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Smartkarma Daily Briefs

Mar 16
0

Daily Brief Macro: Long Volatility & Gold and more

By | Daily Briefs, Macro

In today’s briefing:

  • Long Volatility & Gold, Caution on Equities, and Short Dollar & Oil Under Trump 2.0
  • Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments | 15 Mar 2024
  • CX Daily: Behind China’s Struggle To Bring Down Drug-Resistant TB
  • South Korea: Recovery Ontrack But Watch for Inflation

Long Volatility & Gold, Caution on Equities, and Short Dollar & Oil Under Trump 2.0

By Srinidhi Raghavendra

  • Trump secures Republican nomination. Trump v/s Biden again. Volatility will the biggest winner. Gold will thrive on rising geopolitical tensions.
  • Equities will face headwinds during Trump 2.0. European stocks and EM equities will underperform with anticipated trade restrictions and protectionism.
  • USD will weaken. Oil prices will fall. Defense sector will benefit from rising tensions and reduced US role in NATO and the world at large.

Walker’s Weekly: Dr. Jim’s Summary of Key Global Macro Developments | 15 Mar 2024

By Dr. Jim Walker

  • Recent CPI data in the US suggests no imminent interest rate cuts, with inflation running above 3%.
  • Exploration in Shenzhen revealed ongoing deflationary trends and significant spending from older individuals, posing challenges for Hong Kong’s property market.
  • China’s electric vehicle revolution is evident in Shenzhen, with widespread adoption and rapid advancements in charging infrastructure and technology.

CX Daily: Behind China’s Struggle To Bring Down Drug-Resistant TB

By Caixin Global

  • Tuberculosis / In Depth: Behind China’s struggle to bring down drug-resistant TB
  • TikTok /: U.S. House passes bill that will ban TikTok if not sold
  • Explosion /: Death toll of North China restaurant blast rises to seven

South Korea: Recovery Ontrack But Watch for Inflation

By Manu Bhaskaran

  • Net exports returned to growth for South Korea in 4Q23’s GDP, contributing to continued momentum towards an economic recovery. 
  • Conditions for the manufacturing industry are also positive, with the pivotal semiconductors industry exhibiting a strong rebound. Firm sentiment also remained positive. 
  • Inflation, however, remains sticky with even core inflation remaining flat from the previous month. We do not expect rate cuts given the growth-inflation balance. 

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Mar 16
0

Daily Brief Crypto: Crypto Moves #19 – Liquid Staking Protocols Are Ethereum’s Saver and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Crypto Moves #19 – Liquid Staking Protocols Are Ethereum’s Saver

Crypto Moves #19 – Liquid Staking Protocols Are Ethereum’s Saver

By Mads Eberhardt

  • It has been exactly eighteen months since Ethereum made the big switch from Proof-of-Work to Proof-of-Stake, an event widely known as the Merge.
  • In simple terms, after the Merge, the responsibility for verifying transactions and proposing new blocks on the Ethereum network shifted from miners to holders, provided they choose to become stakers.
  • To maintain the blockchain as stakers, holders lock up their Ether in the network.

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Mar 16
0

Most Read: Emerald Resources Nl, Outsourcing Inc, Roland DG Corp, JSR Corp, NIFTY Index, Hanjin KAL Corp, Astera Labs , Sino Land Co, Naspers , Anglo American and more

By | Daily Briefs, Most Read

In today’s briefing:

  • MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade
  • Outsourcing (2427) – The OTHER Arb – That One Neat Trick And Its Weird Risks
  • Roland DG (6789) – Brother (6448) Launches Hostile Overbid to Taiyo MBO – You Love To See It
  • JSR Corporation (4185 JP): SUNY RF Responds as JIC Tender Rumoured for a 19 Mar Start
  • EQD | NIFTY Down: Where to BUY WEEKLY
  • Another Brewing Fight for the Controlling Shareholding of Hanjin Kal?
  • Astera Labs IPO Valuation Analysis
  • HK CEO & Director Dealings (15 Mar 2024): Sino Land, Hysan, FE Consortium, Champion REIT, Dongyue
  • NPN X PRX: Discounts Continue to Come Under Pressure
  • JSE March Rebalance Day: Top Sells AGL, MNP & INP

MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade

By Brian Freitas

  • Emerald Resources Nl (EMR AU) will be added to the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in March while there are 3 deletions for the index.
  • The constituent changes along with float and capping changes result in an estimated one-way turnover of 6.4% and a one-way trade of US$263m.
  • There are 9 stocks with more than US$10m to trade and 9 stocks with over 2x ADV to trade.

