Monday Market Open

Dear Winner,

You did it. Was it really that easy? A weekend for the books for sure.

I hope you came prepared to soak up some heater Alpha today. I raise a toast - To The Week.

Banggg - With that said, let’s get after it🔥🔥🔥

Market Indices & Commodities

News:
The Recap

Ahh, most people’s favorite section. I get it. Who wants to keep up with news over the weekend? (not me)

• Goldman’s S&P - Estimated 2024 target of 5,200 📈

• Buffet’s Cash - Berkshire is sitting on $167 billion in cash 💰

• Europe’s Oil - The EU (mostly) stops buying Russian Oil/Gas🛢

• AT&T Outage - They are giving out $5 credits for the hassle📰

Graph of the Day:
Global Nickel Production

News:
This week

What’s happening this week?

⚡= Canadian Bank Stock

• Monday - Zoom, Dominos, and Workday earnings.

• Tuesday - BMO⚡, Lowe’s, and AutoZone earnings & Consumer Confidence for February.

• Wednesday - Salesforce, Snowflake, Royal Bank of Canada⚡, and Paramount earnings.

• Thursday - TD Bank⚡, Dell, BestBuy, and HP earnings.

• Friday - PlugPower and FuboTV earnings.

I will personally be watching the banks to see the mortgage portfolios 📰.

Opinion:
Warner Brothers L

For those of you who follow Burry’s trades closely, you may have noticed he loaded up on Warner Brothers (375,000 shares) over the past quarter.

*You can never say exactly when (*or for how much) Scion Capital (Burry’s company) purchased the shares, but we they were purchased between 9/30 - 12/30 of last year.

Warner Brothers stock mostly traded between $10 -12 from October to the end of the Year. The stock is now at $8.61 🫣(as of Friday).

According to when the Scion Capital 13f was filed, the value of Burry’s 375,000 shares were $4,267,500 which equals = $11.38/share.

So *if Burry got in at $11.38/share he would be sitting on a -$1,083,750 loss in his $94 million dollar portfolio - not a small loss 😕

I am a big burry fan, and I am reminded of what one if his investors said in a Vanity fair article - “That was a classic Mike Burry trade,’ says one of his investors. ‘It goes up by 10 times, but first it goes down by half.”

So - maybe this is the going down by half part that seems to always happen right before we look back and say - How did he do it?

We’ll see 📈

(Opinion, not financial advice).

Now You Know:
Capital One x Discover Merger

Alright,

Let’s look at the quick summary of the Capital One/Discover Financial deal in case you was nappin’:

1. Players = Capital One (buyer) & Discover (target) 🎯

2. Deal Size = $35.3 billion 💰

3. Market Share = Capital One will pass JPMorgan for #1st 😏

4. Status = Still in review 📰

Let’s look at two (since this is a preview) of the most important reasons (in my opinion) why Capital One has been eying Discover like a fat kid watches you eat a hotdog at the game (get your own little bro)…🌭

1. Payment Network ⭐- A merger would give Capital One a payment network. Capital One is currently on the Visa and Mastercard payment network but will likely move its credit cards over to the Discover network. Not only will this allow Capital One to go toe to toe with the big dogs, but will cost MasterCard an estimated $636mm/year in lost revenue and Visa $134mm/year from Capital One not using their payment networks. Huge savings 🔥

2. Grabbing Users - Capital One will scoop up a solid 70 million merchants and 305 million cardholders if the deal were to close. This would put Capital One on the stage to compete against Amex, Chase, and Visa. It may also make the user benefits more attainable. Big Sauce🔥

    

   *This was a little intro/sample of what premium content may look like, obviously it would go a lot more in-depth. If you would be interested in a deep dive of things like this^, click the survey at the bottom.

Thank you  
That’s all Folks

Hey - look at you, primed with Alpha and ready to take on the week. We always appreciate you reading and stopping by. Have a solid week winner.