Reduce Your Exposure To These Stocks | Twitter Faces Protracted Legal Battle

[] A strong U.S. dollar has rocked the global financial sector. I’ve never seen the dollar bullish index this high since its inception... Also, Dr. Bauer explains what is in store for Elon Musk after backing out of the Twitter deal. [View in browser]( . A strong U.S. dollar has rocked the global financial sector. I’ve never seen the dollar bullish index this high since its inception... Also, Dr. Bauer explains what is in store for Elon Musk after backing out of the Twitter deal. [View in browser]( . . [] [Havens Investment Letter] [] [Havens Investment Letter] [] [] [] This Busy Trader Clocks Out By 10:30 AM... On top of being a brilliant trader, Jeffry Turnmire is still a professional engineer. So he needed a strategy that fit his schedule. Then, he discovered an insane glitch in the market. Now, he trades for an hour at the opening bell, and clocks out for the rest of the day! [See how Jeffry trades these 60 Minute Surges]( [] --------------------------------------------------------------- [] This Busy Trader Clocks Out By 10:30 AM... On top of being a brilliant trader, Jeffry Turnmire is still a professional engineer. So he needed a strategy that fit his schedule. Then, he discovered an insane glitch in the market. Now, he trades for an hour at the opening bell, and clocks out for the rest of the day! [See how Jeffry trades these 60 Minute Surges]( [] --------------------------------------------------------------- [] [] Reduce Your Exposure To These Stocks [Garrett Pic] Dear Investor, Market momentum is Yellow. Money has remained largely on the sideline, but Goldman Sachs (GS) earnings report helped push a lot of capital into the markets this morning. Be patient. Opportunities will come. Look to American Express (AXP) as an opportunity. On Friday, I explained the impact of a rising dollar on emerging markets. Today, I want to talk a bit more about how the strong greenback impacts American companies with exposure abroad. It’s not that complicated… Let’s say that a company generates 50% of its revenue in the U.S. and 50% of its revenue in Europe. If the currency value of the local currency declines over a year, it must convert that money back at a higher exchange rate in the U.S. So, even though the business remains the same from 2021 to 2022, a 15% drop in currency value in the Euro will hurt its international profits. Its profits decline due to the impact of foreign exchange. I want to show you the top companies facing forex challenges in 2022. Talking The Broad Market In 2021, international sales accounted for 29% of the $14 trillion in total revenues for S&P 500 companies. That figure increased from 28% the year prior. Around the globe, the Asia-Pacific region represents 9% of non-US revenues for these firms. Europe represents 6%. And 3% come explicitly from China, according to Goldman Sachs. These are considered… the growth markets. In April, S&P Global conducted a recap of earnings growth among companies in the S&P 500 index. Surprisingly, companies that generated more than 50% of their revenue from nations abroad, these firms had earnings growth of 13.5%. This is long before cuts to global growth expectations, concerns about a U.S. recession, and the dollar’s outrageous surge in May and June. Does anyone believe that breakneck pace will continue? The growth numbers wouldn’t have been so significant if not for three companies: Exxon Mobil (XOM), Pfizer (PFE), and Chevron (CVX). If not for those three companies - the blended growth rate would fall to about 5.1%, according to S&P analysis. But, if you haven’t noticed, Chevron and Exxon remain under pressure due to falling oil prices… for now. Companies With the Most Exposure The U.S. dollar’s rally is the strongest we’ve witnessed in more than 15 years. As a result, the Invesco DB Dollar Bullish Index (UUP) has cracked $29.00 per unit. It has shattered the previous move for the UUP that happened in the wake of the COVID-19 crash and hit its highest levels since the inception of the ETF. Naturally, an overheated U.S. dollar will affect companies with the most exposure abroad. Goldman Sachs (GS) analysis shows that several technology giants and materials firms have a LOT of exposure abroad. According to a recent study, the following companies are overexposed: - Qualcomm (QCOM) at 96% - Schlumberger (SLB) at 85% - Aflac (AFL) at 70% - Netflix (NFLX) at 59% - Meta Platforms (META) at 59% - Alphabet (GOOG) at 54%. And don’t forget Phillip Morris (PM), the tobacco giant that split from Altria Group (MO) long ago. PM’s entire business is international. Check Out This Chart I own a small business in the United States and consult for several others. One of the most important