Monday Monitor

Let’s talk about QE

Some highlights from this weekend’s Event Driven Monitor

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The Event of the Week

Let’s talk about QE. You all think it’s done. You may even think we’re doing QT today. You see, they did too much QE when they were using the printing press to fight germs (remember ow fun that was??). Then, they flipped to QT, but that excess QE got stored up in the Reverse Repo (RRP).

You can see the bulge of deferred QE and how it’s deflated starting in 2023. Despite the Fed doing QT, the net liquidity from the RRP has been more than offsetting the QT, hence why equities keep levitating.

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Kuppy’s Tweet of the Week

 


Chart and Kliff Note of the Week

Cluster Insider Buy Monitor: The CEO and most of the Board at the small-cap machine tool manufacturer Hurco (HURC) have picked up over $200k in the last couple weeks. Down around 50% from its peak and trading close to GFC multiples with a net cash balance sheet.


Busted M&A Monitor: Not too shocking but the mgmt. group finally withdrew on MAPS. Stock was down ~15% on the news for this positive FCF nano cap cannabis derivative..Decent flag by our friends over at BuySide Digest here and old VIC here. Trump is considering EOs on de-banking; if legit companies enter the banking system and can spend, do cannabis companies wake up?

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Kuppy’s Event Driven Monitor scans over 20 corporate events for market moving information and distills them into our propietary “Kliff Notes.”  One profitable trade should more than cover an annual subscription and access to the Event Driven chatroom!

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