Category

Daily Briefs

Oct 23
0

Daily Brief TMT/Internet: Shinko Electric Industries, Konica Minolta, Taiwan Semiconductor (TSMC), NVIDIA Corp, Hon Hai Precision Industry, Learning Technologies, ASML Holding NV and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Shinko Electric (6967 JP): A Casualty of the China TCM Deal Break
  • Japan Value | Effissimo Takes Significant Stake in Konica
  • Taiwan Semiconductor (TSMC) Crushes Q3 Expectations with 54% Profit Surge—What’s Fueling This Chip Giant’s Growth?
  • Bullish Outlook Focused on Large- And Mid-Caps; Russell 2000 Below Resistance; Concerns Dwindling
  • Tech Supply Chain Tracker (23-Oct-2024): Foxconn focuses on SDV for smart car evolution.
  • General Atlantic/Learning Technologies: Ahead of PUSU Deadline
  • China Woes and Weak Sales Projections Send ASML Shares Plunging—Is AI Still a Lifeline?

Shinko Electric (6967 JP): A Casualty of the China TCM Deal Break

By Arun George

  • At first glance, the Shinko Electric Industries (6967 JP) and China TCM merger arb has little or no similarities regarding the region, precondition, sector, type of offeror, or offer structure.
  • The aftermath of China Traditional Chinese Medicine (570 HK) has resulted in funds resizing well-held merger arb positions, mainly long-dated names with tail event risks. This has increased the Shinko spread. 
  • Shinko’s tail event risk (no SAMR approval) remains low. Timing remains the primary risk, as a delay is possible. At the last close, the gross/annualised spread was 8.9%/29.2%.

Japan Value | Effissimo Takes Significant Stake in Konica

By Mark Chadwick

  • Konica Minolta, a key player in the Japanese office equipment market, presents an attractive investment opportunity, particularly in light of the recent actions by activist investor Effissimo.
  • The investment case for Konica Minolta hinges on several factors, including potential structural reforms, M&A activity, and undervaluation.
  • Given Effissimo’s track record with Ricoh and the broader industry dynamics, the thesis for a bullish outlook on Konica Minolta is compelling.

Taiwan Semiconductor (TSMC) Crushes Q3 Expectations with 54% Profit Surge—What’s Fueling This Chip Giant’s Growth?

By Baptista Research

  • Taiwan Semiconductor Manufacturing Company (TSMC) has reported a robust performance in the third quarter of 2024, underscored by significant revenue growth driven by both smartphone and AI-related demand.
  • The company’s industry-leading 3-nanometer and 5-nanometer technologies have been at the forefront of this demand surge.
  • Revenue for the third quarter increased sequentially by 12.8% in New Taiwan dollars, reflecting not only strong demand but also higher capacity utilization and cost improvement efforts.

Bullish Outlook Focused on Large- And Mid-Caps; Russell 2000 Below Resistance; Concerns Dwindling

By Joe Jasper

  • Considering constructive market dynamics and the recent $SPX breakout above 5783 following several months of consolidation, we upgraded our outlook to bullish as of our 10/15/24 U.S. Macro Vision report
  • Since late-July, we have been neutral on the SPX, preferring to buy near 5100-5200 support and sell near 5670-5783 resistance until there is a break in either direction.
  • The verdict of the market is the only one that matters, and the breakout above 5783 is the market’s way of saying the path of least resistance is higher.

Tech Supply Chain Tracker (23-Oct-2024): Foxconn focuses on SDV for smart car evolution.

By Tech Supply Chain Tracker

  • Foxconn is expanding its SDV development efforts to further the advancement of smart car technology.
  • Intel is seeking collaboration with Samsung to better compete with TSMC in the competitive foundry market.
  • Nvidia is collaborating with Indian partners to develop a custom chip for the Indian market, while Xiaomi launches China’s first 3nm SoC.

