Warren Buffett loves share cannibals.
"The math isn't complicated. When the share count goes down, your interest in the businesses goes up. Every small bit helps if repurchases are made at value-accretive prices". Source: Koyfin Charts
Reminder
U.S. markets are closed Tomorrow, Monday, Feb. 19, in observance of Presidents Day. The NYSE, Nasdaq and bond markets will be closed. The next market holidays will be Friday, March 29, for Good Friday, followed by Memorial Day on Monday, May 27.
Nikkei 225 hit 38k level this week. Last time it happened was 1989...
See below the level of other indices at the time... Source. Bloomberg
The geographical spread of valuations across regions remains significant.
12m forward P/E multiple. MSCI Regions. Data for the last 20 years. Source: TME, Factset
Treasury proposes rule to extend anti-money laundering regs to investment advisers
The Treasury Department’s corruption watchdog issued new proposed regulations that would extend major pieces of the anti-money laundering (AML) rules that apply to banks to some investment advisers. The new rules, from the Treasury’s Financial Crimes Enforcement Network, or FinCEN, would require covered investment advisers to file Suspicious Activity Reports, SARs, to FinCEN, and to disclose additional information about their clients under specific circumstances. The new rules would apply to investment advisers who are registered with or report to the Securities Exchange Commission, leaving out what FinCEN estimates to be at least 17,000 state-registered investment advisers. source : cnbc
$LYFT is surging 63.73% (!) after hours after beating earnings (500bps EBITDA margins expansion) and providing a stellar outlook 👀
But under 1 hour later, the CFO said there was a typo in their earnings release... saying they meant to report a 50 basis point increase in EBITDA margin (instead of 500bps). In other words, EBITDA margin was reported to be 10 TIMES what it actually is... The stock ended up being 18% after hours... Source: Markets & Mayhem, The Kobeissi Letter
Has the market become too complacent?
Goldman Sachs Panic Index is near decade lows. Source: Win Smart
Meme Stock Anniversary
Three years ago today, the "meme-stock mania" that saw hundreds of profitless stocks surge hundreds of percent in a matter of months hit its ultimate peak. In the three months leading up to February 12th, 2021, the average stock in the Russell 3,000 (current members) rallied 40%, but there were 178 stocks that saw three-month rallies of more than 100%, 35 stocks that rallied 300%+, and four stocks that rallied over 1,000%. Below is a table of the 35 stocks currently in the Russell 3,000 that rallied 300%+ in the three months leading up to 2/12/21( include also how each of these stocks has performed since 2/12/21) source : bespoke
