Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

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<li>WTR-CMI last week. In a week when the broad market index (Russell 2000) declined 3.6%, our WTR-CMI index of 30 chemicals and materials technology companies modestly outperformed, dropping 2.3%.</li>
<li>This nonetheless trailed the large-cap S&amp;P 500 index, which lost only 1.8% of its value during the week.</li>
<li>Benefiting from improved investor sentiment on possibly higher summer sales of insecticides, improving automotive and construction markets, and lower raw material costs that we discussed last week, ag-chem and coatings companies led the performance of our index.</li>
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WTR-CMI last week. In a week when the broad market index (Russell 2000) declined 3.6%, our WTR-CMI index of 30 chemicals and materials technology companies modestly outperformed, dropping 2.3%.
This nonetheless trailed the large-cap S&amp;P 500 index, which lost only 1.8% of its value during the week.
Benefiting from improved investor sentiment on possibly higher summer sales of insecticides, improving automotive and construction markets, and lower raw material costs that we discussed last week, ag-chem and coatings companies led the performance of our index.


Industry Report - Chemicals & Materials Technology

<ul><li>WTR-CMI last week. As the markets continue to recover from the 2022 doldrums, both the S&amp;P 500 and the Russell 2000 posted weekly gains of 3.1% and 0.5%, respectively.</li><li>Our WTR-CMI index of 30 chemicals and materials technology stocks appreciated 1.4% over the last week.</li><li>YTD, our index is up 8.1%, above the Russell 2000’s 7.3% appreciation, but below the large-cap S&amp;P 500’s 15.3% recovery.</li></ul>

WTR-CMI last week. As the markets continue to recover from the 2022 doldrums, both the S&amp;P 500 and the Russell 2000 posted weekly gains of 3.1% and 0.5%, respectively.Our WTR-CMI index of 30 chemicals and materials technology stocks appreciated 1.4% over the last week.YTD, our index is up 8.1%, above the Russell 2000’s 7.3% appreciation, but below the large-cap S&amp;P 500’s 15.3% recovery.

Mat-Chem Notes For the Week Ended June 16, 2023

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Sherwin-Williams had an excellent first quarter compared to the same period last year, with consolidated net sales growing by a high single-digit percentage, led by a mid-teens percentage increase in the professional architectural end markets.</li><li>Despite higher inflation in wages and other employee-related categories, the cost of goods sold was partially offset by a slight decrease in raw material costs compared to the previous year.</li><li>The margin in all three reportable segments increased year-over-year, with strong growth in diluted net income per share and EBITDA.</li></ul>

Sherwin-Williams had an excellent first quarter compared to the same period last year, with consolidated net sales growing by a high single-digit percentage, led by a mid-teens percentage increase in the professional architectural end markets.Despite higher inflation in wages and other employee-related categories, the cost of goods sold was partially offset by a slight decrease in raw material costs compared to the previous year.The margin in all three reportable segments increased year-over-year, with strong growth in diluted net income per share and EBITDA.

Sherwin-Williams Company: What Is Its True Moat Source? – Key Drivers

<ul><li>WTR-CMI last week. In what was a mixed week for the market, with S&amp;P 500 appreciating 0.9% and the Russell 2000 slipping 1.3%, our WTR-CMI index of 30 specialty chemicals and materials stocks outperformed both broader indexes by appreciating 1.1%, led by a recovery in prices of lithium stocks, which took a tumble the previous week after the announcement of the Chilean government’s intention to increase its financial participation in large lithium projects in the country.</li><li>Better weather drives stronger planting progress. Following last year’s planting delays caused by unseasonal weather, the 2023 planting season in the US is picking up the pace after a slower start, with both corn and soybean planting well ahead of last year and the five-year average, boding well for North American crop protection and the fertilizer market, at least when it comes to demand.</li><li>Chinese auto sales look to rise. According to the China Automobile Dealers Association, the country should see a 50% surge in Y/Y new passenger vehicle sales in April, following a strong March, compared with the COVID lockdown period a year ago.</li></ul>

