Consumer

• Local sources confirm government’s focus on strengthening stock market for April election. Market expects aggressive policies for share cancellations, including corporate defense mechanisms.
• Chosun Ilbo, a government-friendly and influential media outlet,  advocates for corporate defense mechanisms to boost share cancellations, shaping a political atmosphere.
• This theme is likely to emerge in Korea’s market. We must consider political dynamics and screen companies with high treasury shares for potential stock boosts.

• MGM China Holdings (2282 HK)‘s FY23 top line surpasses pre-Covid levels. MGM Resorts International (MGM US) figures hit by union strike at MGM Grand Detroit.
• Preceding my comments on MGM are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Many China consumer stocks, including ZJLD Group (6979 HK), have been sold off heavily in the past 6 months, primarily driven by a fear of deflation and weak consumer sentiment. 
• ZJLD Group is one of the exceptions, with fundamentals intact while share price heavily sold off. 
• Shares look attractive vs. its high growth rate and strong management team, and especially with the return of Southbound connect post holidays. 

Key points

• Advance Auto Parts (AAP) is currently undervalued and presents a favorable investment opportunity.
• Despite perceived issues, AAP has a strong profitability history and is trading at a significantly lower valuation than its peers.
• Assuming AAP can achieve historical levels of free cash flow, there is potential for attractive value creation. The new CEO and CFO appointments and the sale of non-core assets are seen as positive developments that could further enhance AAP’s operations and potentially lead to a recovery in 2024.

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.

• Estée Lauder Companies presented their fiscal 2024 second quarter earnings with a mix of performance trends.
• The earnings per share surpassed expectations, although an organic sales decline occurred of 8%.
• One of the significant challenges faced by the company was a decline of 28% in their global travel retail business, largely influenced by the impact of Covid-19 on international travel.

• We are reiterating our Buy rating, $32.50 price target and raising our projections to reflect the announced acquisition of leading premium ($195+) denim player rag & bone by Guess?
• and a joint venture with leading brand licensor WHP Global.
• We view this acquisition, Guess?’ first, as an accretive winner, offering multiple (and material) expansion opportunities which leverage Guess?’ strong international presence, infrastructure, category expansion and licensing ability and position as a leading global lifestyle brand retailer.

• Ford Motor Company’s fourth-quarter 2023 earnings call highlights several significant achievements.
• CEO Jim Farley describes the past year as foundational for the company, with an increased focus on hybrid and electric vehicles proving advantageous.
• Ford’s hybrid sales were up 20% in the previous year and are expected to rise another 40% in the upcoming year.

• Kintetsu has been expanding the number of direct franchises in its stores for the past five years.
• It now plans to open as many as 100 franchises both in its own properties and in third-party locations, including new franchises from overseas.
• The department store has set a target for nearly 40% of sales from this source by 2026.

• McDonald’s Corporation recently reported its fourth quarter earnings for 2023.
• Despite ongoing macroeconomic pressures throughout 2023, the company managed to deliver strong growth, reporting global comp sales growth of 9% and guest count performance of nearly 3% globally.
• Furthermore, positive traffic was reported across all segments, and the company maintained its leading market share across most of its major markets.

• In Q4 FY2023, Chipotle Mexican Grill, Inc.
• (Chipotle) reported a 15% YoY increase in sales, reaching $2.5 billion, driven by an 8.4% comp sales growth on the back of a 7% transaction growth.
• Over the fiscal year, sales increased 14% to reach $9.9 billion backed by a 7.9% comp sales growth.

• Hyundai Motor India has been taking initial steps for an IPO. We believe this IPO could be completed sometime in 4Q 2024. 
• Hyundai Motor India Limited (HMIL) IPO offering size is estimated to be at least US$3 billion, which would be one of the largest in India and the world this year.
• If HMIL is valued at US$25 billion and HMC sells a 15% stake, its remaining 85% stake would be worth US$21 billion, representing 55% of HMC’s market cap. 

• % of independent directors continued a modest rise, and % of women board members still reached 10% level. 6 of 1,788 companies transitioned to Company with US type 3 Committees.
• Growth Policy score improved as more companies included ROIC in their KPIs, and AGM Disclosures score improved as the majority of prime market listed companies joined the voting platform.
• Scores related to the use of cash and IR Disclosures score also didn’t improve noticeably. Companies are not taking action on how to use cash to expand their corporate value.

