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>Southern Company recently discussed its first quarter 2024 financial and operational performance, revealing several essential updates and strategic insights.</li>
<li>A highlight was the successful commercial operation of Plant Vogtle Unit 4.</li>
<li>With both units 3 and 4 now operational, Southern Company has notably increased its carbon-free energy capacity, which aligns with growing energy demands and the shift towards sustainable resources.</li>
</ul>


Southern Company recently discussed its first quarter 2024 financial and operational performance, revealing several essential updates and strategic insights.
A highlight was the successful commercial operation of Plant Vogtle Unit 4.
With both units 3 and 4 now operational, Southern Company has notably increased its carbon-free energy capacity, which aligns with growing energy demands and the shift towards sustainable resources.


The Southern Company: Initiation of Coverage

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>While the market remains in consolidation/pullback mode and we are not out of the woods, it is possible that further downside is limited from here on the S&amp;P 500</li>
<li>Since late-February, we've discussed important gap support from 2/22/24 at 4983-5050 on the SPX, with bulls in control if above 4983. Selling last week has simply filled this gap</li>
<li>4920-4950 is now support near last week's lows. Downgrade: Technology (XLK) to market weight. Upgrades: Manufacturing/Industrials (XLI) to overweight and Utilities (XLU) to market weight; individual stock buys highlighted.</li>
</ul>


While the market remains in consolidation/pullback mode and we are not out of the woods, it is possible that further downside is limited from here on the S&amp;P 500
Since late-February, we've discussed important gap support from 2/22/24 at 4983-5050 on the SPX, with bulls in control if above 4983. Selling last week has simply filled this gap
4920-4950 is now support near last week's lows. Downgrade: Technology (XLK) to market weight. Upgrades: Manufacturing/Industrials (XLI) to overweight and Utilities (XLU) to market weight; individual stock buys highlighted.


Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

US Treasury (10 Yr Generic) / Technical Analysis

Charts Highlighted: XLE, RYE, WTI Crude Oil, XLF, XLB, XLI, RCD, EEM, XLU, XLP, AWK, AEE, WMT, PEP, NUE, STLD, X, CMC, SMSMY, SCHN, RYI, TMST, MT, TX, MTL, ETR, FTS, CMS, CNP, LNT, NI, OGE, BKH, NEE, DUK, SO, and AEPCyclical value areas including Financials, Materials, Manufacturing, Transportation, and equal-weighted Discretionary display short-term improvement as interest rates show signs of a potential bottom at 1.13%. This is encouraging, however we are still neutral yet constructive overall. As we noted last week, we need to see the 10-year Treasury yield breach, and hold above, 1.45%, as well as sustained price improvement by small-caps (i.e., IWM above $234.50) before we can declare a new broad-based bull market.

Charts Highlighted: XLE, RYE, WTI Crude Oil, XLF, XLB, XLI, RCD, EEM, XLU, XLP, AWK, AEE, WMT, PEP, NUE, STLD, X, CMC, SMSMY, SCHN, RYI, TMST, MT, TX, MTL, ETR, FTS, CMS, CNP, LNT, NI, OGE, BKH, NEE, DUK, SO, and AEPCyclical value areas including Financials, Materials, Manufacturing, Transportation, and equal-weighted Discretionary display short-term improvement as interest rates show signs of a potential bottom at 1.13%. This is encouraging, however we are still neutral yet constructive overall. As we noted last week, we need to see the 10-year Treasury yield breach, and hold above, 1.45%, as well as sustained price improvement by small-caps (i.e., IWM above $234.50) before we can declare a new broad-based bull market.

10-Year Treasury Yield Below Key Resistance; Buying Utilities, Consumer Staples, and Steel Stocks

A breakout late last week in the high yield spread over 10-year Treasuries can now be added to the already long list of concerns we have for the market. Continued volatility remains our expectation, and it is becoming increasingly likely that the February 2018 lows will be tested, with new YTD lows a very real possibility.  In today’s report we reiterate our U.S. investment thesis, and highlight attractive Groups within Utilities and Financials.

