Today's big stories

SoftBank has narrowed down which assets it might sell to raise $41 billion
There's a clear sign that US company earnings expectations could be bound for a boost – Read Now
Japan is set to end its drought of initial public offerings

1/3

Decision Time

What’s Going On Here?

Technology conglomerate SoftBank – which promised to sell $41 billion worth of assets in March – is about land on precisely which segments it’ll get rid of.

What Does This Mean?

First on the chopping block could be T-Mobile US: SoftBank has owned about 25% of the firm since its long-awaited merger with rival telecoms company Sprint. And seeing as T-Mobile US is worth almost $130 billion, a sale could net SoftBank over $30 billion. That’d leave the Japanese giant with an $11 billion shortfall that it could make up by selling off, say, some of its Alibaba shares. Either way, the cash SoftBank raises will go some way to reducing the company’s debt, as well as enable it to repurchase some of its own shares – as it previously said it would.

Why Should I Care?

Zooming in: Mortal comm-bat.
SoftBank’s core business is in telecommunications, which might be why its shares have been relatively resilient after falling dramatically earlier this year. Telecoms’ earnings are pretty predictable during economic downturns, after all, largely thanks to their long contracts. Of course, by cleaving off its other telecoms investment, more of SoftBank’s overall fortunes will be determined by its venture capital Vision Fund – a potentially risky move, given that it’s recently had make job cuts to stem the business's losses.

For markets: Weak defense.
Telecoms stocks tend to be popular among investors because of their “defensive” nature, but anyone looking for safety in T-Mobile US might be in for a nasty surprise (tweet this). If SoftBank unloads its T-Mobile US stocks publicly – by selling a “blocks” of shares on the stock market – the sudden oversupply could outstrip demand and send its share price drastically lower. Current investors are probably hoping instead for a “private placement” of T-Mobile US’s shares, which should have a smaller market effect. And SoftBank may already have its first customer: Germany’s Deutsche Telekom is reportedly interested in buying at least some of its stake…

Copy to share story: https://www.finimize.com/wp/news/decision-time/

🙋 Ask a question

2/3 Premium

YOLO Traders Know Squat

What’s Going On Here?

A new breed of investor has emerged during lockdown: “YOLO day-traders” who’ve used their stimulus checks and tips from the /wallstreetbets subreddit to buy up shares of bankrupt companies that are actually worth, well, nothing. Nada. Zilch. Squat.

What Does This Mean?

Bankrupt car rental company Hertz’s shares, for example, went from about 50 cents to around $5 in a few days – and just as quickly fell to $2, all the while having no real value. Some traders claim to have made a lot of money riding these waves, but other, much quieter folks have also lost huge amounts.

How To Make Smarter Decisions

You can make big bets, sure, but you need to go into them fully informed. A Premium Finimize membership gives you access to daily analysis and insights in our app, alongside deep dives on everything from how to invest during a recession to the moonshot projects that could help Alphabet join the trillion-dollar club.

Try Finimize Premium free for a week, and see for yourself.

🌍 Discover the best of both worlds

Some investors say that if you want to invest in companies making a difference, you’ll need to sacrifice the big returns. But clearly those investors haven’t met Quilter Cheviot.

The Quilter Cheviot Climate Assets Fund is as focused on making a difference in the world as it is making investors money. That’s because the fund invests in companies that are providing solutions to promote sustainability across five investment areas: energy, food, health, resource, and water.

It’s spread across a whole range of assets too, helping better protect the portfolio in downturns. You’ll get exposure to medium and big stocks to keep volatility down, bonds for some relative safety, as well as a few alternative assets for good measure.

That careful crafting will be why it’s performed so well over the long term, then – both in general and compared to others like it. Get started with Quilter Cheviot today, and make a difference with your investments.

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future return. You may not recover what you invest.

Find Out More

3/3

Cool, Calm, Collected

What’s Going On Here?

If patience is a virtue, Japanese investors must be pretty darn virtuous: they’ve waited since April for an initial public offering (IPO), and now three new companies are ready to join the country’s stock market later this month.

What Does This Mean?

