Insights - Vitarka

Vitarka Insights

Xiaomi Corporation: Updated Prospectus Supports Our $28 Billion or $2.66/Share Equity Value Estimate

June 24, 2018

We have been pleasantly surprised by the significant interest shown by users in our equity value estimate of Xiaomi Corp (1810 HK) (“Xiaomi” or the “Company”). Our realistic assessment of the Company’s valuation appears to be at odds with media stories, sell-side bankers, China optimists, and others. Recently, skepticism expressed …

Tesla’s Rogue Employee – Distraction or Substantive

June 22, 2018

After Musk’s bold call that Tesla shorts have about three weeks to make good on their bets, Martin Tripp ( “Tripp”), the rogue employee, tripped the bulls by indulging in what Tesla calls sabotage, theft of intellectual property and a campaign of disinformation against the Company. To illustrate that Tesla …

Baidu – IQIYI IPO Surfaces Value of Core Business – Search Is Undervalued

June 21, 2018

A rapidly growing Chinese economy and the wholehearted embrace of technology by its citizens has created unfathomable wealth and opportunities for early entrants into China. For the Tencent Holdings Ltd (700 HK), Alibaba Group Holding Ltd (BABA US) and Baidu Inc (ADR) (BIDU US) (“Baidu” or the “Company”) troika, China’s …

Tesla Inc. – Musk Wins the Showdown – Onwards and Upwards to Shanghai, Europe and Mars

June 8, 2018

At Tesla Inc.’s shareholder meeting on June 5, 2018, Elon Musk carried the day, when long-term stockholders comprehensively defeated dissident shareholder proposals in favour of maintaining the status quo. That suggests long-term investors continue to hold sway over the company and the distracting media din was just that. There were …

May Unemployment Report –ANTYA Maintains View–Negative for EM Currencies, Bonds and The Japanese Yen

June 4, 2018

Investors and market watchers continue to exhibit a schizophrenic personality when it comes to parsing the outcomes of U.S. employment data. We have been steadfast in our view since the beginning of 2018 – as discussed in our monthly analysis of U.S. employment data – that investors should prepare for …

GM & Vision Fund JV Highlights Tesla Inc. Is Significantly Undervalued; Stock Is Headed Higher

June 1, 2018

On a down day in the markets, when President Trump’s administration announced the implementation of steel and aluminum tariffs on NAFTA partners and European allies, causing much consternation and confusion, General Motors (“GM”) made a materially important proclamation by partnering with Softbank Corp’s Vision Fund (“Vision”). According to the release …

Xiaomi Corporation — Value Is in the Eye of the Beholder – $100 Billion or $20 Billion – A Wide Gulf

May 28, 2018

We saw significant interest on the platform in our equity value estimate of Xiaomi Corporation (“Xiaomi” or the “Company”) as discussed in Xiaomi Corporation – U.S.$100B, $80B, $50B — Stop Dreaming. We Believe Even $20 Billion Is Too Much. Evident to investment management professionals, valuation is as much of an …

Xiaomi Corporation – U.S.$100B, $80B, $50B — Stop Dreaming. We Believe Even $20 Billion Is Too Much

May 24, 2018

Xiaomi Corp (XIAOMZ CH) (“Xiaomi” or the “Company”) is coming to the market with a much-anticipated IPO. Given China’s eminent stature in the Internet start-up world, and the stupendous success of Baidu, Tencent, Alibaba and JD.com, it appears that investors expect another home run from the proposed IPO of Xiaomi. …

The Indian Economy and Public-Sector Banks — On the Edge of A Precipice

May 20, 2018

With political uncertainty at home and unfavorable macro developments abroad as discussed by us in India: The Indian Rupee — Next Stop INR 70/USD, G-SEC 10-Year Yield — 8% and others in This Time Is Not Different: The Seeds of the Next Crisis Are Being Sown, India’s favoured position in …

NXP Semiconductors NV–An Intriguing Investment

May 14, 2018

President Trump’s views on global trade have roiled the capital markets, and given heartburn to investors, politicians, and corporate executives alike. M&A deals have either been restructured or abandoned, are being challenged in the courts, or have been put on the backburner by interested parties. Broadcom Limited’s proposal to acquire …

