Trading/Investing Thread - Page 68

On February 26 2021 03:22 Emnjay808 wrote:
Can someone explain what IPO means? As far as I understand it’s a company getting appraised and backed by an initial investor (bank) before it offers its shares to the public?

Like how would it’s “book value” be determined etc?

On February 26 2021 10:26 LegalLord wrote:
Been a weird few days of market watching. Slight raise in bond yields leading to a big market plummet, a reversal then rally as JPow promises more money printing, GME gets a second wind, then all the most highly-pumped assets took a big tumble today. Could just be noise but it feels like something more substantial at play. As though even the tiniest rise in the cost of money will lead to a death spiral for all these stocks.

On February 28 2021 04:10 Emnjay808 wrote:
What do you guys think of Ehang? Im thinking of buying while it’s low and holding long term.

Edit: I’m not asking for advice. Just wanna hear any thoughts or 2cents.

Morgan Stanley is the first big U.S. bank to offer its wealth management clients access to bitcoin funds, CNBC has learned exclusively.

The investment bank, a giant in the wealth management with $4 trillion in client assets, told its financial advisors Wednesday in an internal memo that the bank is launching access to three funds that enable ownership of bitcoin, according to people with direct knowledge of the matter.

The move, a significant step for the acceptance of bitcoin as an asset class, was made by Morgan Stanley after clients demanded exposure to the cryptocurrency, said the people, who declined to be identified sharing details about the bank’s internal communications. Bitcoin’s rally in the past year has put Wall Street firms under pressure to consider getting involved in the nascent asset class.

But, at least for now, the bank is only allowing its wealthier clients access to the volatile asset: The bank considers it suitable for people with “an aggressive risk tolerance” who have at least $2 million in assets held by the firm.

Investment firms need at least $5 million at the bank to qualify for the new stakes. In either case, the accounts have to be at least six months old.

And even for those accredited U.S. investors with brokerage accounts and enough assets to qualify, Morgan Stanley is limiting bitcoin investments to as much as 2.5% of their total net worth, said the people.

LONDON — Credit Suisse and Nomura warned Monday of “significant” hits to first-quarter results, after they began exiting positions with a large U.S. hedge fund that defaulted on margin calls last week.

While neither Credit Suisse nor Nomura named the fund, it’s been widely reported that Archegos Capital Management is the firm connected to the fire sale.

In a trading update before the market open, Credit Suisse said a number of other banks were also affected and had begun exiting their positions with the unnamed firm. The Zurich-based lender’s shares closed down nearly 14% on Monday following the announcement.

“While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results, notwithstanding the positive trends announced in our trading statement earlier this month,” Credit Suisse said. It added that it would provide a further update on the matter “in due course.”

A margin call occurs when a broker demands that an investor deposits more money into a margin account, which enables them to invest money borrowed from the broker, to bring it to a minimum required amount. The investor then has to either deposit into the account, or sell some of the assets held in it.

Nomura also issued a trading update on Monday warning of a “significant loss” at one of its U.S. subsidiaries resulting from transactions with a client stateside. Japan’s largest investment bank said it was evaluating the potential extent of the loss, estimated at $2 billion. Its shares fell more than 16% on Monday.

“This estimate is subject to change depending on unwinding of the transactions and fluctuations in market prices,” the bank said.

“Nomura will continue to take the appropriate steps to address this issue and make a further disclosure once the impact of the potential loss has been determined.”

Archegos Capital Management was forced to liquidate positions at the end of last week. The moves by the multibillion dollar U.S. family office, founded by former Tiger Management equity analyst Bill Hwang, caused a wave of selling pressure on Friday, with U.S. media stocks and Chinese internet ADRs taking the brunt.

A trader who asked to remain anonymous told CNBC this weekend that Credit Suisse — along with Goldman Sachs, Morgan Stanley and Deutsche Bank — all forced Archegos to liquidate a number of positions.

CNBC reached out to Archegos Capital over the weekend, but calls and emails were not returned.

Johann Scholtz, equity analyst at Morningstar, told CNBC on Monday there could be more exposure to Archegos in the banking space.

“But I think the question is really to what extent the banks have hedged out their risks, and it seems that Nomura and Credit Suisse’s risk management was maybe not as stringent as it might have been, or should have been, which I think explains the large moves in their share prices this morning,” he added.

GRAPEVINE, Texas, March 30, 2021 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that it has appointed Elliott Wilke to the role of Chief Growth Officer. Mr. Wilke’s start date is April 5, 2021.

