IPO and L/S equity, 2015 Starmine top stock picker, Global Equity Research Ltd

Rickin Thakrar

14 years of experience in global investment research and trading. In relation to research, we focus on IPO, Event-driven and large-cap non-consensual ideas. In relation to trading, we focus on generating positive index-adjusted returns and have had several top-decile or top-quartile performances over the past three years. In terms of background, I have worked at several sell-side firms (JP, Redburn, Haitong, Mainfirst), won Starmine as top stock picker in European Food Retail in 2015 and have been voted top one to top-five by institutions and hedge funds. Please do ping us if you would like any further info. 

Global Equity Research Ltd. (GER) is an appointed representative of Messels Ltd., which is authorised and regulated by the Financial Conduct Authority of the UK.

IPO and L/S equity, 2015 Starmine top stock picker

What Will Amazon Buy Next? Anything in Australia/Asia?

Has Amazon Delayed Its Launch in Australia? The Near-Term Implications for Retailers

Equity Bottom-Up

<p>The following is a contrarian negative view on Amazon, particularly as it relates to its recent acquisition of Whole Foods. We argue there are five negative issues for Amazon/Whole Foods in the short to medium term, which are as follows:</p><ol><li>Whole Foods may lose in a price war with Trader Joe’s/Aldi</li><li>We estimate the Whole Foods acquisition could drive $12bn in shareholder value destruction</li><li>Whole Foods could end up with 0% margin and initial cost savings are limited in our view</li><li>Amazon’s reversion to physical space suggests a pure online grocery model is unlikely to succeed</li><li>Amazon’s cash flow could be subdued over the next 18 months</li></ol>

The following is a contrarian negative view on Amazon, particularly as it relates to its recent acquisition of Whole Foods. We argue there are five negative issues for Amazon/Whole Foods in the short to medium term, which are as follows:Whole Foods may lose in a price war with Trader Joe’s/AldiWe estimate the Whole Foods acquisition could drive $12bn in shareholder value destructionWhole Foods could end up with 0% margin and initial cost savings are limited in our viewAmazon’s reversion to physical space suggests a pure online grocery model is unlikely to succeedAmazon’s cash flow could be subdued over the next 18 months

Amazon.com Inc

Amazon/Whole Foods: The Bear Case