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15.09.2022

Safe Haven Assets for Long-Term Investments: Broadcom

Broadcom is an American semiconductor and infrastructure software development company. Soon it is expected to close a merger deal with VMware, a cloud computing and visualization company, that will open new cross-sales opportunities for Broadcom to boost its revenues. Broadcom stocks are now 25% off their peak values.

According to the Q3 FY 2022 financial report that ended July 31, consolidated revenues grew by 25% year-over-year to $8.46 billion, and EPS went up by 40% to $9.73 per share. The semiconductors segment, that added 32% year-over-year, was the primary driver for the company’s profit. The company’s free cash flows (FCF) topped $4.3 billion, allowing it to spend $1.7 billion on dividends and 1.5 billion on the shares repurchase program. The company is planning to continue spending at least 50% of FCF on dividends that added 43% every year on average since 2016.

According to the Q4 FY 2022 forward guidance, the company is expecting its revenues to go up by 20% year-over-year to $8.9 billion and for EDITDA to go up by 25% to $5.6 billion. Broadcom has great experience in expanding its product portfolio by M&A operations, and apparently it will continue on this way. The company is also expected to benefit greatly from the $52.7 billion CHIPS bill in the United States.

12.04.2024

CarMax Is More Committed to Innovations But Market Conditions Make It Sinking

CarMax (KMX) quarterly report came out on April 11, vividly displaying why any immediate investment into the used car market still sounds like not a good idea. The stock quickly lost ground, wasting a double-digit number of percentage points as a response to its net income drop to $0.32 per share against $0.44 cents per share a year ago, also compared to much stronger $0.52, $0.75 and $1.44 per share in the previous three quarters. Analyst polls estimated a net income per share at about $0.50, which would be 56% better than the reality.

This almost looks like a financial fiasco in the company's efforts to withstand slowing demand in the segment. CarMax Q4 2023 revenue decreased by 1.7% to $5.6 billion, slightly below consensus expectations of $5.8 billion, indicating the lack of gross marginality of the business. This happened even though the total supply of unsold used vehicles on dealer lots grew by 9% YoY to 2.27 million units in March, according to Cox Automotive data. CarMax CEOs delayed their own goal of selling over 2 million units annually, when measuring combined retail and wholesale actions, to between 2026 and 2030, from its prior target of 2026.

A "higher-for-longer" Fed fund rates is demonstrably bad for car sales volumes, be it new generation Tesla cars or just pre-owned vehicles, while operating costs for warehouses are growing. Besides, easing some semiconductor constraints in North America may help marginally improving orders for new cars, leaving used-car sales under the same pressure. Meanwhile, the entrance of Asia players offered significant discounts. Therefore, North American and European operators of the used car market need to sell many great cars at cheaper prices. CarMax already posted its official warning of a potential "hit to profit-sharing revenue" due to inflationary impact to its partners, before last Christmas. "While affordability of used cars remains the challenge for consumers, pricing improved during the quarter," Enrique Mayor-Mora, executive vice president and CFO admitted.

It was only a smaller division of CarMax Auto Finance, which managed to get a 19% better income due to "a lower provision for loan losses" and an increase in average managed receivables. Yet, this was rather news from the side business, which was clearly not enough to be optimistic. The company added that it is now focused on enhancing its omni-channel experience and leveraging data science and automation. Carmax said it delivered "strong retail and wholesale" graphic processors, which helped to increase "used saleable inventory units" more than 10%, but used total inventory units was unchanged despite innovations. The company seeks to achieve efficiency improvements in its core operations, believing that they "are well-positioned to drive growth as the market turns", according to Enrique Mayor-Mora. This may be useful to strengthen competitiveness in better times for the segment. Yet, the current challenges are too heavy to be ignored by market crowds.

11.08.2022

Perspective Peers of Ethereum: Avalanche

Avalanche is ranked by Coinmarketcap at the 12^th position by market cap with $7.8 billion, which is 4% less than Ethereum’s market cap. AVAX prices dropped by 82% of its peak values, allowing investors to buy it at early 2021 prices. Avalanche’s infrastructure consists of three logically isolated networks, each of these with their own processing, validators, and own set of rules.

This platform is often compared to the existing internet web infrastructure with core connection protocols like HTTP, surrounded by a huge number of networks to their apps. Avalanche allow for the creation of public and private systems as a blockchain or DAG (Directed Acyclic Graph) and for the use of different virtual machines for apps, including EVM engine (Ethereum Virtual Machine) that allows Enthereum network programs to be developed.

Avalanche includes C-chain to create smart contracts that are processed on an advanced EVM engine, P-Chain that coordinates validators that process transactions and also allows for the creation and management of new subnetworks, and X-Chain which is a directed acyclic graph regulating issuance and trade of cryptoassets. DAG systems record new transactions on top of the old ones, allowing for processing speed to be increased and for capacity substantially. It is quite different to other blockchains, where transactions are compiled in blocks in order to be processed.