• Net Sales decreased by 12.6% in FY2023 settling at EUR 62.3M (vs 70.7M in FY2022).
• Part of this decrease can be attributed to the decreasing demand for sanitizing products (Covid-19).
• However Gross profit increased by 12.6% from 13.873 in 9M2022 to 15.631 in 9M2023 due to a decrease in Raw Materials Costs, Cost of Energy, and lastly due to higher efficiency in the production.

• The Q1 2024 financial results from Tyson Foods demonstrated a positive beginning to the fiscal year.
• The $175 million improvement in adjusted operating income and near doubling of adjusted EPS on a sequential basis showcases momentum for the firm.
• Chicken and pork served as offset points to beef headwinds while the prepared foods division continued to generate strong profit and margins.

• In December 2021, when companies were required to file statements with the TSE as to plans to meet continuing listing requirements, Toei Animation (4816 JP) had a Plan.
• That plan? Get from a then-current 15.5% Tradable Shares level to 25.0% by 31 March 2025. That was “OK” though later, the TSE asked companies to speed it up.
• Today, shareholders Sony and Bandai Namco announced an equity offering to sell down up to 4.48mm shares in a domestic+overseas offering. It’s big, heavy, and there is more to come.

• Bandai Namco (7832 JP) and Sony Pictures are looking to raise up to US$525m via selling around 10.66% of Toei Animation (4816 JP) (TA).
• The purpose of the placement is to unwind some of the cross-shareholding, as well as help TA to maintain its listing in the Standard Segment.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Toei Animation (4816 JP) has announced a secondary offering of up to 4.5 million shares (including overallotment). Bandai Namco Holdings (7832 JP) and Sony Corp (6758 JP) are the sellers.
• The offering will allow Toei Animation to maintain its listing in the TSE Standard Market and enable Bandai Namco and Sony to reduce and liquidate cross-shareholdings.
• Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will likely fall between 27 February and 4 March (likely 27 February).

Key points (machine generated)

• Clarus’s non-ESG portfolio consists of reputable outdoor brands such as Black Diamond, Pieps, Sierra Bullets, Barnes Bullets, and SKINourishment.
• Their ESG portfolio includes brands like Industry West, Snow Peak, Royal Robbins, Stonewear, and Hummingbird, which focus on sustainable and environmentally friendly products.
• With Warren Kanders’s ownership and track record, the recent underperformance of Clarus’s stock is deemed unacceptable, but the inclusion of reputable outdoor brands and the commitment to sustainability provide potential for stock price appreciation.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Kawasan Industri Jababeka
• Lippo Karawaci
• MGM China Holdings

• Goldwin has had a remarkable run of record sales and profits, a beneficiary of the continuing growth in the outdoor market as well as its own retail strategy. 
• Although much of its success has come from The North Face, Goldwin is determined to become a more diversified – and global – sports business.
• When we first recommended the stock it was around ¥5,000 and rose to a peak of ¥12,600 but is now about ¥9,000. Will it grow again? We think so.

• APR reported a very strong IPO book-building results. APR IPO price has been determined at 250,000 won, which is 25% higher than the high end of the IPO price range.
• A total of 1,969 institutional investors participated in this IPO book-building. The demand ratio was 663 to 1. APR IPO will start trading on 26 February. 
• Our base case valuation of APR is target price of 370,809 won per share which represents a 48% upside from the IPO price of 250,000 won. 

• As we have long predicted LVMH is making a cheap and sneaky offer for Tod’s SpA (TOD IM).
• LVMH is doing it via wholly controlled L Catterton to confuse minority holders
• L Catterton = LVMH,  and the only reason for the current proposal is to be able to pay Della Valle a much higher price in a private transaction later on.

• Early days, but there could be three changes for the Stock Exchange of Thailand SET 50 Index at the June rebalance. Two names are reversals of the December changes.
• Passive trackers will need to buy between 1.5-3.6 days of ADV on the inclusions and sell 1.1-1.4 days of ADV on the deletions.
• There are a couple of stocks that are close to passing/failing the liquidity tests and a couple close to cutoff ranks. That could result in further changes to the index.