Outsourcing (2427) – The OTHER Arb – That One Neat Trick And Its Weird Risks

By Travis Lundy

  • Outsourcing Inc (2427 JP) has been an “interesting” risk arb situation. It was launched as a Cheeky, Opportunistic, Low-Priced MBO. Some bumps after launch turned out to be BAU.
  • The stock has not traded above terms since early on in the trade. I expect people are happy to get out. But there is ANOTHER ARB to do here.
  • The OTHER ARB is something quite particular to high float, low activism risk arb trades. In some ways better than the traditional arb, but it has some risks.

Roland DG (6789) – Brother (6448) Launches Hostile Overbid to Taiyo MBO – You Love To See It

By Travis Lundy

  • A month ago, Engagement Investor Taiyo Pacific Partners launched an MBO on Roland DG Corp (6789 JP) after having done a takeover of their former sub years ago.
  • I said it was too cheap. Machinery company Brother Industries (6448 JP) has decided the same, and has announced a hostile/unsolicited overbid 3.3% higher. Tender to start in May. Fun!!!
  • This will almost certainly get bid even higher as people would expect the MBO bidders won’t simply give up. More below.

JSR Corporation (4185 JP): SUNY RF Responds as JIC Tender Rumoured for a 19 Mar Start

By Arun George

  • Bloomberg reports that JIC will start the JSR Corp (4185 JP) tender as early as 19 March. Separately, SUNY RF filed a response to Inpria/JSR’s 6 March filing last night.
  • My reading of JSR and SUNY RF’s filings suggests that the Court is unlikely to conclude that SUNY RF’s lawsuit will be harmed if JIC proceeds with the tender offer.
  • JIC seems comfortable taking on the litigation risk (if required). The key risk remains timing. For a late April payment, gross/annualised spread is 0.6%/4.0%.   

EQD | NIFTY Down: Where to BUY WEEKLY

By Nico Rosti

  • The NIFTY Index this week suddenly stopped its rally and started to correct.
  • This week should close down and the next week may be also down, but if it is the odds are great for a LONG trade.
  • Re-Enter the rally at prices between 21800 and 21150, this week or the next.

Another Brewing Fight for the Controlling Shareholding of Hanjin Kal?

By Douglas Kim

  • On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air Lines.
  • It was also announced on 14 March that GS Retail purchased a 1% stake in Hanjin Kal. In addition, Korean Air Lines also purchased a 1.2% stake in GS Retail.
  • One of the growing probabilities of the changing shareholding structures is that KDB may be interested in selling its 10.6% stake in Hanjin Kal.

Astera Labs IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of the IPO price range (US$30).
  • We estimate Astera Labs (ALAB US) to generate revenue of $221.3 million (up 91.1% YoY) in 2024 and $304.5 million (up 37.5% YoY) in 2025.
  • Many investors are willing to take extra risk to invest in companies such as Astera Labs that could generate strong sales growth amid rush to aggressively expand AI capabilities.

HK CEO & Director Dealings (15 Mar 2024): Sino Land, Hysan, FE Consortium, Champion REIT, Dongyue

By David Blennerhassett

NPN X PRX: Discounts Continue to Come Under Pressure

By Charlotte van Tiddens, CFA

  • Naspers and Prosus continue to come under pressure relative to their underlying holdings.
  • Since our last update on the 1st of March, Naspers’ look through discount has widened by 1.6 percentage points to 42%. 
  • Naspers’ discount to Prosus’ market value has widened notably by 2.1 percentage points to 11.3%. Prosus’ discount is only 30bps wider and is trading at 35.4%.

