Finimize - 🎯 Samsung targets serious profits

Go get 'em, Samsung | CVC goes on vacation |

Hi Reader, here's what you need to know for April 8th in 3:12 minutes.

👋 Come find the official Finimize Club on Clubhouse, folks: join us for today’s show at 6pm UK time / 1pm New York time, and let’s have a chat about Tesla’s valuation, shall we? Join the club

Today's big stories

  1. Samsung is projecting a big jump in last quarter’s profit, and the global chip shortage could mean even better days ahead
  2. There are two strategies you can use to make the most of a one-of-a-kind earnings season – Read Now
  3. Private equity firm CVC Capital is looking to buy Japanese conglomerate Toshiba

Smart Money

Smart Money

What’s Going On Here?

Samsung announced on Wednesday that it’s projecting a 44% jump in last quarter’s profit, as a homebound world kitted out their kitchens with unnecessary – but admittedly really cool – gear.

What Does This Mean?

Samsung is all set to report its first-quarter earnings at the end of the month, but clearly it couldn’t contain itself till then: the company revealed that its profit is poised to climb by just as much as analysts are expecting. That surge is probably down to strong sales of smartphones and home appliances, which have offered locked-down customers something to spend their money on in the absence of, y’know, active social lives.

Why Should I Care?

For markets: Everyone’s hungry for chips.
Samsung’s investors have good reason to be feeling positive about the company’s future profitability: it’s the world’s biggest maker of memory chips, and that’s a good business to be in nowadays. See, there’s a global shortage of semiconductors because of strong demand for anything electronic, and that’s been driving up their prices since March. And with the shortage expected to last for two more years, they might have a lot higher to rise…

The bigger picture: Are smartphones a dying business? 
The launch of Samsung’s latest smartphone in January boosted its market share too, with the company’s sales representing 23% of the global smartphone market last quarter. That’s up from 16% the quarter before, when arch-rival Apple poached the top spot for the first time in four years. LG Electronics, for its part, seems fed up of being the third wheel in this will-they won’t-they: the manufacturer announced on Monday that it’s quitting the smartphone market altogether to focus on electric vehicle (EV) components. That might be a smart move: the EV market is only just taking off, while fresh data has shown a 10% fall in the global smartphone market last year – the third drop-off in a row (tweet this).

Copy to share story: https://www.finimize.com/wp/news/smart-money-2/

🙋 Ask a question

2. Analyst Take

This Earnings Season Is A One-Of-A-Kind Opportunity

What’s Going On Here?

Investors are always on high alert during company earnings season, but the next one – which kicks off next week – offers a pretty unique opportunity.

Here’s the thing: analysts have a habit of cutting company profit estimates over the course of a quarter. But last quarter, they didn’t just raise them: they raised them by the most in almost 20 years.

US stock prices have risen too, likely as investors “priced in” analysts’ high hopes.

And that means there’s arguably an outsized risk of negative surprises, giving missed forecasts the power to send a stock prices tumbling faster and further than normal.

The opposite is true too: the two worst-performing sectors this year go into this round of updates with stable profit forecasts, and could see their stocks jump if they outperform.

So that’s today’s today’s Insight: which stocks are in a good place, which aren’t, and two strategies you can use to profit from this one-off situation.

Read or listen to the Insight here

SPONSORED BY COINLIST

Smart investors know it pays to be early in crypto

And with crypto in a raging bull market, the demand for compliant token sales has been unprecedented.

CoinList’s platform is purpose-built to give you early access to the most cutting-edge crypto projects.

It lets you invest in, earn from, and trade on the best new tokens before other exchanges. The crypto community is taking notice, and it’s no wonder why.

Just look at Solana (SOL), Flow (FLOW), and Filecoin (FIL). Each was sold on CoinList before exploding in popularity: Solana went from 22 cents to $25, Flow from 38 cents to $46, and Filecoin from $5 to $235.

On CoinList, you’ll never be late to the party. So sign up today, and get $10 in bitcoin when you make a trade worth over $100.

Get Started

Please support our sponsors

Wish You Were Here

Wish You Were Here

What’s Going On Here?

