Putin The Markets At Risk

Sponsored By April 11, 2022 Good morning traders, Welcome back to The Daily Setup. Markets were mixed on Friday heading into the weekend. Here’s what’s on the docket today: - Rackspace gets downgraded - Russia is downgraded to ‘selective default’ - The Discovery and Warner Media merger finally closes Let’s have a good week. Nick How'd the markets look? Market Outlook More Like Whackspace, Am I Right? Biggest Mover [Activision Blizzard, Inc. ]( [RXT $9.50 (▼13.24%) Rackspace Technology, Inc. | Google Finance]( Spring Fridays are the time to head into a weekend with momentum, a full head of steam ready to move the mouse a bit to keep that IM light green, and then head out early. Rackspace Technology treated Friday a bit differently, [catching an analyst downgrade]( and getting beaten worse than Bryson DeChambeau at Augusta. Let’s just say Oppenheimer analyst Timothy Horan shouldn’t be on the lookout for a company Christmas card this winter. - Citing margin concerns and a high debt load, Horan downgraded the stock to Perform from Outperform, sending shares down more than 13% on Friday. - The cloud platform provider has been under pressure lately, down more than 63% over the past 12 months, and if analysts are correct, 2022 could be the third straight year of declining revenue. Pretty much the opposite of what you expect from a company in the cloud computing industry. - Oppenheimer also [removed their price target]( from the shares, which had previously been set at $18 which is concerning, but also somewhat refreshing to see an analyst firm admit they have no idea what a stock is going to do. The debt issue is a major concern, because if Rackspace has to refinance some of its debt in a rising rate environment, the pain could be prolonged. Rackspace has done a whole lot of nothing since coming public in August of 2020, so there is little to suggest that management deserves a chance to try and right the ship. It’s springtime, so I’ll leave the disappointment to fans of small market baseball teams as they watch skinflint owners trade good players for heaps of minor league trash called “prospects”. Putin The Markets At Risk Street Stories [Cycling Downhill] S&P [downgraded Russia’s foreign currency]( rating to something called “Selective Default” on Friday over concerns that the country may not be able to meet its debt obligations. Way to be ahead of the curve there S&P, investors everywhere owe you a debt of gratitude for your vigilance and foresight. - The worldwide sanctions hitting Russia ever since it invaded Ukraine in late February could cause Moscow’s first sovereign default in over a century. - Russia made principal and interest [payments in rubles]( this past Monday on dollar denominated bonds, which at this point is roughly equivalent to using Marlboro Miles or Camel Cash. - The main driver of this rating is likely the US’s blockage of Russia’s latest bond payment, which was to be made using USD reserves held at US banks. The stars n bars [froze those funds]( last week, leaving Russia to sit on their thumbs. - Up until the Z tanks rolled into Ukraine, Russia’s debt had been rated investment grade, but now bondholders find themselves chasing the horse that has sprinted out of the barn. It is possible there are some brave souls waiting to go bottom fishing in Russian debt, scooping it up for rubles on the penny. The cynic in me says that any day now we’ll see notes from [JPM]( and [GS]( saying there is attractive upside in Russian debt, meaning that their proprietary desks went long last week and want to make a quick flip to their most valued bagholders clients. Sponsored By: The Best in Men's Grooming! On a mission to help men level up, [MANSCAPED]( specializes in men’s grooming and hygiene products, including premium tools, formulations, and accessories that introduce a whole new self-care routine for men. The fast-growing, high-growth company is currently available in 38 countries and has sold over 5 million of its [renowned Lawn Mower trimmers]( worldwide. [MANSCAPED](, a leader and pioneer in men’s grooming, has announced its intention to go public having entered into a definitive business combination agreement with Bright Lights Acquisition Corp. (Nasdaq: BLTS). The transaction, announced in November 2021, implies a combined company enterprise value of $1 billion. Led by founder and CEO Paul Tran, [MANSCAPED’s]( profitable business model has allowed it to grow from approximately $3 million in TTM revenue to nearly $300 million in just three years while only utilizing $23 million of raised equity. The company is expected to list on the Nasdaq under the ticker symbol “MANS” in the second quarter of 2022. Try out [MANSCAPED's]( all-in-one men’s grooming kit complete with [The Lawn Mower®]( 4.0 electric trimmer, the [Weed Whacker®]( nose and ear trimmer, anti-chafing groin deodorant, groin toner spray + 2 free gifts. [Get 20% off & free shipping now](. [GET 20% OFF NOW!]