General Atlantic/Learning Technologies: Ahead of PUSU Deadline

By Jesus Rodriguez Aguilar

  • The Board will likely recommend the 100p/share cash offer (8.0x EV/NTM EBITDA) pending final terms. General Atlantic must make a formal offer by October 25, with potential deadline extensions.
  • Shareholders would have the option to elect for an unlisted equity alternative. This means that top two shareholders (24%) will continue invested and that chances of a sweetening seem slim.
  • Given LTG’s share performance, shareholders may willing to accept a 33.5% premium. Gross spread is 6.6% (39.4% estimated annual return if settlement by January 6). Long.

China Woes and Weak Sales Projections Send ASML Shares Plunging—Is AI Still a Lifeline?

By Baptista Research

  • ASML Holding N.V. reported its financial results for the third quarter of 2024, highlighting both achievements and challenges.
  • The company recorded total net sales of EUR 7.5 billion, surpassing its own guidance, largely due to increased sales of deep ultraviolet (deep UV) systems and heightened Installed Base Management sales.
  • Net income for the quarter was EUR 2.1 billion, representing 27.8% of total net sales, with an EPS of EUR 5.28.

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Oct 23
0

Daily Brief Health Care: CanSino Biologics , Rani Therapeutics Holdings and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • CanSino Biologics (6185.HK/688185.CH) – Breakeven May Arrive Earlier than Expected
  • RANI: New Triagonist Data Produces Weight Loss

CanSino Biologics (6185.HK/688185.CH) – Breakeven May Arrive Earlier than Expected

By Xinyao (Criss) Wang

  • CanSino’s performance picked up in 24Q2. CDMO revenue is a surprise, which would become the second growth curve. Effective cost control and increased demand for meningococcal vaccines narrowed net losses. 
  • The short-term highlight in business progress is PCV13i, whose approval process is faster-than-expected. This means CanSino’s revenue in 2025 may exceed expectations. Controlling shareholders and management have increased their holdings.
  • CanSino’s revenue is expected to reach RMB750 million in 2024. If revenue this year reaches RMB800 million or above, it’s beyond expectations. Reasonable market value is at least RMB5-10 billion.

RANI: New Triagonist Data Produces Weight Loss

By Zacks Small Cap Research

  • Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.
  • Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).
  • Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.

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Oct 22
0

Daily Brief ESG: Human Capital Initiatives Can Also Be Viewed as Part of Such Autonomous “kaizen” Activities and more

By | Daily Briefs, ESG

In today’s briefing:

  • Human Capital Initiatives Can Also Be Viewed as Part of Such Autonomous “kaizen” Activities
  • Braskem – ESG Report – Lucror Analytics

Human Capital Initiatives Can Also Be Viewed as Part of Such Autonomous “kaizen” Activities

By Aki Matsumoto

  • A year after human capital disclosure became mandatory, little progress was made, but few companies, even those in top 100 in market capitalization, have self-assessed their milestones and actual progress.
  • While it was favored that companies with higher scores on human capital disclosure outperformed in stock price, it is reasonable to assume that multiple other factors had an impact. 
  • Some companies formulated growth strategies by presenting clear cash/capital allocations and have actually achieved improved capital profitability. Human capital initiatives can be viewed as part of such autonomous “kaizen” activities.

Braskem – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Braskem’s ESG as “Weak”, in line with its scores for the Environmental, Social and Governance pillars. Controversies are “Material”, but Disclosure is “Strong”.

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Oct 22
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | A Busy Week of Earnings and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | A Busy Week of Earnings
  • Gate All Around Transistors. Evolution Or Revolution & Why It Matters
  • Japan Morning Connection: Potential for Disco to Push Higher with Positive HBM Outlook
  • Earnings: TSMC, ASML, AEHR, Telecom
  • # 66 India Insight: Power Finance & BEML MOU Zee Entertainment Governance Issue, ONGC & BPCL MOU

Ohayo Japan | A Busy Week of Earnings

By Mark Chadwick

  • Stocks ended mixed on Monday as the 10-year Treasury yield rose to 4.18%, its highest since July, while investors braced for a busy week of earnings
  • VF Corp’s stock dropped 8% after JP Morgan placed the company on its “Negative Catalyst Watch” list, citing wholesale challenges and ongoing traffic headwinds.
  • SAP reported Q3 results post market close, with the stock gaining 4% after hours. Fujitsu should benefit from similar trends.

