Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

Event-Driven

Bristol-Myers Squibb Company is a global biopharmaceutical company. The Company develops, licenses, manufactures, markets, and sells pharmaceutical and nutritional products. Bristol-Myers Squibb products and experimental therapies address cancer, heart disease, HIV/AIDS, diabetes, rheumatoid arthritis, hepatitis, organ transplant  rejection, and psychiatric disorders.

The proposed <a href="https://www.smartkarma.com/entities/1133" target="_blank" data-smartkarma-citation="entities:1133:1">Bristol Myers Squibb Co (BMY US)</a> &amp; <a href="https://www.smartkarma.com/entities/7410" target="_blank" data-smartkarma-citation="entities:7410:1">Celgene Corp (CELG US)</a> transaction announced in the first week of 2019, garnered many sceptical comments. Starboard Value jumped in the fray by writing a letter denouncing the transaction while one of the largest holders of BMY, Wellington Management Group, holding about 7.7% of the stock expressed a desire to vote against the transaction. BMY's response to Starboard's half-baked objections is credible, and in our view, increases the likelihood of a successful closure manifold. We are bullish on the transaction.

The proposed Bristol Myers Squibb Co (BMY US) &amp; Celgene Corp (CELG US) transaction announced in the first week of 2019, garnered many sceptical comments. Starboard Value jumped in the fray by writing a letter denouncing the transaction while one of the largest holders of BMY, Wellington Management Group, holding about 7.7% of the stock expressed a desire to vote against the transaction. BMY's response to Starboard's half-baked objections is credible, and in our view, increases the likelihood of a successful closure manifold. We are bullish on the transaction.

Bristol Myers Squib & Celgene–Starboard Objections Addressed Today- Successful Deal Closure Probable

Equity Bottom-Up

Meta Platforms Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. meta Platform is also involved in advertisements, augmented and virtual reality.

<a href="https://www.smartkarma.com/entities/665" target="_blank" data-smartkarma-citation="entities:665:1">Facebook Inc A (FB US)</a> is a bellwether stock for the equity markets. Although the market capitalisation is approaching $475 billion, the Company is still considered a growth stock. In our view, 2019 could be a pivotal year for the Company after a lack lustre 2018, when FB, although volatile, underperformed the NASDAQ. We believe that investors are underestimating revenue growth for 2019 and that FB is likely to surprise to the upside in Q1-19.

Facebook Inc A (FB US) is a bellwether stock for the equity markets. Although the market capitalisation is approaching $475 billion, the Company is still considered a growth stock. In our view, 2019 could be a pivotal year for the Company after a lack lustre 2018, when FB, although volatile, underperformed the NASDAQ. We believe that investors are underestimating revenue growth for 2019 and that FB is likely to surprise to the upside in Q1-19. 

Facebook Inc. – Is Consensus Overly Cautious?

Tesla Inc. operates as a multinational automotive and clean energy company. The Company designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers.

<a href="https://www.smartkarma.com/entities/20279" target="_blank" data-smartkarma-citation="entities:20279:1">Tesla Motors (TSLA US)</a> continues to power ahead of the competition in electric vehicles with an 80% market share of all electric vehicles sold in the United States in 2018.  With approximately 140,000 Model 3 cars sold in the U.S., Tesla outsold every marquee sedan brand. Model 3 outsold mid-size SUVs including BMW X3, Acura MDX, Audi Qs, Lexus RX and even the Mercedes C -Class.

Tesla Motors (TSLA US) continues to power ahead of the competition in electric vehicles with an 80% market share of all electric vehicles sold in the United States in 2018.  With approximately 140,000 Model 3 cars sold in the U.S., Tesla outsold every marquee sedan brand. Model 3 outsold mid-size SUVs including BMW X3, Acura MDX, Audi Qs, Lexus RX and even the Mercedes C -Class. 

Tesla Motors – Gaining Industrial Strength

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

Since initiating coverage prior to <a href="https://www.smartkarma.com/entities/26970" target="_blank" data-smartkarma-citation="entities:26970:1">Meituan Dianping's (3690 HK)</a> IPO, we have been bearish with respect to both its valuation and its business prospects given escalating competition in China in the food delivery segment, courtesy <a href="https://www.smartkarma.com/entities/787" target="_blank" data-smartkarma-citation="entities:787:1">Alibaba Group Holding (BABA US)</a>. Moreover, with a slowing Chinese economy putting downward pressure on outbound tourism from China, as witnessed in recent data from Macau, the Company's travel business is also likely to show a slowdown. Nevertheless, we focus on Meituan's bike sharing segment and believe that a significant write-down associated with the Mobike acquisition could be in the cards. We maintain our bearish stance on <a href="https://www.smartkarma.com/entities/26970" target="_blank" data-smartkarma-citation="entities:26970:1">Meituan Dianping (3690 HK)</a> .

Since initiating coverage prior to Meituan Dianping's (3690 HK) IPO, we have been bearish with respect to both its valuation and its business prospects given escalating competition in China in the food delivery segment, courtesy Alibaba Group Holding (BABA US). Moreover, with a slowing Chinese economy putting downward pressure on outbound tourism from China, as witnessed in recent data from Macau, the Company's travel business is also likely to show a slowdown. Nevertheless, we focus on Meituan's bike sharing segment and believe that a significant write-down associated with the Mobike acquisition could be in the cards. We maintain our bearish stance on Meituan Dianping (3690 HK) .

Meituan Dianping – Is a One Billion U.S. Dollar Impairment Forthcoming?

The management of <a href="https://www.smartkarma.com/entities/1133" target="_blank" data-smartkarma-citation="entities:1133:1">Bristol Myers Squibb Co (BMY US)</a> reiterated its optimistic view regarding the acquisition of <a href="https://www.smartkarma.com/entities/7410" target="_blank" data-smartkarma-citation="entities:7410:1">Celgene Corp (CELG US)</a> on its Q4-18 earnings conference call today. Unlike most acquisitions that succeed based on cost cuts or revenue synergies, Celgene’s distressed valuation allowed BMY to swoop in and buy a leading bio-tech at a bargain price: if the pipeline succeeds. We are betting it will. If not, the robust cash flows from Revlimid make it a low-risk , low-return deal.

The management of Bristol Myers Squibb Co (BMY US) reiterated its optimistic view regarding the acquisition of Celgene Corp (CELG US) on its Q4-18 earnings conference call today. Unlike most acquisitions that succeed based on cost cuts or revenue synergies, Celgene’s distressed valuation allowed BMY to swoop in and buy a leading bio-tech at a bargain price: if the pipeline succeeds. We are betting it will. If not, the robust cash flows from Revlimid make it a low-risk , low-return deal.  

Bristol Myers Squib – Reaffirming Its View on Celgene Corp

Neeraj Monga was previously a significant shareholder, board-member, and Head of Research at Veritas Investment Research Corporation; Canada’s leading independent equity research company. During Neeraj’s tenure of 14 years, including 8 years as Head of Research, Veritas Buy rated securities outperformed the S&P/TSX by 546 bps per year, while those rated Sell underperformed by 602 bps per year. Neeraj led or co-led multiple research initiatives that moved markets and established Veritas’ reputation as a pre-eminent provider of insightful research. Neeraj started his career as a strategy consultant with Bain & Company, Canada.