United States

• Wolfspeed, a leading vertically integrated silicon carbide company, shared its fiscal Q3 2024 results, emphasizing accomplishments in operational performance yet acknowledging the market’s undervaluation of its potential.
• A key point of focus was their Mohawk Valley facility’s substantial progress towards increasing utilization and revenue generation.
• Facility enhancements and strategic shifts in production capacities were regularly discussed, reflecting an agile response to market demands, particularly within the electric vehicle sector.

• SPB plans to spin-off its home & personal care (HPC) business into a separate listed company (SpinCo). The parent will retain Global Pet Care and Home & Garden business units.
• The separation will allow SPB to allocate capital and resources more efficiently towards higher growth categories.  SPB (ex SpinCo) will be a higher-growth, higher margin business.
• HPC business (low-growth and low-margin) has been a drag on the overall valuation of SPB. The spin-off will unlock value as SPB (ex SpinCo) will command higher multiple post spin.

• Sunrun reported a dynamic first quarter of 2024, marked by a strategic emphasis on storage installations complemented by solar capacity, reflecting a broader company transformation towards a storage-first business approach.
• During the period, Sunrun surpassed its guidance expectations for both solar and storage installations, with storage systems installed on 50% of new residential customers, a significant increase from the prior year.
• This surge in storage adoption has notably bolstered the company’s margin profile since storage installations tend to carry higher margins compared to traditional solar-only setups.

• Target aggressively markdown prices to clear excess inventory and maintain momentum in the business
• Despite challenges, Target navigated through the shifting consumer landscape and drove positive sales growth, albeit at a slower rate
• Target strategically adjusted inventory management and focused on growing categories to stay strong in the retail market

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.

• Rambus Inc. delivered favorable results for the first quarter of fiscal year 2024, demonstrating resilience and strategic agility amid varied market conditions.
• A pivotal aspect of Rambus Inc.’s growth strategy involves diversifying its product offerings, including the expansion into DDR5 server Power Management Integrated Circuits (PMICs), which complements its existing memory interface chips.
• This development is well-timed, as the industry increases demands for enhanced memory performance driven by applications like AI.

• KBR Inc. reported a strong start to the fiscal year 2024, with key performances in safety, financial metrics, and strategic operations showing promising signs.
• The company saw a 7% year-over-year increase in consolidated revenues, reaching $1.8 billion, a record since their transformation in 2020.
• Adjusted EBITDA also surpassed expectations, improving by 14% year-over-year with a boost in margins.

• Iridium Communications reported its first quarter 2024 results with a generally positive outlook but mixed financial nuances.
• The company recorded a modest increase in overall operational EBITDA, driven largely by an uptick in recurring revenue, highlighting its capability in sustaining growth in foundational service revenue streams.
• Iridium has made significant advancements in diversifying its offerings, particularly through the recent acquisition of Satelles, aiming to enhance its position in satellite-based time synchronization and location services.

• Entravision experienced significant changes with the unexpected death of CEO Walter Ulloa, leading to control reverting to shareholders
• The end of the company’s relationship with Meta as an Authorized Sales Partner caused its stock to drop by over 50%
• The loss of the Meta business could potentially be positive with control in the hands of shareholders, offering an attractive opportunity for long-term investors as shares have partially recovered but remain around 40% below pre-announcement levels

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.

• Monogram Orthopaedics Inc. is an overvalued, pre-revenue stock trading at 10x cash with financial concerns, heavily shorted and planning to issue more shares, potentially leading to a stock price crash.
• The stock saw an 80% increase following a press release mentioning Nvidia, but the spike is expected to be short-lived.
• MGRM lacks significant institutional investors and its largest shareholders include a supplier, board members, and a hospital that licensed technology to the company. With $13.6 million in cash, the company may need to raise equity soon.

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.

• We are reiterating our Buy rating, $37 price target and projections for Guess?
• after touring stores in Milan, Italy, the second largest market for Guess?
• As we have seen on our international and domestic store tours, the name of the game for Guess?

• Energy Growth: Tesla’s energy storage business surged to 9.4 GWh in Q2, a 135% increase from Q1’s 4 GWh.
• China’s Impact: Shanghai Gigafactory shipments fell 24.2% YoY in June, delivering 71,007 units amid a Chinese price war.
• FSD & Robotaxi: Full Self-Driving price cut to $8,000 from $15,000; investors await Robotaxi Day on 8/8.

