Go get 'em, Samsung | CVC goes on vacation | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for April 8th in 3:12 minutes. ð Come find the official [Finimize Club]( on Clubhouse, folks: join us for todayâs show at 6pm UK time / 1pm New York time, and letâs have a chat about Teslaâs valuation, shall we? [Join the club]( Today's big stories - Samsung is projecting a big jump in last quarterâs profit, and the global chip shortage could mean even better days ahead
- There are two strategies you can use to make the most of a one-of-a-kind earnings season â [Read Now](
- Private equity firm CVC Capital is looking to buy Japanese conglomerate Toshiba Smart Money [Smart Money] Whatâs Going On Here? Samsung [announced]( on Wednesday that itâs projecting a 44% jump in last quarterâs profit, as a homebound world kitted out their kitchens with unnecessary â but admittedly really cool â gear. What Does This Mean? Samsung is all set to report its first-quarter earnings at the end of the month, but clearly it couldnât contain itself till then: the company revealed that its profit is poised to climb by just as much as analysts are expecting. That surge is probably down to strong sales of smartphones and home appliances, which have offered locked-down customers something to spend their money on in the absence of, yâknow, active social lives. Why Should I Care? For markets: Everyoneâs hungry for chips.
Samsungâs investors have good reason to be feeling positive about the companyâs future profitability: itâs the worldâs biggest maker of memory chips, and thatâs a good business to be in nowadays. See, thereâs a global shortage of semiconductors because of strong demand for anything electronic, and thatâs been driving up their prices since March. And with the shortage [expected]( to last for two more years, they might have a lot higher to rise⦠The bigger picture: Are smartphones a dying business?Â
The launch of Samsungâs latest smartphone in January boosted its market share too, with the companyâs sales representing [23%]( of the global smartphone market last quarter. Thatâs up from [16%]( the quarter before, when arch-rival Apple poached the top spot for the first time in four years. LG Electronics, for its part, seems fed up of being the third wheel in this will-they wonât-they: the manufacturer [announced]( on Monday that itâs quitting the smartphone market altogether to focus on electric vehicle (EV) components. That might be a smart move: the EV market is only just taking off, while fresh data has [shown]( a 10% fall in the global smartphone market last year â the third drop-off in a row ([tweet this](). You might also like: [Three visions of Appleâs future beyond smartphones.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Smart Money&utm_campaign=daily-global-08-04-2021&utm_source=email) 2. Analyst Take This Earnings Season Is A One-Of-A-Kind Opportunity Whatâs Going On Here? Investors are always on high alert during company earnings season, but the next one â which kicks off next week â offers a [pretty unique opportunity](. Hereâs the thing: analysts have a habit of cutting company profit estimates over the course of a quarter. But last quarter, they didnât just raise them: they raised them by the most in [almost 20 years](. US stock prices have [risen too](, likely as investors âpriced inâ analystsâ high hopes. And that means thereâs arguably an [outsized risk of negative surprises](, giving missed forecasts the power to send a stock prices tumbling faster and further than normal. The opposite is true too: the [two worst-performing sectors]( this year go into this round of updates with stable profit forecasts, and could see their stocks jump if they outperform. So thatâs todayâs todayâs Insight: which stocks are in a good place, which arenât, and [two strategies you can use to profit from this one-off situation](. [Read or listen to the Insight here]( SPONSORED BY COINLIST Smart investors know it pays to be early in crypto And with [crypto in a raging bull market](, the demand for compliant token sales has been unprecedented. [CoinListâs platform]( is purpose-built to give you [early access to the most cutting-edge crypto projects](. It lets you invest in, earn from, and trade on the best new tokens [before other exchanges](. The crypto community is taking notice, and itâs no wonder why. Just look at Solana (SOL), Flow (FLOW), and Filecoin (FIL). Each was sold on [CoinList]( before exploding in popularity: Solana went from [22 cents to $25](, Flow from [38 cents to $46](, and Filecoin from [$5 to $235](. On [CoinList](, youâll never be late to the party. So sign up today, and [get $10 in bitcoin]( when you make a trade worth over $100. [Get Started]( Please support our sponsors Wish You Were Here [Wish You Were Here] Whatâs Going On Here? Private equity firm CVC Capital [made]( a $20 billion offer to buy Japanese conglomerate Toshiba on Wednesday, in what would be the countryâs biggest [leveraged buyout]( in history. What Does This Mean? In a leveraged buyout, a private equity firm â Europeâs CVC, in this case â borrows money to buy a business, typically hoping to improve its operations and sell for a profit later on. And given that global investors see Japanese conglomerates as particularly inefficient, itâs a strategy that could work out well for Toshiba and its shareholders. Toshibaâs shares surged 18% to a four-year high on the news of CVSâs offer, but itâs fair to say those investors might be getting ahead of themselves. The government has to sign off on any takeover bids made by foreign private equity firms, and considering Toshibaâs in charge of the countryâs nuclear power plants, this oneâs going to be under even more scrutiny⦠Why Should I Care? The bigger picture: Private equity firms arenât through with Japan yet.
Private equity firms see Japan as one of the most target-rich markets in the world, and it shows: theyâve announced $15 billion worth of buyout deals focused on Japanese firms in the last twelve months, according to Bloomberg. This Toshiba takeover would be CVCâs second major deal in the country this year alone, after it agreed to [buy]( Shiseidoâs personal care business for $1.5 billion in February. For markets: Welcome to the Land of Rising Activism.
[Activist investors]( have increasingly been [flexing]( their muscles in Japan over the last few years, pushing management teams to make reforms thatâll give shareholders more bang for their buck. That hasnât gone unnoticed by Toshiba: the company â which was forced to issue $5.3 billion of new shares after a brush with bankruptcy in 2017 â is heavily owned by foreign activist funds, which just [won]( a landmark vote to investigate the companyâs management team. You might also like: [How private equity firms like CVC make money.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Wish You Were Here&utm_campaign=daily-global-08-04-2021&utm_source=email) ð¬ Quote of the day âActivism is my rent for living on the planet.â â Alice Walker (an American novelist, short story writer, poet, and social activist) [Tweet this]( SPONSORED BY TASTE LABS Thereâs no accounting for good Taste Thereâs more choice than ever these days, but more endless scrolling too. [Taste Labs]( is on a mission to fix that: the companyâs AI platform offers [tailored product recommendations]( based on your â you guessed it â personal taste. Good idea, right? Well, Taste is raising money on [StartEngine](, and you could [back the company]( as it goes from strength to strength. See, Tasteâs app is one of the worldâs most downloaded recommendation apps, with [over 500,000 users]( and more than 4,000 five-star reviews. In fact, Tasteâs user base [grew organically by 76%]( last year, and the companyâs raised over $1 million since 2019. People like it, is what weâre saying. But youâll need to be quick: you only have [till April 12th to buy in](. [Find Out More]( Please support our sponsors ð What we're reading - 24/7 vet support, $3k emergency fund, multi-pet protection ([Pawp]()*
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- RIP Yahoo Answers ([CNN]() *This sponsored content helps us keep the newsletter free. ð Finimize Events ð· Thatâs good juice Booze is good for many things, not least getting us through lockdown. But turns out those bottles of hooch might make a pretty good investment too. Just ask Novel Wineâs Ben Franks at our [Investing in Wine and Whiskey]( event: youâll get his hard-won advice on buying and selling the most in-demand liquor, as well as how to look all fancy when youâre drinking (spoiler: itâs all in the pinky). ðµ [The Surge In Digital Payments](: 6pm UK time, April 8th
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ð¡ [Investing In Small-Medium Cap Stocks](: 6pm UK time, April 21st
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