We will be hosting a lunch hour call with our policy team to discuss implications across the tech sector of the new Tax legislation (slated to become law today), including our view of most important provisions and categorical winners & losers.
Topics to be discussed on the call:
- Comparison of Major provisions
- Potential major change in the expensing of R&D costs
- Top down view with relation to all tech companies
- Categorical winners and losers
- Impacts to Hedgeye Tech Sector LONG/SHORT tickers
Positive and Negative impacts to be discussed on the call:
There are at least 4 tiers of companies for whom this nets positive impact:
Tier 1 = Companies who are fast innovators, generally tight on cash, and any extra access to cash helps keep the flywheel in play
Tier 2 = Companies that are mature, have tons of excess cash, don't really know what to do with it, have a buyback – this will drop into the buyback bucket
Tier 3 = Companies who do not have (enough) growth and need help in that category, cue M&A!
Tier 4 = Companies who are debt heavy and need cash, this is an important lifeline.
There are at least 3 tiers of negative impacts:
Tier 1 = Companies who looked like a great acquisition target because they are foreign domiciled and hence an efficient use of cash for a US company with lots of stranded cash (Ahem…NXP)
Tier 2 = Companies who compete head to head with US companies who had been constrained by higher tax rates and (maybe) lower re-investment opportunities
Tier 3 = Companies who have good business but have been using debt to shield taxes à Les Jeux Sont Fait (translation = “the game is up”)
As always, our prepared remarks will be followed by a live, anonymous Q&A session. Please submit your questions to .
Event time: TODAY (Wednesday, December 20th) at 12:30 PM EST
Participating Dialing Instructions
- Toll Free:
- Toll:
- UK: 0
- Confirmation Number: 13674765
For access to the call materials CLICK HERE.
