Inflation seems to be the only stability in a world of tumultuous uncertainty. As investors abandon high-growth tech stocks for more stable, low-risk alternatives, Covid variants are wreaking havoc on supply chain logistics and inflation continues to weigh on the industry in the sense large ; it is difficult to analyze the potential benefits.

This story is no more appropriate than for the automotive industry. We’ve seen many companies, from electric vehicles to ICEs, all reporting production issues due to inflationary pressure. Last month, Rivian reversed its decision to fight inflation by raising the selling price of its pre-order vehicles. Similarly, Tesla announced today that it will increase the cost of its vehicles due to inflation.

Also Read: The Best EV Stocks to Buy Right Now

Ford (NYSE: F) is arguably one of the companies best positioned to move forward. Embarking on a strong journey into electric vehicles while maintaining a pipeline of traditional vehicles, the Ford F-150 Lightning propelled Ford into the high end of the electric vehicle market, generating widespread interest across the United States . However, it’s time to look at Ford through an inflationary lens. Ford’s long-term status remains firm, but the company could well suffer over the next year, with potential production cuts, rising costs and supply constraints.

Jefferies analyst Philippe Houchois makes a similar sentiment, lowering Ford’s price target today to $18 from $20. The opportunity comes in the form of a general change for the company, taking into account the reality of a “stagflationary environment” based on rising input costs and supply problems that affect the entire Marlet. Houchois estimates that operating figures could drop by up to 30% for automakers; how will this affect Ford’s bold electric vehicle master plan?

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The Oakland A’s are expected to have a busy offseason. Half the roster has already left via free agency, and more stars are likely to follow in the trades.

While we wait to hear who else might be leaving town, one name has emerged as a potential acquisition target for Oakland.

New York Mets third baseman JD Davis is attracting interest in the league, and the A’s are one of many teams that watched him before the lockout, reports Mike Puma of the New York Post.

Davis’ idea of ​​the trading bloc makes sense. The Mets signed a few big sticks before the lockout, including former outfielders from A Marc Canha and Starling Marte as well as All-Star third baseman Eduardo Escobarand they also come back Robinson Cano suspension. Davis mostly played 3B and LF in New York, and even he thinks it’s more likely (“60/40”) he’ll be traded than kept by his club, Puma reports, even if the National League adds a hitter appointed this year.

The question then becomes whether Davis makes sense for the A’s and whether there is a trade game between the two teams.

Let’s start with a quick look at the player. Davis has spent the past three seasons as a quality right-handed hitter for the Mets, with consistently strong basic skills. Even without monster totals, he racked up an impressive 130 wRC+ in that span. Last summer he missed a lot of injury time to his hand and wrist, but still posted an above-average line in 73 games, despite declining power and increasing strikeouts.

• Davis, 2021: 0.285/0.384/0.436, 130wRC+, 5HR, 11.4% BB, 32.2% Ks

On the other side of the ball, he gets poor defensive ratings at both 3B and LF. He makes up for it with his bat, getting positive WAR ratings every year in New York, but his roster is negative.

Add that up and you have a first bat player that impacts home plate but needs to be hidden in a corner/DH on defense. He’ll be playing at 29 this season, so he’s still in his prime, and he’s a low buy potential after an injury-plagued off-year. As it stands, he’s already productive, and there’s obviously room for better health – after all, he hit 22 homers in 2019, and his career strikeout rate was just 23. .4% last year.

Contract-wise, Davis still has three years of team control remaining. He won $2.1 million last year in Super Two arbitration, and will only receive a modest raise this winter (MLBTR Projects $2.7 million), before moving on to another two years of arbitrage in 2023 and 2024. It’s financially affordable for A’s, but cheap long-term control will increase its business value.

Oakland’s roster should leave plenty of room for a player of Davis’ profile. Their outfield is already wide open, as is their DH role, and their infield corner spots could also be freed up soon, depending on whether the third baseman Matt Chapman and/or first baseman Matt Olson get exchanged. Take your pick on where to position him in order to get his mighty bat in order.

So how much would it cost? The Mets would not need the Matts, since the goal of this exercise is to eliminate their excess hitters. Their rotation is already full (Scherzer, deGrom, Carrasco, Walker, Megill), but we never have enough pitching, so let’s give it a try.