JSE March Rebalance Day: Top Sells AGL, MNP & INP

By Charlotte van Tiddens, CFA

  • We expect to see large volumes of AGL, MNP and INP to trade in the closing auction due to the index harmonisation.
  • Passive trackers and hedgers with exposure to vanilla indices will need to sell down their holdings to transition to the SWIX methodology.
  • The top buys include: NPN, FSR, SBK, GFI, CPI and PRX.

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Mar 16
0

Daily Brief Utilities: Encavis AG, Talen Energy and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • KKR/Encavis AG: Voluntary Offer
  • TLNE: The Tale of the Quarter

KKR/Encavis AG: Voluntary Offer

By Jesus Rodriguez Aguilar

  • KKR offers €17.50/share for Encavis AG (ECV GR), 53% premium, implied equity value of €2,818 million. This shows interest in renewables after the falls on the stock market in 2023-24.
  • The offer represents 12.7x EV/Fwd NTM EBITDA and 32.4x Fwd P/E. On  a P/E basis, the offer seems fair vs. (depressed) comparables.
  • Given the current negative perception surrounding renewable energy companies, I think the shareholders are likely to tender at an attractive price. Spread is 3.77%/5.24% (gross/anualised, assuming closing by mid-December).

TLNE: The Tale of the Quarter

By Hamed Khorsand

  • TLNE reported fourth quarter results impacted by two unplanned maintenance issues and yet managed to report operating income and adjusted EBITDA for the period.
  • TLNE reported revenue of $527 million in the quarter compared to our forecast of $507 million. Energy related revenue dropped in the quarter due to two maintenance issues and seasonality.
  • TLNE’s stock has started to inch closer to our original target of $96, but we believe there is upside from there if TLNE is valued closer to other nuclear peers.

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Mar 16
0

Daily Brief Industrials: Allegion Plc, United Airlines Holdings, Will Group Inc, Norfolk Southern and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Allegion Plc (ALLE) – Friday, Dec 15, 2023
  • United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? – Key Drivers
  • 3Q Follow-Up – WILL GROUP (6089 JP)
  • Norfolk Southern Corporation: A Tale Of Expansion & Investment in Intermodal Operations! – Major Drivers

Allegion Plc (ALLE) – Friday, Dec 15, 2023

By Value Investors Club

  • VIC pitch remains relevant as Allegion is undervalued compared to historical P/E ratio
  • Majority of sales from resilient aftermarket and institutional sectors make Allegion’s business more stable than perceived
  • Strong presence in North America provides solid revenue base with high margins, presenting a strong investment opportunity for long-term growth and value appreciation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? – Key Drivers

By Baptista Research

  • During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments regarding operational trends and financial performance, despite multiple headwinds at the global level.
  • The airline’s 2023 performance was framed as a clear demonstration of its United Next plan’s effectiveness, buoied by diversified revenue streams and robust operational metrics.
  • United Airlines posted full-year EPS (earnings per share) above $10, meeting its initial United target range.

3Q Follow-Up – WILL GROUP (6089 JP)

By Sessa Investment Research

  • WILL GROUP announced cumulative 3Q FY24/3 consolidated financial results on February 7, and held a results briefing on February 19 hosted by President Yuichi Sumi.
  • This reports examines the details and progress of 3Q results relative to initial plan.
  • Then on February 22, WILL GROUP announced that it has decided to sell all shares in specified subsidiary for Startups, Inc. (7089 TSE Growth, specialized in HR services for venture growth businesses and startup companies), in which it holds the majority stake of 54.1% (1,925,400 shares) as of September 30, 2023.

Norfolk Southern Corporation: A Tale Of Expansion & Investment in Intermodal Operations! – Major Drivers

By Baptista Research

  • Norfolk Southern Corporation reported mixed results for its Fourth Quarter 2023 Earnings.
  • The company experienced inconsistencies due to network disruptions and a persistently weak freight market, impacted further by a major train derailment in Eastern Ohio at the start of the year.
  • Despite these challenges, the company persevered, demonstrating resilience and commitment to both safety and service.

