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 Copper Corporation's second quarter and 6 months results of 2024 suggest a resilient performance with both positive and negative attributes.</li><li>The company reported a 15% surge in London Metal Exchange copper price in comparison to Q2 2023, which combined with production cuts and market deficit, resulted in positive trends for the corporation.</li><li>Copper made up about 76% of the company's sales in Q2, and despite a weak demand from China, the corporation confidently expects a 0.6% increase in the copper supply for 2024.</li></ul>

Southern Copper Corporation's second quarter and 6 months results of 2024 suggest a resilient performance with both positive and negative attributes.The company reported a 15% surge in London Metal Exchange copper price in comparison to Q2 2023, which combined with production cuts and market deficit, resulted in positive trends for the corporation.Copper made up about 76% of the company's sales in Q2, and despite a weak demand from China, the corporation confidently expects a 0.6% increase in the copper supply for 2024.

Southern Copper Corporation: Exploration and Development of New Deposits! - Major Drivers

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Commodities

<ul>
<li>After selling its coking coal business to <a href="https://www.smartkarma.com/entities/glencore-plc" target="_blank" data-smartkarma-citation="entities:764:1" rel="noopener">Glencore Plc (GLEN LN)</a>, <a href="https://www.smartkarma.com/entities/teck-resources-ltd-36dbdad5-1430-4d7a-8578-31bc50086f72" target="_blank" data-smartkarma-citation="entities:33343:1" rel="noopener">Teck Resources (TECK US)</a> has pivoted to copper as its primary growth driver. </li>
<li>The 7.3 bn CAD cash (20% of Mkt cap) received from the sale of the coal business stake is being used for buybacks, debt repayment, and growth opportunities.  </li>
<li>The stock is cheap on an EV-EBITDA basis at 7.5x, but we are not too fond of the business's low ROCE. </li>
</ul>


After selling its coking coal business to Glencore Plc (GLEN LN), Teck Resources (TECK US) has pivoted to copper as its primary growth driver. 
The 7.3 bn CAD cash (20% of Mkt cap) received from the sale of the coal business stake is being used for buybacks, debt repayment, and growth opportunities.  
The stock is cheap on an EV-EBITDA basis at 7.5x, but we are not too fond of the business's low ROCE. 


Teck Resources (TECK US): The New Purish Copper Play In Town

<ul><li>Southern Copper Corporation performed admirably in 2023 despite facing some challenges.</li><li>The company reported net sales of $9,896 million, a decrease of 1.5% compared to 2022.</li><li>This was primarily due to higher copper and molybdenum sales volumes, increased molybdenum and silver prices, and a reduction in copper and zinc metal prices along with decreased silver and zinc sales volumes.</li></ul>

Southern Copper Corporation performed admirably in 2023 despite facing some challenges.The company reported net sales of $9,896 million, a decrease of 1.5% compared to 2022.This was primarily due to higher copper and molybdenum sales volumes, increased molybdenum and silver prices, and a reduction in copper and zinc metal prices along with decreased silver and zinc sales volumes.

Southern Copper Corporation: What Is The Current Impact Of Copper Market Dynamics & Prices - Major Drivers

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>We have discussed for weeks that we will need to see the SPX and Nasdaq 100 close below their 20-day MAs for 2-3 consecutive days in order to get cautious.</li>
<li>This still hasn't happened (short-term trend remains bullish). If we get 2-3 closes below the 20-dayMAs, next support would be 4983-5050 on SPX, $425-$433 on QQQ (gap supports from 2/22/24)</li>
<li>If some or all of these gaps remain unfilled, it is a sign that bulls remain in control. We are seeing a rotation into commodity Sectors, we highlight several buys</li>
</ul>


We have discussed for weeks that we will need to see the SPX and Nasdaq 100 close below their 20-day MAs for 2-3 consecutive days in order to get cautious.
This still hasn't happened (short-term trend remains bullish). If we get 2-3 closes below the 20-dayMAs, next support would be 4983-5050 on SPX, $425-$433 on QQQ (gap supports from 2/22/24)
If some or all of these gaps remain unfilled, it is a sign that bulls remain in control. We are seeing a rotation into commodity Sectors, we highlight several buys


Upgrading Materials to Market Weight; Rotation into Commodity Sectors; SPX/NDX Holding Above Support

<ul><li>Southern Copper Corporation’s earnings centered around its 2023 results and offered insight into the company's financial outlook.</li><li>The company reported net sales of $9,896 million in 2023, which was lower by 1.5% compared to 2022.</li><li>Despite the reduction, the company considers the results satisfactory, owing to higher sales volumes for copper and molybdenum, as well as better prices for molybdenum and silver.</li></ul>

Southern Copper Corporation’s earnings centered around its 2023 results and offered insight into the company's financial outlook.The company reported net sales of $9,896 million in 2023, which was lower by 1.5% compared to 2022.Despite the reduction, the company considers the results satisfactory, owing to higher sales volumes for copper and molybdenum, as well as better prices for molybdenum and silver.

Southern Copper Corporation: Shift in Copper Market Dynamics & How The Company Is Adapting! - Major Drivers

United States

Southern Copper Corporation conducts mining operations in Peru and Mexico.  The Company owns and operates open pit mines and metallurgical complexes that produce copper, molybdenum, zinc, and precious metals.

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Southern Copper (SCCO US)

Southern Copper Corporation: Exploration and Development of New Deposits! - Major Drivers

Southern Copper Corporation's second quarter and 6 months results of 2024 suggest a resilient performance with both positive and negative...

Baptista Research

Teck Resources (TECK US): The New Purish Copper Play In Town

Building on our coverage in copper equities, we initiate on Teck Resources (TECK US). We explore its future growth prospects after selling its coal...

Sameer Taneja

Southern Copper Corporation: What Is The Current Impact Of Copper Market Dynamics & Prices - Major Drivers

Southern Copper Corporation performed admirably in 2023 despite facing some challenges. The company reported net sales of $9,896 million, a...

Baptista Research

Upgrading Materials to Market Weight; Rotation into Commodity Sectors; SPX/NDX Holding Above Support

Upgrading Materials $XLB to Market Weight; Rotation into Commodity Sectors $XLE. $SPX and $QQQ holding above gap supports at 4983-5050 and $425...

Vermilion Research

Southern Copper Corporation: Shift in Copper Market Dynamics & How The Company Is Adapting! - Major Drivers

Southern Copper Corporation’s earnings centered around its 2023 results and offered insight into the company's financial outlook. The company...

Baptista Research

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