Baseball Business Values has Davis’ stock significantly lower than the star trio of Oakland starters. It’s a notch below a year’s Chris Bassit Where Sean Maneeand far from two years of Frankie Montas. On the other hand, in the bullpen, Lou Trivino wouldn’t be enough to start a conversation.

Presumably, the A’s aren’t looking to spend prospects as they embark on a rebuild, or part ways with long-term MLB players like James Kaprielian Where cole irvin. They are also not in a financial position to accept a bad contract in order to reduce Davis’ trading costs. Therefore, a deal should most likely revolve around one of Bassitt or Manaea going to New York, with the A’s getting Davis plus a solid second piece.

For the Mets, it would be another winning splash now to make their star-studded rotation even more absurd, while adding incredible depth to the group. They might instead opt for a prospect package from someone, but maybe everything is the best plan at this point?

For the A’s, that would mean more of a retool than a full rebuild, using a major trade chip to improve the current MLB roster rather than prioritizing maximum prospect value. But with that in mind, Davis represents an attractive bet with a clear advantage and an easy fit both on the roster and on the salary bill. He can help them earn now but also be part of the next nucleus if all goes well, and do it with a salary that they cannot find on the open market.

Does Davis make sense as a target for the A’s, and would you do it in that type of deal for one of their star pitchers? Can either team (or both) do better? Let’s discuss it in the comments, but first some original notes to consider.

We’ve seen Oakland acquire a right-hander named Davis before. They bought low Chris Davis before 2016, and he became a star. Khris and JD are unrelated and are completely different hitters, almost literally opposites in skill, but they’re equally productive at their best. Wouldn’t it be a kick to see the club start their new core with another Davis anchoring the roster?

Likewise, JD has already been traded once in his career. He was originally drafted by Houston, but in 2019 the Astros sent him to the Mets for a few prospects, one of which was Scott Manea. Wouldn’t it be something if his next trade was for Sean Manaea, who has the same last name but with more A’s?

Maybe the stars or the alignment. Or not. Of course, it’s fun to talk about baseball again!

Many may be puzzled as to why we are taking opposing positions on Ford (NYSE:F) and Tesla (NASDAQ:TSLA); However, there is a significant disparity between the majority of automakers and Tesla due to the lifecycle of the industry and how investors value the respective stocks.

This article covers Tesla’s outlook given a surge in commodity prices. There has been a contentious debate where some have taken a stand and asserted that rising metal prices will increase variable costs and lead to less growth, while others argue that rising fossil fuel prices will trigger a buying spree for electric vehicles. This article takes a bird’s nest view and dissects both sides of the argument structurally and in reduced form.

Recent growth

Efficiency

I was quite surprised when I came across these measurements. I’ve analyzed the business segments of a few large companies over the course of my career, and we typically look at segment revenue and cash flow relative to CapEx while considering the level of CapEx relative to the past. I will, however, talk about Tesla’s company-wide metrics.

Tesla’s CapEx, which is its internal reinvestment rate, increased by 14.97x year-over-year as production ramps up, expansion into Texas with headquarters, factory expansion in Germany, and Chinese market penetration .

That being said, Tesla’s cash flow to CapEx has increased 3.4x over the past year, its Capex to revenue has improved by 62.80% and its operating margins improved 2.1 times. Keep in mind this was during a time of rising input costs.

Expansion

It is also clear that Tesla management anticipated an increase in demand with an increase in finished products. You typically want to look at the entire pipeline of raw materials, work in progress, and finished goods and look for alignment when determining demand. It’s obviously an internal way of looking at things, but it gives substance.

Finally, for this section, I would like to provide an overview of business expansion in China. Although Tesla’s sales in China fell by 5.6% month-over-month for February, it still produced 200% year-over-year growth, suggesting it is entering a robust consumer market with a vengeance. It is critical for a business to grow globally when it is susceptible to sales volatility; in effect, it allows it to no longer rely on the health of a single geographic consumer base and, in turn, to reduce the risks associated with the outlook for its stock. I see huge benefits for Tesla’s expansion into an economy with a huge GDP to say the least.

Commodity Price Analysis

Much has been made of the commodity price spike and its impact on Tesla shares. While this will impact the company’s variable cost, I don’t think it will have a massive impact on its share price.

Historically speaking, Tesla investors didn’t hesitate much when metal and mineral prices rose, in fact there was a positive correlation.

