Hints and tips:
...He added: “If you’re growing at the pace that we are, then the P&L does manifest itself in cash requirements.” Sales at Interpath’s advisory business climbed to £26.9mn, up from £2.8mn a year earlier....
...Lumping it in with the Mag 7 was a mistake....
...The forward P/E of the Mag 7 is 31. The rest of the S&P 500, excluding the Mag 7 and four stocks with negative expected earnings, has a forward P/E of 19....
...Strategist Beata Manthey wrote: Our European ‘Super 7’ are cheaper than the US Mag 7, offer similarly attractive margins, and have underperformed the Mag 7 by 70 per cent since the start of ‘23, leaving...
...The Mag 7’s weighted average P/E is 29 (with higher average growth than the rest of the index)....
...In the four months since then, the S&P 500 has risen 24 per cent. The Mag 7 is up 29 per cent (when cap-weighted, like the S&P) better than the index, but not in a different universe....
...And, as Robin Wigglesworth noted in Alphaville last week, outside of the Mag 7 the story doesn’t look terribly strong....
...he replies, because widgets: The premium valuation reflects investor expectations the ‘Mag 7’ will post 3-year CAGR sales growth of 12% vs. 3% for the S&P 493....
...But we are valuation nerds, and can’t help but point out that p/e ratios have to be seen in the context of growth rates, and the Magnificent 7 are very fast-growing....
...All this leads to an interesting question: will Mag 7 growth, or Mag 7 value, do better in the next few years?...
...So while you’ve got the S&P doing its thing — woohoo, Mag Seven, excitement, record highs — the FTSE 100, the kind of main UK stock index is down 3 per cent so far this year....
...Funds that track US indices will have a much higher exposure to the Mag 7 (currently about 30 per cent for the S&P 500 or as much as 40 per cent for the Nasdaq)....
...Today, the Mag 7 has dispersed. Laggards such as Tesla and Apple have held back the shining performance of winners like Microsoft and Nvidia....
...But what’s most entertaining is that the government goes ahead and shows the professor’s ongoing work calculating Alameda’s historical balances with FTX — basically the firm’s net P&L — from last year:...
...Free cash flow, however, reconciles those book accounting accruals of the P&L ledger to capture the real flows of actual dollars coming in and out....
...and trading at higher P/Es or (ii) the Mag 7 bubble bursting should [both] drive equity vol higher....
...And then the classic insurgent against the massively dominant Mag Seven is Meta vs TikTok....
...So I think I’m a great S&P 500 tracker fund guy....
...(Robert laughs) So the S&P is up about 10 per cent this year. Some of the Mag Seven are up even more. Nvidia up almost 100 per cent, Microsoft chugging along, Alphabet....
...I don’t see much of this right now. Stocks with low P/E ratios relative to their expected growth rates are rare....
...Value does best in a true economic recovery, and we don’t seem to be in one. Nor are we going to short the Mag 7 (too scary!)....
...And it also means yeah, first of all you’ve got a massive exposure to the Mag Seven....
...It won’t create as much value as a [Granolas] or Magnificent Seven stock in absolute terms, but my return is better,” he said....
...The mag-seven aren’t as new as you might think So far this year, the magnificent seven Big Tech stocks account for all stock market returns, everywhere. Well, sort of....
...What about the Mag Seven? What about how concentrated the stock market gains are with Nvidia, Microsoft, Google et al? I mean, shouldn’t that weigh against this rally? What about that?...
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