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Mar 16
0

Daily Brief Energy/Materials: Anglo American , Alcoa , Baker Hughes, Chevron Corp, Newmont Mining, Schlumberger Ltd and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • JSE March Rebalance Day: Top Sells AGL, MNP & INP
  • Alcoa Corporation: Strategic Acquisition of Alumina Marks a Milestone in the Metals Industry! – Key Drivers
  • Baker Hughes Company: Does It Have A Sustainable Competitive Advantage? – Key Drivers
  • Chevron Corporation: Expanding Horizons In Uruguay’s Offshore Waters & 5 Major Developments – Key Drivers
  • Newmont Corporation: Will Its Balanced Capital Allocation Strategy Work? – Major Drivers
  • Schlumberger Limited: Advancements In New Energy Markets & 5 Other Major Drivers

JSE March Rebalance Day: Top Sells AGL, MNP & INP

By Charlotte van Tiddens, CFA

  • We expect to see large volumes of AGL, MNP and INP to trade in the closing auction due to the index harmonisation.
  • Passive trackers and hedgers with exposure to vanilla indices will need to sell down their holdings to transition to the SWIX methodology.
  • The top buys include: NPN, FSR, SBK, GFI, CPI and PRX.

Alcoa Corporation: Strategic Acquisition of Alumina Marks a Milestone in the Metals Industry! – Key Drivers

By Baptista Research

  • Alcoa highlighted improvement in safety and operational performance.
  • The company achieved production records at its three smelters in Canada and one in Norway, signalling strong operational capabilities and efficiency.
  • Improvements have been credited to a clear focus on values including integrity, operational excellence, and care for people.

Baker Hughes Company: Does It Have A Sustainable Competitive Advantage? – Key Drivers

By Baptista Research

  • In 2023, Baker Hughes made significant strides in reshaping its operations, resulting in a removal of $150 million in costs, realigning its IET business, and launching efforts to further streamline its OFSE business.
  • The company set records regarding all primary financial metrics, including orders, revenue, EBITDA, EPS, free cash flow, and returns.
  • Adjusted EBITDA saw an increase of 26% YoY, exceeding prior peak levels by 25%.

Chevron Corporation: Expanding Horizons In Uruguay’s Offshore Waters & 5 Major Developments – Key Drivers

By Baptista Research

  • Chevron announced another solid year of earnings for 2023, despite geopolitical turbulence and economic uncertainty.
  • The company delivered an adjusted Return on Capital Employed (ROCE) of 14% and returned a record $26 billion in cash to shareholders.
  • Moreover, Chevron’s production reached a record high as the company continued to advance on reducing its carbon footprint.

Newmont Corporation: Will Its Balanced Capital Allocation Strategy Work? – Major Drivers

By Baptista Research

  • Newmont Corporation recently released its fourth-quarter 2023 earnings and 2024 guidance.
  • Operationally, the company managed to produce 5.5 million ounces of gold at an all-in sustaining cost of $1,444 an ounce with additional production of nearly 900,000 gold equivalent ounces from copper, silver, lead, and zinc in 2023.
  • This performance delivered adjusted EBITDA of $4.2 billion and allowed the company to return more than $1.4 billion to shareholders, ending the year with liquidity of above $6 billion.

Schlumberger Limited: Advancements In New Energy Markets & 5 Other Major Drivers

By Baptista Research

  • Schlumberger, the world’s largest oilfield services company, demonstrated its resilience and adaptability with strong financial results for the fourth quarter and full year 2023, despite the challenges posed by the energy market.
  • During the quarterly conference call that featured CEO Olivier Le Peuch and CFO Stephane Biguet, the company reported robust revenue growth, increased margins, and indications of a favorable outlook for 2024 and beyond.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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Mar 16
0