An Opinion on Musk’s Vilification by Shooting Stars of Hedge Funds and an Acquiescent Business Media

May 9, 2018

What’s Up with the Media? Once upon a time in the Fair republic, there was a national news organization run by Mr. Integrity. Every weekday morning, and especially on weekends, millions of readers picked up the newspaper to read informative opinion pieces or real stories written by individuals that believed …

The Vilification of Musk by Shooting Stars of Hedge Funds and an Acquiescent Business Media

May 8, 2018

Once upon a time in the Fair republic, there was a national news organisation run by Mr Integrity. Every weekday morning, and especially on weekends, millions of readers picked up the newspaper to read informative opinion pieces or real stories written by individuals that believed both in their profession and …

April Employment Report – Foreshadows a Continued Weakness in Yen and Weaker Emerging Markets

May 7, 2018

An economist from the storied house of Salomon Brothers – a part of Citigroup now – famously created the term Goldilocks economy to suggest an economy that has real economic growth approaching potential growth, accompanied by moderate wage growth and controlled inflation. That allows for an interest rate policy where …

Tesla Inc. – For Whom the Accounting Bell Tolls

May 1, 2018

This report is a continuation of our earlier reports on Tesla including Tesla Inc. – Prophets of Doom Could Be Blown to Smithereens by Conservative Accounting followed by Tesla Inc. – New Accounting Policy – ANTYA Explains Impact on Financial Statements – Part Two. It is also a counterpoint to …

Tesla Inc. – New Accounting Policy – ANTYA Explains Impact on Financial Statements – Part Two

April 30, 2018

Following up from our report Tesla Inc. – Prophets of Doom Could Be Blown to Smithereens by Conservative Accounting, this report highlights that Tesla Motors Inc (TSLA US) is changing its accounting policy and adopting a new revenue recognition standard from January 1, 2018. Investors that have followed our work …

Tesla Inc. – Prophets of Doom Could Be Blown to Smithereens by Conservative Accounting

April 30, 2018

We do not want to name anyone, lest they are annoyed at our name-calling. Bulls have stayed invested, including Fidelity and T. Rowe Price that own $4.72B and $3.06B in stock respectively. Then there are the shorts, which have played every trick in the book including sensational media stories, appearances …

Tesla Inc. – Reading the Tea Leaves

April 18, 2018

Tesla Inc. (“Tesla” or the “Company”) has been riding a wave of bad news in the last thirty days or so. It began with the involvement of a Tesla Model X SUV in a fatal accident on March 23, 2018. Details on the accident as reported by Bloomberg are here …

GE : Marching to A Single Digit Stock Price – Restating the Past for a Brighter Future – Part Four

April 16, 2018

We have been bearish on GE’s prospects since initiating coverage of the stock on Smartkarma and maintain our view that GE’s ultimate destination is a single-digit stock price in the latter half of 2018. Our report of February 13, 2018, on General Electric (“GE” or the “Company”) General Electric – …

FOMC Minutes – Growth, Financials and Technology Outperforms; Gold, Yen, HY and EMs Will Correct

April 12, 2018

The Federal Open Market Committee (“FOMC”) released its minutes of the March 20-21, 2018 meeting on April 11, 2018, and it appears that the capital markets were surprised by the more hawkish tone emanating from the FOMC. We have been of the view that investors are underestimating the resolve of …

Tesla Inc.-Musk Exudes Confidence in Attaining a Production Rate of 5,000/Week for Model 3 by July

April 8, 2018

Musk said, and we quote, We need to achieve 5k/week with Model 3 before adding complexity that would inhibit production ramp. So probably July.” We view this as a positive development because it appears to suggest that Tesla is on track as anticipated by us and as per its revised …

Tesla Inc.-Defying Gravity: Tiangong-1 or Voyager-1

April 5, 2018

Dear Friends at SC Capital and Others, Many thanks for reading my note, appreciating it, and for providing feedback. I am publishing my response to your comments in the interest of the broader community on our platform. I have republished your comments in italics while delivering my view after each …