Christmas cheer is here, and so is Mariah Carey’s annoying song that won’t stop playing in my head.
“All I want for Christmas is you”
At this point, all I want is for that song to stop. But the show must go on. So is this newsletter.
This week, we are changing things up a little bit.
It will be structured into several short, concise segments that readers can absorb and go on their own, to research and investigate.
With that out of the way, let’s get to it.
I think this describes Micro Strategy quite well on its recent share price appreciation. I did a quick analysis of the company in the ‘Quick Company Analysis’ segment below. Read more to find out (Credit of Photo: Le Shrub)
5 Market News You Definitely Need to Know
Nvidia: Nvidia is getting sued and it’s by Uncle Pooh in China. The reason? It violated anti-monopoly laws.
- But this is probably not the reason. U.S. and China has been engaged in a bitter trade and technology war over the past 6 years.
- Things are hopefully looking up. Trump and Xi seems to want to wipe the slate clean and improve relations.
SpaceX: Valuation is on a rocket trajectory. SpaceX is trying to sell some insider shares and rumor has it that it’s valued at US$350 billion.
- A year ago, it was valued at US$137 billion.
- This puts the company at the same valuation as Johnson & Johnson , Bank of America, and Salesforce.
Hyundai X BAIC Motor: Hyundai and BAIC Motor are collaborating for a US$1.1 billion joint venture to produce and sell Hyundai cars in China.
- According to Statista, Hyundai’s sales in China have declined considerably to only 240,000 in 2023, after registering its highest of 1 million in 2016.
- The reason is that Hyundai still only sells petrol cars in China, while more than half of car sales in China are now electric vehicles.
Chocolate high: Cocoa prices have risen sharply to US$11,900 per ton in December 2024 as severe weather conditions hampered production in West Africa.
- West Africa produces about 75% of global cocoa.
- While chocolate demand is still booming, pushing prices further up.
- I have previously written about the cocoa market here. Check it out!
Fitch: Fitch has just maintained Malaysia’s rating at BBB+.
- The reason? Steady domestic and foreign investments.
- The risks though? High government debt.
SpaceX: Elon Musk is planning to launch a listing for SpaceX at a price of US$135 per share, which will value the company at US$250 billion.
- One insider transaction in November 2024 has valued the company at as much as US$350 billion, up from US$137 billion in 2023.
- If you didn’t know, SpaceX allows people (mainly rich ones) to travel to space.
- According to market estimates, revenue probably doubled to US$8.7 billion in 2023 and could have generated a profit.
Quick Company Analysis: Micro Strategy
Micro Strategy: Micro Strategy has hit the news recently for being included in the Nasdaq 100. It is primarily a data company that provides AI and IT solutions to companies in the retail, financial, healthcare and government sectors.
- But in recent years, it has become famous due to its ‘proxy’ of the Bitcoin market and has seen a dramatic increase in its share price because of it. It holds a lot of Bitcoin and has been continuing to buy it as it uses Bitcoin for its operations.
- Despite the ‘hot’ interest, its financials have actually been weak. In the past 4 quarters, revenue has declined by an average of 7.3%, while it has been loss-making.
According to Finbox, here are the pros and cons of the company
- Pro: It has generated high returns for the year. Share price has gained by 458% since the beginning of the year.
- Con: Very volatile. It has a beta of 1.86. Beta is how sensitive the company’s share price is to the overall market. More than 1 means that its share price moves more than the market.
- Con: Analysts do not expect the company to be profitable anytime soon.
- Con: It doesn’t give any dividends.
However, analysts in the market expect bullish things from Micro Strategy. They have set an average target price of US$550, with an implied upside of 42%.
Malaysia Media Sector: Rakuten has maintained the Malaysian media sector at an underweight call, and lowered it to ‘market perform’
- Earnings of media companies disappointed, and declined considerably in 3Q 2024.
- The sector faces intense competition and is crowded at this point.
Malaysia Plantation Sector: Rakuten upgraded Malaysia’s plantation sector to ‘Overweight’.
- Tight supply of palm oil has kept prices high, which should improve profits.
- Cost is ok to manage in the upstream industry.
Gamuda: Analysts are revising upwards the target price for Gamuda.
- Share price reached an all-time high, as Gamuda is expected to win more contracts in the construction industry.
- Trading View now has the average target price at RM10.72 with an implied upside of 11.9%.
By letting it go it all gets done. The world is won by those who let it go. But when you try and try. The world is beyond the winning.
In the recent week, I found myself watching a couple of Daoist philosophy videos by Einzelganger. And it got me thinking about my investments, career and my life in general.
You see, I have come to believe that investments, like life also, are unpredictable. There’s just so little that I can control.
One minute, the U.S. is banning Chinese companies, and the other, they are trying to make amends. And this news has a lot of implications for the markets.
I keep trying to ‘control’ my investment decisions by keeping up with the news on this and constantly browsing it. As a result, I got more anxious of my investments.
It is the same with my career and life. Because I wanted to control the outcome so much, that I stressed constantly about them.
And that was no way to live or research my investments.
I am trying now to let go of control and the outcome, and just let things flow. I do put in the work, but I am trying to ignore the outcome now.
Maybe this will help you.
Have a Merry Christmas and a happy holidays.
