Fundalyse

Everyone has bad days and you need to remind yourself that investing in the market is not for the faint-hearted. If seasoned billionaires can lose money, are you able to swallow your pride, take the loss on your portfolio, and move on? ⁣
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84-year-old billionaire tycoon Carl is not just a legendary investor, he is a market mover and a Fundalyse favorite. The corporate raider turned shareholder activist jumped out from Hertz Global Holdings, a 102-year car rental company, like a driver jumping out of a fast-moving car without breaks. He managed to stay alive but suffering from injuries and bruises. ⁣
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Absorbing a loss of more than $1.8 billion and dumped all his shares when the car rental company filed for Chapter 11 bankruptcy protection a few days ago after COVID-19 had severely hit the US and the demand for travel vaporized faster than the hand sanitizer on your hands. These will be days he will contemplate and realize regret is much heavier than a black hole. He was closely attached to Hertz and invested in the span of 6 years since 2014 only to exit with under than $40 million or 97% wipeout of investment. Only just a few months ago, the company was doing well until February this year before the stock came tumbling down, while his younger rival Bill Ackman [another Fundalyse favorite] who Carl had a distaste, made billions in a matter of weeks.⁣
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However, Carl seemed to have a special place in his heart for the car rental company which seems to be one of the reasons why he was not able to exit his positions earlier. On the other hand, Bill Ackman dumped shares of his favorite idol Warren Buffett’s Berkshire Hathaway since Berkshire took a $7 billion loss during the last quarter and has been sitting on $137 billion cash. However, Carl believes Hertz can come back after restructuring and become great again just like Donald Trump's vision for America.⁣
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There is a lesson to be learned from this for every investor and trader out there. Even the well-experienced investors can be short-sighted and make mistakes and get attached to companies.⁣
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Attached to specific stocks on the Colombo Stock Exchange? Let us know in the comments!⁣
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@ Colombo, Sri Lanka

Type of markets we had in the past 10 years.⁣
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Did you know we had only 11 strong bull runs during the past 30 years while only experiencing 3 bull runs during the last decade?⁣
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The rest of the years have been in bear territory. The longest bear market we are experiencing has been from 2015 until the present.⁣
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Will the new decade be the start of a new bull market🐃? ⁣
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Let us know your thoughts in the comments!⁣
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equities

Angel has fallen and this time there is no Agent Banning to the rescue.⁣
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Famous brand and largest lingerie retailer Victoria’s Secret in the US is on the verge of bankruptcy after the deal with a private equity firm Sycamore Partners collapsed due to breach of agreement during the pandemic. L Brands, the owners of the racy lingerie who defined sexy for decades has now piled up with debt and plans to shut down 300+ US stores due to weaker sales partly due to quality complaints by customers and weaker post-COVID-19 demand since feeling sexy is not a need in the future as more customers have learned to ditch the lingerie to go commando while at home. Customers have realized during the lockdown that VS is no longer needed to seduce their spouses and partners, therefore no more annual runway shows for you to indulge in.⁣
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Brandix owned Teejay Lanka (TJL.N0000) the suppliers to Victoria’s Secrets are to be affected by the outcome of the closure of stores as US market comprises of 48% for TJL’s exports. L Brand in its recent quarterly reports saw a tumbling of sales to 46% and highlights measures to cut down future winter and spring inventory where TJL will see a plummet of orders in the foreseeable future. Such outcome put a risk on TJL’s existing 2600+ workforce as their job security is questionable and future revenues from the lingerie company in the coming quarters. ⁣
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The apparel industry overall has been severely hit by the pandemic and recovery of the industry is expected at least to take 12 to 15 months to reach pre-COVID levels. However, demand has shifted presently from sexy lingerie and clothes manufacturing for Teejay to Personal Protection Equipment PPE manufacturing such as masks as existing customers have been pushing for orders which have been keeping the listed apparel company afloat.⁣
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The wolves in the stock market are powerful intelligent cunning investors and traders who use unethical, criminal means to make money from the market. There are typically like the wolf you have read in Little Red Riding Hood, waiting to devour innocent and small investors in the market at a given time. Mostly, wolves are politically affiliated in Sri Lanka and involved in behind the scene scams and manipulations that move the stock market. ⁣⁣
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However, wolves are touchable and if they were caught in the act of disrupting the market or making illegal gains such as sensitive insider information, you could end up paying a massive fine and a hefty prison sentence. There is strict law for them in developed countries but so far no one has served time in Sri Lanka because they all know someone. ⁣⁣
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Many wolves in the stock market tend to create a wolf market in the disguise of a bear or bull. They don't want you and anyone talking about it. Wolf market can be created by thing air when a group of big boys and girls get together at their tea parties or Zoom sessions and decide which company they want to drive down and collect or drive up and sell. During the wolf market, traders tend to make a lot of money due to large amounts of volatility, so you either could be the lucky bloke or the victim. ⁣⁣
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Remember The Wolf of Wall Street, don't you? Jordan Belfort was once a ferocious yet charming wolf stockbroker who made illegal gains from penny stock manipulation, pump and dump schemes, and insider trading. The most notable prison sentence imposed on a wolf was a Sri Lankan. That's right! Lankan born hedge fund manager Raj Rajaratnam served 11 years in prison in US prison for being a big bad wolf. He came out recently. The most recent wolf is Lankan born Arjun Mahendran which rigged the Sri Lanka bond market so his in-laws could gain billions of rupees. Now he is Singapore taking occasional walks to the bank and no one is doing anything about it. ⁣⁣
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Do you see where we are going? Lankans and the love of being a wolf? ⁣⁣
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Tag the wolves you know in the comments 😎⁣⁣⁣⁣⁣⁣
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