Latest news with #US-denominated
Yahoo
21-05-2025
- Business
- Yahoo
Why this activist investor wants big changes at billionaire media mogul Barry Diller's IAC
Listen and subscribe to Opening Bid on Apple Podcasts, Spotify, Amazon Music, YouTube or wherever you find your favorite podcasts. The fresh-faced, high-energy activist investor Gavriel Kahane is very careful to say he isn't attacking grizzled billionaire media veteran Barry Diller in his headline-making campaign against media conglomerate IAC (IAC). Rather, his firm is just trying to create new value for shareholders. "We're really not challenging Barry Diller," the Arkhouse managing partner told me on Yahoo Finance's Opening Bid podcast (video above; listen in below). "We are very much cooperating with the guy and are really thrilled that he's been engaged so constructively and, I would say, somewhat surprised that it's been such a cooperative and fruitful engagement thus far." This embedded content is not available in your region. Arkhouse disclosed a "significant" stake in IAC in April. The activist shop said IAC — which owns 40 publications such as People, a lucrative 22.5% stake in casino operator MGM (MGM), and a stake in car rental outfit Turo — is worth $72 per share if broken up. The media conglomerate's stock currently trades around $38. "I think we see it as one of the most compelling risk-adjusted opportunities in the public market today because of the undervaluation," Kahane said. "IAC's share price is trading at the value of its liquid assets alone. We're talking about US-denominated dollars on restricted cash. And MGM also, as an aside, think MGM is tremendously undervalued." Arkhouse did get one of its board suggestions, Tor Braham, a former tech banker, nominated to IAC's board in late April. IAC's latest financial results underscore Arkhouse's view that the company may be worth more apart than together. The company's sales fell 9% year over year in the first quarter, but adjusted operating profits surged 166% as it slashed costs at its various publications. IAC ended the quarter with $1.2 billion in cash, a relatively high number when considering the company's market cap is only $3 billion. The company's stake in MGM is valued at about $2 billion. Diller, who made his name as CEO of Twentieth Century Fox in the 1980s and has tried to buy Paramount (PARA) at least twice in the past 40 years, founded IAC in 1995. He returned to lead IAC earlier this year amid a bid to improve performance, with the management team reporting directly to him. "So he [Diller] is actively going to do things, and he actively started doing things that we think are going to collapse the dislocation between intrinsic value and the current share price," Kahane said. Arkhouse is no stranger to shaking prominent trees in corporate America. The firm, which tends to specialize in real estate transactions, took a highly publicized position in department store icon Macy's (M) in December 2023 and offered to buy the retailer for $5.8 billion. The vibe on Wall Street was that Arkhouse was itching to get its hands on Macy's lucrative real estate portfolio, especially its crown jewel, the New York City Herald Square location. After a series of public exchanges bordering on unfriendly, Arkhouse and partner Brigade offered to purchase Macy's for a final price of $6.9 billion. Macy's executives, led by CEO Tony Spring, rejected the offer, contending the consortium didn't have the financing in place and that its turnaround strategy would yield better results for shareholders. Arkhouse did end up getting two of its nominees to the Macy's board. Today, Macy's market cap stands at $3.3 billion following a series of challenging quarters and tariff concerns — well below Arkhouse's offer price. Kahane declined to comment on whether he would be taking another run at acquiring Macy's. He remains a shareholder but declined to disclose the size of his current stake. Despite Macy's stock plunge, Kahane said he isn't happy the deal fell through. "I'm frustrated as, you know, as I think the rest of, or most shareholders are, obviously," he said. Three times each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid. You can find more episodes on our video hub or watch on your preferred streaming service. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
CoinShares International Ltd (CNSRF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth ...
Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CoinShares International Ltd (CNSRF) reported a solid Q1 2025 performance with revenue from asset management fees increasing to $29.6 million, up from $24.5 million in Q1 2024. The company successfully transitioned its functional and presentation currency to USD, reflecting its growing exposure to US-denominated transactions. CoinShares Physical platform led the European crypto ETP space in Q1, bringing in $269 million in net inflows, three times more than the nearest competitor. The company maintained a strong EBITDA margin of 75% despite a challenging market environment. CoinShares International Ltd (CNSRF) is actively pursuing a US listing, which could enhance its market presence and investor base. The company faced a significant quarterly decline in digital asset prices, marking the most substantial drop since Q2 2022. Gains and other income within capital markets decreased to $11.9 million from $14.1 million in Q1 2024. The company's principal investments showed a negative movement of $1.5 million, with a Treasury loss of $3 million. CoinShares International Ltd (CNSRF) experienced net outflows of $288 million from its US platform, primarily from the SOT BTC ETF. The company's gross margin declined slightly to 89% due to a reallocation of certain marketing costs into direct costs. Warning! GuruFocus has detected 3 Warning Signs with CNSRF. Q: How much of CoinShares' physical inflows are from existing markets versus new geographies? A: Our European market is primarily focused on European customers, with a strong concentration of investors in Stockholm and Milan. The distribution of our products is spread throughout Europe. Q: What can CoinShares do to capitalize on the US crypto market besides listing? A: Listing in the US has been a long-term commitment for us. The US regulatory environment is becoming more open to crypto, and we are hopeful to execute on our mission to list there. Q: How has CoinShares' staking income held up despite falling Ethereum prices and yields? A: Staking income has declined approximately 20% from $7.3 million in Q4 2024 to $5.6 million in Q1 2025. The decline is largely equivalent to the price movement of Ethereum over the quarter. Q: What is the typical loan book size and maturity for CoinShares? A: The total amount of outstanding loans at the end of Q1 was approximately $100 million, with 4 or 5 counterparties. Loans are typically short-term and can be recalled on demand to adhere to our risk framework. Q: How does CoinShares view the competition in the European markets, and has it changed your strategy? A: We focus on our own execution rather than worrying about competitors. We continue to concentrate on our own affairs and execution strategies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