surveys that I follow is the optimism outlook among small businesses. The National Federation of Independent Business conducts a monthly analysis of economic expectations for the future. There’s never been a projection like this before. We’re at -61%, lower than the recessionary expectations for 1989, 2001, and 2008. We’re still in the very early innings of this economic downturn. This is just one chart that has really made my eyes pop as we head into the fall when markets are typically the most volatile. Let’s look at some more data tomorrow. More important, let’s find ways to profit from it in the weeks ahead, [Garrett Sig] Garrett {NAME} Chief Analyst, American Markets [] --------------------------------------------------------------- [] [] Reduce Your Exposure To These Stocks [Garrett Pic] Dear Investor, Market momentum is Yellow. Money has remained largely on the sideline, but Goldman Sachs (GS) earnings report helped push a lot of capital into the markets this morning. Be patient. Opportunities will come. Look to American Express (AXP) as an opportunity. On Friday, I explained the impact of a rising dollar on emerging markets. Today, I want to talk a bit more about how the strong greenback impacts American companies with exposure abroad. It’s not that complicated… Let’s say that a company generates 50% of its revenue in the U.S. and 50% of its revenue in Europe. If the currency value of the local currency declines over a year, it must convert that money back at a higher exchange rate in the U.S. So, even though the business remains the same from 2021 to 2022, a 15% drop in currency value in the Euro will hurt its international profits. Its profits decline due to the impact of foreign exchange. I want to show you the top companies facing forex challenges in 2022. Talking The Broad Market In 2021, international sales accounted for 29% of the $14 trillion in total revenues for S&P 500 companies. That figure increased from 28% the year prior. Around the globe, the Asia-Pacific region represents 9% of non-US revenues for these firms. Europe represents 6%. And 3% come explicitly from China, according to Goldman Sachs. These are considered… the growth markets. In April, S&P Global conducted a recap of earnings growth among companies in the S&P 500 index. Surprisingly, companies that generated more than 50% of their revenue from nations abroad, these firms had earnings growth of 13.5%. This is long before cuts to global growth expectations, concerns about a U.S. recession, and the dollar’s outrageous surge in May and June. Does anyone believe that breakneck pace will continue? The growth numbers wouldn’t have been so significant if not for three companies: Exxon Mobil (XOM), Pfizer (PFE), and Chevron (CVX). If not for those three companies - the blended growth rate would fall to about 5.1%, according to S&P analysis. But, if you haven’t noticed, Chevron and Exxon remain under pressure due to falling oil prices… for now. Companies With the Most Exposure The U.S. dollar’s rally is the strongest we’ve witnessed in more than 15 years. As a result, the Invesco DB Dollar Bullish Index (UUP) has cracked $29.00 per unit. It has shattered the previous move for the UUP that happened in the wake of the COVID-19 crash and hit its highest levels since the inception of the ETF. Naturally, an overheated U.S. dollar will affect companies with the most exposure abroad. Goldman Sachs (GS) analysis shows that several technology giants and materials firms have a LOT of exposure abroad. According to a recent study, the following companies are overexposed: - Qualcomm (QCOM) at 96% - Schlumberger (SLB) at 85% - Aflac (AFL) at 70% - Netflix (NFLX) at 59% - Meta Platforms (META) at 59% - Alphabet (GOOG) at 54%. And don’t forget Phillip Morris (PM), the tobacco giant that split from Altria Group (MO) long ago. PM’s entire business is international. Check Out This Chart I own a small business in the United States and consult for several others. One of the most important surveys that I follow is the optimism outlook among small businesses. The National Federation of Independent Business conducts a monthly analysis of economic expectations for the future. There’s never been a projection like this before. We’re at -61%, lower than the recessionary expectations for 1989, 2001, and 2008. We’re still in the very early innings of this economic downturn. This is just one chart that has really made my eyes pop as we head into the fall when markets are typically the most volatile. Let’s look at some more data tomorrow. More important, let’s find ways to profit from it in the weeks ahead, [Garrett Sig] Garrett {NAME} Chief Analyst, American Markets --------------------------------------------------------------- [] Bitcoin Bull