The dual share distribution causes problems. Deliveroo may already be regretting its decision to list in London as a number of big funds have decided to skip the IPO on the grounds that allowing dual share distributions leaves minority shareholders open to unfair treatment by management. While I strongly disagree with dual share distributions, investors still have the option not...
The great office return beckons. While the hottest stay-at-home at home stocks have started to correct from their highs, I think there is probably a long way to go as the signs are increasingly pointing to a full-scale return to the office. Zoom and Peloton are now well off their highs, Netflix, Amazon and Microsoft are currently treading water which...
Tsinghua does a Lucent. Tsinghua Unigroup is just another example of how problematic China’s strategy to become self-sufficient in semiconductors has become. While the rest of the industry is experiencing unprecedented demand for its products which combined with shortages should lead to excellent profitability, Tsinghua is flirting with bankruptcy. This is a classic sign of a very badly run company...
Intel rides the perfect storm. Intel has made maximum use of both tensions with China and the current semiconductor shortage to push its new foundry strategy which is going to take some time to come to fruition and left the really big question unanswered. Intel held its Intel unleashed event at which it detailed how its current roadmap has been...
This time its SPAC. WeWork is once again having a crack at going public and while the valuation is 80% lower than it was last time around, the company is still pushing the widely debunked technology platform story. The reason it is pushing this story is because it is the only way that this company can differentiate itself from the...
Easy money has a price. Faraday Future is an EV company with a very chequered history, but even this is capable of commanding a multibillion-dollar valuation with no intention to ship a single vehicle for 12 months. There is no way Faraday Future is ready to be a public company but is riding on the back of rationality-free hysteria to...
Patents are no panacea. Huawei may be down, but it is far from out as it is now putting its efforts into replacing the revenues it is losing from US sanctions in other ways. I have to hand it Huawei as its management are fighters who executed extremely well to delay the impact of the sanctions and now are turning...
I am not convinced that Facebook is paying anything. Facebook has struck a 3 year deal with News Corp (see here) to “pay” for the Australian news that hosts on its site but given that financial terms were not disclosed, I suspect that Facebook may be paying almost nothing to News Corp for its Australian content. This is because the...
Opportunity or threat? Stripe has raised $600m at an eye-watering valuation of $95bn in a funding round that appears to have no purpose other than to provide a base from which to go public at an even more outrageous number. There is no doubt that Stripe is a good company as it has grown from nothing in 2010 to become...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
Xiaomi – The vulture dance.
Xiaomi’s looks to be going after Huawei’s business. Xiaomi’ latest launches signal a change in direction for the company that I suspect has been triggered by Huawei’s problems which have created the opportunity for Xiaomi to take its place in overseas markets and especially at home. Xiaomi’s “Mega Launch 2021” event revealed a new smartphone with a variant to match...