I’ve been thinking about how over the past 10 years, the S&P 500 index’s valuation (P/E) has risen by over 40%. This has boosted returns quite significantly. Earnings have certainly grown well too, but that rise in valuation makes me wonder: if earnings were to start declining and valuations reverted to those past levels, the market would take a “double hit,” and the price drop would be severe.
This is, of course, just some reflection that doesn’t really help much with making investment decisions, but it’s good to be aware of.
Maximum Entertainment’s CEO, Christina Seelye, and COO, Thierry Bonnefoi, has demanded payment of earnouts payment totaling SEK116m to be paid by September 20 2024. With around EUR5.6m of cash available at the end of Q2 2024, it is unclear how the earnouts can be settled.
Now that we are in a bind with NESTE, remember the encouragement from OP’s Saari!
OP’s Chief Analyst Antti Saari. Photo: OP.
Regarding Neste, investment projects will significantly increase the company’s capacity, Saari believes. According to OP’s view, the company’s share price underestimates the positive profitability impact resulting from the growth in sales volumes of renewable aviation fuel.
Solar Foods continues its slide. -13% at the moment today. 17e → 9.45e crashing down in a short time. “Losses from thin air” would be a good new slogan.
Neonode’s daily rises continue to brighten up the current autumn.
The stock is gradually moving towards pricing in the resolution of Case Samsung, likely next summer (through a settlement).
Based on information from literature sources familiar with the matter cited by RedEye, companies that have reached Phase 3 of Patent Litigation have approximately a 98.7% probability of winning the case finally in court or, alternatively, reaching a settlement. This is also very strongly supported by the fact that the legal process is taking place in a Texas court.
Considering that this is a jury trial, the statistical probability of either settling or winning the lawsuit against Samsung is 98.7% (95% + (1 - 95%) * 74%).
We assume gross proceeds for Samsung will be USD4.7bn and USD5.6bn for Apple if the Neonode side wins in court. A settlement with Samsung, which we think is highly likely, at 30% of the total value, would give Neonode USD500m (or USD31 per share) after tax. We also estimate that winning in court against Apple would give Neonode USD1.9bn after all costs and taxes, equivalent to USD121 per share.
I’ve been wondering the same thing. Absolutely nonsensical valuations for these mature-stage companies, as if there were no risks at all. It’s probably because they are part of many quality funds, meaning they have to buy with the customers’ money no matter the cost.
And this beauty is still available at a P/E ratio starting with a one. The “peer group” and their bullshit valuation multiples can get lost and stop ruining the day . Although presumably the peer group’s P/E will also rise at the same time, assuming other companies in the sector have also gone up.
This really is a great stock. Management was loading up heavily at the bottom and I followed suit. I just wish the smarter folks on the forum would do the same I’ve made a few trims, but as nearly the largest holding in my portfolio, this train is allowed to keep on rolling.
The Verve Group, praised above, has clearly been one of the brightest stars on my adtech watchlist recently. Only Zeta Global Holding’s and Applovin’s share price performance has been nearly comparable since the start of the year. That said, I trimmed into strength as per my habit, as I always do when a position size becomes too dominant. Verve is my most profitable investment this year in percentage terms and still holds a significant weight in my portfolio.
Adtech watchlist + related companies.
For the sake of transparency, I’ll also include my own Verve buys and sells. I also like to add on strength.
. Although presumably the peer group’s P/E will also rise at the same time, assuming other companies in the sector have also gone up.