Gate All Around Transistors. Evolution Or Revolution & Why It Matters

By William Keating

  • If GAA is better viewed as a revolutionary change, it implies that Intel, Samsung and TSMC will transition to GAA with a largely level playing field 
  • If GAA is better viewed as an evolutionary change, TSMC will carry forward its process technology leadership into its GAA transition, leaving it in the #1 position
  • We think that the GAA transition is evolutionary, not revolutionary and posit that TSMC will continue to maintain its semiconductor process technology leadership through the transition.

Japan Morning Connection: Potential for Disco to Push Higher with Positive HBM Outlook

By Andrew Jackson

  • NVDA saving tech from a bigger pullback as the market takes profits ahead of earnings.
  • Rates higher and causing a pullback in R/E related and the yen is approaching Y151.
  • Disco’s better-than-expected outlook for HBM related equipment should leave more room for upside.

Earnings: TSMC, ASML, AEHR, Telecom

By Douglas O’Laughlin

  • I don’t think it’s been any secret that I’ve been a peak litho bear for quite some time. I think we are finally seeing reality hit the company and the stock. Let’s discuss earnings, and then I’ll talk about peak lithography and TSMC.
  • ASML accidentally leaked earnings this week, and the leak wasn’t good. They beat Q3, but the issue was the outlook for next year and orders coming way below expectations. It’s funny because Q4 revenue is expected to accelerate, but no one is paying attention to that.\
  • Memory was half of the measly 2.6 billion-order book and is likely driven more by DUV for HBM than logic High NA.

# 66 India Insight: Power Finance & BEML MOU Zee Entertainment Governance Issue, ONGC & BPCL MOU

By Sudarshan Bhandari

  • PFC and BEML Sign MoU for Defence and Infrastructure Projects
  • Zee Entertainment Seeks Settlement with SEBI Over the Governance Issues
  • ONGC and BPCL Search for Global Partners to Build Greenfield Refineries

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Oct 22
0

Daily Brief Technical Analysis: Hedge When You Can and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • Hedge When You Can, Not When You Have to

Hedge When You Can, Not When You Have to

By Alpha Exchange

  • Seller understanding that product may not sell immediately, similar to rainy day insurance with put options
  • Tight correlation between supply, demand, and prices in liquid markets like put options
  • Market risk climate currently influenced by high implied volatility due to upcoming events like elections, similar to date certain macro events in the past like Brexit or company earnings dates

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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Oct 22
0

Daily Brief Event-Driven: Fuji Soft (9749 JP) – The Fine Print Is Worth Reading and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Fuji Soft (9749 JP) – The Fine Print Is Worth Reading
  • Shinko Electric (6967 JP) Takeover – THIS Is a Dip to Buy
  • Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Capping Flows in December
  • Entry Opportunities from Delisting Risk Due to Korea Zinc’s Post-Buyback Volume Drying Up
  • Doosan’s Tweaked Restructuring Play: My Take on Hitting Robotics’ 13% Spread
  • Hyundai Motor India IPO: How Far to Fast Entry?
  • Korea Zinc: Court Dismisses the Second Injunction Filed by MBK
  • Quiddity Leaderboard ASX Dec 24: Clarity Pharma and Resolute Mining Competing for ASX 200 Spot
  • International Games System (3293 TT): Positioning & Potential Passive Buying

Fuji Soft (9749 JP) – The Fine Print Is Worth Reading

By Travis Lundy

  • On 11-Oct, Bain submitted a binding proposal for Fuji Soft Inc (9749 JP). On 15-Oct, FSI acknowledged, but questioned the Nozawa family commitment.  Founder Nozawa wrote letters the 17th.
  • O 18-Oct, FSI reiterated support for the KKR First Tender in a late night drop. It included fine print, but no media coverage. Today, FSI filed a Target Opinion Amendment.
  • That filing included yet more fine print not in the public filing Friday. And KKR extended. The new fine print is nuanced. But worth reading.

