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Thursday, October 29, 2026

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Another Haircut with Avy the Barber

SoFi’s stock case hinges on interest rates, tangible book value and private-credit loan sales after its $1.5 billion equity offering.

SOFI $21B
WHAT ARE WE DOING? “Contrarians At The Gate” 3 clicks

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@leevalueroach

Lee Roach on X

Rayonier $RYN borrows at 2.29%. Their own 10-Q makes it look like 5.5%. The debt table lists every term loan at "a variable interest rate" of 5.2% to 5.9%. Take each loan's margin back out and you land on 3.62% every time, which is just where SOFR happened to sit on June 30. So that column is telling you about SOFR. It's not telling you anything about Rayonier. The real number shows up two pages later. All the term debt is swapped to fixed, and the swaps came over from PotlatchDeltic matched dollar-for-dollar to the loans they cover. On top of that, Farm Credit is a co-op, so it pays patronage refunds back to borrowers and those land directly against interest expense — $15.4M in six months. Term Loan M reads 5.32% in the table and actually costs 1.08%. Blended across all $1.86B: 2.29%. Which matters mostly for what it does to the other side. What they owe is a fixed number. It doesn't index to anything, doesn't adjust, just sits there. What they own is four million acres, and stumpage and land move with the price level. Let inflation run and one side climbs while the other stays put. Equity keeps the difference and the lender eats it. Timber makes that better than it'd be for most balance sheets, because the trees keep growing whether you cut them or not. Bad log market, you just don't harvest, and the inventory builds while you wait. Debt at 2.29% is what makes waiting affordable. Coverage is 8.7x on a 2.5x covenant, debt/cap 28% against a 65% cap — nobody's forcing them to do anything. It's not permanent. Fix averages about four years, so call it a real-rate edge through the back half of the decade. 2028 and 2029 are when it gets retested. But that's a 2029 problem the market seems to be pricing in 2026. Four million acres funded this cheap is worth more than they're getting credit for.

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CoStar: 3Q26 Business Recap

CoStar’s 3Q26 revenue growth slowed to 14% as bookings fell to $37 million, while cost cuts lifted EBIT margin to 8.8%.

CSGP $13B
Speedwell Memos 3 clicks

ServiceNow Q3 FY12/26 Earnings Review

ServiceNow’s Q3 revenue rose 20.5% to $4.11 billion, while non-GAAP EPS missed consensus and fourth-quarter cRPO growth guidance slowed to…

NOW $106B
Cestrian Capital Research 2 clicks

Meta: A Clearer Roadmap

Meta's non-cancelable commitments reached $455 billion as FY26 capex approaches $140 billion, driving expense growth and 700-basis-point…

META $1.6T
TSOH Investment Research 3 clicks

Why So Much Copper?

Amphenol and other copper-connectivity suppliers benefit as copper remains essential inside AI racks, where low-voltage, high-current power…

APH $195B
Jimmy's Journal 3 clicks

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