• WA gold explorers and developers are struggling in the market compared to producers
• Value gap between explorers/developers and producers has widened, with little progress in projects
• Cash balances are dwindling for many companies, raising questions for investors about the incentive to fund them

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• Doug O’Laughlin: Today, on Fabricated Knowledge, I have the privilege of having Wes from Applied Digital on to talk about Applied Digital.
• Today, we’re gonna talk about the change in his business model. The company is experiencing a lot of changes, and there are a lot of new things in the pipeline.
• And so I just wanted to sit him down and have an opportunity to chat about that. 

• General Electric Company, known as GE, recently marked a significant milestone by completing the spin-off of GE Vernova and launching GE Aerospace, positioning the company as a focused leader in the aerospace and defense industry.
• This transition follows the successful spin-off of GE Healthcare last year, achieving a strategic restructuring aimed at strengthening the company’s core operations and financial health.
• 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.

• J.B. Hunt Transport Services, Inc. presented its First Quarter 2024 results delineating challenges primarily driven by continued market pressures, alongside optimistic notes on strategic positioning and long-term growth.
• The results highlighted a decline in revenues and profits, accentuated by inflationary pressures intermingling with deflationary pricing dynamics, reflecting the intricate operational environment the company navigates.
• 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.

• Recent acreage report shows benign planting figures and solid ending stocks for Corn sending its prices lower. Wheat also declined on higher stocks, while Soybeans rebounded.
• Wheat faces headwinds & tailwinds. Fundamentals are dragged down by favorable weather in exporting countries & imminent US harvest; Strong US demand & weak EU forecast has supported prices.
• Soybeans appear well supported from an unlikely ally in Trump. Import Duty tit-for-tat could see China slapping duty on Soy imports.

• IPG Photonics’ first quarter of 2024 financial results and business updates reflect a mix of challenges and strategic advancements amid an evolving market landscape.
• The company, a leader in high-performance fiber lasers and amplifiers, reported a decline in revenue, largely attributed to softening demand in key industrial sectors, particularly e-mobility and general industrial manufacturing.
• These sectors represent a significant portion of IPG Photonics’ sales, translating revenue impacts across various applications.

• Mack885 identified buying opportunity in ALDX due to management’s plan to address FDA setback
• Perceptive Advisors increased stake in anticipation of reproxalap approval for dry eye disease
• Potential option agreement with AbbVie could greatly benefit ALDX financially, making its share price undervalued

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.

• Packaging Corporation of America reported its first quarter 2024 results, including a net income of $155 million, or $1.72 per share, and a total net sales of $2 billion.
• While these figures show a decrease from first quarter 2023 results of $198 million net income, or $2.20 per share, and the same $2 billion net sales, they still mark a significant achievement for the company.
• To tackle inflation, Packaging Corporation of America has been focusing on cost management and improving process efficiencies across its manufacturing and converting facilities.

• Five9’s recent financial recap underscores its robust position in the cloud-based contact center market, highlighted by a notable 20% year-over-year growth in subscription revenues and a total revenue surpassing guidance expectations.
• These achievements are particularly significant because they underscore organic growth without contributions from transitioning customers from on-premise to cloud solutions, distinguishing Five9 as purely cloud-focused in its operations.
• 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.

• Before we dive into this Monday’s edition of Crypto Crisp, we want to announce a format change.
• Starting today, the ‘Charting Crypto’ section will only feature the most intriguing charts we have discovered over the past week.
• Instead of showcasing four to five recurring charts that may not always be interesting, we will focus solely on the most noteworthy ones.

• AI advancements will increase data center power demand by 160% by 2030, consuming 8% of U.S. electricity.
• A single ChatGPT query uses 2.9 watt-hours of electricity, compared to 0.3 watt-hours for a Google search.
• 2 of the 5 top performing stocks year-to-date in the S&P 500 are utility companies Vistra Corp and Constellation Energy. Utility sector has gained 6.7% in 2024. 

• Schlumberger’s revenue is expected to rise 12.1% YoY and net profit by 15.3% YoY in Q2 2024. Management sees sequential margin growth across divisions.
• Q2 growth is expected to be driven by SLB’s International segment, offsetting North American weakness. The International segment contributed 82% of Q1 revenue.
• SLB announced plans to increase shareholder returns from USD 2.5 billion to USD 3 billion in 2024 and to USD 4 billion in 2025.

