17 Apr Weekly Reads: 4/13/20
Investing: It’s Not About Buybacks or Dividends, It’s The Virus – click here
As investors it is easy to revert back to understanding the things we know. For many this means traditional valuation metrics, dividends and buyback policy. However, in the current situation the more path forward is better outlined via the understanding of the Virus.
Business: Bob Iger Thought He Was Leaving on Top, Now He is Fighting For Disney’s Life – click here
While the headline may be a bit sensational the reality is that Bob Iger’s transition to retirement was supposed to be smooth. Disney was performing well and the stock was at or near all-time highs. Then the virus struck. Since then he has been reasserting control as he tries to prepare the company for life without him,. Will it delay his retirement yet again?
Airlines: Airlines Sees Upwards of $300B in Lost Ticket Sales in 2020 – click here
There is no question that the travel industry, and especially the cruise and airlines, have been hit hard by the Virus. In a recent report the cummulative impact of COVID-19 is expected to top $300B in lost ticket sales alone for airlines!
Tesla: Cybertruck Orders Still Rolling In Months After Announcement – click here
The Fremont, CA company has been well known for their use of pre-orders to drum up interest for their vehicles. What is suprising is that orders for the cybertruck continue to roll in despite months passing from the original release. While this is important only time will tell whether the modern looking truck has staying power.
COVID-19: President Trump Cuts WHO Funding – click here
The President of the U.S. announced on Tuesday that he would temporarily cut funding to the World Health Organization (WHO) while the administration looks into the organization’s handling of the pandemic. While this may be good politics and well placed criticism it seems odd to do so while the virus is still raging.
COVID-19: Trump Indicates a Willingness to Work With Governors – click here
One of the key features of the economic recovery from COVID-19 is the reopening of the economy, President Trump has provided mix messages as he has watned to control such an act. However, state governors are pushing back and likely to force the President to work with them in reopening each individual state.
Economy: Retail Sales Plunge 8.7% in March- click here
It doesn’t take an expert to figure out that retail sales were likely to decline in March in April. In our first reading for the month of March sales declined 8.7% with some areas being hit harder than others. This historic drop is especially important given that over 2/3 of the U.S. economy comes from consumer spending.