Saturday Storms in Omaha

Sponsored by: May 2, 2022 Good morning traders, Welcome back to The Daily Setup. Markets were down on Friday thanks in large part to big tech’s disappointing earnings. Here’s what’s on the docket today: - Berkshire Hathaway reports earnings - Goldman offers a new crypto product - HSBC may break up Let’s start the week off on the right foot, and let’s get to work. Nick How'd the markets look? Market Outlook GTY - A not so cloudy future Biggest Mover [Activision Blizzard, Inc. ]( GTY took a ride to the moon on Friday. The cloud service provider for the public sector announced it was set to be [acquired]( by GI Partners, sending its shares climbing 115.19%. GTY’s technology supports local and state governments, universities, and healthcare groups in their procurement, payments, and budgeting. Anyone who’s ever dealt with any of these organizations knows they could use all the help they can get. After the deal, GI plans to take GTY private, so those investors struck while the iron was hot. - As part of the deal, GTY shareholders will receive $6.30 cash for every share they hold, marking a [13% premium]( over GTY’s April 28th closing price. - GTY’s board of directors unanimously approved the deal and recommended that shareholders do the same in the company’s upcoming shareholder vote. GTY has big plans with its new owners. The firm plans to use the investment to increase investment in sales, marketing, and tech to help keep its momentum rolling. Of course, that’s what everyone says when they first get a new boss… Saturday Storms in Omaha Street stories [Cycling Downhill] A live look at Berkshire’s annual shareholder meeting Berkshire Hathaway is weathering the storm after market uncertainty caused it to see a drop in the Q1 earnings reported on Saturday. Berkshire [reported $5.46B]( in net income for the first quarter, down from $11.7B over the same period last year. Despite railroad, utilities, and energy all growing, Berkshire’s insurance underwriting business took a hit due to the skyrocketing prices of used cars. - Those rising costs forced Berkshire’s underwriting business to only bring in $47M in operating income, compared to the $746M it brought in last year. That’s a 94% drop for those keeping score at home. - While insurance struggled, Berkshire is [doubling down]( on energy, increasing its Chevron holding to $25.9B at the end of March, up from $4.5B at the end of last year. - Berkshire’s new Chevron position now represents the fourth largest investment in its portfolio. Warren Buffett is 91 and still calling the shots. While the proof is in the pudding that Buffett knows what he’s doing, to put it lightly, some investors are [looking for a change](. California Public Employees’ Retirement System, the US’s largest public pension fund, plans to back a shareholder proposal to send Buffett packing. Hey, if it passes, he’s ripe for a Walmart greeter job. Sponsored By: The Pharmacy of the Future📱 Going to the pharmacy to get your prescriptions isn't always easy — but it should be. [NowRx]( is rebuilding the retail pharmacy experience with amazing service plus free same-day prescription delivery and they’re looking for [investors to join them.]( The company’s proprietary pharmacy software “QuickFill and dispensing robotics can count, bottle, and label the medications in under 30 seconds” – all while dramatically reducing costs and common pharmacy errors. Best of all, unlike mail pharmacies, NowRx is local and uses their own HIPAA-certified employees to deliver medications which means no unexpected delays at the post office. All of that equals a fast, convenient, hassle-free experience for customers. In December, NowRx saw record revenue of nearly $2.2M putting them on pace for $26M on an annualized basis… But they have ambitions to do a whole lot more than that. The company has already announced new locations in Las Vegas, Seattle, and Denver for 2022 and with their newest Telehealth product growing like crazy (Over 1,200% in 2021) NowRx looks like a great investment for the new year. [Learn how you can own shares in this rapidly growing startup today.]( [Learn more about NowRx]( See Disclaimer Below Collateralized Crypto, What Could Go Wrong? Token Talk [Token Talk] Goldman Sachs ([GS]() has offered its first loan product [backed with Bitcoin]( as collateral in a push to offer exposure to the growing crypto market. The bank was able to get comfortable with the structure due to “[24/7/365 risk management](” which most likely just some poor analyst hooked up to a coffee IV and a car battery obsessively watching the BTC price. - This is the first instance of the Wall Street behemoth lending fiat currency secured by cryptocurrency. - This follows a March transaction where GS traded Bitcoin options for a client for the first time. Pity the poor loan servicer that has to monitor the collateral value on this loan. This could hallmark a new phase of the Bitcoin lifecycle, where increasing use cases cause the trading range to get narrower. HSBC - Time to split Deals and Rumors [Deals and Rumors] A global finance giant could be on the verge of a split and the Asian unit looks like the favorite child. [HSBC’s]( largest shareholder has come out in support of the bank kicking the European based business out of the Harry Potter style cupboard under the stairs and onto the streets. - Ping An Insurance Group is the largest active HSBC investor and has held talks with HSBC about [spinning off the Asian unit]( into a separate firm that would trade in Hong Kong. - About 65% of HSBC’s pre-tax profit comes from Asia compared to about 20% from Europe, so the company is becoming more Szechuan Chicken and less [Spotted Dick](. - HSBC reported results this past week, and while lending volumes and credit losses were good, the bank is [unlikely to continue buybacks]( this year. Looks like HSBC is in need of a new catalyst for its stagnant stock, which has gained a solid 1% in the past year. Prudential Insurance went through with a similar Eurasian split back in 2019, so the precedent is there. HSBC has moved several of its top management to Hong Kong, so if a split does happen, the Asian side seems to be getting the better end of the deal. Link Roundup Other News + Big Tech, bigger disappointment - Tech Rout Gives Nasdaq Its Worst Month Since 2008 ([link]() + The moment nobody was waiting for - Snap unveils $230 photo drone that follows you around ([link]() + Somebody was a fan of ‘The Office’ - Blackstone Is Buying PS Business Parks for $7.6 Billion ([link]() + Gassed up - Exxon Mobil’s first-quarter profit rises, even after $3.4 billion hit from Russia charge ([link]() + Gotta spend money to make money- Employment Costs Surge Most Ever, Stoking U.S. Inflation Concern ([link]() + Getting swole - The Fed’s favorite inflation gauge rose 5.2% in March as worker pay fell further behind ([link]() 🤣 Meme of the day Hey just following up on this, [via @atdanwhite]( [other news] 🤝 Meeting with the Bobs [other news] Welcome to [Meeting with the Bobs](. Click one of the links below to vote. On Friday we asked: ‘What should the new FAANG be?’ 34% voted for MAGA (Microsoft, Amazon, Google (Alphabet), and Apple), while the remaining votes were tied for QUEEF and MAMMA. Today’s question is: What should Berkshire do about Warren? - [Keep him as head honcho]( - [Hand the keys over to Charlie Munger]( - [Replace him with someone who’s not near their deathbed]( 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? Email us here support@thedailysetup.com © Copyright 2022, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( SPONSORED AD PLACEMENT:: This email contains an advertisement by a party that is unaffiliated with Raging Bull. Raging Bull does not in any manner recommend or endorse any stock, investment or service that is the subject of this advertisement. 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