Why could this be? Well, the stock market is looking forward and probably separating Tesla’s hypergrowth model from transient/highly elastic inflation. Don’t get me wrong, I think rising metal prices will have a massive impact on many auto stocks, but Tesla’s “best in class” status could prevent it from being correlated with other auto stocks. .

Additionally, Tesla’s status is still that of a Veblen product that serves a niche market, allowing its sales to be less susceptible to negative macroeconomic factors than more traditional automakers. Many analysts have argued that rising fossil fuel prices are a reason consumers are turning to electric vehicles. I think this is invalid because I don’t see how the masses would refinance a new vehicle when they are already financially stressed in the first place. Moreover, non-core inflation is more elastic than core inflation; most people who can finance vehicles have enough life experience to know that energy prices will trade in equilibrium over the lifetime of their car ownership (assuming they don’t change in any way maniacal). Thus, I see Tesla as a trend rather than its efficiency contributing to mass purchases; otherwise, we would have also seen the previous electric vehicles selling like hotcakes?

To wrap up this section, I’d like to touch on a few macro factors. First, the commodity price spikes ex-post and in their current form have been mostly driven by push factors. I believe there was a massive overreaction during Covid-19 and subsequently with the Russian-Ukrainian conflict. I’m not saying in a linear way that commodity prices won’t be high for the foreseeable future, however, commodity prices tend to top in the short term and stay down in the long term, and that Won’t surprise me if traders soon overreact on the downside.

Let’s look at purchasing power and reopenings to provide a potential trade-off scenario.

First, consumer purchasing power has declined significantly over the past year, suggesting that we are likely to experience lower demand for industrial and precious metals in the near term, as they are directly tied to general consumption expenditure. To contextualize, you will only produce items at a rate that you expect consumers to buy, unless you are in a niche market like Tesla.

Second, we are seeing less stringent Covid policies. Reopenings will likely increase capacity for metal producers, which will likely contribute to price headwinds.

So, to sum up, I’m not implying that commodity prices will be cheap (relative to break-even point) over the next few years; however, I would argue that current price levels are overblown, and it’s clear that Tesla’s stock is forward-looking, meaning it’s unlikely to be as sensitive to transient commodity costs as it is. other industrial/consumer discretionary goods.

Evaluation

Many look to Tesla’s price/earnings ratio and its other price multiples to conclude that Tesla is overvalued, but that’s too simplistic a way to go about it. First, let’s justify the company’s PE.

Source: Alpha Research

Yes, Tesla’s PE ratio is outrageous, but if we look at its PE versus earnings growth, it’s actually still an undervalued metric. The PEG ratio has a value threshold of 1.00 and, in the case of Tesla, suggests that its earnings growth is currently outpacing its stock growth by about 3.85 times, leaving investors plenty of room to maneuver. to capture value.

The second argument is for an asset-based valuation, which gives us a fair value of $863.25. That in itself suggests the stock is undervalued based on past results, let alone future growth. If you see a stock trading at its current net asset value, you know it is valued by the market and trading rationally; however, Tesla is undervalued.

Enterprise Value (EV)	$880.34 billion
Cash (NYSE:C)	$17.71 billion
Market value of debt (NYSE:D)	$8.90B
Outstanding shares (NYSE: N/A)	1.03 million
The formula	(EV – D + C)/SO

Source: Alpha Research

Risks Explained

Although I have argued that rising commodity prices will not have a massive effect on Tesla stock, there is still a need to discuss the risks associated with it. I’m going to skip the obvious of rising variable costs, and I’m going to address hedging activities. To our knowledge, Tesla is not hedged against commodity prices, and that’s a bit of a rookie mistake; as a manufacturer, you would always want to hedge against input costs. I don’t know if Tesla has initiated any hedges since publishing its 10-K report in February. However, failure to do so could harm the effectiveness of the company’s financial management.

Also, from a stock perspective, Tesla has a worse Sharpe ratio than last year. The Sharpe ratio is a function of expected return relative to overall market volatility.

Why should this matter? Because you are essentially invested in a risky asset that does not justify the returns as well as in the past, therefore switching to an investment with more positively biased returns could be a valid option.

Last word

Tesla shares have a history of fending off rising input costs. The company has produced robust growth efficiently over the past year, which has also driven prices higher. Its expansion into China bodes well, given that it is less dependent on a single economy. The stock is also still undervalued, contrary to popular opinion.

