Weekly research notes covering the full spectrum of asset classes

The Threshold Margin: When Incremental Sales Generate Value

December 4, 2018 / Stefan Larsen

With a bit of intuition and some real-world experience, it isn’t difficult to identify companies with great sales prospects. In 2016, before Fortnite and Overwatch were on the news, understanding that young people liked video games would have been enough for you to earn astronomical returns by investing in brands such as Activision Blizzard, Take-Two […]

The Illusion of Tesla’s (TSLA) Strong Gross Margins

April 16, 2018 / Stefan Larsen

The illusion of Tesla’s (TSLA) strong gross margins One of the more frequently cited metrics regarding the superiority of Tesla as opposed to other carmakers, is their higher gross margins, attributed to their “unique business model” and “innovative manufacturing and technology”. They stand at about 20% as of the end of 2017 against competitors, whose […]

Private Mortgages insurers (PMI)

March 2, 2018 / Stefan Larsen

Private mortgage insurers (PMI)—found in one of IBD’s top ranked industry groups—have been showing a strong price performance this year. For example, companies like Essent Group are making strong advances since October of last year. This is despite the rigid regulatory regime—with regulations such as concentration restrictions, reserve requirements and capital requirements—that have been instituted […]

Using the CAN SLIM investment system to assess Regeneron Pharmaceuticals

November 4, 2017 / Stefan Larsen

The following is an assessment of Regeneron Pharmaceuticals (REGN), an American biotechnology company, using the CAN SLIM investment system, created by Investor’s Business Daily Founder J. O’Neil. Each letter in the acronym stands for a key characteristic to look for in the company; the focus will be on the Current Earnings, Annual Earnings Growth, New […]

Investment Thesis on Volkswagen

October 9, 2017 / Stefan Larsen

By Baptiste Joly and Stefan Larsen Background The car manufacturer Volkswagen, hurt by a $25b-plus liability for the diesel emission scandal in 2015, with share price at $142.8, has been on a slow recovery since it was exposed by the U.S. authorities on October 2nd 2015. Analysts see this fine as a one-off on the balance […]