The Sixteenth Largest US Bank Failed Last Week Together with Yet Another Crypto-Linked institution. Markets sold off last week. Two factors were at work. First,
News reports claim that Canada and the U.S. have abandoned the search for downed floating objects. Apparently, the governments are comfortable that they may never have an
John Zolidis, founder and president of Quo Vadis Capital, said: “The question for shareholders is whether the company can scale to profitability and positive cash flow without needing an equity raise. It’s a steep hill to climb but could be possible depending on execution.”
Please click the link to view a short excerpt from our discussion on CNBC Asia Squawk Box regarding YUM China. We discuss the company’s execution and the valuation of the shares.
An article in today’s WSJ notes that nearly 2/3 of professional economists predict recession in 2023. This has basically never happened before.
“The retail management teams with whom we speak do not consider themselves to be economists,” Zolidis said. “They have little ability to forecast inflation beyond what is immediately apparent. They’re no better at predicting interest rates than anyone else.”
Consumer discretionary stocks have bounced 20% in two months but we’re still hearing companies are expecting mid-single-digit inflation next year, suggesting higher rates and implying risk to the economy and stock prices. We’re remaining with our investment strategy.
John Zolidis, founder and president of Quo Vadis Capital Inc., compared the disappointing results to 2008, when the economy was weakening and Target was losing ground against Walmart (for similar product mix reasons as this week).
“We had expected that Target was better positioned for consumer weakness this time around, due to its improved competitive position and upgraded capabilities,” Zolidis wrote in an investors note Wednesday. “But, it certainly does not feel that way, looking at this year’s performance.”
Chipotle (CMG – SELL) Trifecta of Negative Metrics ValueX Middle East Nov 9 2022 website version