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Saturday, September 26, 2026

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@AltayCapital 2 clicks

AltayCap on X

The only industries where obvious capital allocation lingo is useful is leasing / banking / insurance. It's much more nebulous in operating businesses that do real things. $AER ceo saying the cheapest commercial jets are on the NYSE under the ticker AER is easy to understand. As math is pencilling out cost of new orders vs buying back stock. $FOUR competes in the real world. Leasing/banking products are fungible. Much harder biz to forecast. Cap allocation is still important, but a lot harder.
@Fierce__beast

Fierce_beast on X

I guess the issue with buying corporate debt is what if interest rates keep going up or if there is inflation? Fixed rate coupon at 6% you might need to wait till maturity to get paid back. But what if there's also increased inflation? according to blackrock it looks like weighted average maturity is like 9-10 years or so for their BBB index $LQDP. With $MCD and $OTIS i think you get a 6%+ total return in most inflation or interest rate environments at these valuations, hopefully more. I was underwriting something closer to 7-8% for both those stocks personally, but probably 6% would be OK, as I am 200% leveraged long and maybe gonna go higher, so expected return on my equity from these ideas is closer to 12%, maybe 16%. But then adds some other benefits that seem decently valuable, like MCD beta .4, otis .88, defensively better than a lot of stocks in case of a recession. Maybe $MCD is just getting degrossed as everyone leveraged it up on their portfolios at the same time expecting an accepetable return of lets say 5% but leveraged 2x or more they were getting a 10%+ ROE on thier protfolio and now degrossing it at the same time. Not totally sure if i'm underwriting correctly, or if this is the best idea in the world, seemed just OK.
@Fierce__beast 1 click

Fierce_beast on X

i went long $otis and $MCD this week. i'm not really expecting anything spectacular, maybe 6% returns from these ideas, hoping for 8%+. but i think after this drawdown they present decent risk/rewards in a case where interest rates and or inflation continue to worsen. $OTIS did well during the great recession 08/09. -6% organic sales drop, op profit down only 1.2%. Valuable asset in that sense, even though the upside is capped a bit here as things are slowing down for it globally. This is not a bullet proof scenario that they do well in the next recession, stock could still drop 40%.

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Reddit: DCF Valuation

Reddit’s DCF values shares at $225, driven by international ARPU expansion from $2.2 to $8.3 by 2035 and 38% operating margins.

RDDT $28B
Hated Moats 7 clicks
QXO · long

QXO, Inc.

QXO, led by Brad Jacobs, is consolidating North America’s fragmented building-products distribution industry after rapidly building scale…

QXO $12B
Value Investors Club 4 clicks

Cerebras June 2026 Earnings

Cerebras faces shareholder criticism over $700,000 to $850,000 WSE-3 rack pricing, alleged packaging-yield losses and SRAM-based KV-cache…

CBRS $40B
Irrational Analysis

Precision AI

Adobe’s licensed vector data, corporate workflow integration and compliance framework could give it an edge in precision AI as frontier…

ADBE $92B
Bearstone

Intuit deep dive

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INTU $72B
Global Outperformers

What I've Been Reading

Yesway, Dollar General and Expedia feature in a research roundup spanning convenience retail, discount stores and AI-driven travel search.

DG $26BEXPE $32B
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