The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Fatman
Unbelievable how quickly such a big player went down, 16th biggest bank in the US, seems there balance sheet was ok, not like 2008 were there were subprime. Svb had an unhedged long duration security position, the inverse relationship with bond prices vs yield meant they were in trouble with the sudden rise in interest rates coupled with avocado & toast withdrawing funds which turned into a run.
Commentary suggests svb could have hedged with an interest rate swap and that would have calmed the market.
Credit Suisse might be one to watch, they were asked by the US SEC. to delay their accounts….so god knows what that is about, CS have been in trouble for a while, and no doubt the Swiss government will bail them out, but it goes to show how unstable the system is.
The FDIC cover bank deposits up to $250k but as SVBs assets are fine (just got caught out being unhedged with hold to market securities), I think Powell will find a buyer, depositors will be made whole but this will take time, and will create the possibility of defaults as depositors may be short cash now to pay operational costs eg salaries, rent, loans etc.
In 2008 banks held a lot of mortgage backed securities which many were toxic, this time around it could be commercial mortgage backed securities where the risk is, and again due to the dodginesess and off balance sheet derivatives who knows who has what.
Another metric, is M2 which has been dropping…these markets are in fairy land, once the fairy dust (liquidity) tightened last year by way of QT stocks started to slide/go sideways.
Ps. Great site for macro charts: https://fred.stlouisfed.org/series/WM2NS
Re seed ed needs to grow a pair of balls and try to stabilise things here, people aren’t expecting invested updates every week, but he needs to sell the story and himself, he can get out there and communicate the message to the market. I actually think he can present quite well. This hiding isn’t helping, 1.6p and even 1p are still possible.
Yep, Ed & Co got to get bonused up for their hard work and dedication in getting the leap deal sorted for us shareholders, we are lucky to have them.
Wonder if Ed will think it smart advertising to deck his racing car is Seed branding……and before you comment Mr Mat, Google vast resources ceo Andrew P, he had a son who was also a boy racer and Vast sponsored him!! Put nothing by these aim rogues, they’d sell their granny….again
The trajectory of the majority of aim charts over the long term is down, the junior markets need to have more regulations to insulate shareholders from the lies, deceit and
broker shenanigans…it would better society if the money was with the little guy and not the fat cats as the little guy will spent that money into the economy instead of London prime real estate and dumb ego spending, such as, let me think…em…race car driving:/
Fatman
Unfortunately, your posts are pretty much bang on!
I’m not in eml, but that’s another one ed was brandishing big immediate high market cap targets for….needless to say never came close.
Essentially, we are a fund run by dubious characters (imo) and there are some [slow learners] here who wonder why investors aren’t buying.
So as Ed is off preparing for his big race….amazes me he doesn’t make any effort to stop the rot here.
I honestly couldn’t do it, this company going to complete zhit and he is off playing on the track. He really is a man to look up to, ethical.
We circle the toilet, he circles his track.
Exactly, Ed should come out fighting, he was too young and inexperienced when he was ‘hired’ as CEO, but he has a few years under his belt and could try to reverse things here and make a name for himself going forward.
If we continue to flatline then the 200 dma will catch down to the sp around June.
But with more car races than podcasts last year, I don’t think mr Ed has the interest.
ed does not like losing. he wants to be a winner
https://www.driverdb.com/drivers/ed-mcdermott/
As we ponder wether or not our investment will survive, at least we get rest assured that ed, as he stated on a proactive, is working 24/7 for seed shareholders…….looks a bit pre-occupied to me though - https://www.gt-report.com/2023/02/17/mcdermott-and-broadhurst-return-with-one-motorsport-mercedes-amg-gt4/
BOD will blame lack of interest on it's share holder base and their negativity.
Support and respect are earned, the BoD have never given shareholders reason for them to support them. I’m sure the majority on here have averaged down, last time I did was 2.4p but their is a limit.
Ed is learning on the job, at our expense (us shameful parasites)
dagenham
Ive been suggesting a performance related salary for years, in seed’s case it is very appropriate as it is a few hours every quarter if that and they are very very bad at at.
Friday today, another weeks expenses to be discounted from the hypothetical leap money.
Btw, regarding cutting losses, it was the lying toad that kept dangling the 50 million market cap with leap that kept me here, at which stage the horse had left the barn so hindsight as much as it is appreciated is overly simplistic.