A breakout late last week in the high yield spread over 10-year Treasuries can now be added to the already long list of concerns we have for the market. Continued volatility remains our expectation, and it is becoming increasingly likely that the February 2018 lows will be tested, with new YTD lows a very real possibility.  In today’s report we reiterate our U.S. investment thesis, and highlight attractive Groups within Utilities and Financials.

U.S. Equity Strategy: How Much Worse Can It Get?

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Japanese and Asian equity long/short strategies

Uzabase

Specialising in Japanese and Asian equity long/short strategies with a focus on rigorous, but targeted quantitative analysis to temper evaluations of company strategy, potential and vision. At Uzabase, our team of analysts provides coverage of industry dynamics with a local Asian flavour on Speeda, our financial information platform. Going forward we are aiming to channel our focus toward thematic research on emerging industries and company research.

It seems like <a href="https://www.smartkarma.com/entities/637" target="_blank" data-smartkarma-citation="entities:637:1">Toshiba Corp (6502 JP)</a> 's threat to bar <a href="https://www.smartkarma.com/entities/1094" target="_blank" data-smartkarma-citation="entities:1094:1">Western Digital Corp (WDC US)</a>'s engineers from the JV Yokkaichi plant from today has provoked a stern response as WDC has filed for arbitration with the International Chamber of Commerce (ICC). This move would make it significantly harder for Toshiba to avoid delisting as the arbitration process would eat up significant time (potentially up to a year), delaying the sale process and jeopardising Toshiba's ability to return to positive equity…

It seems like Toshiba Corp (6502 JP) 's threat to bar Western Digital Corp (WDC US)'s engineers from the JV Yokkaichi plant from today has provoked a stern response as WDC has filed for arbitration with the International Chamber of Commerce (ICC). This move would make it significantly harder for Toshiba to avoid delisting as the arbitration process would eat up significant time (potentially up to a year), delaying the sale process and jeopardising Toshiba's ability to return to positive equity…

Toshiba/WDC Relationship Deteriorates as ICC Arbitration Sought; Southern Takes Over Georgia Plants

United States

Xcel Energy, Inc. provides electric and natural gas services.  The Company offers a variety of energy-related services, including generation, transmission, and distribution of electricity and natural gas throughout the United States. Xcel utilities serve customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin.

Duke Energy Corporation is an energy company located primarily in the Americas that owns an integrated network of energy assets.  The Company manages a portfolio of natural gas and electric supply, delivery, and trading businesses in the United States and Latin America.

Exelon Corporation is a utility services holding company. The Company, through its subsidiaries, distributes electricity to customers in Illinois and Pennsylvania. Exelon also distributes gas to customers in the Philadelphia area as well as operates nuclear power plants in states that include Pennsylvania and New Jersey.

PG&E Corporation is a holding company that holds interests in energy based businesses.  The Company's holdings include a public utility operating in northern and central California that provides electricity and natural gas distribution; electricity generation, procurement, and transmission; and natural gas procurement, transportation, and storage.

American Electric Power Company, Inc.(AEP)is a public utility holding company. The Company provides electric service, consisting of generation, transmission and distribution, on an integrated basis to their retail customers. AEP serves portions of the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

NextEra Energy, Inc. provides sustainable energy generation and distribution services. The Company generates electricity through wind, solar, and natural gas. Through its subsidiaries, NextEra Energy also operates multiple commercial nuclear power units.

Eversource Energy is a public utility holding company. The Company, through its subsidiaries, provides retail electric service to customers in Connecticut, New Hampshire, and western Massachusetts.  Eversource Energy also distributes natural gas throughout Connecticut.

FirstEnergy Corp. is a public utility holding company. The Company's subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, exploration and production of oil and natural gas, transmission and marketing of natural gas, and energy management and other energy-related services.

