Market News
The Toronto Stock Exchange (TSX) fell .9% for the week while the Dow Jones Industrial Average (DJIA), S&P 500 (S&P500) and Nasdaq (NASD) all ended the week up. Not much movement for any of the portfolios but the overall trend for the markets and portfolios is still up.
Portfolio Update
Portfolio 1
Activity
Sold StoneCo (NASD:STNE) Originally invested in StoneCo because it was an e-commerce company located in Brazil, looking to dominate the South American market (so I thought). Plus, Warren Buffet’s Berkshire Hathaway had invested in the company (and are still invested) which I took as a confirmation this was a good company to own a piece of. In my old way of selecting companies to invest in, this was as far as I would investigate a company. The stock had a good run but has slowly been drifting down since its February highs.
With the downward trend I decided to actually do some due diligence and read their latest quarterly report. Based on the report it appears Brazil is StoneCo’s primary, if only market, so its market is not as big as I thought. In addition to a smaller market, it also faces competition from South American rival MercadoLibre (NASD:MELI) as well as Canadian powerhouse Shopify (both seem to be drifting upward).
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I still think StoneCo will outperform over the long run, however, I felt there were other companies with better potential available, including a few already in the portfolio, and if I wanted to invest in them I needed to sell a company and this was the best candidate given the above reasoning. Of course, once I sold the shares the price went up.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Automotive Property REIT (TSX:APR.UN)
US $
Quarterly Reports
Selected highlights from their August 17, 2021 2QF22 press release
- Total GAAP revenue was US$2.3 billion, up 158.6% year-on-year.
- Total gross profit was US$930.9 million, up 363.5% year-on-year.
- Total adjusted EBITDA1 was US$(24.1) million compared to US$7.7 million for the second quarter of 2020.
Digital Entertainment
- Bookings were US$1.2 billion, up 64.8% year-on-year.
- GAAP revenue was US$1.0 billion, up 166.8% year-on-year.
- Quarterly paying users grew by 84.8% year-on-year to 92.2 million and represented
7% of QAUs for the second quarter compared to 10.0% for the same period in
2020.
E-commerce
- GAAP revenue was US$1.2 billion, up 160.7% year-on-year.
- GAAP revenue included US$904.6 million of GAAP marketplace revenue4, up
7% year-on-year, and US$250.6 million of GAAP product revenue5, up 90.0%
year-on-year. - Gross orders totaled 1.4 billion, an increase of 127.4% year-on-year.
- Gross merchandise value (“GMV”) was US$15.0 billion, an increase of 87.5% year-
on-year.
Digital Financial Services Update
mobile wallet total payment volume exceeded US$4.1 billion for the second quarter of 2021, an increase of close to 150% year-on-year.
- Quarterly paying users for our mobile wallet services increased to 32.7 million in the second quarter.
Selected highlights from their August 18, 2021 2QF22 press release
- Record revenue of $6.51 billion, up 68 percent from a year earlier
- Record Gaming revenue of $3.06 billion, up 85 percent from a year earlier
- Record Data Center revenue of $2.37 billion, up 35 percent from a year earlier
Gaming: Second-quarter revenue was a record $3.06 billion, up 85 percent from a year earlier and up 11 percent from the previous quarter.
Data Center: Second-quarter revenue was a record $2.37 billion, up 35 percent from a year earlier and up 16 percent from the previous quarter.
Professional Visualization: Second-quarter revenue was a record $519 million, up 156 percent from a year earlier and up 40 percent from the previous quarter.
Automotive: Second-quarter revenue was $152 million, up 37 percent from a year earlier and down 1 percent from the previous quarter.
- Reported sales of $41.1 billion for the second quarter of fiscal 2021, an increase of $3.1 billion, or 8.1 percent from the second quarter of fiscal 2020. Comparable sales for the second quarter of fiscal 2021 increased 4.5 percent, and comparable sales in the U.S. increased 3.4 percent.
- Net earnings for the second quarter of fiscal 2021 were $4.8 billion, or $4.53 per diluted share, compared with net earnings of $4.3 billion, or $4.02 per diluted share, in the same period of fiscal 2020. For the second quarter of fiscal 2021, diluted earnings per share increased 12.7 percent from the same period in the prior year.
Global – E Online (NASD:GLBE) : Q2 2021 Financial Results
- GMV in the second quarter of 2021 was $326 million, an increase of 95% year over year
- Revenue in the second quarter of 2021 was $57.3 million, an increase of 92% year over year, of which Service fees was $21.1 million and Fulfillment services revenue was $36.2 million
- Gross margin in the second quarter of 2021 was 36.0%, an increase of 360 basis points from 32.4% in the second quarter of 2020
- Adjusted EBITDA1 in the second quarter of 2021 improved to $7.6 million compared to $3.1 million in the second quarter of 2020
- Net loss was ($22.2) million, compared to a net loss of ($0.4) million in the year-ago period. Net profit excluding the Shopify warrants related amortization expense of $25.5 million was $3.3 million
Portfolio 2
Activity
No activity for the past week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Dream Industrial REIT (TSX:DIR.UN)
US $
No US$ dividends this week.
Quarterly Reports
No Report this past week.
Portfolio 3
Activity
No activity for the past week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
No dividends this week
Quarterly Reports
H1 2021 Summary from their August 19, first half 2021 press release
- Processed volume was €216.0 billion, up 67% year-on-year
- Net revenue was €445.0 million, up 46% year-on-year
- EBITDA of €272.7 million, up 65%* year-on-year
- EBITDA margin was 61% as a result of strong net revenue growth paired with the operational scalability of the Adyen platform
- Free cash flow conversion ratio was 90%, with CapEx at 5% of net revenue