The three companies breaking cover first are online media firm Locoguide, tech company Ficha, and retailer Copa. And while they’re not aiming to raise groundbreaking sums, their listings may still go some way to restoring confidence among Japanese investors, while paving the way for other companies waiting in the wings.

The pandemic’s brought IPOs around the world to a halt, but companies’ confidence has picked back up now that we seem to be past the worst of it. In fact, just one of the three aforementioned companies is predicting their annual profit will shrink this year compared to last.

Why Should I Care?

The bigger picture: When life gives you lemons...
Stateside IPOs are well on the road to recovery too: Warner Music Group raised $2 billion when it went public earlier this month. But that’s just the beginning: data analytics firm Palantir’s long-awaited stock market listing is expected to kick off in the next couple of weeks, while insure-tech Lemonade – whose losses eclipsed its revenue last year – will go public soon too. And since it wasn’t so long ago that investors were all over shares of loss-making companies, other unprofitable firms – like Airbnb – might be watching closely to see how smoothly Lemonade goes down.

Zooming out: Daddy needs a brand new listing.
IPOs in Hong Kong and China have picked up too, but not for entirely positive reasons. Rising US-China tensions have seen a few major companies try to boost their investor bases with secondary listings in Hong Kong, including China-based but US-listed NetEase and Chinese ecommerce giant JD.com. Mega microchip maker SMIC, meanwhile, hoped to court new investors by selling new shares in China, in addition to those already listed in Hong Kong.

Get prepared: Here’s how you can profit from the successful IPOs.

Copy to share story: https://www.finimize.com/wp/news/cool-calm-collected/

🙋 Ask a question

💬 Quote of the day

“And those who were seen dancing were thought to be insane by those who could not hear the music.”

– Friedrich Nietzsche (a German philosopher, cultural critic, composer, and poet)

Tweet this

🎈 Happy birthday to you

The Quilter Cheviot Climate Assets Fund is celebrating its tenth year, and what a decade it’s been.

It’s been ten years of making the world a better place, investing in companies that are providing solutions to promote sustainability across five investment areas: energy, food, health, resource, and water.

It’s been ten years of expertise: Quilter Cheviot’s fund has been expertly tweaked to provide the perfect balance of stocks, bonds, and alternative investments, so you’ll be better placed to withstand downturns and benefit from windfalls every step of the way.

And it’s been ten years of high performance: the fund keeps performing well, both in general and compared to other funds like it. Sound good? Get started with the Quilter Cheviot Climate Assets Fund today.

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future return. You may not recover what you invest.

Get Started

🌎 Finimize Community

⚠️ Quick, stop what you’re doing

Our French event, “The Future of Blockchain and Cryptocurrency”, takes place on Wednesday at 6.30pm. There’s no time to lose, you need to sign up while you still can. What’s that? Yes, you can have your breakfast first.

🇫🇷 France: The Future of Blockchain & Cryptocurrency – 6.30pm CET, June 17th
🇭🇺 Hungary: What’s Next For The Energy Market? – 6.00pm CET, June 23rd
🌍 Global: Finimize Live AMA – 1.30pm UK Time, June 30th

📚 What we're reading

Lateral thinking: a magic formula? (Aeon)
How we make sense of time (Scientific American)
All aboard the sea turtle (National Geographic)

Finimize - 🇯🇵 Japan’s IPO frenzy

Today's big stories

Decision Time

What’s Going On Here?

What Does This Mean?

Why Should I Care?

YOLO Traders Know Squat

🌍 Discover the best of both worlds

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future return. You may not recover what you invest.

Cool, Calm, Collected

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🎈 Happy birthday to you

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future return. You may not recover what you invest.

⚠️ Quick, stop what you’re doing

Older messages

😎 Morgan Stanley: ignore the recession

😭 Uber goes hungry

💪 Activism really works

📈 Tech stocks break records

💉 The 240 billion coronavirus cure

You Might Also Like

US-Saudi pact

🚘 Tesla fired everyone

Bigger savings potential is here — don’t miss out.

Fund the future you deserve

It's not my fault I'm like this (financially)

Harry's Take 5-1-24 Reader Mailbag: Full TLT

The 2024 Election Could Change Everything

Only the Fed can complain

💸 Amazon didn't disappoint

Dream vacation coming up? Avoid the travel drama — here’s how.