• Micron Technology recently provided insights into their fiscal third quarter 2024 performance, shedding light on various strategic and operational aspects that investors may find critical in shaping their investment thesis.
• Amid a challenging global semiconductor landscape characterized by rapid technological advancements and fluctuating demand cycles, Micron appears cautiously optimistic about the future, driven by strategic investments and a focus on high-margin products.
• 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.

• We continue to play the hand we have been dealt; i.e., riding the trend higher on the SPX and Nasdaq 100, and being overweight large-cap growth
• Russell 1000 GrowthVs.Value ratio is breaking out from a 4-year base, suggesting growth’s outperformance is likely to continue in the months ahead. Growth outperforming during bull markets is no surprise.
• Latest bullish developments include the equal-weighted Nasdaq 100 (QQQE) breaking out from a 4-month base, while Discretionary (XLY) displays a 6-month base breakout and RS is reversing its YTD downtrend

• CarMax has reported its fiscal 2025 first quarter results, revealing a mixed financial scenario.
• This analysis aims to objectively evaluate the performance by weighing the key positives and negatives reflected in the data and future company outlook.
• Starting with the positives, CarMax noted several encouraging business trends, such as a stabilization in vehicle values and a decrease in average vehicle selling prices, which fell by approximately $700 per unit.

• BTC hits multi-month range lows amid heavy liquidations and bearish market structure.
• Altcoins experience significant losses, with many sectors down 20%-50% in recent weeks.
• ETH and SOL spot ETFs signal growing institutional interest despite current market struggles.

• We are reiterating our Buy rating, $41 price target and projections after visiting franchised stores in Milan, Italy.
• With the company ramping up penetration with commercial partners and international franchisees, we believe it will be increasingly important for investors to understand and appreciate what we believe are the impressive economics of the franchised Build-A-Bear business.
• Our Milan visits reiterated both the ability to recreate the experiential aspect of the Build-A-Bear operating model with partners and what we believe can be the lucrative nature of the business.

• We are reiterating our Buy rating, $37 price target and projections for Guess?
• as we begin our Milan tour with the global rollout of the new Guess Jeans line, which debuted last week.
• For Milan, Guess Jeans launched at La Rinascente’s (the leading Italian luxury department store) flagship Milan location (across from the Piazza del Duomo) with an intense merchandising campaign, including taking over the front of the store, in-store signage and a key event with influencers.

• We are reiterating our Buy recommendation, $37 price target and projections as we look at key trends for 2HFY24 and beyond for Guess?
• We believe the company remains focused on driving upside via both elevation and escalation.
• In terms of elevation, Guess?

• Copper rebounded last week, rising 4% on the LME and 6% on the COMEX, led by improved sentiment but in line with most of its commodity complex peers.
• Check out our initiation, Copper Primer: What We Like About Copper and What to Play, and our equity initiation, Southern Copper: In a League of Its Own. 
• We provide updates on the long copper-short gold trade we explored last week and the iron condor in Freeport Mcmoran (FCX US) 

• Corn and Wheat planted acreage are down 3% and 5% YoY, respectively. Meanwhile, Soybean total planted area is up by 5% YoY compared to 2023.
• Planted acreage and ending stocks drove prices down for wheat and corn. Soybeans bucked the trend as reported acreage fell short of WASDE estimates by 400k acres.
• A positive picture for 2024 planting season is visible, with the early benefits of warm temperatures and improved moisture levels setting the stage for strong yields.

• Tesla delivered 443,956 vehicles in Q2 with production of 410,831 vehicles. It deployed a quarterly record of 9.4 GW hours of battery storage, its best quarter ever.
• Tesla delivered 443,956 vehicles in Q2 with production of 410,831 vehicles. It deployed a quarterly record of 9.4 GW hours of battery storage, its best quarter ever.
• Future remains uncertain for Tesla and its investors. Tesla shares are pricing in the launch of a lower priced model and Tesla’s Robotaxi on 8/8.

• Combined entity of Paladin Energy and Fission Uranium expected to command a market capitalisation of USD 3.5 billion.  
• Following the Russia-Ukraine war, uranium miners started looking for alternative sources in low-risk regions, putting focus on US and Canada.
• Post-Merger, Paladin will have the second-largest resource base of any listed uranium miner in the Western Hemisphere, second only to Cameco.  