Entergy Corporation is an integrated energy company that is primarily focused on electric power production and retail electric distribution operations. The Company delivers electricity to utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy also owns and operates nuclear plants in the northern United States

Edison International, through its subsidiaries, develops, acquires, owns, and operates electric power generation facilities worldwide.  The Company also provides capital and financial services for energy and infrastructure projects, as well as manages and sells real estate projects.  Additionally, Edison provides integrated energy services, utility outsourcing, and consumer products.

Power Grid Corporation of India Limited has been established by the Government of India as the central transmission utility of India. The mandate for the corporation is establishment and operation of EHV. AC & HVDC transmission lines, sub-stations, load dispatch centers and communications facilities throughout India.

Power Grid Corporation Of India (PWGR IN)

Enel SpA is a multinational power company and an integrated operator in the electricity and gas sectors, with a special focus on  Europe and Latin America. The company is active in the generation and distribution of energy from conventional and renewable sources. It also offers integrated solutions for electricity and gas products.

Iberdrola S.A. generates, distributes, trades, and markets electricity in the United Kingdom, United States, Spain, Portugal, and Latin America.  The Company specializes in clean energy and more specifically wind power.

Electricite de France (EDF) produces, transmits, distributes, imports and exports electricity.  The Company, using nuclear power, coal and gas, provides electricity for French energy consumers.

Enel SpA operates as a multinational power company and an integrated player in the global power, gas, and renewables markets. The Company produces energy and distributes electricity for business and household end users globally. Enel manages wind, solar, geothermal, and hydropower plants in Europe, the Americas, Africa, Asia, and Oceania.

Iberdrola Sociedad Anonima generates, distributes, trades, and markets electricity in the United Kingdom, the United States, Spain, Portugal, and Latin America. The Company specializes in clean energy including wind power, solar and hydroelectric, smart grids, energy storage, and green hydrogen.

CLP Holdings Limited provides vertically-integrated electricity supply in Hong Kong, conducts energy generation and retailing in Australia, and owns power generation assets in China, India, South-east Asia and Taiwan. The Company's power sources include coal, gas, nuclear and renewable energy.

Endesa S.A. is active in the generation, transmission, distribution, and commercialization of electricity in Spain, Portugal, and North Africa. The company is also a major operator in the natural gas market and offers other services related to the energy business.

EnBW Energie Baden-Wuerttemberg AG is a full service energy company that provides electricity, , gas as well as energy and environmental services. The Company's environmental services include waste disposal and recycling.

SSE PLC generates, transmits, distributes and supplies electricity to industrial, commercial and domestic customers in the United Kingdom and Ireland. The Company also stores and distributes natural gas, and operates a telecommunications network that offers bandwidth and capacity to companies, public sector organizations, Internet service providers, and others.

The Southern Company is a public utility holding company. The Company, through its subsidiaries, generates, wholesales, and retails electricity in the southeastern United States. The Company also offers wireless telecommunications services, and provides businesses with two-way radio, telephone, paging, and Internet access services as well as wholesales fiber optic solutions.

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Southern Co/The (SO US)

The Southern Company: Initiation of Coverage

Southern Company recently discussed its first quarter 2024 financial and operational performance, revealing several essential updates and strategic...

Baptista Research

Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

Shift Exposure From Growth to Value; Downgrading Tech to market weight $XLK; Upgrading Industrials $XLI to Overweight; Upgrading Utilities $XLU to...

Vermilion Research

10-Year Treasury Yield Below Key Resistance; Buying Utilities, Consumer Staples, and Steel Stocks

Cyclical value areas are improving, but so are defensives. In order to get more bullish, we need to see the 10-year Treasury yield break above...

Vermilion Research

U.S. Equity Strategy: How Much Worse Can It Get?

A breakout late last week in the high yield spread over 10-year Treasuries can now be added to the already long list of concerns we have for the...

Vermilion Research

Toshiba/WDC Relationship Deteriorates as ICC Arbitration Sought; Southern Takes Over Georgia Plants

It seems like Toshiba Corp (6502 JP) 's threat to bar Western Digital Corp (WDC US)'s engineers from the JV Yokkaichi plant from today has provoked...

Mio Kato

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