FA Alpha Weekly Digest - 03 28 2022

Wall Street’s stock picks can’t be trusted and the advertising bias of the mainstream financial media makes their news only sensationalist-driven.

We bring you the FA Alpha Weekly Digest, a roundup of FA Alpha’s unique and unparalleled equity, credit, and macroeconomic insights over the past week.

In today’s digest, we featured the three-month vs. 10-year Treasury yield curve, Ziff Davis (ZD), Cohu (COHU), DocuSign (DOCU), and SRS Investment Management, LLC:

The yield curve is a useful tool in gauging recessions, if the right one is used

Analysts use two-year and 10-year Treasury yield spread as a warning sign for an upcoming recession. However, the three-month versus the 10-year yield curve is significantly more accurate. Read more about the two common Treasury yield curves.

Ziff Davis helps companies spend the right half of their marketing

The most important thing nowadays for advertising is eyeballs, or who is looking at an ad. Ziff Davis hosts targeted ads to relevant interest groups by focusing solely on its media franchises. Learn the reality behind Ziff Davis’ underlying profitability.

Cohu’s testing services are worth their weight in gold, but credit markets don’t see the value

Semiconductors have become very important to the global economy. As such, Cohu, Inc., one of the industry leaders in testing the wafers that make chips, has seen a boom in demand. However, S&P believes there’s a 25% chance it goes bankrupt within the next four years. Find out what rating agencies are missing.

The pandemic gave this e-signature company a chance for recovery

The pandemic lockdowns made it difficult for people to sign contracts and other important documents. DocuSign, a provider of online solutions for signing documents and contracts in the cloud capitalized on this opportunity. See how it drove DocuSign’s true profitability.

A long bet paid off big…can Sarma replicate that magic again?

One of Warren Buffett’s biggest strategies has been to make large, concentrated investments for a long period of his time. Karthik Sarma of SRS Investments did just that and hit the lottery with Avis Budget Group. Discover whether the rest of SRS Investments’ top holdings have enough upside.

We hope you find this week’s FA Alpha Daily articles insightful.

See you next Monday as we talk about another set of interesting names and gold.

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