For the full list of Saxo's 2019 Outrageous Predictions, click here.
What will Apple do next with its $237 billion cash-and-equivalents hoard and its
important iPhone product line that is incapable of further volume growth? It’s either the
boring financial engineering of dividends or share buybacks or i t’s a bold move beyond
the confines of smartphones, laptops and their associated services and accessories.
Apple realises that if it wants to deepen its reach into the lives of its user base, the next
frontier is the automobile as cars become more digitally connected. After all, the late
Steve Jobs showed that a company needs to bet big and bet wild to avoid complacency
Acknowledging that Tesla needs more capital to realise its potential and Apple needs to
expand its ecosystem to the car in a more profound way than that represented by the
current Apple CarPlay software, Apple goes after Tesla. It secures funding for the deal
at a 40% premium of $520 per share – acquiring the company at $100/share more than
Elon Musk’s errant “funding secured” tweet.
The acquisition makes perfect sense. It’s small enough to be an all-cash deal and it only
represents 12 months of Apple’s free cash flow. The two companies are both focused
on engineering and design in hardware coupled with vertically integrated distribution
models in high-fashion areas. Apple has the financial strength to fulfill Elon Musk’s
wildest dreams, ensuring that Tesla does not have to balance capital expenditures to
cash flow generation in the short term.
The acquisition allows Tesla to build several new Gigafactories and production facilities
in Europe and China to stay ahead of the competition and dominate the future of the
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Energy crisis could turn energy stocks into secular winnerWith long-term expected returns for the global energy sector close to 10%, we look at 40 stocks that could be set to cash in.
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.