Declares: “STOP Buying Altcoins!” [bitcoin bull]( [Join him for this FREE crypto workshop to learn his higher-probability strategy]( --------------------------------------------------------------- [] [] Bitcoin Bull Declares: “STOP Buying Altcoins!” [bitcoin bull]( [Join him for this FREE crypto workshop to learn his higher-probability strategy]( --------------------------------------------------------------- [] [] [] Twitter Faces Protracted Legal Battle [Bauer Pic] Dear Investor, I don't know how you felt last week. But to me, it wasn't a particularly big surprise that Elon Musk withdrew his $44 billion offer to buy Twitter. If The Stock Price Doesn't Follow Suit My assessment was based less on the numerous articles published from the start in reputable media outlets like the Financial Times or the Washington Post. And certainly not based on the many tweets Elon Musk tweeted on Twitter, the medium he supposedly wanted to acquire. No, my assessment was based quite simply on Twitter's stock price. After all, if the majority of investors thought the deal could be successfully completed, Twitter's share price would hardly have been so significantly below the acquisition price of $54.20 per share. Missing Data On Robot Accounts So now the time has come: billionaire Elon Musk would prefer to undo the attempt to take over Twitter. That's according to a filing with the Securities and Exchange Commission, or SEC, received late Friday. It reiterates Musk's claims that Twitter has not provided information that would allow his team to determine whether the company has correctly measured the number of robotic accounts, known as bot accounts, and false user accounts, known as fake accounts. Twitter's previous estimate was that spam accounts accounted for less than 5 percent in the first quarter. Musk and his team should have been able to verify this themselves because they were provided with a gigantic data package by Twitter. But Musk has now come to the conclusion that the figures complained about cannot be verified. Other Information Is Also Allegedly Missing Musk also criticized the fact that a requested financial model for 2022, a budget for 2022, an updated draft budget, and a copy of the Goldman Sachs valuation model - on which an independent company valuation of Twitter was based - were not provided to him as Excel files, but only as PDF files. And to make sure Musk doesn't have to take over Twitter at the originally specified price, he also objects to the cost-cutting measures Twitter took after the acquisition was announced. Not only were two high-ranking employees laid off, but also an entire talent acquisition team. In addition, Twitter has imposed a general hiring freeze, which even extends to re-screening open job offers. But whether all of this is enough is unclear. The fact is that it won't be easy for the Tesla CEO, who just became a father for the eighth and ninth time, to wiggle out of the deal. Quite a few experts believe that just the reference to the bot and fake accounts will not be enough to withdraw from the agreement. $1 Billion The amount of the penalty Musk would have to pay if the purchase agreement is terminated is $1 billion. That's no mean feat even for Musk, whose fortune is currently estimated at $221.4 billion. Not to mention possible compensation payments. Now it will probably come to a protracted legal dispute, and that with a man who has already messed with the SEC once: And got off relatively scot-free in the process. Given the many figures involved in the deal and its financing, the biggest surprise would be if the Twitter dispute culminated in anything less than a media circus. This one, however, usually lasts a few years. Which is bad for the stock, but good for our entertainment. It remains exciting. Have a great day, [Bauer Sig] Dr. Gregor Bauer Chief Analyst, European Markets [] --------------------------------------------------------------- [] [] Twitter Faces Protracted Legal Battle [Bauer Pic] Dear Investor, I don't know how you felt last week. But to me, it wasn't a particularly big surprise that Elon Musk withdrew his $44 billion offer to buy Twitter. If The Stock Price Doesn't Follow Suit My assessment was based less on the numerous articles published from the start in reputable media outlets like the Financial Times or the Washington Post. And certainly not based on the many tweets Elon Musk tweeted on Twitter, the medium he supposedly wanted to acquire. No, my assessment was based quite simply on Twitter's stock price. After all, if the majority of investors thought the deal could be successfully completed, Twitter's share price would hardly have been so significantly below the acquisition price of $54.20 per share. Missing Data On Robot Accounts So now the