Founder & CEO Bond Angle, LLC, Bond Angle, LLC

Vicki Bryan

Founder & CEO Bond Angle, LLC

Bond Angle, LLC

Insightful commentary and analysis on bond markets and market movers, including financial, economic, and industry catalysts and management shenanigans. 

High yield market investment research

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<a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> marked Groundhog Day last week by trailing earnings estimates for fourth quarter profit.Worse, all of reported net income and more came from energy credit sales, proving again that core operations remain significantly unprofitable no matter how many more billions in revenue are generated.But Tesla has bigger problems than missed earnings since fourth quarter deliveries also confirmed that it continues to lose same-store sales and market share in all its markets. No wonder Tesla prefers not to put too fine a point on 2021 projections.

Tesla Motors (TSLA US) marked Groundhog Day last week by trailing earnings estimates for fourth quarter profit.Worse, all of reported net income and more came from energy credit sales, proving again that core operations remain significantly unprofitable no matter how many more billions in revenue are generated.But Tesla has bigger problems than missed earnings since fourth quarter deliveries also confirmed that it continues to lose same-store sales and market share in all its markets. No wonder Tesla prefers not to put too fine a point on 2021 projections.

Uh oh. <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a> is forced, again, to do another big, expensive recall. This time because of faulty touch screens which go blank while driving, putting drivers at risk. Add it to the list of several big, expensive fixes Tesla has been ordered to make recently in the US and in China after fighting regulators as complaints pile up.

Uh oh. Tesla Motors (TSLA US) is forced, again, to do another big, expensive recall. This time because of faulty touch screens which go blank while driving, putting drivers at risk. Add it to the list of several big, expensive fixes Tesla has been ordered to make recently in the US and in China after fighting regulators as complaints pile up.

Breaking: Tesla Forced to Recall 135K on Faulty Touchscreens

Bond market data and technology, BondEvalue

BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

S&amp;P was 1.6% higher while Nasdaq rallied 2.6% as tech stocks outperformed. Amazon  and Microsoft  were among the large-cap gainers, up 4.3% and 3.3% besides Tesla  moving higher by 5.8%. Mining stocks were also in demand after the Gamestop  saga with the focus now on silver, which soared to eight-year highs. US 10Y Treasury yields inched up 1bp. A possible smaller fiscal package, ISM manufacturing index printing at 58.7 for January vs. 60.5 in the month before and the US Treasury reducing Q1 borrowing  due to higher cash balance made the headlines in the US. There is speculation that former ECB president Draghi could become the next Italian prime minister. FTSE, DAX and CAC also rose 0.9%, 1.4% and 1.2% respectively. US IG CDS spreads were 1.1bp tighter and HY was 7.1bp tighter. EU main CDS spreads tightened 0.5bp and crossover spreads tightened 1bp. Asia ex-Japan CDS spreads are 0.1bp tighter while Asian equities are ~1.2% higher today.

UBS, Lippo, COGO Launch $ Bonds; Macro; Rating Changes; New Bond Issues; Talking Heads; Top Gaine...

<a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US</a> stock dropped in after-hours trading when it missed market expectations for the fourth quarter with just $270 million in net income (up 157%) on slightly better revenue of $10.7 billion, up 46% versus $7.4 billion last year.
For those playing at home, that’s not just a paltry margin at 2.5%, it’s a much smaller profit versus the $331 million reported in the third quarter on $8.7 billion in revenue—$2 billion less.
And as I expected, all of reported net income came from energy credit sales which masked a loss of at least $131 million, as has happened with each and every profit Tesla has reported since Q319 (as I discussed again on Monday in <a href="https://bondangle.substack.com/p/tesla-the-skys-the-limituntil" target="_blank" rel="noopener">Tesla: The Sky's The Limit...Until</a>). I expect to see additional boosts to revenue and profits Tesla typically adds like accounting maneuvers such as conveniently timed reserves adjustments and other unusual and nonoperating contributions when the 10-K is filed.
It seems even more consequential this quarter, with its market cap at more than $800 billion following another $5 billion sale of stock and the addition of its stock to the <a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 (SPX INDEX)</a>, that Tesla’s core operations still can’t generate unvarnished profit even on $10.7 billion in revenue.

Tesla Motors (TSLA US stock dropped in after-hours trading when it missed market expectations for the fourth quarter with just $270 million in net income (up 157%) on slightly better revenue of $10.7 billion, up 46% versus $7.4 billion last year.
For those playing at home, that’s not just a paltry margin at 2.5%, it’s a much smaller profit versus the $331 million reported in the third quarter on $8.7 billion in revenue—$2 billion less.
And as I expected, all of reported net income came from energy credit sales which masked a loss of at least $131 million, as has happened with each and every profit Tesla has reported since Q319 (as I discussed again on Monday in Tesla: The Sky's The Limit...Until). I expect to see additional boosts to revenue and profits Tesla typically adds like accounting maneuvers such as conveniently timed reserves adjustments and other unusual and nonoperating contributions when the 10-K is filed.
It seems even more consequential this quarter, with its market cap at more than $800 billion following another $5 billion sale of stock and the addition of its stock to the S&amp;P 500 (SPX INDEX), that Tesla’s core operations still can’t generate unvarnished profit even on $10.7 billion in revenue.

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Equity Bottom-Up

Since their last reported fair value (3Q20) <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>’s listed investees have continued their meteoric share price rise which, along with the <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a> IPO, have helped propel Tencent to be one of the top-performing Global Emerging Market shares in the short period we have had year-to-date. 
Given the meteoric rise in Tencent’s share price, the continued extremely bullish market sentiment around the sector, the continued sharp share price appreciation of their main listed investees, as well as the likely impact of the Kuaishou listing on their aggregate fair value, in this insight, I have updated my analysis on the impact of Tencent’s listed associates on the implied valuation of Tencent’s consolidated operations.

Since their last reported fair value (3Q20) Tencent Holdings (700 HK)’s listed investees have continued their meteoric share price rise which, along with the Kuaishou Technology (1024 HK) IPO, have helped propel Tencent to be one of the top-performing Global Emerging Market shares in the short period we have had year-to-date. 
Given the meteoric rise in Tencent’s share price, the continued extremely bullish market sentiment around the sector, the continued sharp share price appreciation of their main listed investees, as well as the likely impact of the Kuaishou listing on their aggregate fair value, in this insight, I have updated my analysis on the impact of Tencent’s listed associates on the implied valuation of Tencent’s consolidated operations.

Tencent: An Update on Investees and the Implied Valuation of Consolidated Operations

United States

Tesla Inc. operates as a multinational automotive and clean energy company. The Company designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers.

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Tesla (TSLA US)

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Breaking: Tesla Forced to Recall 135K on Faulty Touchscreens

The Feds asked nicely first, but that doesn't work with Tesla. Add it to the list of several big, expensive fixes Tesla has been ordered to make...

Vicki Bryan

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BondEvalue

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Tesla Disappoints With Skimpy Fourth Quarter "Profit" and Weaker Than Expected 2021 Guidance. Why leverage is more like 6x, or worse. And what's it...

Vicki Bryan

Tencent: An Update on Investees and the Implied Valuation of Consolidated Operations

In this insight, I account for the increase in fair value of Tencent’s investees, including the Kuaishou IPO, which indicates that consolidated...

Wium Malan, CFA

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