Weekly | Analysis of Electro Optics System, Debt Ceiling & Q1 Financials Earnings Review
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The TOP 3 Winners for last Week:
Prize: $25 worth of stock vouchers
@Ah_Meng: EOS.AX - Electro Optics Systems update
It is actually very interesting developments in the space here. We know that Australia is not as big a spender in defense as US or China. However, as observed in the above articles, the Albo government is seriously committed to defense. CEA operates in similar space as EOS (Radar system) and is in fact a competitor.
The question to ask if nationalisation of CEA means that more jobs will go to CEA rather than EOS. I would think not, since both radar systems works differently. For long range missiles tracking and targeting, both systems are important. I would like to think that this means an increasing emphasis on this space rather than a likely future monopoly. Furthermore, EOS is not just about radar system. The takeover price of $500M is also attractive considering the current low market capitalization of EOS.
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@Robert J. Teuwissen: Debt ceiling in sight
The debt ceiling discussion is reflected in the interest rate curve. Debts maturing before the debt ceiling is reached have lower interest rates than those after. The likelihood of a U.S. government default is small, but it could delay interest payments and repayments. It is likely that the U.S. government will give priority to paying interest on the debt over paying social benefits, for example. Indeed, the moment payments on government bonds are not made or are made late, it could put companies or financial institutions at risk. Especially with the rampant banking crisis an unattractive picture.
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@Cresco99: 2023 Q1 Earnings Review Part II: Financials
$Charles Schwab(SCHW)$ reported a mixed quarter despite beating Wall Street estimates but the business has stormy clouds ahead.
$Bank of America(BAC)$ reported a solid quarter displaying that the bank is well-positioned to weather an economic downturn.
Intercontinental Exchange Inc. reported a solid quarter as it looks to close its Black Knight acquisition.
$Visa(V)$ reported a solid quarter and showed why the stock commands a premium valuation.
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The POPULAR Winners for this Week:
Prize: $15 worth of stock vouchers
@Alice Arnault
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$Charles Schwab(SCHW)$