Shinko Electric (6967 JP) Takeover – THIS Is a Dip to Buy

By Travis Lundy

  • Over the last few days, Shinko Electric Industries (6967 JP) shares have dipped lower than the previous standard trading range. 
  • I expect this weakness is related to investors in other deals deciding to sell this deal too. I believe it is not related to Shinko specifically.
  • For that, while gap risk remains somewhat high, I still see break risk as low and see this as a great opportunity to buy the dip.

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Capping Flows in December

By Brian Freitas

  • The December rebalance for the HSIII Index only involves capping to limit stocks to 12% of the index weight. There will not be any constituent changes.
  • Estimated one-way turnover at the rebalance is 4.4% resulting in a round-trip trade of HK$2.9bn (US$378m).
  • The largest outflows are expected to be from Meituan (3690 HK) and JD.com (9618 HK) with inflows spread across the other index constituents.

Entry Opportunities from Delisting Risk Due to Korea Zinc’s Post-Buyback Volume Drying Up

By Sanghyun Park

  • Korea Zinc’s delisting daily trading volume cutoff is 20K, about 0.12% of the total. We might see volumes plummet, making it tough to maintain even that 20K level.
  • Keep an eye on trading opportunities; we have some time with delisting risks, but low trading volume could lead to being booted from the KOSPI 200 and Global Index.
  • This sell-off could spike short-term volatility and create great entry points for trading, especially after the court approved the buyback tender, denying MBK’s injunction.

Doosan’s Tweaked Restructuring Play: My Take on Hitting Robotics’ 13% Spread

By Sanghyun Park

  • The big question is how to cash in on the dissenters’ rights spread for Robotics. The main concern is cancellation risk, but the FSS doesn’t seem too negative on approval.
  • To sustain nuclear momentum, Enerbility needs heavy borrowing for facility investments, requiring a lower debt ratio. Offloading debt-heavy Bobcat is a move shareholders might support.
  • With NPS unlikely to ignore the government’s nuclear push, Robotics’ spread could narrow quickly. Despite cancellation risk and no hedge, the remaining juice makes an outright position worth considering.

Hyundai Motor India IPO: How Far to Fast Entry?

By Brian Freitas

  • Hyundai Motor (005380 KS) raised INR 279bn (US$3.3bn) by selling some of its stake in Hyundai Motor India (1342Z IN), valuing Hyundai India at INR 1,593bn (US$18.95bn).
  • The anchor investor book was fully subscribed. The non-institutional and retail books were undersubscribed, so institutions got more stock. And that changes the free float estimates for one global index.
  • Even with the higher float, Hyundai Motor India (1342Z IN) is unlikely to get Fast Entry to one global index later this month. Index inclusions should commence in February 2025.

Korea Zinc: Court Dismisses the Second Injunction Filed by MBK

By Douglas Kim

  • The Seoul Central District Court dismissed the second injunction filed by MBK Partners and Young Poong to suspend the share buyback/tender offer by Korea Zinc Chairman Choi and his allies.
  • As a result of the court dismissing the second injunction filed by MBK, the M&A fight for Korea Zinc is likely to continue until the AGM in March 2025. 
  • Depending upon Korea Zinc’s tender offer subscription, there is a possibility of MBK buying more shares directly from the market if the subscription falls below the proposed amounts. 

Quiddity Leaderboard ASX Dec 24: Clarity Pharma and Resolute Mining Competing for ASX 200 Spot

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.
  • We currently do not see any index changes for ASX 20 and ASX 100.
  • We continue to expect one change for ASX 50. However, our expectations for ASX 200 have changed since our last insight (link).

