Industry – The Equity Analyst

Demand and resources mismatch have led to record wait times at NHS

Tuesday 7th February 2023 Here is a summary flow chart drawing on the key points from a deep-dive article in the Financial Times on Monday 6 February 2023.

Overview of the key players in the global semiconductor industry

Companies that make chips Source: Counterpoint research Nature of business: The more advanced the chips being made the more capital intensive the process. For example, TSMC’s capital expenditure for 2022 will be $36bn, and in December 2022 it announced plans to triple its investment in Arizona from $12b to $40b in the coming years, whereContinue reading “Overview of the key players in the global semiconductor industry”

Why student housing BTLs remain a solid investment

Investment Thesis Double-digit growth in university students will likely continue to support increased demand for HMOs – homes of multiple occupation- in student cities. This combines with increased costs and regulations for HMO landlords, in addition with local council rules, limiting supply of student homes. Together these are likely to support continued 5%+ growth ratesContinue reading “Why student housing BTLs remain a solid investment”

How private equity firm Silver Lake used (needed) financial engineering, tough negotiating and luck to make a profit investing in a terrible business

Source: FT, Friday 5th Feb 2021 Having taken on $500m in senior debt during the pandemic from investors including Apollo Global, AMC Entertainment, the cinema operator, quickly found itself burning through $100m in cash per month with no-one going to movie theatres. In order to buy itself time, AMC embarked on a complex refinancing program,Continue reading “How private equity firm Silver Lake used (needed) financial engineering, tough negotiating and luck to make a profit investing in a terrible business”

Given the spike in US home prices, do you think its fair to assume home prices will rise at 5.5% CAGR going forwards?

Thursday 10th November, 2022 Yes it’s a good spot. Median house prices in the US rose 18% in 2021, following +5% and -2% price changes in 2020 and 2019, respectively. This 18% rise also looks high relative to the median household income line of best fit. (Exhibit 1) Exhibit 1: The sales prices of newContinue reading “Given the spike in US home prices, do you think its fair to assume home prices will rise at 5.5% CAGR going forwards?”