WTR-CMI last week. In what was a mixed week for the market, with S&amp;P 500 appreciating 0.9% and the Russell 2000 slipping 1.3%, our WTR-CMI index of 30 specialty chemicals and materials stocks outperformed both broader indexes by appreciating 1.1%, led by a recovery in prices of lithium stocks, which took a tumble the previous week after the announcement of the Chilean government’s intention to increase its financial participation in large lithium projects in the country.Better weather drives stronger planting progress. Following last year’s planting delays caused by unseasonal weather, the 2023 planting season in the US is picking up the pace after a slower start, with both corn and soybean planting well ahead of last year and the five-year average, boding well for North American crop protection and the fertilizer market, at least when it comes to demand.Chinese auto sales look to rise. According to the China Automobile Dealers Association, the country should see a 50% surge in Y/Y new passenger vehicle sales in April, following a strong March, compared with the COVID lockdown period a year ago.

Mat-Chem Notes : For the Week Ended April 28, 2023

<ul><li>WTR-CMI last week. In what was a mixed week for the market, with the Russell 2000 appreciating 0.6% and the S&amp;P 500 remaining virtually unchanged at (0.1%), our WTR-CMI index of 30 chemicals and materials technology stocks underperformed, declining 0.3%, as lithium stocks led by ALB suffered from Chile’s decision to nationalize its lithium mining industry, once existing contracts with private companies (mainly SQM and ALB) expire.</li><li>SHW exits another paint market. When the company acquired Valspar, it did not only shore up its presence in the North American big-box distribution channel and expand its industrial coatings business, but it also gained exposure to non-North American paint markets, specifically China and Australia.</li><li>SHW divested the Australian business two years ago and now has also found a buyer (Akzo) for its Chinese paint business, which may have contributed to SHW topping the list of WTR-CMI stocks appreciating last week.</li></ul>

WTR-CMI last week. In what was a mixed week for the market, with the Russell 2000 appreciating 0.6% and the S&amp;P 500 remaining virtually unchanged at (0.1%), our WTR-CMI index of 30 chemicals and materials technology stocks underperformed, declining 0.3%, as lithium stocks led by ALB suffered from Chile’s decision to nationalize its lithium mining industry, once existing contracts with private companies (mainly SQM and ALB) expire.SHW exits another paint market. When the company acquired Valspar, it did not only shore up its presence in the North American big-box distribution channel and expand its industrial coatings business, but it also gained exposure to non-North American paint markets, specifically China and Australia.SHW divested the Australian business two years ago and now has also found a buyer (Akzo) for its Chinese paint business, which may have contributed to SHW topping the list of WTR-CMI stocks appreciating last week.

Mat-Chem Notes : For the Week Ended April 21, 2023

United States

The Sherwin-Williams Company manufactures, distributes, and sells paints, coatings, and related products.  The Company's products are sold to professional, industrial, commercial, and retail customers primarily in North and South America. Sherwin Williams also has additional operations in the Caribbean region, Europe and Asia.

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Sherwin Williams Co (SHW US)

Industry Report - Chemicals & Materials Technology

In a week when the broad market index (Russell 2000) declined 3.6%, our WTR-CMI index of 30 chemicals and materials technology companies modestly...

Water Tower Research

Mat-Chem Notes For the Week Ended June 16, 2023

WTR-CMI last week. As the markets continue to recover from the 2022 doldrums, both the S&P 500 and the Russell 2000 posted weekly gains of 3.1% and...

Water Tower Research

Sherwin-Williams Company: What Is Its True Moat Source? – Key Drivers

Sherwin-Williams had an excellent first quarter compared to the same period last year, with consolidated net sales growing by a high single-digit...

Baptista Research

Mat-Chem Notes : For the Week Ended April 28, 2023

WTR-CMI last week. In what was a mixed week for the market, with S&P 500 appreciating 0.9% and the Russell 2000 slipping 1.3%

Water Tower Research

Mat-Chem Notes : For the Week Ended April 21, 2023

In what was a mixed week for the market, with the Russell 2000 appreciating 0.6% and the S&P 500 remaining virtually unchanged at (0.1%)

Water Tower Research

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