International Games System (3293 TT): Positioning & Potential Passive Buying

By Brian Freitas

  • International Games System (3293 TT) could be added to a global index at the end of November and there will be a lot of buying in the stock.
  • The big rally in the stock has led to International Games System (3293 TT) trading expensive to its regional peers.
  • There has been an increase in cumulative excess volume over the last month. But there could still be more to go over the next week.

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Oct 22
0

Daily Brief ECM: Tokyo Metro (9023 JP) IPO: Trading Debut and more

By | Daily Briefs, ECM

In today’s briefing:

  • Tokyo Metro (9023 JP) IPO: Trading Debut
  • Hyundai Motor India IPO Trading – Set for a Tricky Start
  • Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation
  • Hyundai Motor India: Trading Strategy on the First Day of Trading
  • Waaree Energies IPO Update- Forensic Analysis
  • Horizon Robotics (9660 HK) IPO: Valuation Insights
  • SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing
  • T.S. Lines Pre-IPO – PHIP Updates – Shipping Volumes Improved, However Paid Another Large Dividend
  • Tokyo Metro IPO Trading – Robust Demand for Quality Asset

Tokyo Metro (9023 JP) IPO: Trading Debut

By Arun George

Hyundai Motor India IPO Trading – Set for a Tricky Start

By Sumeet Singh

  • Hyundai Motor (005387 KS) raised around US$3.3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
  • HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
  • In our previous notes, we looked at the company’s past performance and valuations. In this note, we will talk about the trading dynamics.

Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation

By Devi Subhakesan

  • Hyundai Motor India   is expected to close flat or slightly positive today, as low retail participation and modest expectations for gains on listing day could limit selling pressure.
  • Many retail investors skipped the IPO, influenced by ‘finfluencers’ who had largely advised against it based on misinterpreted valuation comparison with Maruti Suzuki India (MSIL IN) .
  • Hyundai Motor India’s meaningful discount to Maruti Suzuki on operating profit based valuation multiples suggest room for outperformance in the medium term.

Hyundai Motor India: Trading Strategy on the First Day of Trading

By Douglas Kim

  • Hyundai Motor India (1342Z IN) shares start trading on 22 October. The IPO price is 1,960 INR. 
  • Although there has been some solid interest on this IPO among many institutional investors, there have been a lower interest among retail investors. 
  • There has also been relatively low grey market premium. If the share price reaches in the positive upper single digits, we expect many traders to sell into this short-term rally. 

Waaree Energies IPO Update- Forensic Analysis

By Nitin Mangal

  • Waaree Energies (0656504D IN) awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. 
  • This insight is an update to the previous note on the company Waaree Energies IPO- Forensic Analysis , on the forensics front. 
  • The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.

Horizon Robotics (9660 HK) IPO: Valuation Insights

By Arun George

SF Holding Pre-IPO: Proposed Interim & Special Dividends of 1.40 CNY Per Share Ahead of HK Listing

By Daniel Hellberg

  • SF Holding proposes interim & special dividends for owners of A-shares
  • Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%
  • Meeting October 29 to approve dividends, Q3 results, planned HK listing

T.S. Lines Pre-IPO – PHIP Updates – Shipping Volumes Improved, However Paid Another Large Dividend

By Clarence Chu

  • T.S. Lines (TSL HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
  • T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
  • In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.

Tokyo Metro IPO Trading – Robust Demand for Quality Asset

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s shareholders raised around US$2.4bn in its Japan IPO. 
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

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Oct 22
0

Daily Brief Crypto: A Debate on Bittensor | Crypto x AI Event and more

By | Crypto, Daily Briefs

In today’s briefing:

  • A Debate on Bittensor | Crypto x AI Event
  • Crypto Moves #48 – Uniswap’s Unichain Is Net Positive, End of Story

A Debate on Bittensor | Crypto x AI Event

By The Delphi Podcast

  • Panel discussion with top analysts on the project Bittensor
  • Bittensor founded to decentralize AI and promote open source AI movement
  • Project has evolved from text prompting network to network for digital commodities, encompassing entire AI development process

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Crypto Moves #48 – Uniswap’s Unichain Is Net Positive, End of Story

By Mads Eberhardt

  • Last Thursday, Uniswap, the leading decentralized spot exchange, announced its upcoming Layer 2, also known as rollup, on Ethereum, called Unichain.
  • For a detailed explanation of Ethereum rollups, please see Crypto Moves #16.
  • This new rollup will be based on Optimism’s Superchain technology, which also powers Coinbase’s Base rollup and the soon-to-launch Layer 2 from Sony.