( *See Disclaimer Below Motus Take Their Talents Elsewhere Token Talk [Token Talk] Citigroup must be a really boring place to work because they’ve been losing executives faster than Softbank loses money on WeWork. Recently, the most notable departures have come from Alex Kriete, Greg Girasole, and Frank Cavallo. These guys decided to ditch Citi, seeking greener pastures to form [Motus Capital Management](, a firm with the goal of managing the crypto bets of high-wealth accounts. They’re currently seeking $100M in funding to start two hedge funds. - These guys are no slouches- [combined they have 29 years at Citi]( under their belt, having managed billions in assets during their tenure. They will be investing their own wealth in the venture. - Motus intends to offer [growth and income funds](. The growth fund will focus on investing in tokens with a smaller market cap. As crypto becomes more ubiquitous it’s no surprise that there’s a growing interest in having someone manage your digital assets. It’s even less of a surprise that experts are leaving the stuffy financial institutions of yesteryear to get in on the ground-floor of the new hotness. Considering that less than half of crypto hedge funds manage assets greater than $20M, there’s still tons of room for growth in this area of the crypto-economy, in my opinion. The ink dries for Warner Bros Discovery Deals and Rumors [Deals and Rumors] The merger between Discovery and Warner Media finally closed on Friday, and we’re here to give you a recap on the biggest shakeup in America’s media market. The move transforms Discovery from a modest size-streamer to one of the country’s largest media companies rivaling Disney and Netflix. And it’s also pretty good news for AT&T, who bungled their ownership of Warner Media and now walk away with a cool [$40.4B]( (minor detail - they bought it for $85.4B in 2018). - The combined entity will be known as Warner Bros Discovery and will be traded on the NASDAQ as [WBD](. It’s not all sunshine and rainbows though as WBD will be assuming $55B in debt left from AT&T’s tenure. - Discovery already had a robust stable of networks and IP, including [Food Network, HGTV, and TLC](. Post-deal they’ll also wield HBO, and CNN among a host of others. I can’t wait for that Game of Thrones + My 600 lb life crossover. It’s going to be really interesting to see what effect this deal will have on the media market. On one hand, there’s a good chance that acquisitions will continue to happen as Discovery’s competitors beef up to compete with the new kid in the neighborhood. Secondly, Discovery got where it is by relying on low-cost programming, a strategy it will continue to pursue. Lately, the sector has been characterized by spending wars. If WBD finds success while keeping production costs low, that could influence the tempo of the market overall. Link Roundup Other News + “You Weren’t Supposed to Do That!” - Amazon Wants a rerun on Union Vote ([link]() + In Soviet Russia, Interest Rate Cuts You! - RU Central Bank Cuts Interest Rates ([link]() + Roger GoiNg to Jail - Goldman Sachs Banker is Convicted in the 1MDB case ([link]() + Monopoly Money - S&P cuts Russia’s Foreign Currency Rating to “Selective Default” ([link]() + Well, we had a good run - Bank Deposits may decrease for the first time since WWII ([link]() Meme of the day Check premarket -> Pour coffee -> Read The Daily Setup, [via @wallstmemes]( [other news] 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? Email our team here support@thedailysetup.com © Copyright 2022, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( SPONSORED AD PLACEMENT: This email contains an advertisement by a party that is unaffiliated with Raging Bull. 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