Daily Brief TMT/Internet: Astera Labs , Vanguard Intl Semiconductor, Taiwan Semiconductor (TSMC), Cyber Security Cloud Inc, Nihon Denkei, Bumble, Oracle Corp, Western Digital, Itron Inc, Kanzhun and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Astera Labs IPO Valuation Analysis
  • Vanguard (5347.TT): 1Q24F Could Be the Recent Bottom, and 2Q24F Should Be an Upside 10% QoQ.
  • Taiwan Semiconductor (TSM): Artificial Intelligence (AI) As The Future Technology Driver! – Key Growth Catalysts
  • Cyber Security Cloud (4493): Full-Year FY12/23 Update
  • Nihon Denkei (9908): Q3 FY03/24 Update
  • Bumble Inc.: Addressing Existing Product Limitations Through AI & Other Innovations! – Key Drivers
  • Oracle Corporation: Will The Expansion In Application Subscription Revenues Last? – Major Drivers
  • Peloton Interactive: What Is The Impact Of The Recent TikTok & Lululemon Partnerships – Major Drivers
  • Itron Inc.: Initiation Of Coverage – Major Drivers
  • [Kanzhun Ltd. (BZ US, BUY, TP US$22) Rating Change]: Market Share Gain Ahead of Purported Recovery

Astera Labs IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation is market cap of US$5.4 billion or target price of US$35.9 per share, which is 20% higher than high end of the IPO price range (US$30).
  • We estimate Astera Labs (ALAB US) to generate revenue of $221.3 million (up 91.1% YoY) in 2024 and $304.5 million (up 37.5% YoY) in 2025.
  • Many investors are willing to take extra risk to invest in companies such as Astera Labs that could generate strong sales growth amid rush to aggressively expand AI capabilities.

Vanguard (5347.TT): 1Q24F Could Be the Recent Bottom, and 2Q24F Should Be an Upside 10% QoQ.

By Patrick Liao

  • We anticipate that the guidance upper limit for 1Q24F results may be reached.  
  • The outlook is expected to see approximately a 10% QoQ increase in 2Q24F.  
  • The recent stock market performance may reflect enthusiasm for Vanguard, despite temporary disregard for the name.

Taiwan Semiconductor (TSM): Artificial Intelligence (AI) As The Future Technology Driver! – Key Growth Catalysts

By Baptista Research

  • Taiwan Semiconductor Manufacturing Company Limited (TSMC)’s fourth quarter revenue increased 14.4% sequentially due to the robust ramp-up of its industry-leading 3-nanometer technology.
  • The gross margin, however decreased by 1.3 percentage points to 53% primarily due to margin dilution from 3-nanometer technology.
  • The operating margin decreased by 0.1 percentage points to 41.6%, slightly ahead of the company’s guidance.Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Cyber Security Cloud (4493): Full-Year FY12/23 Update

By Shared Research

  • Cyber Security Cloud Inc (4493 JP) provides customers with subscription services based on software it develops in-house.
  • In FY12/23, CSC reported revenue of JPY3.1bn, operating profit of JPY550mn, recurring profit of JPY560mn, and net income attributable to owners of the parent of JPY427mn.
  • Cyber Security Cloud, Inc. announced the acquisition of its own shares

Nihon Denkei (9908): Q3 FY03/24 Update

By Shared Research

  • Established in 1950, Nihon Denkei (9908 JP) is an independent specialized trading company with a leading domestic share, by sales, in electronic measuring instruments (source: Nihon Denkei).
  • In FY03/23, sales were JPY104.8bn (+14.1% YoY), operating profit was JPY3.7bn (+40.4% YoY), and recurring profit was JPY4.0bn (+31.9% YoY).
  • On June 24, 2020, the company announced the key elements of its medium-term plan, INNOVATION 2030.

Bumble Inc.: Addressing Existing Product Limitations Through AI & Other Innovations! – Key Drivers

By Baptista Research

  • Bumble Inc.
  • has reported an increase of 13% in its Q4 2023 revenue to $274 million, meeting its financial projections.
  • This growth was propelled by a 16% rise in paying users, with contributions from both the Bumble and Badoo apps.