• Meritage Homes commenced the year with a remarkable first quarter in 2024, demonstrating both strong execution and a robust demand environment, yet facing challenges due to the unpredictability of interest rates and increased land and material costs.
• On the performance front, Meritage Homes reported substantial gains, with first-quarter sales orders hitting a record 3,991 homes, reflecting a 14% year-over-year increase.
• This noteworthy jump was primarily driven by healthy spring sales, an 8% cancellation rate, and robust demand across all regions, particularly from entry-level homebuyers who make up more than 90% of the order volume.

• J&J Snack Foods recently reported fiscal results for the second quarter of 2024 and showcased a promising outcome, marked by significant sales and profit growth.
• The company’s strategy and operational efficiencies appear to be paying off, with net sales reaching $357 million, an increase of 6.5% compared to the prior year.
• This results from a combination of higher volumes, new business performance, and continued robust sales in major segments like Foodservice and Retail.

• Credo’s fiscal 2024 earnings presented a blend of robust achievements and markers for future growth, tied along with inherent business risks associated with developing and scaling high-speed connectivity solutions.
• The company highlighted record annual revenue alongside a notable uplift in revenue derived from AI-powered workloads, indicating successful alignment with leading-edge technological demands.
• Revenue for fiscal year 2024 stood at $193 million, up by 5% year-over-year, with a marked improvement in non GAAP gross margins to 62.5%.

• Recommendation to short shares of Scotts Miracle-Gro based on excessive leverage from Hawthorne hydroponics subsidiary’s cannabis market bet
• Core consumer lawn care business facing increased competition, pricing pressure, and challenges in driving volume growth
• Projected 40% downside for SMG due to precarious financial position and reliance on key retailers and seasonal revenue

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.

• Signet Jewelers delivered a performance that aligns with its guidance amidst a challenging retail environmen characterized by macroeconomic pressures and heightened discount activities in the jewelry sector.
• The company reported $1.5 billion in sales and $58 million in adjusted operating income, which falls within the upper half of its guidance range.
• The quarter saw a sluggish start but improved significantly with late Valentine’s Day shopping and further momentum through March and April.

• Old Dominion Freight Line, a major freight carrier company, recently released its first quarter 2024 which reflected a challenging economic environment but also highlighted areas of growth.
• Despite the continued softness in the domestic economy, Old Dominion was able to report modest year over-year increases in revenue and earnings per diluted share for two consecutive quarters.
• Its Q1 2024 earnings per diluted share of $1.34 signifies a new company record for this period.

• The Sherwin-Williams Company recently reported its consolidated sales within the guided range, gross margin expansion, and growth in diluted earnings per share (EPS) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
• However, the results were at the lower end of expected sales.
• Despite the modest first quarter, the company remains confident in its full-year outlook and is optimistic about the upcoming painting season.

• IHRT is expected to experience positive growth in the upcoming quarters, driven by its podcasting business
• CEO and CFO have been buying stocks, indicating confidence in the company’s future prospects
• Potential debt restructuring and positive growth could lead to a significant increase in IHRT’s equity value by the end of 2025.

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.

• In a particularly altruistic move, live-streaming game platform play Douyu International Holdings (DOYU US)  announced a special cash dividend of US$9.76/share, vs. a last price of US$12.59.
• The cash outlay is roughly US$308mn, and Douyu had cash (as at 1Q24) of US$936.6mn. And no debt.  Founder/chairman/CEO Shaojie Chen (17.2% shareholder) will pocket a tidy ~US$53mn.
• An outlier; or should we expect more of the same for other cash-rich US-listed China plays?

• Index Committee’s discretion decreases the predictability of index changes. Even when a company passes all eligibility criteria and thresholds, it might still not be selected.
• Understanding triggers for index changes, types of additions/deletions and selection patterns, narrows down the pool of candidates and increases conviction of forecasts.
• Dell Technologies (DELL US) is currently the main candidate to be added by transition to the S&P 500 in September 2024 Quarterly Rebalance.

• Alpha Metallurgical Resources recently disclosed its financial results for the first quarter of 2024, presenting mixed outcomes amidst challenging market conditions.
• The company announced an adjusted EBITDA of $190 million, a decline from the $266 million recorded in the previous quarter, citing the softening metallurgical coal market which deteriorated further after the quarter ended, setting a challenging environment for the upcoming quarter.
• Despite these complex market dynamics, Alpha Metallurgical Resources remains committed to maintaining operational excellence and cost-efficient practices.