• With ISS’s plan to resume ROE criteria and TSE’s mention of P/B, more shareholder proposals calling for stronger shareholder returns due to stagnant stock prices and ROEs can be expected.
• Since over 30% of listed companies have major shareholders holding 20% or more of their interests, the voting behavior of domestic institutions is key to the passage of shareholder proposals.
• With TSE’s disclosure request regarding the significance of parent-subsidiary listings, this matter will become another focus of the AGM in business portfolio reform and securing the interests of minority shareholders.

• We have updated our models following the company’s 2QFY24 (December) earnings release.
• We are raising our EPS estimates for FY24 (June) to $0.60 from $0.55, FY25 (June) to $0.70 from $0.65, and FY26 (June) to $0.80 from $0.75. Since 2QFY24 beat our previous forecast by $0.06, we are essentially flowing through that upside.
• Our $0.60 EPS estimate for FY24 is toward the lower end of management’s new range of $0.57-0.67, which was raised from $0.52-0.62 at the time of the release.

• The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
• Last week saw NORTHBOUND net BUY RMB 16.1bn of A-shares on VERY strong average activity after +9.9bn and +12.1bn RMB the two weeks before. Some National Team buying this week.
• Renewables selling was tempered. Finance and Industry saw large net buying. Five of the top ten buys among liquid NORTHBOUND stocks were finance. Info Tech saw net selling. Again. 

• The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
• The index changes for HSCEI index for the March 2024 index rebal event will be announced on 16th February 2024. 
• In this insight, I have shown how my flow expectations have changed since I published my last HSCEI insight on 6th December 2023.

• The Della Valles and LVMH-backed L Catterton announced an agreement to launch a voluntary tender offer to buy 36% of Italian luxury group Tod’s SpA (TOD IM) at €43/share to take it private.
• In spite of the 31% premium to the 3-month VWAP, and the loss of brand equity by Tod’s the offer seems cheap on a multiples basis, considering turnaround potential.
• Considering a 95% squeeze-out threshold, 80.4% of the float must tender, which is high. A sweetening may be needed, although the offeror threatens with a merger with itself to delist.

• This is our first report on global footwear and apparel major, Deckers Outdoor.
• The company saw a strong fiscal third quarter for 2024, but the company did recognize certain risks and uncertainties that could potentially impact future performance.
• Total company revenue saw an increased 16% to reach $1.56 billion, largely thanks to full-price consumer demand.

• The effects of SHEIN’s and Temu’s growth on US retail are already well known
• But recent data points show the companies impacting other industries, too
• Through their dramatic growth the two companies are gaining influence in US 

• Cocoa Reaches All-Time High – First Time since 1960 A long-held commodity price record has fallen: The price of NY cocoa futures has surged to almost $5,400 a ton, surpassing the $5,379 peak in place since 1977 ( roughly 46 years ago).
• Cocoa was one of the few commodities that hadn’t set a fresh nominal price record in the 2000s.
• The current rally is fuelled by the El Nino weather phenomenon which is causing drier temperatures in West Africa, where three-quarters of the world’s cocoa is produced – this fundamental weather event has now led to a short squeeze situation in the cocoa futures market.

• The investment thesis is based on the third-quarter results from Church & Dwight Co Inc.
• The company recorded solid performance with reported revenue surpassing its outlook by 2.5% and organic revenue exceeding their expectations by 0.8%.
• This marks its fourth consecutive quarter of posting robust results.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Ola Electric (1700674D IN) and FirstCry (0172540D IN) IPOs.
• Event-Driven developments: Benefit One Inc (2412 JP), Lawson Inc (2651 JP), Welbe Inc (6556 JP), China Traditional Chinese Medicine (570 HK), L’Occitane (973 HK), Hollysys Automation Technologies (HOLI US). 

• Samsung Elec & Hyundai Motor’s high proportion of preferred stocks leads to their unusually high cost of capital, making themselves prime targets for the govt’s Corporate Value Up policy.
• Policy likely focuses on aggressive share buybacks, especially preferred stock repurchase, to improve PBR. Pension funds may invest heavily in ETFs, offsetting dilution effects.
• Hyundai Motor may pursue more aggressive shareholder returns due to the India listing, possibly prioritizing preferred share repurchases as it introduces risks of value transfer controversies within Korea.

• Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
• On the IPO front, Thai Credit Bank finally ended Thailand’s long dry spell, although it wasn’t a happy ending.
• For placements, REITs appear to be coming back to life with rates now having peaked.