Oracle Corporation: Will The Expansion In Application Subscription Revenues Last? – Major Drivers

By Baptista Research

  • Oracle Corporation’s Third Quarter Fiscal Year 2024 Earnings presented a mixed but predominantly positive picture.
  • Chief Executive Officer Safra Catz noted excellent overall quarterly performance, with quarterly revenue meeting expectations and earnings per share exceeding it by $0.02.
  • The company’s infrastructure cloud business (OCI) was singled out for significant praise, as it has become the main factor accelerating the overall revenue growth rate, even outpacing their cloud competitors.

Peloton Interactive: What Is The Impact Of The Recent TikTok & Lululemon Partnerships – Major Drivers

By Baptista Research

  • Peloton Interactive, Inc., the manufacturer and seller of indoor exercise bicycles and treadmills, released its Q2 2024 result addressing several impactful issues regarding market penetration and sustainability.
  • During the earnings, several overarching themes were pointed out, such as Tread and Tread+ growth, the strengthening of the all-important second leg to support growth, and the area’s substantial rise in renewal growth.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Itron Inc.: Initiation Of Coverage – Major Drivers

By Baptista Research

  • This is our first report on Itron Inc., a leading provider of end-to-end solutions that measure, manage and analyze energy and water use.
  • The company reported a strong performance for the fourth quarter of 2023 during its recent earnings conference call.
  • The company posted year-on-year revenue growth of 23% to $577 million, driven by robust customer demand and improved supply chain balance.

[Kanzhun Ltd. (BZ US, BUY, TP US$22) Rating Change]: Market Share Gain Ahead of Purported Recovery

By Eric Wen

  • BZ reported 4Q23 revenue in-line/2.6% vs. our estimate/consensus, non-GAAP NI beat our estimate/consensus by 3.5%/21.9%, mainly attributable to effective cost control measures. 
  • We think the competitive advantages over peers grand BZ privilege to enjoy the early sign of hiring demand recovery, whereas overall China job market remains lackluster in early 2024.
  • We upgrade the stock from SELL to BUY and rise TP by US$7.5 to US$22/ADS.

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Mar 16
0

Daily Brief Industrials: Allegion Plc, United Airlines Holdings, Will Group Inc, Norfolk Southern and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Allegion Plc (ALLE) – Friday, Dec 15, 2023
  • United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? – Key Drivers
  • 3Q Follow-Up – WILL GROUP (6089 JP)
  • Norfolk Southern Corporation: A Tale Of Expansion & Investment in Intermodal Operations! – Major Drivers

Allegion Plc (ALLE) – Friday, Dec 15, 2023

By Value Investors Club

  • VIC pitch remains relevant as Allegion is undervalued compared to historical P/E ratio
  • Majority of sales from resilient aftermarket and institutional sectors make Allegion’s business more stable than perceived
  • Strong presence in North America provides solid revenue base with high margins, presenting a strong investment opportunity for long-term growth and value appreciation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

United Airlines: Are The Recent Delays & Safety Concerns A Major Factor That Could Slow Them Down? – Key Drivers

By Baptista Research

  • During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments regarding operational trends and financial performance, despite multiple headwinds at the global level.
  • The airline’s 2023 performance was framed as a clear demonstration of its United Next plan’s effectiveness, buoied by diversified revenue streams and robust operational metrics.
  • United Airlines posted full-year EPS (earnings per share) above $10, meeting its initial United target range.

3Q Follow-Up – WILL GROUP (6089 JP)

By Sessa Investment Research

  • WILL GROUP announced cumulative 3Q FY24/3 consolidated financial results on February 7, and held a results briefing on February 19 hosted by President Yuichi Sumi.
  • This reports examines the details and progress of 3Q results relative to initial plan.
  • Then on February 22, WILL GROUP announced that it has decided to sell all shares in specified subsidiary for Startups, Inc. (7089 TSE Growth, specialized in HR services for venture growth businesses and startup companies), in which it holds the majority stake of 54.1% (1,925,400 shares) as of September 30, 2023.

