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Trader's Diary

Economic calendar

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Definition of terms:
Earnings

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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IPOs

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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UBS could suffer a loss

Date: 17.5.2023

Even though some time has passed since the fall of Credit Suisse’s fall and UBS taking them over, the dust is not settled just yet. I can still find much news regarding the matter, and today was no different. Article on Reuters had a headline, that UBS expects 17 billion USD hit from the takeover of Credit Suisse. Of course, I dug right into it.

The mentioned article wrote that UBS Group AG disclosed that it anticipates a financial impact of around 17 billion USD from its acquisition of Credit Suisse Group AG. The estimate includes a negative effect of 13 billion USD from fair value adjustments of the combined assets and liabilities, as well as potential litigation and regulatory costs of 4 billion USD due to outflows. However, UBS also expects to record a one-time gain of 34.8 billion USD from the negative goodwill resulting from acquiring Credit Suisse below its book value. These figures are preliminary and subject to change, and UBS may also book restructuring provisions at a later stage. The bank has imposed certain restrictions on Credit Suisse's lending capabilities during the takeover process. In my opinion, mixed news. Even though they will, or they could suffer a loss, it seems that it is not all that cloudy for them. Article continued. That According to the filing, Credit Suisse is subject to certain restrictions, including not being able to incur capital expenses exceeding 10 million francs or enter certain contracts worth more than 3 million francs per year.

The deal between UBS and Credit Suisse, valued at 3 billion Swiss francs (3.4 billion USD) in stock, was hastily arranged by Swiss authorities over a weekend amid global banking turmoil. UBS agreed to assume up to 5 billion francs in losses associated with winding down part of Credit Suisse's business. This deal, considered the first rescue of a global bank since the 2008 financial crisis, will create a wealth manager with over 5 trillion USD in invested assets and a workforce of more than 120,000 employees worldwide.

Because fundamental analysis provided me with some mixed signals, I decided to check also technical part of it. In the past 15 years, stocks of UBS were rather solid, always somewhere between 10 and 20 CHF.* However, in 2007 they reached their all-time high at 70 CHF per stock.* This is the exact reason, why I decided to buy stocks of UBS in hopes that Credit Suisse deal will return them the valuation they have had 16 years ago.

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Movement of UBS stocks since coming to the market. (Source: Investing) *

* Past performance is no guarantee of future results.

Date: 20.11.2024
Qualcomm Expands Horizons Beyond Smartphones: I'm Buying This Promising Player at a Low Price

Today I took the time to analyze Qualcomm Inc. (NASDAQ: QCOM) in detail, which seems to be on a very interesting development trajectory. As the world's largest seller of smartphone processors, the company recognizes the need to diversify its business and find new sources of growth, which leads me as an investor to think more deeply about its future potential.

Date: 13.11.2024
Shopify's Growth Signals the Strength of Its Transformative Strategy

Today, I followed the market with a particular interest in Shopify Inc. (NYSE: SHOP), a company that has become synonymous with e-commerce over the years. Looking at their latest financial results and strategic moves, it's clear that their transformation into a platform for larger businesses is bearing fruit.

Date: 6.11.2024
Nvidia Overtakes Apple as the World’s Largest Company: The AI Boom in Full Swing

Today, I find myself reflecting on Nvidia Corp.’s (NASDAQ: NVDA) meteoric rise to become the largest company in the world, surpassing none other than Apple Inc. Nvidia’s stock rose 2.9%[1] to $139.93, pushing its market cap to an astonishing $3.43 trillion, overtaking Apple’s $3.38 trillion valuation.* To put this into perspective, Microsoft, which Nvidia already surpassed last month, holds a valuation of $3.06 trillion. What stands out to me is how artificial intelligence has fundamentally reshaped Wall Street’s landscape, with Nvidia emerging as the clearest beneficiary of the AI revolution.

Date: 30.10.2024
OpenAI and Broadcom’s Strategic AI Chip Development

Today, I've been closely following the news about OpenAI's plans to collaborate with Broadcom Inc. on its own AI chip, designed specifically for inference – the process of running AI models after they've been trained. This potential game-changer is attracting the attention of the tech world, as OpenAI seeks to develop a solution focused on responding to user requests rather than traditional training dominated by Nvidia's graphics processing units (GPUs).

Date: 23.10.2024
Texas Instruments in the Third Quarter of 2024 – Hope for Recovery?

As part of this week, I analyzed the third-quarter results of Texas Instruments Inc. (NASDAQ: TXN), which provide an interesting insight into future developments in the semiconductor sector. Even though the company announced the eighth consecutive decline in sales, the tone of the outlook is in an optimistic spirit, which signals the potential for a recovery in demand soon.

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