Mr. Wilke brings nearly two decades of branding, consumer goods and e-commerce experience to GameStop. He joins from Amazon, where he spent the past seven years holding a variety of senior roles across segments such as Amazon Fresh, Prime Pantry and Worldwide Private Brands. He began his career at Proctor & Gamble and spent more than a decade in brand manager and marketing roles of increasing responsibility. At GameStop, Mr. Wilke will oversee growth strategies and marketing, with a focus on increasing customer loyalty and growing the reach of Power Up Rewards and Game Informer. He will also work with other leaders on initiatives that include expanding the Company’s use of customer insights and metrics to optimize channel marketing.

Additionally, the Company made two other executive hires:

Andrea Wolfe, Vice President of Brand Development – Ms. Wolfe, who previously served as Chewy’s Vice President of Marketing, started March 29, 2021. She has held executive and director-level marketing roles at companies such as Outdoorsy, Spreetrail and Whole Foods. In her new role, Ms. Wolfe will help drive branding, content, social media strategy and other digital initiatives.

Tom Petersen, Vice President of Merchandising – Mr. Petersen, who previously served as Chewy’s Vice President of Merchandising, started March 29, 2021. He has also held senior marketing and merchandising roles at specialty retailers such as Artenza and Corro. In his new role, Mr. Petersen will help drive vendor relations, product management and related merchandising initiatives.

ZURICH (Reuters) - Credit Suisse said on Tuesday it will take a 4.4 billion Swiss franc ($4.7 billion) hit from dealings with Archegos Capital Management, prompting it to overhaul the leadership of its investment bank and risk divisions.

The scandal-hit bank now expects to post a loss for the first quarter of around 900 million Swiss francs. It is also suspending its share buyback plans and cutting its dividend by two thirds.

Switzerland’s No. 2 bank, which has dumped over $2 billion worth of stock to end exposure to the New York investment fund run by former Tiger Asia manager Bill Hwang, said Chief Risk and Compliance Officer Lara Warner and investment banking head Brian Chin were stepping down following the losses.

The Archegos hit eclipses the bank’s 2.7 billion Swiss franc net profit last year, with questions over how its exposure to Hwang became so big remaining unanswered.

The night before the Archegos Capital story burst into public view late last month, the fund’s biggest prime broker quietly unloaded some of its risky positions to hedge funds, people with knowledge of the trades told CNBC.

Morgan Stanley sold about $5 billion in shares from Archegos’ doomed bets on U.S. media and Chinese tech names to a small group of hedge funds late Thursday, March 25, according to the people, who requested anonymity to speak frankly about the transaction.

It’s a previously unreported detail that shows the extraordinary steps some banks took to protect themselves from incurring losses from a client’s meltdown. The moves benefited Morgan Stanley, the world’s biggest equities trading shop, and its shareholders. While the bank escaped from the episode without material losses, other firms were less fortunate. Credit Suisse said Tuesday that it took a $4.7 billion hit after unwinding losing Archegos positions; the firm also cut its dividend and halted share buybacks.

Morgan Stanley had the consent of Archegos, run by former Tiger Management analyst Bill Hwang, to shop around its stock late Thursday, these people said. The bank offered the shares at a discount, telling the hedge funds that they were part of a margin call that could prevent the collapse of an unnamed client.

But the investment bank had information it didn’t share with the stock buyers: The basket of shares it was selling, comprised of eight or so names including Baidu and Tencent Music, was merely the opening salvo of an unprecedented wave of tens of billions of dollars in sales by Morgan Stanley and other investment banks starting the very next day.

Some of the clients felt betrayed by Morgan Stanley because they didn’t receive that crucial context, according to one of the people familiar with the trades. The hedge funds learned later in press reports that Hwang and his prime brokers convened Thursday night to attempt an orderly unwind of his positions, a difficult task considering the risk that word would get out.

That means that at least some bankers at Morgan Stanley knew the extent of the selling that was likely and that Hwang’s firm was unlikely to be saved, these people contend. That knowledge helped Morgan Stanley and rival Goldman Sachs avoid losses because the firms quickly disposed of shares tied to Archegos. Morgan Stanley and Goldman declined to comment for this article.

Morgan Stanley was the biggest holder of the top 10 stocks traded by Archegos at the end of 2020 with about $18 billion in positions overall, according to an analysis of filings by market participants. Credit Suisse was the second most exposed with about $10 billion, these sources noted. That means that Morgan Stanley could’ve faced roughly $10 billion in losses had it not acted quickly.

“I think it was an ‘oh s---’ moment where Morgan was looking at potentially $10 billion in losses on their book alone, and they had to move risk fast,” the person with knowledge said.