Norfolk Southern Corporation: A Tale Of Expansion & Investment in Intermodal Operations! – Major Drivers

By Baptista Research

  • Norfolk Southern Corporation reported mixed results for its Fourth Quarter 2023 Earnings.
  • The company experienced inconsistencies due to network disruptions and a persistently weak freight market, impacted further by a major train derailment in Eastern Ohio at the start of the year.
  • Despite these challenges, the company persevered, demonstrating resilience and commitment to both safety and service.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 16
0

Daily Brief Financials: Sino Land Co, Ethereum, Arthur J Gallagher & Co, Hang Seng Index, Aon , Blackrock Inc and more

By | Daily Briefs, Financials

In today’s briefing:

  • HK CEO & Director Dealings (15 Mar 2024): Sino Land, Hysan, FE Consortium, Champion REIT, Dongyue
  • Crypto Moves #19 – Liquid Staking Protocols Are Ethereum’s Saver
  • Arthur J. Gallagher & Co.: A Story Of Strategic Expansion Through Acquiring Associated Insurance Services! – Key Drivers
  • EQD | Hang Seng (HSI): How Far Can It Rally Now?
  • Aon PLC: Leveraging Data Analytics & Technology for Growth in Reinsurance and Commercial Risk! – Key Drivers
  • BlackRock Inc.: A Hybrid Strategy In A Shifting Asset Management Landscape! – Key Drivers

HK CEO & Director Dealings (15 Mar 2024): Sino Land, Hysan, FE Consortium, Champion REIT, Dongyue

By David Blennerhassett

Crypto Moves #19 – Liquid Staking Protocols Are Ethereum’s Saver

By Mads Eberhardt

  • It has been exactly eighteen months since Ethereum made the big switch from Proof-of-Work to Proof-of-Stake, an event widely known as the Merge.
  • In simple terms, after the Merge, the responsibility for verifying transactions and proposing new blocks on the Ethereum network shifted from miners to holders, provided they choose to become stakers.
  • To maintain the blockchain as stakers, holders lock up their Ether in the network.

Arthur J. Gallagher & Co.: A Story Of Strategic Expansion Through Acquiring Associated Insurance Services! – Key Drivers

By Baptista Research

  • Arthur J. Gallagher & Co.
  • reported strong fourth quarter results for 2023 with key financial metrics in line with its December IR day.
  • Revenue growth for the Brokerage and Risk Management segments was 20% with 8.1% organic growth, a figure that the company corrects to 9.4% controlling for accounting adjustments and large life case timing.

EQD | Hang Seng (HSI): How Far Can It Rally Now?

By Nico Rosti

  • The Hang Seng Index is rallying and could co higher this week but it seems there isn’t much room to go really higher.
  • A good target to cover your LONG holdings would be 17500, for this coming week and/or the following week.
  • A pullback this coming week is also possible, so it’s not sure the index can rally more from here, or at least not without some correction first.

Aon PLC: Leveraging Data Analytics & Technology for Growth in Reinsurance and Commercial Risk! – Key Drivers

By Baptista Research

  • Aon plc demonstrated strong operating momentum in its 2023 performance as evidenced in its Fourth Quarter 2023.
  • The company’s Aon United journey was driven by client demand amid increasing trends of volatility and interconnected risks.
  • Specifically, four significant areas of focus were identified that broadened the scope of Aon’s core business while creating opportunities to deliver more value to their clients.

BlackRock Inc.: A Hybrid Strategy In A Shifting Asset Management Landscape! – Key Drivers

By Baptista Research

  • BlackRock, Inc.
  • recorded a significant growth in its fourth quarter and full year results of 2023.
  • The company portrayed a positive image with Chairman and CEO, Laurence Fink announcing the agreement to acquire Global Infrastructure Partners (GIP).

