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How much is too much?

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Last week, banks, airlines, and other economically sensitive sectors felt the brunt of rising COVID cases across Europe. Major tech names and strong retail earnings did enough to counteract the negative pandemic sentiment with the S&P 500 and the NASDAQ finishing the week up 0.4% and 1.3%, respectively.

This week, sentiment looks to be against the stock market as it remains under pressure from a bond market that is looking increasingly jittery as the FED starts to wind down its asset purchases.

Sentiment Shift

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'Travel, good - stay at home, bad' has been the default position for markets over recent months. The likes of Marriot International and Airbnb have been rewarded while stay-at-home names such as Peloton and Zoom have cratered. Peloton has fallen over 70% from its pandemic highs, while Zoom has already slipped another 20% this week alone as investors reacted to a further slowdown in revenue growth. However, with COVID cases now rising again and lockdown measures being put in place across Europe, our heightened need for these stay-at-home names may not be over. Don't write these pandemic darlings off just yet. While momentum is likely to remain negative over the short term, the new lower price point will make for a more compelling investment.

How much is too much?

Nvidia: +161% YTD

Last week, Nvidia continued its phenomenal run as the tech giant reported a 50% jump in Q3 sales.

Nvidia is now the seventh-largest company in America and could soon become just the sixth company to reach a Trillion-dollar Market Cap.

While Nvidia's valuation multiplies are astronomically high, fixating on trailing earnings multiples has not been a rewarding investment strategy over recent years.

"The best performing stocks in the current era have never given you an opportunity to own them at parity with the market's multiple or below. And why would they have? Shouldn't the highest quality, fastest growing, best positioned companies have stocks that sell at a premium to the stocks of lesser firms?" - Josh Brown

While much of the future growth is already priced in, and 'quality at any price' is a potential pitfall, there is no denying that Nvidia is perfectly positioned to maintain its market-leading position well into the future.

Almost every company in the world will need to incorporate a digital and virtual arm in years to come. It's not just the tech giants that will drive future order flow.

Nike, for example, just announced last week that it is entering the metaverse via the launch of a virtual world known as 'Nikeland' on Roblox. Nike will be building an online store for Roblox users to try on virtual apparel, and it will have an arena for playing games mimicking the likes of the Super Bowl and the World Cup. Nike is not alone in this digital push as more and more companies look for ways to appeal to a younger audience.

As we move closer to a virtual world and the mythical metaverse becomes a reality, Nvidia's hefty valuation may become a little easier to comprehend.

Learn how to invest today, go to theislandinvestor.com.

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KCC celebrates Junior Cert students

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On Wednesday the Killarney Community College celebrated the achievements of their Junior Cycle students as they received their Junior Cycle Profile of Achievement (JCPA).  

This important milestone recognises the dedication, effort, and learning journey of each student throughout the three years of Junior Cycle.

The JCPA highlights not only academic success but also the development of key skills and participation in a broad range of learning experiences.

The presentation is a moment of pride for students, parents, and teachers alike. Stella Loughnane, Principal said: “We commend each student for their hard work and enthusiasm for learning. This achievement is a testament to the support of families and the dedication of our teaching staff.  At Killarney Community College, we strive to nurture every student’s potential and celebrate their individual strengths.”.

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Future of Áras Phádraig remains uncertain as Council is told to restart funding process

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Plans for the redevelopment of the Áras Phádraig site on Lewis Road have hit a significant administrative roadblock following the official rejection of the previous proposal.

At this Wednesday’s meeting of the Killarney Municipal District, Cllr Marie Moloney sought an update on the project’s status after elected members famously voted down the original plan last July.


The original scheme, which had been four years in the making and cost nearly €900,000 in preparatory fees, included a theatre, a public plaza, and a six-storey HSE Primary Care Centre.

While this multi-million euro project had been approved in principle by the government, the decision by Killarney’s seven councillors to reject the HSE element meant the existing business case was no longer valid. Council officials confirmed this week that because the project no longer has planning permission, the Department of Housing has withdrawn its approval for the previous funding model.


To secure future investment, the Council has now been instructed to submit a completely new preliminary business case.

This new application must align with the original conditions of the Urban Regeneration and Development Fund (URDF).

The URDF is a national competitive fund designed to rejuvenate town centres through sustainable development and high-quality civic spaces.

However, because it is a competitive process, funding is tied to specific plans that demonstrate a high socio-economic return.


The Council’s reply to Cllr Moloney clarified that the new business case will focus only on a theatre and public plaza.

Crucially, it was revealed that requests from councillors to include a new library or an expanded Arts Centre were not part of the original URDF application.

Because the funding process is so rigid, adding these new elements now could jeopardize the chances of receiving any government money at all, as they were not included in the approved in principle bid from years ago.


This leaves the town in a difficult position.

While councillors and the public overwhelmingly opposed the height and scale of the six-storey HSE building, that anchor was the primary driver of the project’s financial viability under URDF rules.

Management warned that without the Primary Care Centre, the project may struggle to meet the strict requirements of the national fund.

For now, the Council will proceed with a plan for a scaled-back theatre and plaza, while the prospects for the long-promised library and civic hub remain outside the scope of current government funding.

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