The advantage of Avalanche is that it provides anyone with the opportunity to create his or her own isolated blockchain with its own set of parameters, including access to apps and the programming language with which it will work. Every subnetwork can process around 4,500 transactions per second compared to 14 processed by the Ethereum network.

12.05.2022

Perspective ETFs in the ESG energy segment: Invesco Global Clean Energy Portfolio ETF

This ETF invests in green energy ventures. The pandemic led to a 300% increase of its share price. But since the beginning of 2022 they have lost 30%, twice as much as the S&P 500 SPY ETF. The net capital which has outflown from the Fund has reached $31.5 billion over the last 12 months, while the major outflow was recorded in December 2021. However, its shares are still seen to be overbought as P/E multiplier is at 24 that is well above the average of 20 for the EFT’s that are linked to the S&P 500, while the dividend yields are above PBD’s numbers.

Inflation in the United States is rising negatively affecting all shares with a high P/E ratio. So, we may expect a further decline of the PBD share price and other similar assets that cannot be protected from rising risks. Traditional energies are looking more attractive on this background and could be a perfect hedge asset amidst geopolitical uncertainties.

16.06.2022

Not Every Tech Stocks are Equally Strong: SAP

SAP stocks have lost 30% since the beginning of 2022. The German tech company develops enterprise software and solutions to manage business operations. For example, one of its services can be used to manage all business travel financial activities and related spending. In other words, it is quite a routine company with a stable and strong cash flow. Once SAP software is installed on a corporate level it is hard to do without it as it is deeply integrated into the business core processes. Moreover, SAP is restructuring its business model around its subscription base and this will allow for cash flows to be even more predictable and balanced through the financial year. Such a model is in favourable to Wall Streel investors.

The war in Ukraine has a 300-million-euro negative effect on SAP business, and it is only a marginal 1% of the overall revenue base for the company, while its dominance in the ERP segment is secure. The revenues added 11% year-on-year to 7.08 euros in Q1 2022. The revenues grew by 6% in Q4 2021.

The company has made some successful M&A deals, acquiring Qualtrics, a cloud-based subscription software platform, that delivered +48% revenue in Q1 2022. This company had a gross margin above 90% in 2021 while SAP’s gross margin was at 70% for the same year.

SAP management promised to triple its cloud-based business by 2025, and boost revenues to 22 billion euros, while operational profit is forecasted to grow by 40% from the current 8.4 billion euros. This is a very extensive growth for the company that has a high P/E ratio at 17. The company may not perform very high growth rates as its younger tech sector peers, but it may certainly recover to new all-time highs in the long-term perspective. However, the sector may require several quarters to recover, and the recovery would be headed by such reliable companies as SAP with a low risk profile.

Rafael Quintana Martinez

Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/

30.04.2025

Dash Is Ready to Roll

Dash (DSH) is up 13.0% this week to $24.30, significantly outperforming the broader crypto market where Bitcoin (BTC) has risen by just 0.6% to $94,839. The rally appears to be driven more by technical momentum than by any fundamental developments, as Dash is likely playing catch-up following Bitcoin’s strong 11.0% surge since April 21. During that same period, Dash gained just 1.6% to $21.46, suggesting delayed investor response.

The key technical level at $20.00 has now been breached, which acted as a resistance cap over the past weeks. With this breakout, Dash has positioned itself for a potential continuation higher, with the next significant resistance target around $30.00—offering roughly 24.0% additional upside from current levels.

DSHUSD

3062

Bash

30.04.2025

Anything Is Good When Made of Chocolate and Cookies

The brands like Oreo and Belvita cookies, Alpen Gold, Toblerone, Milka and Cadbury chocolate, as well as Barni bear-shaped snacks for kids’ nutrition never disappoint Mondelez manufacturers. Over 200 more unique trademarks inside the Mondelez portfolio do make it rich. Cocoa bean futures were peaking above $12,500 per ton before Christmas, after ranging between $6,000 and $10,000 in summer and fall of 2024, yet this phenomenon of chocolate inflation still impacted costs during the first two months of the current year. Despite these headwinds, Mondelez weathered the challenges and delivered a better-than-expected quarter.

Even though it released a 18.3% decline YoY on a constant currency basis, with sales for the quarter coming a $30 million below the $9.34 billion estimate, it was up 0.2% from the previous year, and the main thing was that the company posted its adjusted EPS (earnings per share) of $0.74, which exceeded the Wall Street analyst poll consensus of $0.66. The so-called organic or net revenue growth was even above 3%, helped by higher pricing to nearly offset a 3.5% decline in physical volume. Mondelez fully reaffirmed its previous 2025 outlook, projecting nominal sales growth or around 5% YoY, after it already returned $2.1 billion to shareholders through cash dividends and share repurchases during the first quarter. The details emerged last night, prompting a nearly 2% rise in Mondelez's share price in extended trading hours.