• Strong candidate for shorting in the short-run, potential to miss revenue consensus by 4-5ppt in Q1 2024
• Recommendation to short LULU US when share price is above USD410, price target of USD300 before next earnings date in May 2024
• Lululemon is a leading brand in women’s indoor training and yoga, overvalued and likely to see a decline in share price

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.

• US crude oil inventory declined by 12.2 million barrels as of the week ending on 28/Jun, the biggest drawdown since July 2023.
• Henry Hub prices continued to decline from last week due to increased production and cooler weather forecasts.
• Saudi Aramco awarded over USD 25 billion in contracts for gas expansion. Goldman Sachs lowered its target price on Saudi Aramco but maintained its “Neutral” rating.

• On March 7 of this year, we dedicated an entire edition of Crypto Moves to discussing our belief that this crypto bull market is the least speculative one yet.
• This edition, Crypto Moves #18, was aptly named: “The Least Speculative Bull Market,” and included the following summary:“The crypto market is getting less speculative by the minute.
• There is no need to chase the next big thing by risking funds on obscure altcoins or memecoins.

• Exelixis reported its first quarter 2024 financial results, underlining continued progress in its business across several fronts.
• The company, known for its cabozantinib franchise, saw a modest growth in revenues, driven by sustained demand and expansion in the U.S. and global markets.
• Additionally, Exelixis advanced in its pipeline development and corporate developments, maintaining a robust focus on enhancing standard of cancer care and providing value to shareholders.

• CVRx (CVRX US)’s Barostim, is the only neuromodulation device designed to treat heart failure and resistant hypertension. We see CVRX as a buyout target. 
• Growth will be driven by growing elderly population, and rising rates of diabetes and hypertension putting more people in cardiac decline.
• Trials suggest that Barostim is a cost-effective treatment, quality of life improving therapy when compared with traditional optimal medical management in patients with resistant hypertension.

• Inspired Medical Systems First Quarter 2024 performance showcases a robust growth trajectory alongside strategic market advancements and impending innovations.
• The company reported a notable increase in revenue, which reached $164 million, marking a 28% year-over-year growth.
• This uplift was primarily driven by enhanced penetration in existing markets and expansion into new territories, both domestically and internationally.

• Intra-Cellular Therapies announced a robust performance in the first quarter of 2024, demonstrating notable advances in both the commercial and clinical realms.
• The company reported a significant rise in total revenues, reaching $144.9 million with CAPLYTA net sales alone accounting for $144.8 million, reflecting a 53% growth year-over-year.
• This growth trajectory reaffirms the drug’s strong market acceptance and penetration within its approved indications for bipolar depression and schizophrenia.

• Blackrock is a massive asset management firm with $10 trillion in assets under management
• Blackrock recently made a transformative acquisition of Global Infrastructure Partners (GIP)
• The deal has wide-ranging effects for the private capital industry and is a wake-up call for Wall Street firms to rethink their strategies and partnerships

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

• Cirrus Aircraft (0153126D US) seeks to raise up to US$197m in its Hong Kong IPO.
• Cirrus Aircraft designs, develops, manufactures, and sells premium aircrafts. Its two aircraft product lines, the SR2X Series and the Vision Jet, are currently certified and validated in over 60 countries.
• In our previous notes, we talked about the company’s historical performance and PHIP updates. In this note, we undertake a quick peer comparison and share our thoughts on valuation.

• Newell Brands displayed a strong performance in its first quarter of 2024, reflecting continued progress in its strategic turnaround efforts.
• The company reported improvements across multiple metrics, including gross margin, operational efficiency, and core sales despite a challenging external environment.
• Moreover, Newell Brands maintained its full-year outlook and highlighted ongoing focus on operational excellence and innovation.

• Capri Holdings Limited recently reported its financial performance for the fourth quarter and full fiscal year of 2023.
• Despite facing numerous challenges, including an uncertain macroeconomic environment and specific difficulties in the Americas, the company managed to achieve high single-digit revenue growth and mid-single digit growth in earnings per share on a 52-week constant currency basis.
• However, these figures fell short of the company’s initial expectations.

• NewMarket Corporation reported a solid performance in the first quarter of 2024, with notable developments in financial results and strategic actions aimed at expanding its business operations.
• The company reported a net income of $108 million or $11.23 per share, reflecting an increase from $98 million or $10.09 per share in the same period the previous year.
• The primary revenue generator, the petroleum additives segment, demonstrated a robust operating profit of $151 million up from $132 million in the first quarter of 2023, though it experienced a slight decline in sales from $700 million in the previous year to $677 million.