• EPS and BPS had run in parallel since June 2022, but BPS has accelerated at a more rapid pace since May 2023, and TOPIX has risen sharply since April 2023.
• Since TOPIX is more correlated with BPS than EPS, the hypothesis that “stock prices are more reliant on BPS increases, including cash increases, than on EPS” would be considered.
• Investors may believe that Japanese management still needs more time to use cash effectively, and evaluate companies based on their BPS, which indicates a movement toward improved cash flow.

• The Clorox Company delivered second-quarter financial results for 2024 that exceeded expectations, driven largely by a strong recovery from a cyber attack that occurred in August.
• The company preserved its strong brand superiority by advancing its strategies to drive top line growth and rebuild margins, as well as actively managing currency headwinds in Argentina.
• Retailer inventories are being refreshed more quickly than anticipated, which is aiding the restoration of distribution and improvement of market shares.

• In its latest earnings, SiriusXM Holdings Inc.
• discussed its strong operating and financial performance in 2023.
• During the year, the company exceeded expectations, surpassing its adjusted EBITDA and free cash flow target.

• Asics absolutely smashed the last MTP; this year they have a more measured approach
• Full-Year OP guidance for FY24 is a little shy of street expectations, but this should not impact the share price
• Asics has a decent runway for growth ahead and will benefit from channel mix improvements. The stock remains undervalued relative to peers

• Apparently Elliott is requesting Mitsui Fudosan (8801 JP) conduct a very large buyback and to sell down its stake in Oriental Land (4661 JP).
• Some 17 months after the Cheng Family failed to secure 50%+ of Giordano International (709 HK), the family are now calling an SGM to install friendly directors.
• TheLawson (2651 JP) deal is not terribly surprising. It’s not terribly surprising that it is being done cheaply. It IS being done too cheaply. This is bumpable by force. 

• This is our first report on diversified technology and multi industrial player, Johnson Controls.
• The company reported its Q1 2024 earnings recently.
• The company is facing some momentum after overcoming a considerable cyber disruption early in the quarter.

• Tesla Motors (TSLA US) sold one car in January 2024 in South Korea. In comparison, Tesla sold 1,022 vehicles in December 2023 and 13,885 units in 2023.
• The key reason for the sharp plunge in vehicle sales in January has been due to the government’s slashing EV subsidies for vehicles with Chinese LFP based batteries.
• Furthermore, many consumers avoided buying Tesla vehicles in January as they waited for the government’s announcements of new EV subsidies. 

• The latest earnings of the Royal Caribbean Group exhibited an optimistic financial position for the Q4 and full-year 2023 and the company flourished particularly with the debut of the revolutionary product, Icon of the Seas.
• By delivering the best vacation experiences, 2023 marked an exceptional year with net yields up by 13.5% compared to 2019 levels, thereby boosting net income by approximately $1 billion.
• 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.

• Tractor Supply Company concluded its fiscal year of 2023 with solid results and several significant milestones, even though the year was marked by many challenges.
• Situated against a challenging backdrop of unfavorable weather, rising interest rates, and inflation impacting consumer spending habits, Tractor Supply Company extracted cause for optimism from developments and improvements in various areas of operations.
• The company’s robust, needs-based business model has withstood various economic conditions since its inception in 1938.

• Inflation, having peaked at 4.3% in January 2023, has been on a downward trend throughout the year, with figures dropping to 2.8% in November and further to 2.6% by December.
• In this insight, we analyze the recent quarterly performance of Yakult Honsha (2267 JP), Nissin, and Seven & I, Japanese Consumer Staples companies discussed in our prior Smartkarma Original.
• While Nissin Foods Holdings (2897 JP) showcased excellent performance, Yakult and Seven & I Holdings (3382 JP) faced struggles in their recent quarters.

• Taste Gourmet (8371 HK) reported revenue of 37% YoY Q3 2024, with profits up 37% YoY (  lower than our 50% YoY estimate). 9M FY23 revenue/profits were up 43%/43% YoY. 
• We look forward to the mainboard listing. We believe the process will commence when FY24 results are out in June. 
• The stock trades at 5.8x PE FY24e, with a potential dividend yield of 8.5% and cash around 26% of its market capitalization at 147.7 mn HKD.