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Oct 22
0

Daily Brief Equity Bottom-Up: Delfi Ltd (DELFI SP) – Sweeter Times Ahead? and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Delfi Ltd (DELFI SP) – Sweeter Times Ahead?
  • JD.com (9618-HK): Positive Technical Analysis Signals
  • Haemonetics Corporation: Expansion of the Vascular Closure Market & Other Major Drivers
  • nCino Inc.: The Tale Of International Market Penetration & Product Localization! – Major Drivers
  • The Chemours Company: Expansion of Fluoropolymer Applications & Dealing With Fluctuating Demand! – Major Drivers
  • JNBY (3306 HK): >34% ROCE Track Record/10% Dividend Yield/Net Cash Business
  • PBF Energy Inc.: Tackling The Challenges of Maintaining Competitive Market Positioning! – Major Drivers
  • Nexstar Media Group: Will Its Strategic Focus on Political Advertising Result In A Solid Financial Performance? – Major Drivers
  • Mastercraft Boat Hldngs In (MCFT) – Friday, Jul 19, 2024
  • IRDM: The Matrix of Metric Changes

Delfi Ltd (DELFI SP) – Sweeter Times Ahead?

By Angus Mackintosh

  • Delfi Ltd (DELFI SP) saw some impact from the weaker IDR and higher cocoa prices in 1H2024 but prospects for 2H2024 look more promising with less expected disruption.
  • The company continues to roll out new distribution across modern trade independent and general trade as well as new variants for existing best-selling brands such as Silver Queen chocolate.
  • The company remains confident that the cocoa price will decline from current levels although it may remain higher than historic levels. Valuations remain attractive. 

JD.com (9618-HK): Positive Technical Analysis Signals

By Wium Malan, CFA

  • Despite a share price correction this month, JD.com (9618 HK) remains firmly amid an earnings upgrade cycle driven by improved profitability expectations.
  • Following significant share price volatility over the past 2 months, JD.com’s near-term momentum indicators currently display bullish signals.
  • JD.com still trades at more than one standard deviation below its 5-year historic average forward PE ratio, and near the lowest level it has ever been.

Haemonetics Corporation: Expansion of the Vascular Closure Market & Other Major Drivers

By Baptista Research

  • Haemonetics Corporation’s first quarter fiscal year 2025 results reveal mixed outcomes in a challenging market scenario.
  • The company reported a revenue of $336 million, which represents an 8% increase on a reported basis and a 3% organic growth.
  • Despite the revenue growth, the adjusted earnings per diluted share decreased by 3% to $1.02, reflecting some strain from operational challenges and the dynamic market conditions.

nCino Inc.: The Tale Of International Market Penetration & Product Localization! – Major Drivers

By Baptista Research

  • nCino has posted its financial results for the second quarter of fiscal year 2025, delivering performance that exceeded initial forecasts in several key areas, including subscription revenues and non-GAAP operating income.
  • The company has observed a notable improvement in the financial services industry in the United States compared to the previous year.
  • nCino’s growth in the U.S. has been robust, particularly within its existing customer base which seems keen on leveraging the company’s expanded platform capabilities.

The Chemours Company: Expansion of Fluoropolymer Applications & Dealing With Fluctuating Demand! – Major Drivers

By Baptista Research

  • The Chemours Company faced various challenges in the second quarter of 2024, yet demonstrated resilience and adaptability in managing these issues.
  • Key points from the earnings call include the impact of a severe drought on their titanium dioxide production at Altamira, Mexico, which led to unplanned downtime and an $8 million cost for the quarter.
  • Despite this, Chemours was proactive in addressing the immediate needs of affected employees and the community while optimizing production to meet customer demands, achieving a 16% increase in volumes compared to the first quarter.