• Medpace’s financial results for the first quarter of 2023 highlight a mixed scenario, reflecting both the opportunities and challenges inherent in the clinical contract research organization (CRO) industry.
• The company reported that revenues reached $511 million for the quarter, marking a significant 17.7% increase on a year-over year basis.
• This positive trajectory can be attributed to healthy demand for Medpace’s clinical research services, as demonstrated by the growth in ending backlog which stood at approximately $2.9 billion—an increase of 18.2% compared to the previous year.

• Natera, Inc., during its Q1 2024 discussion, presented results that indicate robust financial and operational achievements alongside a renewed forward outlook reflecting the company’s strong position in the genomic diagnostics market.
• The company noted a significant increase in its revenue and volume growth across its diversified operational segments, which include oncology, organ health, and women’s health.
• Notably, Natera, Inc. achieved a major corporate milestone by reaching cash flow breakeven in Q1, significantly ahead of schedule.

• Neurocrine Biosciences recently concluded its quarterly update, focusing on its strategic progress and financial achievements.
• One of the highlights is the significant year-over-year growth marked by the continued success of INGREZZA, its flagship product, which reported sales of $506 million for the quarter, reflecting over 20% annual growth.
• This consistent growth trajectory, despite seasonal payer dynamics, underscores the effective management and robust demand for INGREZZA in treating conditions like tardive dyskinesia (TD) and Huntington’s disease chorea.

• Roivant’s latest financial and business developments indicate both potential and challenges.
• The company reported a series of product updates and financial adjustments aimed at fostering growth and efficiency.
• Notably, Roivant’s executive team highlighted fiscal responsibility through renegotiations of Dermavant’s obligations, which are projected to reduce costs significantly.

• The Simply Good Foods Company reported its fiscal third-quarter results for 2024, reflecting a combination of growth and investment strategies aimed at harnessing both immediate gains and longer-term opportunities.
• The company’s results were favorable, with a reported net sales increase of 3.1% to $334.8 million, driven primarily by Quest’s volume growth.
• Notably, retail takeaway across measured and unmeasured channels outpaced net sales growth, reaching approximately 5%.

• NVIDIA’s data center revenues tripled YoY in CY 2023 and are on track to more than double in CY 2024
• When Intel dominated the data centre and minted tens of billions annually, its customers benefited even more, minting hundreds of billions. 
• If NVIDIA’s business model succeeds, its customers will succeed even more. This will make it extremely difficult for NVIDIA to remain the #1 global market cap stock. 

• Mega-Cap growth names such as AMZN, TSLA, MSFT, GOOGL, and META have picked up the slack as semiconductors (SMH, SOXX, NVDA, AVGO, etc.) are simply consolidating after getting extended.
• This was a possibility we discussed in last week’s Compass (6/25/24), which means we are not seeing any lasting rotation away from large-cap growth.
• We remain bullish on all names listed (including the semiconductors), and we continue to recommend an overweight to large-cap growth (relative to value) as initially discussed in our 5/29/24 Compass

• Tripadvisor’s fourth quarter and full year 2023 financial results exceeded expectations with the company reporting revenue growth of 10% year-on-year amounting to $390 million in Q4.
• In the same period, the adjusted EBITDA was $84 million attributed to exceptional brand performance and marketing efficiencies.
• For the full year, the company reported a consolidated revenue growth of 20%, recording an all-time high of $1.8 billion, with adjusted EBITDA experiencing a 13% growth to $334 million.

• Elanco Animal Health Incorporated has demonstrated a strong start to 2024 with positive developments in multiple areas of its business, despite facing some challenges.
• The company has achieved encouraging financial and operational results, underscored by success in its strategic initiatives aimed at enhancement and innovation.
• Starting with the financials, Elanco surpassed its revenue, adjusted EBITDA, and adjusted EPS guidance for Q1 2024, indicating robust underlying business performance.

• Ionis Pharmaceuticals commenced the year 2024 with notable strides, particularly through the launch of WAINUA in the U.S. This product, among others in the pipeline, is expected to lead the company towards a more independent operation in drug commercialization.
• The company’s executives displayed confidence in the potential of upcoming products like olezarsen and donidalorsen to transform their respective therapeutic areas and achieve market penetration based on strong clinical results.
• 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.