• The slowdown in the house market in the UK in the last 12 months has increased the likelihood of seeing more consolidation in the house-building sector.
• Redrow’s 24,565 plots have attracted a large buyer paying (with paper) a hefty premium to secure land. The land bank should cover house building production for just over four years. 
• I believe the deal will ultimately succeed, although the CMA may take a closer look thus delaying the deal beyond H2 2024. Gross spread is 3.4%.

• In the weeks since our last update on GTX, there have been several quarterly reports suggesting a cooling in inventory purchases.
• We are reducing our 2024 estimates to better align expectations with the reality of how companies related to the auto industry have been reporting.  
• In the year ahead, GTX should benefit from a higher Euro to US Dollar exchange rate and the auto industry depending less on electric vehicles and more on hybrid.

• There are 167 companies of 1,784 companies in Metrical Universe (12/2023) with major shareholders holding over 50% stake, and 605 companies with major shareholders holding between 20% and 50% stake.
• TSE has requests listed parent companies, listed subsidiaries, and affiliates to disclose the significance of parent-subsidiary (affiliates) listings. This will further increase pressure for the dissolution of parent-subsidiary (affiliates) listings.
• Hitachi’s transformation into value-creating company, which once spawned numerous listed subsidiaries, has been a success story since it began full-fledged “selection and concentration” process through the dissolution of parent-subsidiary listings.

• Today, after Hong Kong market close, the Ministry of Education issued a new draft regulation on K12 tutoring. 
• I have written before on New Oriental Education & Techn (EDU US) and China Beststudy that there is now a equilibrium reached between all parties on tutoring in China. 
• The new draft regulation basically puts it into concrete policy, which should alleviate investor concern on the sector. 

• British American Tobacco (BATS LN) owns 29.03% of ITC Ltd (ITC IN) and could sell a portion of its stake. But BAT will hold at least 25% of the company.
• British American Tobacco (BATS LN) paring its stake could also lead to SUUTI gradually reducing its own holding in the company.
• Any stake sales would not result in buying from global passive trackers while there will be small buying from local index trackers. Increased float could pressure the stock.

• We expect Meituan continue under pressure in the medium term due to the intensified competition with Douyin, and Meituan’s low price defending strategy in both food delivery and IHT businesses.
• Our non-IFRS net profit is roughly in-line with consensus in 4Q23 but 20%/25% lower than consensus in 2024/25.
• We downgrade the stock to SELL rating and cut TP to HK$57/share.

• Imagine a racetrack with 10 horses. The first two horses (NFLX and DIS) are peeling away from everyone else; with NFLX still having a sizeable lead over DIS.
• But the stage is set for DIS to start accelerating faster than NFLX.
• This is how I would describe the US Media sector today, and Disney’s Q1 results released yesterday only serves to bolster that narrative.

• The Whirlpool Corporation released its fourth-quarter 2023 earnings and reported progressive achievements, including gaining over 1% market share in North America, reducing its net costs by $800M, and signing significant transactions with Arçelik.
• However, the Whirlpool Corporation did acknowledge areas where it didn’t meet expectations, specifically citing increased promotional pressure which negatively impacted EBIT margins, and a failure to reduce inventories quickly, weighing on the full cash flow.
• 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.

• Starbucks Corporation on its First Quarter Fiscal Year 2024 earnings call provided a detailed account of the firm’s financial performance and future projections, endorsing its growth strategy despite short-term challenges.
• Positively, the company managed to increase its Q1 total company revenue by 8% year-over-year to a record $9.4 billion.
• Further, the firm’s global comparable store sales witnessed a growth of 5% year-over-year, backed by a 5% comp growth in North America and a 10% comp growth in China.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Wynn Macau Ltd

Intralot Integrated Lottery Systems and Services (Intralot) is a leading developer and supplier of integrated gaming systems and services that cover the entire value chain of select gaming markets. Its core global markets are forecast to produce steady growth, which is likely to be further boosted by new revenue opportunities as adjacent markets regulate and/or open up. The industry enjoys high barriers to entry and the long-term nature of client relationships provides attractive financial dynamics such as high revenue visibility and levels of profitability. Management believes the company’s competitive advantages of superior technology and service will provide many opportunities to outpace market growth in the next few years, which will further drive profitability, cash generation and returns. We believe these are not reflected in the current valuation.

