(RTTNews) - Ahead of the long break for Easter, the Hong Kong stock market had ended the two-day winning streak in which it had rallied almost 550 points or 2.2 percent. The Hang Seng Index now rests just above the 25,100-point plateau although it may bounce higher again on Wedne
(RTTNews) - Ahead of the long break for Easter, the Hong Kong stock market had ended the two-day winning streak in which it had rallied almost 550 points or 2.2 percent. The Hang Seng Index now rests just above the 25,100-point plateau although it may bounce higher again on Wedne
Alfribeiro/iStock Editorial via Getty Images Coca-Cola FEMSA, S.A.B. ( KOF ) is a case that is very interesting. It has that wide moat in physical distribution, a really high entry barrier that seems impossible to be disrupted. In addition, it has interesting financials, manages to generate shareholder value, and also has catalysts for growth in the coming years. All of this seems great, especiall...
Alfribeiro/iStock Editorial via Getty Images Coca-Cola FEMSA, S.A.B. ( KOF ) is a case that is very interesting. It has that wide moat in physical distribution, a really high entry barrier that seems impossible to be disrupted. In addition, it has interesting financials, manages to generate shareholder value, and also has catalysts for growth in the coming years. All of this seems great, especially when you open the valuation tab and see that the P/E is ~16x, which seems reasonable for this type of stock. And it really is a valuation close to fair. But the problem is that many people look at Coca-Cola Femsa in the "wrong" way. I mean, many look at this valuation as if KOF were a US beverage company or a US consumer staples company. However, I think we should be looking at KOF as a LatAm company. A good company, but with Latin American risks, and that deserves a Latin American valuation. Coca-Cola FEMSA: A Lot of Positive Points The amount of positive points for Coca-Cola FEMSA impressed me as I went deeper into the thesis. By its profile and by the financials I saw in the table below, I already knew it was a solid company, because if it weren't, it wouldn't be able to achieve a CAGR of ~ 7% for the top line in the last 10 years. Seeking Alpha Being Brazilian and knowing a bit of the local market, I also knew that the moat was wide. In this type of region, the business that KOF built encompasses several things. KOF's moat is very solid due to the scale and the costs that are necessary to create this, but that is not the only point. The relationship that the company needs to build with various local stores—literally millions of partners spread across regions that are difficult to access—is very important. It's not just anyone who can do it because it requires scale and logistics, but also because it needs relationships and expertise. The image below makes this a bit clearer. There are more than 11 thousand trucks, 2 million points of sale, and a footprint that goes fr...
Singapore will not negotiate for safe passage through the Strait of Hormuz, as doing so would undermine fundamental principles of international law, Foreign Affairs Minister Vivian Balakrishnan has said. Responding to a parliamentary question on Tuesday by Member of Parliament Fadli Fawzi on whether Singapore would engage Iran or consider paying a toll for its vessels, Balakrishnan stressed that t...
Singapore will not negotiate for safe passage through the Strait of Hormuz, as doing so would undermine fundamental principles of international law, Foreign Affairs Minister Vivian Balakrishnan has said. Responding to a parliamentary question on Tuesday by Member of Parliament Fadli Fawzi on whether Singapore would engage Iran or consider paying a toll for its vessels, Balakrishnan stressed that transit through such waterways was a right – not a privilege. “There is a right of transit passage,”...
It seems like everyone is talking about oil prices. That makes sense, given the geopolitical conflict in the Middle East. However, the conversation about the conflict's impact needs to expand a bit. And you could start seeing the impact in the grocery aisle sooner than you may think, and for longer than you may believe. Here's what you need to be thinking about as an investor when it comes to infl...
It seems like everyone is talking about oil prices. That makes sense, given the geopolitical conflict in the Middle East. However, the conversation about the conflict's impact needs to expand a bit. And you could start seeing the impact in the grocery aisle sooner than you may think, and for longer than you may believe. Here's what you need to be thinking about as an investor when it comes to inflation. The Federal Reserve has been holding interest rates steady despite the conflict in the Middle East, which has pushed oil and natural gas prices higher. One big reason is that oil prices are volatile, and an end to the conflict could lead to a sharp reversal in energy costs. If that were to happen, the pressure from rising prices would prove temporary. Image source: Getty Images. Continue reading
Copper rose after Iran agreed to temporarily reopen the Strait of Hormuz as part of a two-week ceasefire agreement with the US and Israel. The industrial metal advanced as much as 2.9% on the London Metal Exchange. Aluminum, the base metal most affected by supply concerns during the conflict, also gained in early trading. The temporary ceasefire in exchange for reopening Hormuz will ease investor ...
Copper rose after Iran agreed to temporarily reopen the Strait of Hormuz as part of a two-week ceasefire agreement with the US and Israel. The industrial metal advanced as much as 2.9% on the London Metal Exchange. Aluminum, the base metal most affected by supply concerns during the conflict, also gained in early trading. The temporary ceasefire in exchange for reopening Hormuz will ease investor concerns about inflation and slowing industrial activity across the world, which have clouded the demand outlook for metals since the war began more than a month ago. Roughly a 10th of global aluminum output sits in the Persian Gulf, with exports constrained by the near-closure of the strait. Iranian drones and missiles have also struck operations run by Aluminium Bahrain BSC and Emirates Global Aluminium PJSC . Copper on the LME advanced 2.8% to $12,653 a ton at 9:13 a.m. in Shanghai, while aluminum rose 0.5% to $3,492.50 a ton. Other base metals on the exchange also gained.