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Table of Contents
Individual Investors Expect a Bear Market
Despite the S&P 500’s resilient 4% year-to-date gain, a growing number of individual investors are turning bearish. 47.3% reported expecting stock prices to fall over the next six months.
This peak marks the highest level of pessimism since November 2023, driven by concerns ranging from trade war threats to reduced expectations for rate cuts.
Bill Ackman’s Bid For the Next Berkshire
Billionaire investor Bill Ackman wagered $900 million to put together a diversified financial conglomerate, betting that he could follow in Warren Buffett’s footsteps by transforming his company into a “modern-day” Berkshire Hathaway.
With a net worth of $9.5 billion, Ackman believes he has what it takes to emulate the investing prowess of the legendary 94-year-old Oracle of Omaha.
Battleshares Bets on Tesla, Against Ford
Defiance ETFs’ new Battleshares TSLA vs. F ETF ($ELON) allows investors to go long on Tesla while shorting Ford, capitalizing on the shifting fortunes of EV innovators and legacy automakers.
The unique fund employs 2x leverage on its Tesla position and a 1x short on Ford, amplifying potential gains (and losses).
New Gold Rush Has Banks Airlifting Billions
As gold notches its seventh consecutive weekly gain, President Trump’s sweeping tariff threats have triggered a modern-day gold rush, emptying the Bank of England’s vaults as Wall Street scrambles to fly billions in bullion back to the US.
The precious metal has surged 7% since the inauguration, outpacing the S&P 500 and other “Trump Trades” like USD, bitcoin, and Treasuries.
Nvidia Hops On the WeRide Wagon
Nvidia took a significant equity stake in WeRide, an autonomous driving company, according to recent SEC filings. WeRide has been expanding its autonomous driving solutions globally, including a recent pilot project with the Swiss government.
The 1.7 million share investment marks one of Nvidia’s first major bets on a public company focused on self-driving technology.
Saylor’s Strategy Plans $2 Billion Bitcoin Buy
Michael Saylor’s Strategy, the largest corporate bitcoin holder, announced it is raising $2 billion through convertible notes to expand its massive bitcoin position. The plan is part of the company’s ambitious “21/21” plan to raise $21 billion each in equity and fixed-income instruments over three years. The company already acquired 258,320 Bitcoin in 2024 alone.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
Millicom International Cellular (TIGO)
Bullish Case
- Strong Free Cash Flow Generation: Millicom achieved a positive FCF inflection, raising its 2024 equity FCF target twice to $650 million.
- Successful Deleveraging Progress: The company reached its 2025 steady-state leverage target of 2.5x ahead of schedule in Q4 2024.
- Strategic Value Creation: Management executed value-enhancing moves including selling cell towers at premium valuations and completing an accretive merger.
Bearish Case
- Latin American Market Exposure: Operating primarily in Latin American markets exposes Millicom to potential political and economic volatility.
- Complex Operating Environment: The multi-country telecommunications business faces ongoing challenges in managing diverse regulatory environments.
Baidu Inc. (BIDU)
Bullish Case
- AI Leadership Position: Baidu has transformed beyond search to become China’s dominant AI player, with significant investments in cloud computing and AI driving.
- Strong Market Position: The company maintains a 54% market share in Chinese search, providing stable cash flow to fund growth initiatives.
- Attractive Valuation: Trading at just 5x EBITDA despite high-growth AI potential, with significant cash reserves providing downside protection.
Bearish Case
- China Market Risks: Ongoing regulatory uncertainties and geopolitical tensions create potential headwinds for Chinese tech companies.
- Market Perception Challenges: The market continues to value Baidu primarily as a search company, potentially limiting near-term multiple expansion.
TTEC Holdings Inc. (TTEC)
Bullish Case
- Buyout Opportunity: Currently trading at $3.50 per share versus a $6.85 cash buyout offer from CEO Ken Tuchman, representing significant potential upside.
- Strong Leadership Alignment: Founder/Chairman/CEO’s buyout offer demonstrates confidence in company’s value and future prospects.
- Earnings Potential: Sell-side research estimates $1 of adjusted EPS for TTEC in 2025, supporting valuation upside.
Bearish Case
- Deal Uncertainty: A large discount to the buyout price reflects market skepticism about deal completion and timeline.
- Operational Challenges: The company faces debt refinancing needs and maintains a significant short position, indicating market concerns about fundamentals.
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Cheers,
Wyatt
Disclosures
- There are affiliate links above; we’ll get a couple of bucks if you take action after you click.
- Nothing above is financial advice. DYOR, you filthy animal.
