Cattolica Investment Club – Page 21 – Cattolica Investment Club

27Nov 2023 by Cattolica Investment Club No Comments

NVIDIA Corporation Analysis

NVIDIA: Qualitative description NVIDIA Corporation, headquartered in Santa Clara, California, is a leading technology company specializing in the design and manufacture of graphics processing units (GPUs), as well as system-on-a-chip units for mobile computing and automotive applications. Founded in 1993, NVIDIA operates in various segments, including Gaming, Professional Visualization, Data Center, and Automotive. Its mayor institutional investors, in order, are Vanguard Group Inc (203mln shares), Blackrock Inc (180mln shares) and FMR (129mln shares). In the fiscal year 2022, NVIDIA reported a total revenue of $26.97B (Y/Y % 0,22%). The company achieved an impressive EBITDA margin of 21.38%, showcasing efficient cost management and profitability. The Gaming and Data Center segments were major contributors to revenue, with Gaming accounting for 49% and Data Center contributing 41%. NVIDIA has established itself as a…

26Nov 2023 by Cattolica Investment Club No Comments

Apple’s Singles Day, Deere’s Guidance, and Coinbase’s Bitcoin Surge

Portfolio Management

Nov 26th, 2023 - Portfolio holding Apple (AAPL)(0.6 units @ 183.96) shares dropped by 1% Friday, as iPhone sales during China's 2023 Singles Day fell 4% from the previous year. Singles' Day is a major global online shopping event, comparable to Black Friday and Cyber Monday in the U.S. Apple trailed behind local competitors Huawei and Xiaomi, with the latter experiencing a 66% sales increase. iPhones contribute nearly 50% to Apple's total revenue. Investors closely monitor iPhone sales, and the global smartphone market rebounded in October, driven by releases like Huawei's Mate 60 and Apple's iPhone 15, marking the highest sales since January 2022. Deere & Co. (DE) saw a 3% decline this week as the farm equipment manufacturer's guidance fell short of estimates. Deere & Co, also known as…

25Nov 2023 by Cattolica Investment Club No Comments

Expected shift in investment strategies for 2024

Portfolio Management

Nov 25th, 2023 - Ahead of the coming year, a possible shift in investment strategies has been discussed, particularly in relation to fixed income products like bond funds and cash. Despite investors favoring these options due to higher interest rates and sticky inflation, experts suggest reconsidering these allocation strategies, in anticipation of potential changes in interest rates. Money market funds have attracted significant investments this year, approximately $1.2 trillion flowed into them, far surpassing the inflows into bond and equity funds. However, Matt Bartolini, head of research at SPDR Exchange Traded Funds, foresees a potential reduction in the popularity of fixed income products, as interest rates will probably fall. He suggests that investors could shift their allocations either into equities or focus on the 1 to 10- year fixed income…

24Nov 2023 by Cattolica Investment Club No Comments

Financial Terms Glossary: WHAT IS AN OPTION?

Corporate Finance

An option, in finance, is a contract between two parties that gives the buyer the possibility, but not the obligation, to buy or sell an underlying asset at a specific price on a future date. The underlying asset can be of different types, some examples are: Equity Forex Commodities Bond Index The specific price at which the buyer has the right to buy or sell the underlying asset is called "strike price." (K). There are two main types of options: 1. Call Option: A call option gives the buyer the possibility to buy the underlying asset at the strike price at a future date. This type of option is preferred if you have upward expectations of the underlying security. 2. Put Option: A put option gives the buyer the possibility…

24Nov 2023 by Cattolica Investment Club No Comments

SP rises $2.72 locking in 4 weeks straight of gain, as Nvidia delays H20 chip to 2024

Portfolio Management

Nov 24th, 2023 - Today’s indices performances: Nasdaq closed at 14,250.85 (-0.11%), S&P 500 at 4,559.34 (+0.06%) and Dow Jones at 35,390.15 (+0,33%). Portfolio holding Nvidia (NVDA) (0.215 units @ $462.20) shares fell 1.93% today after international news organization Reuters reported that they will delay to Q1 2024 the launch of their new AI chip H20, that was developed to be sold to Chinese companies while complying with US export restrictions. H20 is being delayed due to issues server manufacturers are having in integrating the chip, as Reuters's source said. The delay could have negative consequences for Nvidia’s performances in the Chinese market, and local competitors such as Huawei may take advantage of the situation. Nvidia is working on two other chips to comply with US export rules: L20 and…

