Daily Brief Financials: Hang Seng Index, Goldman Sachs Group, FNF Group, AmBase , Avanza Bank Holding, Foxtons and more

• The Hang Seng Index this week reversed up and close the week up, after 3 weeks down. This may not be the usual opportunity to go SHORT.
• The index may rise for another 1 week and then pullback, but our seasonal matrix model says there is a good probability the HSI rallies in February.
• Based on this market reading we advise HSI Short Sellers to be particularly careful when setting up SHORT trades between here and the end of February.

• Goldman reported FY and Q4 2023 earnings and revenue that topped analysts estimates. Goldman stands to benefit from higher deal-making and lower operating expenses in 2024.
• FY2023 earnings and revenue were lower than FY2022 as Goldman faced large losses on its real estate portfolio and retreat from its consumer banking push.
• Q4 earnings beat expectations by a huge margin but investment banking fees continued to lag; heading into a looser monetary environment in 2024, Goldman stands to outperform.

Key points (machine generated)

• Fidelity National has a track record of creating value through acquiring and spinning off financial businesses, making it an attractive investment opportunity.
• The recent partial spin-off of F&G Annuities & Life Inc. and the decline in mortgage origination volumes make now a good time to invest in Fidelity National.
• The author recommends taking a long position in Fidelity National, while hedging exposure to FG, as they believe the title business is undervalued.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• A case involving Ambase is expected to go to trial or be resolved through summary judgment in early 2025.
• The outcome of this litigation will have a significant impact on the potential value of Ambase as an investment, as its current market cap is significantly below the potential claim.
• The upcoming document discovery process and motions for summary judgment will allow investors to evaluate the chances of a positive outcome and potential net recovery for Ambase shareholders.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Avanza, a Swedish direct-to-consumer investment platform, has seen a significant decline in its share price since August 2021, with a 42% decrease and a 50% decrease from its peak in November 2021.
• Despite the decrease in share price, Avanza remains an attractive investment opportunity due to its offerings and market position.
• Avanza allows Swedish consumers to invest in a variety of securities and funds through different types of accounts, including pension schemes and tax-efficient investment accounts. The company also provides cash savings products, corporate finance services, and lending options for mortgages and margin loans. With a large capital of SEK715bn and 1.87 million clients, representing 18% of the Swedish population, Avanza is the leading D2C platform in Sweden.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

In FY23, Foxtons Group’s three divisions took market share, the direct result of management action to invest in the business. The company’s new strategy focuses growth on non-cyclical revenue streams and decouples performance from sales market cycles. This is evidenced in the FY23 trading update, which highlights a financial performance that exceeds market expectations. At this early stage of the year, we are retaining our FY24 and FY25 estimates and valuation, but it would appear that the risks to our estimates are to the upside.