time has come: billionaire Elon Musk would prefer to undo the attempt to take over Twitter. That's according to a filing with the Securities and Exchange Commission, or SEC, received late Friday. It reiterates Musk's claims that Twitter has not provided information that would allow his team to determine whether the company has correctly measured the number of robotic accounts, known as bot accounts, and false user accounts, known as fake accounts. Twitter's previous estimate was that spam accounts accounted for less than 5 percent in the first quarter. Musk and his team should have been able to verify this themselves because they were provided with a gigantic data package by Twitter. But Musk has now come to the conclusion that the figures complained about cannot be verified. Other Information Is Also Allegedly Missing Musk also criticized the fact that a requested financial model for 2022, a budget for 2022, an updated draft budget, and a copy of the Goldman Sachs valuation model - on which an independent company valuation of Twitter was based - were not provided to him as Excel files, but only as PDF files. And to make sure Musk doesn't have to take over Twitter at the originally specified price, he also objects to the cost-cutting measures Twitter took after the acquisition was announced. Not only were two high-ranking employees laid off, but also an entire talent acquisition team. In addition, Twitter has imposed a general hiring freeze, which even extends to re-screening open job offers. But whether all of this is enough is unclear. The fact is that it won't be easy for the Tesla CEO, who just became a father for the eighth and ninth time, to wiggle out of the deal. Quite a few experts believe that just the reference to the bot and fake accounts will not be enough to withdraw from the agreement. $1 Billion The amount of the penalty Musk would have to pay if the purchase agreement is terminated is $1 billion. That's no mean feat even for Musk, whose fortune is currently estimated at $221.4 billion. Not to mention possible compensation payments. Now it will probably come to a protracted legal dispute, and that with a man who has already messed with the SEC once: And got off relatively scot-free in the process. Given the many figures involved in the deal and its financing, the biggest surprise would be if the Twitter dispute culminated in anything less than a media circus. This one, however, usually lasts a few years. Which is bad for the stock, but good for our entertainment. It remains exciting. Have a great day, [Bauer Sig] Dr. Gregor Bauer Chief Analyst, European Markets --------------------------------------------------------------- [] [] 20-Year CBOE Vet Reveals: “This is My Answer to Volatility” Alan Knuckman is a CBOE veteran who has made millions trading the market, appearing regularly on every major financial network in the company. But today—after 3 years of research—and billions of data points analyzed… He’s revealing one of the biggest breakthroughs of his career! It’s a research project that helps solve the scariest issue for most traders… [Click here to learn Alan’s solution for volatility]( --------------------------------------------------------------- [] [] [] 20-Year CBOE Vet Reveals: “This is My Answer to Volatility” Alan Knuckman is a CBOE veteran who has made millions trading the market, appearing regularly on every major financial network in the company. But today—after 3 years of research—and billions of data points analyzed… He’s revealing one of the biggest breakthroughs of his career! It’s a research project that helps solve the scariest issue for most traders… [Click here to learn Alan’s solution for volatility]( --------------------------------------------------------------- [] [] Article Recap - [Reduce Your Exposure To These Stocks](#i572731) - [Twitter Faces Protracted Legal Battle](#i572028) - [0-Year CBOE Vet Reveals: “This is My Answer to Volatility”](#159895) --------------------------------------------------------------- [] Article Recap - [Reduce Your Exposure To These Stocks](#i572731) - [Twitter Faces Protracted Legal Battle](#i572028) - [0-Year CBOE Vet Reveals: “This is My Answer to Volatility”](#159895) --------------------------------------------------------------- [] © 2022 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information, please visit [our disclaimer page here.]( Sent to: {EMAIL} [Unsubscribe]( Godesburg Financial Publishing Inc., 251 Little Falls Drive, Wilmington, DE 19808, United States [] © 2022 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information, please visit [our disclaimer page here.]( Sent to: {EMAIL} [Unsubscribe]( Godesburg Financial Publishing Inc., 251 Little Falls Drive, Wilmington, DE 19808, United States