JNBY (3306 HK): >34% ROCE Track Record/10% Dividend Yield/Net Cash Business

By Sameer Taneja

PBF Energy Inc.: Tackling The Challenges of Maintaining Competitive Market Positioning! – Major Drivers

By Baptista Research

  • PBF Energy’s second quarter 2024 earnings presentation reveals a mixed financial landscape marked by challenges and strategic achievements.
  • Despite experiencing weaker-than-expected earnings, the company successfully maintained a robust cash position and further advanced its operational goals.
  • The quarter faced unusual market conditions where RIN-adjusted crack spreads saw a significant decrease, contributing to tighter margins across the board.

Nexstar Media Group: Will Its Strategic Focus on Political Advertising Result In A Solid Financial Performance? – Major Drivers

By Baptista Research

  • Nexstar Media Group’s second quarter of 2024 delivered robust overall performance as the company continued to showcase its ability to navigate challenging market dynamics effectively.
  • As discussed during the recent earnings call, Nexstar achieved record total net revenue and distribution revenue, underscoring its strategic success in optimizing revenue streams amid continued industry shifts.
  • Particularly noteworthy was the substantial growth in adjusted EBITDA and adjusted free cash flow, which highlights disciplined execution across operational facets.

Mastercraft Boat Hldngs In (MCFT) – Friday, Jul 19, 2024

By Value Investors Club

  • Boat OEM industry facing drop in demand post high sales period due to Covid
  • MasterCraft has strong position in ski/wake category, a niche market
  • Despite challenges from tepid retail demand and high inventory levels, MasterCraft could benefit from ski/wake category strength in long term

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.

IRDM: The Matrix of Metric Changes

By Hamed Khorsand

  • IRDM started 2024 with changes to its reporting metrics and that trend continued when with Q3. 
  • When IRDM reported third quarter 2024 results, the Company disclosed it would experience a decline in reported IOT subscriber metrics.   
  • The change subscriber count would not impact IRDM’s revenue due to contract pricing. It could create negative headwind in 2025

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Oct 22
0

Daily Brief Macro: Positioning Watch – Markets Still Favoring West Over East and more

By | Daily Briefs, Macro

In today’s briefing:

  • Positioning Watch – Markets Still Favoring West Over East
  • Can China escape its confidence doom loop? (Shehzad Qazi)
  • Portfolio Watch: October reflation or October disinflation?
  • US Elections: Four Scenarios
  • The Week That Was in ASEAN@Smartkarma – Siloam Intl Hospitals, BliBli & Djarum, and Delfi Ltd
  • India: Clear Policy Error Despite Food-Driven Spurt in Sep’24 Inflation
  • Helixtap China Report: Declining Inventory Point At Improved Demand; Sustainability Questionable
  • China’s Corn Under Extreme Weather Threat // Bad News Again for Orange Production
  • [US Crude Oil Options Weekly 2024/42] WTI Slips as Demand Worries Grow and Middle East Tensions Cool
  • [US Nat Gas Options Weekly 2024/42] Henry Hub Continues Tumbling Due to Bleak Demand Outlook

Positioning Watch – Markets Still Favoring West Over East

By Andreas Steno

  • Hello everyone, and welcome back to our positioning update.
  • The big theme in markets currently is how markets are responding, positioning-wise, to the dwindling momentum in Chinese equities, and which geographies that money is being moved to now that the China story is slowly but surely fading.
  • Today’s briefing on the outlook for the property market was, once again, a disappointment, and it seems like China is boosting supply to solve a demand problem, likely because they are focusing more on their annual 5% GDP growth target than on solving the structural issues at hand.

Can China escape its confidence doom loop? (Shehzad Qazi)

By Money of Mine

  • Misconception that China’s stimulus was a panic move due to economic crisis
  • Obsession over the size of the stimulus package without considering policy approach
  • China aimed to boost confidence and avoid doom loop through stimulus measures, including support for the stock market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Portfolio Watch: October reflation or October disinflation?

