategy (tkr: MSTR) CEO Michael Saylor has done in his pursuit of Bitcoin riches. Quality companies and CEOs such as Andy Florance of CoStar Group (tkr: CSGP), Henry Fernandez of MSCI (tkr: MSCI) and Bill Stone of SS&C Technologies (tkr: SSNC), are in it for the long haul. They won’t chase M&A targets with exorbitant valuations. They won’t roll out flavor of the month products that de...
1.) VCs are not aligned with Entrepreneurs. 2.) Many of these EV CEOs are frauds as are the companies. We told you so a long time ago. It matters who the CEO is. 3.) Fed Chairman Jerome Powell is campaigning for his job to be renewed in February rather than behaving as an adult as the Fed works to inflate the debt away.
CEORater Quick Take: We expect CEOs and CFOs to retire at a record pace by year-end 2021 due to the rigors of COVID. Last year it was establishing WFH environments. This year it is defining back-to-the-office policies and executing on them. Lots of CEO and CFO retirement announcements should come between October 2020 and December 2020. We may also see M&A activity spike near year-end as founder CEOs in particular step away from the non-revenue generating rigors of 2020 and 2021.
We compared the year-over-year percentage change in M2 (measured each month) to the year-over-year percentage change in the NASDAQ Composite (measured each month on a one-month lag) and found a strong correlation as measured by a correlation coefficient of 81.7%. Our analysis covered the percentage change in M2 from April 2020 (when the money supply was increased to combat COVID), through March 2021. We used March 2021 as an endpoint as by then the NASDAQ Composite had traded off and had begun to plateau. Thus it would seem that some of the “free money” mailed to companies (PPP), individuals (federal unemployment relief), and used to purchase government agency bonds as well as corporate bonds (Fed Reserve actions) either directly made its way into NASDAQ-listed names or helped support NASDAQ valuations indirectly. This speaks to the asset inflation brought on by loose fiscal and monetary policy. Read the full article at this link where you may access our data table in full: https:...
One of the great distortions caused by the joint fiscal and monetary policy of 2020 and 2021 is that equities and the lowest-rated non-investment grade credits are two of the all too rare places where investors may earn a return. Savers and Fixed Income investors be damned. Many companies are enjoying their stocks trading at all-time highs. Management teams are getting a pass on lackluster operating performance as a result of their stocks trading higher over 2020 and 2021. To this we say “What about opportunity cost?” Consider Roper Technologies (tkr: ROP). ROP shares trade at an all-time high, yet organic revenue declined in the most recent quarter on a Y-O-Y basis (we have been critical of Roper’s M&A strategy). ROP is not alone. Many companies are enjoying record valuations with less than stellar operating performance. Don’t fall for the excuse that a company is victim to its industry which may be suffering from COVID or some other such exogeneous factor. If that’s the case,...