07-05-2025
- Business
- Yahoo
Your summer vacation in Asia could get a lot more expensive
Beach holidays in Asia could get more expensive as the dollar weakens against local currencies. Nathalie Jamois/SOPA Images/LightRocket/Getty Images Asian currencies are surging as the US dollar weakens, and it could impact summer travel costs. The dollar's decline is driven by the "Sell America" trend and trade negotiations. A weaker dollar may shift purchasing power to Asia, affecting investments and markets. Dreaming of a cocktail on the beach in Malaysia or exploring the buzzing night markets of Taiwan? You might want to hold that thought: Summer vacations in Asia may get more expensive than you think, as the US dollar continues to come under pressure. The typically stable Taiwan dollar surged by as much as 10% against the greenback in the first few days of this month. The currency is now about 8% higher against the dollar this year to date. Other Asian currencies, including those from Singapore, South Korea, Malaysia, China, and Hong Kong, have also rallied over the same period. The gains come as Asian companies, including insurers and exporters, move money out of US assets and back home — a shift driven in part by the weakening dollar. Many didn't hedge against currency swings, so they're now losing money as the greenback falls amid fears over Trump's tariffs and a slowing economy. Francesco Pesole, an ING strategist, wrote in a note on Tuesday that economies like Taiwan, which have large holdings in US-denominated assets, are feeling the pain from the dollar's slide. As a result, investors are increasingly looking to hedge their exposure and diversify away from US investments. Pesole said this trend is part of a "more worrying bearish narrative for the dollar" as it comes at a time when Asian countries are negotiating trade deals with the US. The US Dollar Index, which measures the greenback against a basket of major peer currencies, is down about 8% this year to date, as investors dig in on the "Sell America" theme, which has roiled the Treasury market. "We agree with the view expressed in the market that the extremely volatile markets seen in Taiwan FX over the last few days are a warning shot," George Saravelos, the global head of foreign exchange research at Deutsche Bank, wrote on Tuesday. 'Asian crisis in reverse' The unusual moves in Asia's currency markets could have major implications in the longer term. "To me, it has a very sort of Asian-crisis-in-reverse feel to it," Louis-Vincent Gave, the founding partner of Gavekal Research, said in a podcast on Monday. The 1997 Asian Financial Crisis was triggered by the collapse of the Thai baht, which led to financial contagion across the region. In its aftermath, many Asian economies began hoarding US dollars to build up foreign exchange reserves as a defense against future crises.
Business Insider
07-05-2025
- Business
- Business Insider
Your summer vacation in Asia could get a lot more expensive
Asian currencies are surging as the US dollar weakens, and it could impact summer travel costs. The dollar's decline is driven by the "Sell America" trend and trade negotiations. A weaker dollar may shift purchasing power to Asia, affecting investments and markets. Dreaming of a cocktail on the beach in Malaysia or exploring the buzzing night markets of Taiwan? You might want to hold that thought: Summer vacations in Asia may get more expensive than you think, as the US dollar continues to come under pressure. The typically stable Taiwan dollar surged by as much as 10% against the greenback in the first few days of this month. The currency is now about 8% higher against the dollar this year to date. Other Asian currencies, including those from Singapore, South Korea, Malaysia, China, and Hong Kong, have also rallied over the same period. The gains come as Asian companies, including insurers and exporters, move money out of US assets and back home — a shift driven in part by the weakening dollar. Many didn't hedge against currency swings, so they're now losing money as the greenback falls amid fears over Trump's tariffs and a slowing economy. Francesco Pesole, an ING strategist, wrote in a note on Tuesday that economies like Taiwan, which have large holdings in US-denominated assets, are feeling the pain from the dollar's slide. As a result, investors are increasingly looking to hedge their exposure and diversify away from US investments. Pesole said this trend is part of a "more worrying bearish narrative for the dollar" as it comes at a time when Asian countries are negotiating trade deals with the US. The US Dollar Index, which measures the greenback against a basket of major peer currencies, is down about 8% this year to date, as investors dig in on the "Sell America" theme, which has roiled the Treasury market. "We agree with the view expressed in the market that the extremely volatile markets seen in Taiwan FX over the last few days are a warning shot," George Saravelos, the global head of foreign exchange research at Deutsche Bank, wrote on Tuesday. 'Asian crisis in reverse' The unusual moves in Asia's currency markets could have major implications in the longer term. "To me, it has a very sort of Asian-crisis-in-reverse feel to it," Louis-Vincent Gave, the founding partner of Gavekal Research, said in a podcast on Monday. The 1997 Asian Financial Crisis was triggered by the collapse of the Thai baht, which led to financial contagion across the region. In its aftermath, many Asian economies began hoarding US dollars to build up foreign exchange reserves as a defense against future crises. "If the Asian crisis essentially meant a massive transfer of purchasing power from the Asian consumer to the US consumer, then the reverse Asian crisis that we are now going through essentially reverses all of these trends," he said. If the trend spreads across the region, there will be "massive investment implications," Gave said, citing a structurally weaker dollar and pressure for Treasurys. On the flip side, local stock markets in Asia could benefit. "I think it's a tremendous transfer of purchasing power from the West to the East," he said.
