Tuesday , March 28 2017
Home / FT Alphaville

FT Alphaville

“Given the lack of trading history for SNAP shares, we forgo our usual P/E or EV/EBITDA-driven analyses…”

Wall Street’s 25 day research blackout enforced on the 26 underwriters and book-runnings behind the Snap IPO expired on Monday. (Yes, 26 banks.)At pixel, there were about 12 outright ‘buy’ recommendations, including from lead underwriters Goldman Sachs and Morgan Stanley, along with a handful of ‘holds.’Credit Suisse, a joint-underwriter and quoted in the headline here, seemed to be leading the early pack with a price target of $30 and a ‘blue sky’ valuation of $41, against a market quote of...

Read More »

Snap AV: Your week in weakening USD

Plenty of USD notes coming in following the healthcare vote debacle, so here are some representative words from Simon Derrick at BoNYMellon as the dollar falls (against the euro, JPY and GBP) and US yields slip… a bit (with our emphasis):Since the President’s inauguration in January, however, the relative attractiveness of US yields has faded somewhat thanks to a variety of factors including signs that concerns about inflation are quietly on the rise. The implication of this was clear enough:...

Read More »

FT Opening Quote: YouGov predicts more profit

YouGov predicts more profit, First Group’s poisoned chalice, Ofcom fines BT. FT Opening Quote, with commentary by Matthew Vincent, is your early Square Mile briefing. You can sign up for the full newsletter here.YouGov will predict something with 100 percent accuracy today: in at least one news report, it is certain to be described as an “opinion pollster”, despite the fact that it now derives less than 1 per cent of its revenue and profit from ascertaining the ill-informed “will of the...

Read More »

Further reading

Elsewhere on Monday, – Trump vs Congress. Including “memorably bad chicken Parmesan” and the central role of Bannon.– Gavyn Davies: The end of global QE is fast approaching.– This new era of populism (discussion) continues with GMO’s Montier. Including bonus swipes at Greenspan and a suggestion to “replace the NAIRU – the Non-Accelerating Inflation Rate of Unemployment – with the NAIBER – the Non-Accelerating Inflation Buffer Employment Ratio.”– A trap for a trader, a WSJ longread based on...

Read More »

The minimum price a founder can sell their company for

Venture capitalists will tell you they’re in the business of making high-risk, high-reward investments. Their trade isn’t for wimps – you’ve got to have nerve when you’re making all-or-nothing bets on the future.They might not tell you their trade isn’t for people dumb enough to actually make all-or-nothing bets on young, unproven companies. Look at the shareholder register of any venture-backed business and you’ll find the VCs hold “preferred” shares designed to ensure they get their money...

Read More »

Snap AV: Goldman calls peak cash

To conclude, we would argue that as a ‘medium of exchange’, cash has peaked. Why is this? We see three key reasons: (1) increasing ubiquity of technology; (2) the willingness of consumers to use less cash and most importantly (3) policy action. We believe recent government action (for example in India and Europe) demonstrates the rising importance of supportive policy in accelerating the shift away from cash. The benefits for policy makers are clear – electronic transactions allow for greater...

Read More »