(This story first appeared on Seeking Alpha (SA) today, and was written by Alessandro Pasetti, the founder of Hedging Beta.) Summary I like Netflix. I like it even more when I consider the level of demand for its bonds in early 2015. Its cost of equity is rather low. Debt and price strategies… Read More
Google’s Secret Weapon Is Not The Only Thing I Like
(This story first appeared on Seeking Alpha (SA) today, and was written by Alessandro Pasetti, the founder of Hedging Beta.) Summary Pay attention to the traffic volumes mix and CPC into Q4. Discipline in cost management also will make a difference. Moonshots projects absorb a huge amount of capital but are necessary if Google… Read More
Just How Bad Were Twitter’s Q3 Results?
(This story first appeared on Seeking Alpha (SA) today, and was written by Alessandro Pasetti, the founder of Hedging Beta.) Summary Slowing user growth is a big problem for Twitter. Its income statement is mildly better than last year. Pay attention to its capital structure and to the composition of adjusted EBITDA going… Read More
Stock-Based Compensation Up Or Down? Why It Matters For IBM
(This story first appeared on Seeking Alpha (SA) today, and was written by Alessandro Pasetti, the founder of Hedging Beta.) Summary The debate rages on over the valuation of IBM. I don’t know who is right, but my attention has been caught by trends for one non-cash item: stock-based compensation costs. On the… Read More
Is Twitter Cheap Enough At $30?
(This story first appeared on Seeking Alpha (SA) yesterday, and was written by Alessandro Pasetti, the founder of Hedging Beta.) Summary Twitter confirmed it will cut its global workforce, but its long-term strategy remains unclear. One big problem is that its adjusted operating cash flow isn’t growing fast enough quarter on quarter, so… Read More
Why Pure Storage’s Debut Failed To Impress
(This story first appeared on Seeking Alpha (SA) earlier today, and was written by Alessandro Pasetti, the founder of Hedging Beta.) Summary The tech sector needs a confidence boost, but those in the bear camp have been proved right so far. Stretched valuations and risk-off trades suggest it won’t be a… Read More