Private equity firm CVC Capital made a $20 billion offer to buy Japanese conglomerate Toshiba on Wednesday, in what would be the country’s biggest leveraged buyout in history.

What Does This Mean?

In a leveraged buyout, a private equity firm – Europe’s CVC, in this case – borrows money to buy a business, typically hoping to improve its operations and sell for a profit later on. And given that global investors see Japanese conglomerates as particularly inefficient, it’s a strategy that could work out well for Toshiba and its shareholders.

Toshiba’s shares surged 18% to a four-year high on the news of CVS’s offer, but it’s fair to say those investors might be getting ahead of themselves. The government has to sign off on any takeover bids made by foreign private equity firms, and considering Toshiba’s in charge of the country’s nuclear power plants, this one’s going to be under even more scrutiny…

Why Should I Care?

The bigger picture: Private equity firms aren’t through with Japan yet.
Private equity firms see Japan as one of the most target-rich markets in the world, and it shows: they’ve announced $15 billion worth of buyout deals focused on Japanese firms in the last twelve months, according to Bloomberg. This Toshiba takeover would be CVC’s second major deal in the country this year alone, after it agreed to buy Shiseido’s personal care business for $1.5 billion in February.

For markets: Welcome to the Land of Rising Activism.
Activist investors have increasingly been flexing their muscles in Japan over the last few years, pushing management teams to make reforms that’ll give shareholders more bang for their buck. That hasn’t gone unnoticed by Toshiba: the company – which was forced to issue $5.3 billion of new shares after a brush with bankruptcy in 2017 – is heavily owned by foreign activist funds, which just won a landmark vote to investigate the company’s management team.

Copy to share story: https://www.finimize.com/wp/news/wish-you-were-here/

🙋 Ask a question

💬 Quote of the day

“Activism is my rent for living on the planet.”

– Alice Walker (an American novelist, short story writer, poet, and social activist)
Tweet this

SPONSORED BY TASTE LABS

There’s no accounting for good Taste

There’s more choice than ever these days, but more endless scrolling too.

Taste Labs is on a mission to fix that: the company’s AI platform offers tailored product recommendations based on your – you guessed it – personal taste.

Good idea, right? Well, Taste is raising money on StartEngine, and you could back the company as it goes from strength to strength.

See, Taste’s app is one of the world’s most downloaded recommendation apps, with over 500,000 users and more than 4,000 five-star reviews.

In fact, Taste’s user base grew organically by 76% last year, and the company’s raised over $1 million since 2019. People like it, is what we’re saying.

But you’ll need to be quick: you only have till April 12th to buy in.

Find Out More

Please support our sponsors

📚 What we're reading

  • 24/7 vet support, $3k emergency fund, multi-pet protection (Pawp)*
  • The land of single-family homes (Vox)
  • Put your best mask forward (Complex)
  • RIP Yahoo Answers (CNN)

*This sponsored content helps us keep the newsletter free.

🌍 Finimize Events

🍷 That’s good juice

Booze is good for many things, not least getting us through lockdown. But turns out those bottles of hooch might make a pretty good investment too. Just ask Novel Wine’s Ben Franks at our Investing in Wine and Whiskey event: you’ll get his hard-won advice on buying and selling the most in-demand liquor, as well as how to look all fancy when you’re drinking (spoiler: it’s all in the pinky).

💵 The Surge In Digital Payments: 6pm UK time, April 8th
🍷 Investing In Wine And Whiskey: 6pm UK time, April 9th
💆 Control Your Emotions, Control Your Trading: 6pm NZ time, April 12th
😎 Making An Impact With Your Capital: 4pm UK time, April 15th
🔥 The Three Most Important Trading Signals: 6pm UK time, April 20th
👩‍🎨 Are NFTs A Digital Bargain Or Bubble?: 2pm UK time, April 21st
💡 Investing In Small-Medium Cap Stocks: 6pm UK time, April 21st
🏡 The Pros and Cons Of REITs And Real Estate: 1pm UK time, April 22nd
📈 How To Inflation-Proof Your Portfolio: 6pm UK time, April 22nd
🚀 Space: The Final Investment Frontier: 6pm UK time, April 27th
💰 Crowdfunding Club: 1pm NYC time, April 28th
🛢 The Energy Sector’s New Direction: 4pm UK time, April 29th
🔪 How To Cut Through The Spin: 6pm UK time, April 29th
👋 Live Q&A With CEO Max Rofagha: 1.30pm UK time, April 30th

❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: Samsung.com Bernard Hermant @bernardhermant - Unsplash | Mak @mak_jp - Unsplash bissig. paseven - Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Third Floor, 1 New Fetter Lane, London, EC4A 1AN, UK.

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

View Online

Older messages

💔 The broken bitcoin fund

Tuesday, April 6, 2021

Give a bank a break, Archegos | L'argent, c'est magnifique | TOGETHER WITH Hi Reader, here's what you need to know for April 7th in 3:09 minutes. 🍷 A bottle of wine or whiskey could be

⚠️ Found: value opportunities

Monday, April 5, 2021

Growth vs value | Emerging markets have emerged | Finimize Hi Reader, here's what you need to know for April 6th in 2:59 minutes. 🎉 We'll be back bright-eyed and bushy-tailed with your next

🇺🇸 The Fed is (not?) in control

Sunday, April 4, 2021

Eagle-eyed investors | Investors go green TOGETHER WITH Hi Reader, here's what you need to know for April 5th in 3:10 minutes. 🌱 We have a couple of days off in the UK, so we'll be taking the

📉 A new accounting scandal

Thursday, April 1, 2021

Things are getting better | Things are getting worse | Finimize Hi Reader, here's what you need to know for April 2nd in 3:01 minutes. 🥚 We're taking a break for the Easter weekend, so look out

🦘 Deliveroo's stock market crash

Wednesday, March 31, 2021

Not what investors ordered | There's no point stock picking | TOGETHER WITH Hi Reader, here's what you need to know for April 1st in 3:06 minutes. 👋 Come find the official Finimize Club on

You Might Also Like

The Simple Solution Worth Billions to Walmart and Amazon

Thursday, March 28, 2024

The following is a third-party sponsored message. It should not be considered a recommendation or endorsement by HS Dent Publishing. Dear Investor, In warfighting, there's a saying: "Amateurs

Markup matters: monetary policy works through aspirations

Thursday, March 28, 2024

Tim Willems and Rick van der Ploeg Since the post-Covid rise in inflation has been accompanied by strong wage growth, interactions between wage and price-setters, each wishing to attain a certain

🇯🇵 Japan's latest low

Wednesday, March 27, 2024

Visa and Mastercard cut merchants some slack | Japan's yen hit a 30-year low against the US dollar | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 28th in 3:14

‘Out of the blue’ correction

Wednesday, March 27, 2024

Bloomberg Evening Briefing View in browser Bloomberg With a number of market watchers warning of a bubble, traders are increasingly on the lookout for signs of the cliff's edge. But if you ask

🗺️ Your guide to a finance mega-trend

Wednesday, March 27, 2024

Plus, “money dysmorphia” and how to choose between a 401(k) and IRA. ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌ 

How to keep your crypto gains more secured

Wednesday, March 27, 2024

Don't risk losing your savings to hackers. ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Issue #231: Why some people don’t have bank accounts

Wednesday, March 27, 2024

plus speed puzzling + the quad God ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Harry's Take 3-27-24 Expecting a Deeper Recession

Wednesday, March 27, 2024

image Harry's Take March 27, 2024 Each Recession Since 1990 Has Been Deeper The 1990 recession was small and shallow. The great Baby Boom economic explosion began in 1983, anticipated by the 1982

Another reason to care about investment taxes

Wednesday, March 27, 2024

Alex Kontoghiorghes Do lower taxes lead to higher stock prices? Do companies consider tax rates when deciding on their dividend pay-outs and whether to issue new capital? If you're thinking '

👀 Tesla's latest buddy

Tuesday, March 26, 2024

Cocoa future prices just broke their own record | The world's biggest EV battery maker chatted up Tesla | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 27th in 3:14