Browsed by
Tag: USA

Tractor Supply ?>

Tractor Supply

Summary TSCO is the leader company in its niche. Their shares have been hit during the last months, losing a ~36% since June 2016. The company has some moats that are protecting it from competitors and still has room to expand the business abroad the US and internationally, and its acquisition of Petsense is going to diversify the business and help to improve revenue. Financially the company is strong, delivering great returns and margins, maybe helped by the industry tailwinds…

Read More Read More

Long USD ?>

Long USD

I’ll open a long in the USD as by macro I expect a rate hike this month or early next year because of the following things: 1- Inflation is at 1.6%, close to the 2% that the FED has stablished as a perfect inflation rate. Recently OPEC has agreed (or at least they are in advanced talks about it) to cut oil production, so inflation will boost as oil prices are going up because of the lower production. 2- At…

Read More Read More

Tesla’s living on borrowed time ?>

Tesla’s living on borrowed time

The company is not able to generate positive FCF in a yearly perspective. Elon Musk is a good inventor and seller, but a bad CEO. Competitors will erode Tesla‚Äôs business. The Solar City merge is going to create a negative FCF and debt monster. Financial analysis: Taking a look to the income statement, we can see that the company is increasing its income at a 66% rate, but that their total cost of revenues is increasing by a 67% yoy….

Read More Read More

Short EUR/USD ?>

Short EUR/USD

During this week we have seen how the ECB president (Mario Draghi) has said that he has no hurry in diminishing its QE in the Eurozone. After saying that, the Euro lost some strenght against other currencies as this it’s seen (despite saying that the Eurozone economy is healthy) as a lack of economic strenght in the Euro area, as it is facing right now, two major concerns: The Deutsche Bank problem, that is affecting the EU right now, as…

Read More Read More