🥺247capital #51 | Wartime Edition

Portfolio Follow-Up, Quote of the week, Tweets of the Week ...

Feb 21, 2022

Hi Everyone 👋,

Welcome to the #51 issue of 247capital — your weekly source of Investment Research. If you are new, you can join my email list here, or👇🏻

Please hit the heart button ❤️ if you like today’s letter and reply with any feedback.

The follow-up to former Issues

Below you’ll find the overview of all bought shares since Issue 1 and the current state. Please keep in mind we’re here for the long run. 5-10 years horizon at least.

$TAP - bought at $44.95 - Issue 1
Closed the week at $49.00 (up 9.01%)🔥
💰$0.68 dividends

$GEO - bought at $5.79 - Issue 7
Closed the week at $6.54 (up 12.95%)🔥

XTRA:DFV - bought at 12.96€ - Issue 8
Closed the week at 12.00€ (down 7.40%)❄️

READ - bought at 39.25SEK - Issue 12+24
Closed the week at 10.10SEK (down 74.26%)❄️

$HIMS - bought at $8.28 - Issue 12+25
Closed the week at $4.40 (down 46.85%)❄️

THG - bought at 373.50pc - Issue 32+36
Closed the week at 113.40 (down 69.63%)❄️

We will probably see another bloodbath on the stock markets tomorrow with the sad current news. Off-exchange, it already looks panic-stricken. If you have some liquidy, this could be a good opportunity tomorrow.

The New York Times @nytimes

Breaking News: The Kremlin published decrees ordering Russia’s defense ministry to deploy troops to two Moscow-backed separatist territories in Ukraine.

nyti.msLive Updates: Moscow Orders Troops to Ukraine’s Breakaway RegionsPresident Vladimir V. Putin signed a decree that allowed for troops to enter the two regions for “peacekeeping.” The U.S. and E.U. said they would begin imposing limited sanctions.

Portfolio News of the week

$HIMS - Hims & Hers and GNC to Collaborate on Health and Wellness Solutions.
Also reporting Q4 earnings tmr after the bell. The company is expected to
post a quarterly loss of $0.10 per share in its upcoming report, which
represents a year-over-year change of -42.9%. Revenues are expected to be
$76.01 million, up 83.3% from the year-ago quarter.3

$GEO - Reports Fourth Quarter and Full Year 2021 Results.
The full Year 2021 Highlights:

Total revenues of $2.26 billion
Net Income Attributable to GEO of $77.4 million, $0.58 per diluted share
Adjusted Net Income of $159.2 million, $1.32 per diluted share
Adjusted EBITDAre of $467.0 million
AFFO of $2.48 per diluted share

Article of the Week - Investors Are Often the First Casualties of War

From Waterloo to the Ukraine crisis, fears of conflict have moved interest rates, boosted commodities prices and won (and lost) people fortunes. The Ukraine crisis may yet produce the biggest war in Europe since 1945 …

Quote of the Week

The risk with supernormal profitability is that the profits are an incentive for a new competitor: far better.. to earn less, but for a much longer time.
— Nick Sleep

Tweets of the week

Rex Woodbury @rex_woodbury

Today I learned that the iPhone caused chewing gum sales to plummet. People became distracted on their phones in grocery store checkout lines and made fewer impulse purchases.

rcm @rcm____

With inflation at 7.5%, you lose half your money in 9 years. The only way to outperform that consistently, that I have found, is crypto. Just this year I’ve already lost half my money.

Jon Erlichman @JonErlichman

Revenue generated each hour: Amazon: $64 million Apple: $57 million Google: $35 million Microsoft: $24 million Facebook: $16 million Disney: $10 million Tesla: $8 million Coca-Cola: $5 million Netflix: $4 million McDonald’s: $3 million

Stretching Spreads @FadingRallies

Equity market liquidity has absolutely collapsed. Markets entered a new volatility regime following Volmageddon –– evaporating liquidity reflects this. Volatility is expanding and this is just systematics pulling. Bids are vanishing & real deleveraging will trigger feedback loops

5 points of the week - From the book “100 to 1 in the stock market.”

Curated by the Big Investor Blog:

The corporate economist thinks of making the company bigger than more profitable. So whenSo when you see a company delivering a low return on capital and continuing capital expenditure year on year to improve market share – you probably are dealing with a corporate economist.
The last emotion to die in humans is pride.
Check if the Main man has people more intelligent than him, or is he always hogging the limelight. Generally, people who share the spotlight with CFO’s and other heads tend not to be egomaniacs.
Inflation is the cruelest tax.
If one’s head is held underwater until he agrees, it is extortion, not an agreement.

Thanks for reading, and until next Monday,

Sebastian from 247capital

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