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>Steel Dynamics provided a comprehensive update during their third quarter earnings call, outlining both growth trajectories and current challenges.</li><li>Delivering another solid financial performance, their commitment to safety and operational excellence remains a core focus, highlighted by the significant improvements in safety metrics.</li><li>The financial results for the third quarter were substantively stable, albeit influenced by secular trends in the steel market.</li></ul>

Steel Dynamics provided a comprehensive update during their third quarter earnings call, outlining both growth trajectories and current challenges.Delivering another solid financial performance, their commitment to safety and operational excellence remains a core focus, highlighted by the significant improvements in safety metrics.The financial results for the third quarter were substantively stable, albeit influenced by secular trends in the steel market.

Steel Dynamics Inc.: Can Their Attempts Towards The Diversification Of Product Portfolio Catalyze Growth? - Major Drivers

<ul><li>Steel Dynamics achieved notable results in the second quarter of 2024, with some mixed performances across different operational aspects.</li><li>The company saw total revenues of $4.6 billion, a slight decline from the previous quarter, primarily attributed to a fall in steel prices which more than offset the stable shipment volumes.</li><li>Correspondingly, there was a contraction in the steel metal spread which resulted in a 26% reduction in operating income, totaling $559 million, compared to the previous quarter.</li></ul>

Steel Dynamics achieved notable results in the second quarter of 2024, with some mixed performances across different operational aspects.The company saw total revenues of $4.6 billion, a slight decline from the previous quarter, primarily attributed to a fall in steel prices which more than offset the stable shipment volumes.Correspondingly, there was a contraction in the steel metal spread which resulted in a 26% reduction in operating income, totaling $559 million, compared to the previous quarter.

Steel Dynamics Inc.: A Dive Into Market Dynamics and Policy Tailwinds & Other Major Drivers

<ul><li>The first quarter 2024 results for Steel Dynamics Inc., display the strong performance of the company when considering their financial and operational undertakings.</li><li>Reaching near-record quarterly steel shipments of 3.3 million tons, Steel Dynamics demonstrated impressive control over its operations.</li><li>Four new value-added flat rolled steel coating lines were introduced that contribute to a product diversification that included 1.1 million tons of higher-margin products.</li></ul>

The first quarter 2024 results for Steel Dynamics Inc., display the strong performance of the company when considering their financial and operational undertakings.Reaching near-record quarterly steel shipments of 3.3 million tons, Steel Dynamics demonstrated impressive control over its operations.Four new value-added flat rolled steel coating lines were introduced that contribute to a product diversification that included 1.1 million tons of higher-margin products.

Steel Dynamics: How Long Will The Stability in Demand Across Operating Platforms Last? - Major Drivers

<ul><li>The investment thesis of Steel Dynamics is centered around the company's strong operational performance and strategic differentials against its competitors.</li><li>In the Q4 and FY2023 earnings call, Steel Dynamics highlighted a record safety year, with steel shipments amounting to 12.8 million tons, the highest yet.</li><li>The company also boasted its second-best year for revenues at $18.8 billion and cash flow from operations at $3.5 billion.</li></ul>

The investment thesis of Steel Dynamics is centered around the company's strong operational performance and strategic differentials against its competitors.In the Q4 and FY2023 earnings call, Steel Dynamics highlighted a record safety year, with steel shipments amounting to 12.8 million tons, the highest yet.The company also boasted its second-best year for revenues at $18.8 billion and cash flow from operations at $3.5 billion.

Steel Dynamics: Can The Robust Demand and Favorable Market Conditions Catalyze Growth In 2024? - 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

iShares Russell 2000 ETF / Technical Analysis

<ul>
<li>The market remains in "lockout rally" mode, where prices continue to move higher with little-to-no pullbacks, while ignoring overbought readings.</li>
<li>We have discussed this on a weekly basis since 11/21/23. Still no reason to fight this bullish trend, and we continue to expect more upside into year-end and early 2024.</li>
<li>We highlight buys in Steel: NUE, STLD, RS, WOR, TMST, ZEUS, LatAm Banks: ITUB, BSBR, BBD, BAP, BCH, Industrials: ITT, FSS, SPXC, ATS, KAI, CR, BRC, SXI, and HSC</li>
</ul>


The market remains in "lockout rally" mode, where prices continue to move higher with little-to-no pullbacks, while ignoring overbought readings.
We have discussed this on a weekly basis since 11/21/23. Still no reason to fight this bullish trend, and we continue to expect more upside into year-end and early 2024.
We highlight buys in Steel: NUE, STLD, RS, WOR, TMST, ZEUS, LatAm Banks: ITUB, BSBR, BBD, BAP, BCH, Industrials: ITT, FSS, SPXC, ATS, KAI, CR, BRC, SXI, and HSC


Russell 2000 Testing 1.5+ Year Resistance; Downgrading Communications; Steel Buys $NUE $STLD $ZEUS

United States

Steel Dynamics, Inc. is a diversified carbon-steel steel producer and metals recycler in the U.S, located in Fort Wayne, IN. The Company's operating segments include Steel Operations, Metals Recycling & Ferrous Resources Operations, and Steel Fabrication Operations. Steel Dynamics products include flat rolled steel sheet, engineered bar special-bar-quality, structural beams.

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Steel Dynamics (STLD US)

Steel Dynamics Inc.: Can Their Attempts Towards The Diversification Of Product Portfolio Catalyze Growth? - Major Drivers

Steel Dynamics provided a comprehensive update during their third quarter earnings call, outlining both growth trajectories and current...

Baptista Research

Steel Dynamics Inc.: A Dive Into Market Dynamics and Policy Tailwinds & Other Major Drivers

Steel Dynamics achieved notable results in the second quarter of 2024, with some mixed performances across different operational aspects. The...

Baptista Research

Steel Dynamics: How Long Will The Stability in Demand Across Operating Platforms Last? - Major Drivers

The first quarter 2024 results for Steel Dynamics Inc., display the strong performance of the company when considering their financial and...

Baptista Research

Steel Dynamics: Can The Robust Demand and Favorable Market Conditions Catalyze Growth In 2024? - Major Drivers

The investment thesis of Steel Dynamics is centered around the company's strong operational performance and strategic differentials against its...

Baptista Research

Russell 2000 Testing 1.5+ Year Resistance; Downgrading Communications; Steel Buys $NUE $STLD $ZEUS

Market remains in a "lockout rally" where prices continue to move higher with little-to-no pullbacks, while ignoring overbought readings -- as we...

Vermilion Research

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