• Aptar, a global leader in drug delivery systems and consumer product dispensing, has reported robust first quarter financial results for 2024.
• The company disclosed a 5% core sales growth and a remarkable more than 30% increase in adjusted earnings per share (EPS) as compared to the previous year.
• Notably, the Pharma segment exhibited strong performance driven by sustained demand for its proprietary drug delivery systems, marking high single-digit core sales growth.

• Flowers Foods, a packaged bakery goods company, recently discussed their first quarter 2024 financial results, highlighting a mix of both successes and ongoing challenges.
• They remained optimistic about the future, reinforcing their strategy based on portfolio optimization and cost efficiency.
• In terms of performance, the company reported solid results with an improvement in branded retail volumes for the first time since 2020.

• Investment analysis and result summary for Freshpet’s first quarter of 2024 show a mixed yet optimistic outlook for the company’s financial and operational progress.
• The company reported a robust 34% increase in net sales amounting to $223.8 million, mainly driven by substantial volume growth of 31%.
• This positive development suggests a successful adaptation to significant pricing changes, highlighting effective management and resilient operational frameworks.

• Globus Medical recently disclosed its financial results for the first quarter of 2024, showcasing significant growth and strategic advancements post the integration with NuVasive.
• The company reported a remarkable 119% increase in sales, reaching $607 million, and a 36% rise in non-GAAP EPS to $0.72.
• This period marks the first quarter of the combined field organizations of Globus and NuVasive, underscoring a robust integration process aimed at streamlining operations and escalating market reach.

• Graphic Packaging Holding Company’s performance in the first quarter of 2024 presents a mixed picture.
• Despite challenging market conditions, the company demonstrated resilience, attributed to its diversified portfolio and strategic initiatives, which may hold implications for stakeholders considering investment in the firm.
• On the revenue front, Graphic Packaging saw its sales reach $2.3 billion.

• Six months after announcing a binding proposal, Ascendent has obtained all the Chinese regulatory approvals for its US$26.50 Hollysys Automation Technologies (HOLI US) offer. 
• The gross spread was wide due to the information vacuum, which has resulted in various conspiracy theories and rumours circulating.
• The two remaining conditions required for close are the maximum dissenting cap (should be waived) and minimum net cash condition (satisfied). At the last close, the gross spread was 22.5%.

• Occidental trades at higher PE and PB valuations than Exxon Mobil, Chevron, Shell, TotalEnergies, and BP. European oil majors are cheaper than American peers.  
• Occidental has been the Permian Basin’s leading oil and gas producer for the past five years. 
• Occidental expects to close the USD 12 billion CrownRock acquisition by August. The deal is anticipated to boost its oil output by 170k bpd. 

• On July 1, Boeing Co (BA US) announced a definitive agreement to acquire Spirit Aerosystems Holdings, Inc (SPR US) in an expected all-share deal valued at c.$4.7 billion, or $37.25/share.
• Consideration is calculated using a floating exchange ratio ($37.25 divided by 15-day VWAP) with a collar. 0.20466 using Boeing’s last closing share price, which implies 3.9% dilution for Boeing’s shareholders.
• The offer price is 6.4% above consensus price target median ($35), and reasonable, reflecting some control premium. The valuation represents 10.1x EV/2025 EBITDA based on IBES estimates. Long spread.

• Despite achieving significant milestones, Elon Musk’s $56 billion compensation package was voided in January 2024 due to a flawed approval process, ruled a Delaware judge.
• Tesla’s shareholders voted to reinstate Musk’s package in June 2024, but the lawsuit continues, and the contract’s future remains uncertain.
• Tesla faces challenges with slow EV sales growth, rising competition, and the need for lower-cost models, which may impact stock performance despite Musk’s ongoing leadership.

• Q2 is seasonally a slow period for licensing revenue at IMMR. This year, IMMR has made investments in BNED and UEIC could result in a materially significant earnings report.
• IMMR’s investment portfolio could sway quarterly performance. In Q2 it would be, by our estimate, to the upside. We are raising our estimates for the second quarter and full year.
• Our price target remains $11 ahead of quarterly results even though there is clearly an opportunity for IMMR to surpass our earnings estimate to support a higher stock price.