• Mondelez International closed out 2023 on a strong note, according to their fourth quarter and year end earnings call.
• Chairman and CEO Dirk Van de Put pointed to robust top-line growth, record profit dollar growth, strong free cash flow, and solid returns to shareholders as key indicators of this success.
• More specifically, their organic net revenue grew 14.7% or $4.6 billion from the prior year.

• Sysco’s performance for the quarter was strong, given their position as a market leader in a growth industry where size and scale matter.
• The company demonstrated this position by delivering double digit earnings per share growth, realized from volume growth, margin management, and expense control.
• Due to this positive momentum from H1, Sysco expects to expand in H2, maintaining their full year growth expectations for both sales and EPS, including an adjusted EPS growth of 7% at the midpoint of their guidance range.

• We can use KRX to access PER, PBR, and dividend yield. However, except for PER, the data, being based on the most recent information, limits its usefulness for proactive positions.
• So, we should look into FnGuide, which aggregates and provides exclusive consensus data. This website also requires payment for access.
• However, FnGuide provides some data for free, including PBR. Therefore, we can make use of this within the scope of its free offerings.

• Alibaba’s revenue grew by 5% YoY and its operating margin improved by 2 percentage points YoY in 3Q24.
• We believe the company turned its focus from margin improvement to revenue growth.
• We set the upside at 20% and the price target at HK$90 for March 2025. Buy.

• One of the biggest news facing KT&G this year as been a class action lawsuit against KT&G’s directors by Flashlight Capital Partners.
• KT&G announced that it will cancel 3.5 million shares (about 315 billion won) on 16 February, which represent 2.6% of its outstanding shares and 16.7% of treasury shares.
• One of the major reasons why we remain positive on KT&G is that there is a relatively high probability of the company announcing cigarette price hikes in 2H 2024.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Sands China
• Tata Motors ADR
• UPL Ltd

• L’Oreal SA (OR FP) is the largest beauty company in the world, with a 15% global market share.  The second place in contrast has only around 5% market share. 
• The company has been excellently managed, and out-performed the overall global beauty industry growth by an average of 5% over the last 3 years.  However, growth could be slowing down.
• L’Oreal is now trading at 34x forward PE, which is a near 100% premium over the average of European consumer staples, and near a multi-decade high. 

• Not so long ago, Disney’s share price was nearing the $200 mark, despite the pandemic’s severe impact on its Parks and Resorts business.
• Fast forward to the present, and even with the parks posting record results, Disney’s share price has fallen to levels not seen in a decade, raising the question: what happened?
• Several factors are at play, including challenges within the studio arm, ongoing decline of its legacy media operations, and Big Tech’s incursion into sports media.

• Depressed Soybean crush margin to deal a further blow to Soybean demand.
• The outlook for Soy Meal and Soy Oil is better than the outlook for Soybean.
• Important production guidance updates from CONAB and USDA this week. Expectations point to lower production and lower consumption. 

• While many companies have disclosed enhanced shareholder returns, dividend payout ratio in 30% range and no increase, and 4% increase in total dividends from the previous year, is not enough.
• Since DOE remains at just under 3% same as the previous year, few companies allocate enough cash to dividend to reduce Shareholder’s Equity, and consequently ROE is expected to lower.
• Cash on hand in September is at all-time high. Behind the ROE, which shows no sign of rising, is the psychology of managers who want to keep cash on hand.

Key points (machine generated)

• GAN Limited has agreed to be acquired by Sega Sammy for $1.97 per share in cash.
• A law firm is investigating the fairness of the sale, causing a temporary decline in GAN’s stock.
• The writer predicts a 21.6% gain in GAN’s stock by Q4 2024, with insiders and Goldman Sachs holding significant ownership stakes, and expects arbitrageurs to support the deal, closing the gap caused by the investigation.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Comcast Corporation presented its financial position strongly in the fourth-quarter conference call, posting the highest ever revenue, adjusted EBITDA, and adjusted EPS for the third consecutive year.
• The company emphasized its robust cash flow and solid balance sheet, which have facilitated organic investments and significant share repurchases, offering impressive capital return.
• It showcased the gains made in the connectivity businesses, with a 24% increase in Xfinity Mobile subscriber lines and 20% upsurge in total domestic wireless revenue, thereby demonstrating its resilience despite an intensely competitive environment.