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Mar 16
0

Daily Brief Health Care: Astrazeneca Plc Spons Adr, Intuitive Surgical, Abbott Laboratories, Abbvie Inc, Align Technology, Newron Pharmaceuticals and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • AstraZeneca PLC: Can The Amolyt Pharma Acquisition Be A Game Changer? – Key Drivers
  • Intuitive Surgical (ISRG US): Fifth-Generation Device Approval Adds to Secular Growth Story
  • Abbott Laboratories: Focus On Organic Growth Through Robust Product Portfolio! – Key Drivers
  • AbbVie Inc: Produodopa’s Green Light In Scotland & 6 Other Major Developments – Key Drivers
  • Align Technology: Acquisition of Cubicure
  • Newron Pharmaceuticals – Operational flexibility with new/updated financing

AstraZeneca PLC: Can The Amolyt Pharma Acquisition Be A Game Changer? – Key Drivers

By Baptista Research

  • AstraZeneca’s Fourth quarter and full-year ’23 earnings reflects strong performance.
  • Notably, the company achieved their decade-long target of $45 billion sales, demonstrating its consistent focus on long-term growth.
  • The company’s diverse commodity areas, ranging from oncology to rare diseases, all demonstrated strong growth in 2023, with the company’s profitability expected to increase because of this.

Intuitive Surgical (ISRG US): Fifth-Generation Device Approval Adds to Secular Growth Story

By Tina Banerjee

  • On March 14, Intuitive Surgical (ISRG US) received FDA approval for its fifth-generation multiport robotic system, da Vinci 5. The device will deliver meaningful improvements in surgery.
  • The company reported strong 4Q23 result, with revenue and EPS beating consensus. 2023 procedure growth of 22% matched the higher end of the company’s guidance range of 21–22%. 
  • Management has guided for a worldwide da Vinci procedure volume growth of 13–16% YoY in 2024. In the medium-term, ISRG aims to improve gross margin to above 70% level.

Abbott Laboratories: Focus On Organic Growth Through Robust Product Portfolio! – Key Drivers

By Baptista Research

  • Abbott Laboratories displayed robust performance during the Q4 2023 earnings call, reporting a growth of 11% in 2023 with organic sales increase of 14%.
  • Abbott’s Chairman and CEO, Robert Ford, underscored the company’s resilience and its strong footing despite the challenging conditions induced by the global pandemic.
  • Abbott’s operating margin is already on their pre pandemic level and the biggest opportunity for margin expansion is on the gross margin line.

AbbVie Inc: Produodopa’s Green Light In Scotland & 6 Other Major Developments – Key Drivers

By Baptista Research

  • AbbVie Inc.
  • showcased a robust performance in the fourth quarter (Q4) of 2023, delivering results surpassing initial expectations.
  • The company’s growth platform, independent of their iconic Humira, reported full-year sales growth exceeding 8%.

Align Technology: Acquisition of Cubicure

By Baptista Research

  • Align Technology Inc’s Q4 2023 earnings report demonstrated better-than-expected revenues and earnings, with the company achieving several key milestones, including treating 17 million Invisalign patients, delivering 4.7 million treatments for teenagers and selling over 100,000 iTero scanners.
  • Total revenues for the fiscal year exceeded the company’s previous outlook, with the non GAAP operating margin exceeding 21% for 2023.
  • The company’s Q4 revenues were up 6.1% YoY, attributable to increased Systems and Services revenues and higher Clear Aligner volume for teenage and international doctors.

Newron Pharmaceuticals – Operational flexibility with new/updated financing

By Edison Investment Research

Newron Pharmaceuticals has announced new arrangements that offer the company improved operational flexibility. We estimate a pro forma gross cash balance of €17.5m (estimated year-end gross cash of €12m plus €5.5m initial equity issue) to extend the company’s cash runway into FY25, well past the top-line readout from the potentially pivotal 008A study (expected this month) and initiation of the Phase III 003 study (anticipated in Q224), both assessing evanamide in schizophrenia subsets. Provided results are positive, we expect the company to sign a licensing deal by H224. We will present updated estimates following the release of full-year results on 19 March. Management has announced a private placement of up to €15m (c CHF14.4m) from an institutional investor (initial issue of 750k shares worth €5.5m with an option to subscribe to up to an additional 1.3m shares for €9.5m). The company also reported an amendment to its loan repayment terms with the European Investment Bank (EIB), pushing out the first repayment to November 2025 (previously €10m in June 2024).

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