We remain bullish on Tesla despite rising input costs.

We recently spent some time chatting with Christin, a Coursera learner based in Lebanon. Medicine is her life’s dream and passion, and she is currently a fourth-year medical student at Beirut Arab University. Her long-term goal is to become a neurosurgeon and neuroscience researcher. Coursera has become an important part of her learning and career journey, especially in the context of the pandemic, and we are grateful to her for sharing her insights with our community on the skills she learns and the role that the online learning plays into his professional growth. . She also has some great tips to share. Let’s meet Christine!

Christin, thank you so much for taking the time to talk to us. Let’s start at the beginning: how did you hear about Coursera?

During the COVID-19 pandemic, I saw a list of online platforms offering online courses. I asked one of my university doctors about it and she strongly encouraged me to start my learning journey with Coursera.

How has the pandemic affected your approach to learning?

I just couldn’t tolerate the thought of staying home without being productive. Coursera was the perfect fit for my learning and knowledge needs.

You sound like a highly motivated learner!

I am always looking to improve myself and deepen my knowledge. I have an ideology that every day I have to become a better version of myself.

Your commitment and dedication is so inspiring, and we’re thrilled that you’re finding the right learning opportunities on Coursera. What are some of the courses you have taken so far?

I’ve taken tons of Coursera courses, including those on psychological first aid, patient safety, palliative care, personal branding, resume writing, neuroscience, anatomy, science of wellness and many more.

It’s quite a remarkable range. Apart from the personal development content, it is clear that you are also taking courses that match your career trajectory. Can you tell us a bit more about this?

Coursera has helped me deepen my knowledge through several important courses that are extremely impactful and useful for my career, especially for topics that are not usually taught in the university curriculum.

You use Coursera as an opportunity to complete your university education, in ways specifically tailored to your career goals, right?

Yes. For example, as a medical student, we do not receive information on palliative care. So I was extremely happy to see that Coursera offered a specialization on this topic!

Considering all you have already accomplished, what do you think of your journey so far and the opportunities that lie ahead?

I have faced many challenges and obstacles since I was a child. But I never gave in to those challenges and worked hard to become the woman I am now. My dream is to be a neurosurgeon and neuroscientist, and I look forward to achieving it.

We are confident that you will achieve your goals! As someone who has encountered challenges along the way and been so proactive in acquiring new skills and knowledge, do you have any advice for other learners who are working towards their goals?

I think it is extremely important for you to continue to seek knowledge. Keep striving to grow and learn new things every day, and don’t limit yourself to taking courses only related to your field. I encourage you to continue and learn a variety of subjects.

Spoken like a true lifelong learner!

~

Thank you, Christin, for sharing your journey, and congratulations on all your accomplishments. We look forward to more updates on what you will achieve next!

Pintec Technology Holdings Ltd – ADR (NASDAQ: PT) stock price soared 53.3% today despite a lack of announcements from the Chinese fintech that serves enterprise clients.

Shares of the company had been under a wave of buying pressure since yesterday, when it closed up 13.6%. Although the exact driver of the rally is unclear, the recent rally could significantly benefit the company if it persists.

Also read: The best financial stocks to buy right now.

Pintec Technology provides financing solutions to other businesses in the area of ​​SME Loans, Business Loans, Installment Loans and Personal Loans. The Company also provides services such as operating Financial RPA Centers of Excellence on behalf of clients.

The fintech company also offers robo-advisory services to more than 70 funds. The services are based on Renminbi-denominated assets while offering over 4,000 services to over 290,000 retail clients who have processed transactions worth over 8.4 billion Renminbi.

The above are just a few of the services offered by Pintec Technology Holdings, indicating that the company has significant long-term potential given the uncertain business environment created by the COVID-19 pandemic.

Pintec also operates a fund supermarket, a trading system for public fund products. Therefore, recent investor interest in the company may be warranted given the strong product line it offers in its home market.

More than 7.32 million PT shares had changed hands at the time of writing as investors bought the shares of the Chinese fintech company, and I wouldn’t blame them.

PT shares look quite attractive at current prices, given that they have a market capitalization of 420.68 million based on Wednesday’s closing price. The recent rally also means that the company’s shares could easily break above the $1 mark.

Shares of Pintec Technology last traded above the $1 mark on January 23-24, 2022 before falling back, and its current price does not meet Nasdaq listing requirements.