By Andreas Steno

  • The USD has regained ground alongside USD rates since the 50bp from the Fed in September, which reignited both growth- and inflation expectations simultaneously.
  • The conundrum around Fredi9999 pushing Polymarket towards making Trump a large election leader in betting markets is likely partially (but obviously not fully) linked to this surge of the USD and USD inflation expectations as well, and we note that bond yields and inflation expectations have disconnected from traded commodity markets over the past 2-3 weeks accordingly. 
  • The stronger USD has wreaked havoc with cross-market positioning in many ways, with USD still being underweight across our positioning gauges, but we doubt that the inflation story has got legs here unless it is a clean sweep for The Donald in early November, given the current price action in inflation-linked markets.

US Elections: Four Scenarios

By Alastair Newton

  • The US elections, excluding the Senate, are currently very close.
  • There are four potential outcomes, each with a probability of 20% or higher.
  • The scenarios suggest that a Trump administration would have a greater ability to implement its agenda than a Harris administration.

The Week That Was in ASEAN@Smartkarma – Siloam Intl Hospitals, BliBli & Djarum, and Delfi Ltd

By Angus Mackintosh

India: Clear Policy Error Despite Food-Driven Spurt in Sep’24 Inflation

By Prasenjit K. Basu

  • RBI’s failure to cut the policy rate at its last two policy meetings is a policy error. Although vegetables caused a headline-inflation spurt, core inflation moderated to 2.7%YoY in Sep’24. 
  • High real interest rates have caused real GDP to decelerate to 6.7%YoY in Apr-Jun’24, and industrial output to decline in Aug’24. The policy error is hurting the economy. 
  • Cleverer stance would be to take every opportunity to cut rates when headline inflation is at/below target. When vegetable prices hold policy hostage, it hits investor confidence. (Evidence: FX Reserves).  

Helixtap China Report: Declining Inventory Point At Improved Demand; Sustainability Questionable

By Arusha Das

  • Inventory lowest since February 2024
  • Arbitrage widens for African and Indonesian rubber
  • Expansion in imports & exports in August

China’s Corn Under Extreme Weather Threat // Bad News Again for Orange Production

By The Commodity Report

  • China’s Corn Under Extreme Weather Threat China’s corn production is currently under pressure due to extreme weather events in the country.
  • Still, as it seems this might not be enough to even lift prices up a little bit. Local prices have ticked higher since the end of September, but they’re still close to four-year lows.
  • Stockpiles of corn are plentiful, and demand is currently sluggish as the second-largest economy of the world battles its own economy demons at the moment.

[US Crude Oil Options Weekly 2024/42] WTI Slips as Demand Worries Grow and Middle East Tensions Cool

By Suhas Reddy

  • WTI futures dropped 9.1% for the week ending 18/Oct, driven by easing Middle East tensions and mounting concerns over China’s slowing economy.
  • WTI options Put/Call volume ratio remained flat at 0.52 compared to last week (11/Oct), as put volume dropped by 22.6% WoW and call volume fell by 21.3%.
  • WTI OI PCR fell to 0.74 (18/Oct) from 0.76 last week. Call OI fell by 13.2% WoW, while put OI dropped by 15.4%.

[US Nat Gas Options Weekly 2024/42] Henry Hub Continues Tumbling Due to Bleak Demand Outlook

By Suhas Reddy

  • US natural gas prices dropped 14.2% for the week ending 18/Oct, marking a third consecutive weekly decline due to milder winter forecasts and the lingering effects of Hurricane Milton.
  • Henry Hub Put/Call volume ratio shot up to 1.54 (18/Oct) from 0.69 (11/Oct) the previous week as put volumes increased by 81.3% WoW, while call volumes fell by 18.4%.
  • Put OI rose for contracts expiring in November, April, and May, while call OI increased for December, January, February, and March expiries.

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