May. 29 at 2:59 PM
$PAYO Nibbling a bit. So who knows where this tariff mess is going, but my 2c is that it's a good development for Payo and here's why. This legal ruling may actually allow Trump to back down should he choose - he may do that as it's clear that the blanket tariffs are not popular and unlikely to work. So if the ruling stands after the bigger courts review it, he has to rely on using other powers and these are likely to be more sector specific. So pharma, steel, autos and then selective policy moves such as the plane engines we saw today which in themselves is a get back at the rare earth export controls China put in place. However the stuff that Payo's clients deals in - toys, gadgets, sneakers, much of the stuff on Amazon, that stuff makes little sense to tariff as the US is not going to manufacture those and the inflation impact is real. Anyways we've gone from 145% to zero more or less and the stock hasn't responded much, ergo it's attractive if the above is a likely outcome.