Both households and lonely people are gonna save on many things nowadays, but most of us are attempting to eat enough chocolate and biscuits, each time we have a cup of tea or coffee. I know I'm a better person when I'm eating chocolate, or when I'm investing into chocolate names again. And I have reason to believe that I will also have material gains from this action. After all, the nearest technical resistance for Mondelez shares is no closer than $75 per share, while the price has only jumped from $65 to $67, and the average analytical estimate of the pool of experts sets target levels of about $71 per share, which is more than 8% more than yesterday's closing price. Moreover, classic methods of technical analysis show that we are just inside a triangular panel of the flag pattern, which is marked in orange on my drawing, and such patterns are more often broken upwards. The pole of the flag (it is on the left side of the chart) pointed to the top of my target area, which is also shown in orange colour on this chart below. The potential profit here certainly cannot be as high as in the artificial intelligence and cloud segments, but... what do you say to the following simple reasoning?

Manufacturers surely make a lot of money on this common passion, even while they also bear growing operating costs, but why shouldn't we make money on this instead of just spending it? At least to get my money back, so as to get a small income, just enough to buy back my favourite chocolates and cookies once again. If so, my balanced diet is chocolate and chocolate-related equities in both hands today.

MDLZ

2970

MetadoroIn-house analytics

29.04.2025

Higher Mid-Term Prospects for Coca-Cola

Unlike some other businesses selling everyday consumer products, which recently lowered their annual projections for food or hygiene items, including PepsiCo (PEP) and Procter & Gamble (PG), Coca-Cola (KO) now issues a rather optimistic forecast on top of its solid quarterly results. Having profitably raised retail prices on the most substantial part of its product line, the beverage producer relied on resilient demand for its well-known sodas like Fanta and Sprite, juices and ultra-filtered milk offering Fairlife, made with about 50% more protein and 50% less sugar, compared to regular milk products.

In Q1, the giant company earned $0.73 per share, compared with Wall St pool estimates of $0.71 and $0.72 in the same period of 2024. The one-off decline to $0.55 in the Christmas quarter looks to have been overcome. The Coca-Cola's average selling prices are 5% higher while volumes in units increased by 2% QoQ on annual basis. Timely refreshed and higher price tags allowed Coca-Cola to earn more, despite the fact that its quarterly revenue fell marginally from $11.1 billion a year ago and $11.5 billion in Q4 2024 to $11.14 billion, which was in line with analyst expectations.

Of course, The Coca-Cola's operation is partially subject to global trade dynamics which "may impact certain components of the company’s cost structure across its markets," its CEOs admitted in a statement, adding that they expect the impact "to be manageable", as its supply chains are "primarily local". Pushing up costs, therefore, is not critical for its major business now, and it maintained all previously announced numbers for the full-year organic revenue and profit forecasts. Meanwhile, its rival PepsiCo (PEP) last week mentioned "subdued consumer spending", but Coca-Cola managed even to increase sales in highly inflationary markets such as Latin America.

Nothing noteworthy happened to the market price of Coca-Cola immediately after the earnings release, but it rose about 1.5% before the opening bell on April 29, offsetting a roughly equal-size decline on concerns over the previous couple of days. The proximity to its fresh all-time high just below $75 per share (detected on April 22) looks fully justified, while the price has never fallen below $60 this year, compared to its $51.55 low in 2023. The price range between $70 and $75 could be considered as a base case scenario before the next bullish attack, with $77 or even $80 as the next intermediate-term target. This asset is one of the best defensive equities among consumer stocks, perhaps along with Walmart (WMT). But we still feel a bigger potential in the latter one.

2988

Rafael Quintana Martinez

29.04.2025

Ethereum Is Struggling to Climb Higher

Ethereum (ETH) is up 1.9% this week to $1,839, modestly outperforming Bitcoin (BTC), which is gaining just 0.9% to $95,100. Crypto markets remain in a gradual upward trend, but lack a decisive catalyst to spark a stronger breakout.

Potential triggers—such as progress in U.S.–China trade negotiations or a Federal Reserve interest rate cut—remain largely speculative. While rate cuts are unlikely in May, signs of easing trade tensions could inject the needed momentum for broader crypto gains.

Ethereum is offering its own internal boost: the Ethereum Foundation's leadership restructuring, announced by Vitalik Buterin, has been well received. Moreover, the upcoming Pectra upgrade expected in May is building anticipation. However, these developments alone may only be enough to push ETH toward the $2,000 resistance—not through it. A stronger external push is still required to sustain a breakout.

ETHUSD

3073