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This is what the wynn casino hotel looks like in macau
03 May 2017
A Wynning Hand

A Wynning Hand Posted by Angus Geddes As touched upon in yesterday’s Daily, Macau gambling revenue rose 16.3% year-on-year to 20.2 billion patacas (~US$2.5 billion) in April. This helped lift Nasdaq-listed shares of Wynn Resorts to 52-week highs in Monday trading. We hold Wynn Resorts and the Hong Kong listed Macau casino operators Wynn Macau,...

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04 May 2017
The Rush to Get In

The Rush to Get In Posted by Angus Geddes I wrote about Fairfax yesterday, and the shares actually held up well after the New Zealand regulator blocked the merger deal with NZME, falling only 1c. I also warned that cost cutting measures would likely follow, but did not expect action to be taken so quickly....

This is an infographic from Tencent of their social media platforms
05 May 2017
China’s Mobile Payment War Heats Up

China's Mobile Payment War Heats Up POSTED BY ANGUS GEDDES China is by far and away the world leader in mobile payments, with iResearch estimating that Chinese mobile payments hit a whopping US$5.5 trillion last year, about 50 times bigger than the United States at US$112 billion, according to Forrester Research estimates. China’s mobile payment...

This is a stock chart for McDonald's as seen in their company presentation
08 May 2017
Circling Sharks

Circling Sharks POSTED BY ANGUS GEDDES Arcos Dorados results show some spice: Arcos Dorados (Golden Arches) is the world’s largest McDonald’s franchisee in Latin America and the world, in terms of the number of restaurants and system-wide sales. The stock has underperformed for a number of years as the Brazilian real and other Latin American...

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09 May 2017
The First Bid Is Seldom The Last

The First Bid Is Seldom The Last POSTED BY ANGUS GEDDES I wrote about Fairfax yesterday. The company confirmed to the ASX the approach by TPG Capital. As I suggested the corporate activity was the catalyst for FXJ to push above resistance at $1.08, and the shares closed up 2.4% at $1.09. Follow through price...

This is a photo of two people riding mobike bicycles in the fat prophets blog
11 May 2017
Dangerous Precedent

Dangerous Precedent POSTED BY ANGUS GEDDES Another stock which was up 3.6% yesterday was QBE Insurance. We hold the stock in our models, and have high conviction that the insurer will do very well an environment of higher inflation, and rising interest rates – and this environment is on the horizon, if not already upon...

This is a population chart from 1347
15 May 2017
The Black Death

The Black Death POSTED BY ANGUS GEDDES Markets were mixed in Asia with the Nikkei closing 0.39% lower at 19,883 and the ASX 200 off 0.7% at 5,836. In China the CSI 300 closed 0.86% higher at 3,385 and the Hang Seng closed up 0.12% higher. GDP growth in Hong Kong came in at 0.7% in...

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19 May 2017
Barbarians At The Gate

Barbarians At The Gate POSTED BY ANGUS GEDDES Fairfax took the line honours yesterday, rallying 7% to $1.24 with a competing bid emerging from another private equity player, Hellman & Friedman. H&F launched a $2.85 billion cash offer for Fairfax which values the company in the range of $1.225 to $1.25 per share. The prospect...

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22 May 2017
The Trump Deflationary Trade

New Bid for Fairfax Sets the Stage for a Bidding War POSTED BY ANGUS GEDDES Last week one of the start performers on the local market was unquestionably Fairfax which closed at $1.25 on Friday. The stock was up 16% for the week as a second competing bid emerged from another private equity player, Hellman...

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29 May 2017
US Macro and Markets

US Macro and Markets POSTED BY ANGUS GEDDES Asian markets were modestly lower on Friday with the Nikkei closing down 0.64% at 19,686. In China the CSI 300 was off 0.15% at 3,480 and in Australia the ASX 200 was lower by 0.66% at 5,751. Japan’s core consumer price inflation increased for the fourth consecutive month...

This is what a driver-less car could look like by Ford
31 May 2017
Passing The Buck

Passing The Buck POSTED BY ANGUS GEDDES Companies are looking hard for Smarts… It used to be that companies would be looking to attract the best and brightest people to work for them. While that is still true to an extent, the rise of artificial intelligence (A.I.) promises to mimic the type of insights generated...

This is a results table
02 June 2017
Biting the hand that feeds

Biting the hand that feeds POSTED BY ANGUS GEDDES In Europe the STOXX50 closed 0.38% higher at 3,568 despite weakness in the banking sector. Spain’s Banco Popular fell by 15% on speculation that the troubled lender may not be able to find a buyer. The Eurozone manufacturing PMI came in at 57 in May with this...