• As we step into July, anticipation surrounds the distribution of 141,686 bitcoins from the defunct Mt. Gox exchange to its creditors, most of whom are former clients.
• Despite the looming release of these bitcoins, which have been locked away for over a decade, the crypto market saw an uptick over the weekend.
• This rise occurred even after the German government transferred an additional $94 million worth of bitcoins to exchanges this morning.

• Leggett & Platt, a prominent engineered product manufacturer, recently revealed its financial and strategic direction in its first quarter 2024 earnings analysis.
• The company is engaged in multiple business segments, notably Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products.
• The reported period reflects a mix of strategic restructuring, operational challenges, and financial adjustments aimed at long-term sustainability and growth.

• Life Time Group Holdings, Inc. showcased a strong financial performance in the first quarter of 2024, although there were some mixed aspects within the results.
• The company reported a notable increase in total revenue, which rose by 16.8% to $596.7 million from the year earlier.
• This rise was predominantly fueled by a 19% growth in membership dues and enrollment fees and a 10.5% uptick in in-center revenue.

• Shake Shack reported a promising performance for the first quarter of 2024, demonstrating substantial growth and improvement across several key metrics.
• Total revenue increased by 14.7% year-over-year to $290.5 million, supported by a 1.6% rise in Same-Shack sales and robust system-wide sales growth of 12.3% to $443 million.
• This consistent revenue growth underscores the company’s ability to expand its operational footprint effectively, with 8 new Shacks opened during the quarter contributing to this upward trajectory.

• Pilgrim’s Pride Corporation reported positive financial results for the first quarter of 2024, demonstrating significant growth and operational efficiency despite challenging market conditions.
• The company recorded net revenues of $4.4 billion, marking a 4.7% increase from the previous year.
• Moreover, the adjusted EBITDA reached $372 million, which is a 145% rise compared to Q1 2023, and the adjusted EBITDA margin expanded from 3.6% to 8.5%.

• Post Holdings delivered robust performance in the second quarter of 2024, anchored by strong execution across core segments such as Consumer Brands and Foodservices, despite notable challenges including volume declines in several categories.
• The company’s proactive management, highlighted by strategic price adjustments and rigorous cost control, have enabled Post to navigate a complex economic landscape defined by shifting consumer behaviors.
• 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.

• Fox Factory Holding Corporation presented a comprehensive review of their first quarter fiscal 2022 performance alongside future projections and strategic outlooks.
• The company reported revenue of $333.5 million which met their expectations, and adjusted earnings per share of $0.29, surpassing their projections.
• Given the diversified nature of their product portfolio, spanning multiple sectors and markets, Fox Factory has shown resilience amid industry cyclicality, mitigating risk while aligning with avenues for future growth.

• GMS Inc. reported a robust fiscal year 2024, marked by record net sales of $5.5 billion, a testament to volume growth across all four product categories—Wallboard, Ceilings, Complementary Products, and Steel Framing.
• In particular, the resilience in Wallboard pricing and inflation adjustments in Ceilings and Complementary Products significantly contributed to the revenue.
• These results underscore the company’s strong position in the market, benefiting from ongoing demand in multifamily and steady commercial activity levels.

• Griffon Corporation delivered a mixed set of financial results in the fiscal second quarter of 2024, presenting a complex landscape for potential investors.
• On the positive front, Griffon reported a robust start to the year, with healthier performances particularly noted in the Home and Building Products (HBP) segment which outperformed expectations partly due to unexpectedly high residential order volumes that defied typical seasonal trends.
• Furthermore, the Consumer and Professional Products (CPP) segment also showed improvement, registered in an increased EBITDA, attributed to lower production costs in North America, offsetting a decline in revenue by 11% due to dampened demand.

• Helen of Troy Limited reported its fourth quarter fiscal 2024 results, which exceeded expectations in terms of both consolidated net sales and adjusted EPS.
• The firm effectively expanded its gross profit margin by 390 basis points and grew its adjusted operating margin by 50 basis points over the fiscal year.
• This accomplishment was particularly noteworthy given the challenging macroeconomic conditions faced during the year, including inflationary pressures and geopolitical upheaval.

• Integral Ad Science (IAS) had a constructive start to 2024 as highlighted in their recent financial performance discussion.
• The company reported that revenue and adjusted EBITDA for the first quarter surpassed previous forecasts, demonstrating a robust economic position and potential upward trajectory in its financial metrics.
• Revenue increased by 8% to $114.5 million, which was above the company’s guidance range of $111 million to $113 million.