23Nov 2023 by Cattolica Investment Club No Comments

Introduction to the stock market

Portfolio Management

WHAT IS A STOCK? A stock (or share) is a share in the ownership of a company, which means that every shareholder has ownership of the company in proportion to his share. If the company is a listed company, its shares are sold in the stock market. The stock market is the place where shares of public companies are bought and sold by retail and institutional investors. If you have shares of a corporation, you can participate to shareholders meetings and vote, receive dividends (if the company distributes them), and you can sell the shares to somebody else. Stocks change their value over time, and this is caused not only by the company’s performance, but also from other factors such as global market trends, central bank decisions on interest rates,…

23Nov 2023 by Cattolica Investment Club No Comments

Comapnies lower expectations as negative macro data is unveiled

Portfolio Management

Nov 23rd, 2023 - Today the New York Stock Exchange is closed, as it is Thanksgiving Optimism towards Black Friday, happening this week, is decreasing as retailers cast doubt on holiday spending. Many companies reduced their outlooks or forecast after dynamics of a slowdown in spending came to light. There’s a widespread sense of uncertainty in consumer spending, after months of persistent inflation, which cast an overwhelming feeling of volatility and lack of confidence in consumer markets. This comes around just at the beginning of holiday spending, which in the last years saw an incredible growth following expansionary fiscal and monetary policies. (G.Fonrouge)In the last couple of days the drama surrounding OpenAI and the departure and return of Sam Altan have been in the headlines of all news’ outlets. This…

23Nov 2023 by Cattolica Investment Club No Comments

The new millennium’s crises: 2001 vs 2009

Markets

The increase in interest rates, inflation and the consequent stagnation of the economy are all current issues, which, especially in this period of economic slowdown, causes concern. It is not the first time that the world economy has experienced a period of recession: there are numerous cases in economic history. This article will focus on the two crises of the new millennium: the 2001 and 2008 crises, also known as the Dot-Com bubble burst recession and the Great Recession. The former, the Dot-Com bubble crisis, is a stock market phenomenon that took place in the late 90s, was fueled by the rise of internet-based businesses identifiable by their ".com" domain addresses. The start of the New Economy began when Netscape, a company that introduced the first commercial web browsers, went…

22Nov 2023 by Cattolica Investment Club No Comments

Yield rates continue falling, as Investors grow optimistic about Fed being done rising rates

Portfolio Management

Nov 22nd, 2023 - On Wednesday, Dow Jones gained 0.53%. The S&P 500 climbed 0.41%. Nasdaq composite increased by 0.46%. Yield rates fell to the lowest level since September! On Wednesday morning, the yield on the 10-year Treasury dropped to 4.369%. Later on, it bounced back and was last trading at 4.433%. The investors remained optimistic about FED not raising the interest rates in December. However, the FED indicated that they are decisive on keeping the restrictive monetary policy, which means that a rate cut is not expected any time soon. One of our Portfolio holdings, NVIDIA (NVDA) (0.215 @467.57) reported their quarterly earnings which beat Wall Street’s expectations. They announced $4.02 earnings per share compared to expected $3.37. They also topped revenue expectations with $18.12 billion announced vs $16.18…

22Nov 2023 by Cattolica Investment Club No Comments

Types of valuation methods

Portfolio Management

As our second educational article, the portfolio management division decided to introduce the topic of value analysis. There are many ways to analyze the value of a company; some serve the purpose of obtaining a figure representing the total value of a firm, whilst others are purely for the use of traders and retail investors, like us. Today, we will look into three different types of analysis: discounted cash flow modeling (a.k.a. DCF), comparative analysis and then fundamental analysis. Discounted Cash Flow Modelling: Discounted Cash Flow models are used to value companies based on how much cash they will generate in the foreseeable future. The basic assumption of this model is that a dollar today is worth more than a dollar tomorrow, meaning that the forecasted cash flows (a.k.a. FCF)…

Author: Cattolica Investment Club