Investors are hoping the recent rally will push PT shares back above the $1 mark. Meanwhile, those looking to buy the shares should know that they traded as low as $15 in the past on the day they listed on Nasdaq on October 25, 2018.

*This is not investment advice. Always exercise due diligence before making investment decisions.

Pintec Technology share price.

Pintec Technology’s stock price climbed 53.32% to trade at $0.7318, up from Wednesday’s closing price of $0.4773.

By Helen Reid and Praveen Menon

(Reuters) – Australian and South African miners are exploring ways to supply coal and metals consumers in Europe seeking alternative sources to Russian supplies, but logistical and cost constraints make it difficult to scale up rapid production, the companies said.

Prices for palladium, coal and other raw materials have soared since Russia invaded Ukraine on Feb. 24, as sanctions on Moscow push Western consumers to replace Russian supplies.

Customers are approaching suppliers with whom they have no existing relationship, desperate to secure products, major producers said. Miners typically use long-term contracts, which makes oversupply rare.

Palladium, used by automakers in engine exhaust to reduce emissions, hit a record high on Monday before falling back. Russia accounts for 25-30% of the world’s palladium supply.

South Africa’s Sibanye-Stillwater, the world’s largest primary platinum producer, said some customers had asked about its ability to produce more platinum group metals (PGMs), but it was very little flexibility to increase production in “any material way” in the short term. medium term.

“It is possible to accelerate projects but (…) it is not a magic bullet and it will usually take months or even years before the benefits are apparent,” Sibanye said in response to the comments. questions from Reuters.

Automakers, which use palladium in engine exhaust to reduce emissions, will begin replacing palladium with platinum if palladium prices remain high, Sibanye CEO Neal Froneman said last week.

The automotive industry is expected to account for 42% of overall platinum demand this year, up from 37% in 2021, according to forecasts by the World Platinum Investment Council on Wednesday.

Platinum prices also rose on Russian supply uncertainty, but more subdued as platinum is expected to remain oversupplied this year.

South Africa’s Impala Platinum (OTC:), the world’s third-largest producer of palladium, also said it had limited capacity to fill the gap left by Russian palladium supplies. Russia’s Norilsk Nickel alone produces around 38% of the world’s palladium and 11% of the world’s platinum, Sibanye said.

As miners profit from rising metal prices, Sibanye’s Froneman warned that supply chain disruptions could have a destructive impact on downstream demand.

More expensive metals are also a headache for automakers hoping to make electric vehicles more affordable.

AVOID RUSSIAN COAL

European companies, which depend on Russia for 70% of their coal supplies, are also turning to Australian miners for fuel supplies.

“Because of the conflict, we are responding to Europe’s demands for security of coal supply,” said Gerhard Ziems, chief financial officer of Coronado Group, one of the world’s largest producers of metallurgical coal, used in the steel industry.

Coronado will increase production to around 18-19 million tonnes (Mt) in 2022 from 17.4 Mt last year, he said. Ziems estimated that Russia exports about 45 million metric tons of met coal per year.

“In circumstances where the international community avoids Russian coal, supply shortages must come from elsewhere, including established markets such as Australia and the United States in which Coronado operates,” he said. declared.

Australia’s leading independent producers, Whitehaven Coal and New Hope (OTC:) Group, said they had been approached to supply countries, including Poland, that traditionally depended on Russian coal, and the latter said it was looking for ways to to supply the European market. .

“We have a mix of contract and spot sales, which allows us to take advantage of tactical opportunities in the market,” a Whitehaven spokeswoman told Reuters.

The Australian government said last week it would help its Western coal-importing allies find alternatives to Russia for supplies by connecting them with local producers.

Glyn Lawcock, head of mining research at Barrenjoey, said that while the idea sounded simple, the execution was not, as Australian miners were already in full swing.

“It’s not like people have volumes to distribute. Ukraine/Russia produces high quality pellets for the markets…there’s no one dealing with surpluses,” said Lawcock.

In a sign of market stress, coal prices for loading at Newcastle – the world’s largest coal port on Australia’s east coast – soared to a record $440 a tonne last Wednesday, a five-fold jump from compared to a year ago.

Australian Resources Minister Keith Pitt said this was an opportunity for Australian miners and called for the expansion of coal mining in the country as it could help desperate European nations wean themselves off the Russian coal.