Investors’ 5 Blind Spots, Talen Energy’s Next Move, the Return of Stock Picking and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- Investors’ 5 Biggest Blind Spots
- Talen Energy ($TLN): Still Room to Run, says Enrique Abeyta
- Maran Capital Management: Turning Point Brands ($TPB) Investment Case
- Weekly Roundup: Stock Picking is Back, Naughty September, Welfare State, Visa a Buy?
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Investors’ 5 Biggest Blind Spots
BBAE CIO James Early identifies five often-overlooked aspects of investing that have shaped his career. He explores how saving habits trump investment decisions, the importance of unexpected value, and why betting on mankind’s economic progress is crucial. James also discusses exploiting cognitive biases and understanding market value creation. His insights challenge conventional thinking and offer a fresh perspective on successful investing strategies. Read the full article here.
Talen Energy ($TLN): Still Room to Run, says Enrique Abeyta
Enrique Abeyta, in an interview with James, shares his continued optimism for Talen Energy (NYSE: TLN). Enrique first recommended the stock at $67, discussed it again at $100, and now, with shares recently hitting $190, he still sees room for growth. He dismisses concerns about a potential FERC ruling on Talen’s Amazon data center deal, viewing it as overblown. Could he be right again? So far, his track record with Talen speaks for itself. Watch the full video here.
Maran Capital Management: Turning Point Brands ($TPB) Investment Case
Maran Capital Management highlights Turning Point Brands (NYSE: $TPB) as a compelling investment in their Q2 2024 letter. $TPB, a leader in rolling papers and non-combustible nicotine products, is executing a strategic pivot under new management. With a renewed focus on core brands like Zig Zag and Stoker’s, coupled with the promising FRE nicotine pouch product, the company is positioned for growth. Despite recent challenges in the vaping segment, Maran believes TPB’s long-term potential remains strong, projecting over $5.00 in free cash flow per share by 2027. Maran sees significant upside, driven by the rapidly expanding nicotine pouch market, operational improvements, and an aggressive share repurchase program. The firm views TPB as an asymmetric investment opportunity with limited downside risk and substantial upside potential. Read the full article here.
Weekly Roundup: Stock Picking is Back, Naughty September, Welfare State, Visa a Buy?
This week’s financial news highlights several key developments:
- Stock Picking Makes a Comeback: Last quarter saw a reversal of the “Magnificent 7” trend, with 67% of S&P 500 stocks outperforming the index. This shift suggests a healthier, more rational market that rewards company-specific factors.
- Visa Stock Analysis: Enrique Abeyta highlights Visa (NYSE: $V) as potentially attractive based on its relative strength index (RSI), positive earnings revisions, and consistent year-over-year earnings growth.
- Corporate Profit Margins at Record Highs: U.S. companies are seeing significantly higher profit margins post-pandemic, potentially justifying higher P/E ratios for tech-heavy indices.
- September’s Market Seasonality: Historical data shows September as consistently the worst month for stock returns. Despite this pattern persisting since 1950, the anomaly hasn’t been fully arbitraged away.
- Increased Government Assistance: A Wall Street Journal graphic reveals a significant rise in the percentage of Americans receiving government benefits over the past two decades, sparking debates about the country’s economic direction.
Read the full roundup post here.
Wishing you a great week ahead~
Barry Freeman
CEO @ BBAE
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
