United States

• Intel launched a new segment reporting structure under which its newly created Foundry P&L allegedly racked up operating losses of ~$17 billion over the past three years
• The Foundry P&L is not expected to reach breakeven until the ’27/’28 timeframe
• Intel’s share price is down >10% in the two days since the new financial model was launched. 

• Johnson & Johnson (JNJ US) entered into a definitive agreement to acquire Shockwave Medical Inc (SWAV US) for $335/share in cash or an enterprise value of $13.1B.
• Offer price represents 4.7% premium over yesterday’s closing price or around 19% premium over the undisturbed price. The deal is expected to close by mid-2024.
• With no product overlap and competition concern, the deal is expected to get regulatory approval. With reasonable deal valuation, shareholders approval is also expected.

• OPEC+ decides to keep output targets intact till June. Iraq and Kazakhstan vow to compensate for overproduction.
• OPEC+ pressed its members to improve compliance with production quotas in Q22024.
• Expansion in US crude stockpiles slightly dampens the bull run of oil prices. While gasoline and distillate drawdowns come in better-than-expectations.

• Kura Sushi US Weighting as of writing: 4% 5th April 2024 – Q2 FY24 Results On April 4th, Kura Sushi US reported earnings for the second quarter of FY24.
• Nothing major to report and similar themes to previous quarters so will keep this one short. The market valuation is astronomically stupid.
• Average unit volumes at Kura are $4.28 million and have improved significantly; up 22% since 2019.

• Gibraltar Industries’ Q4 2023 financial results presented a robust year-end performance.
• The company’s leadership positions were expanded, the quality of earnings improved, and strong cash flows were generated.
• Both Residential and Infrastructure perform strongly, and although the Renewable segment faced industry headwinds, it demonstrated excellent margin expansion.

• BellRing Brands Inc. has reported the results from their first quarter ending fiscal year 2024.
• These results have come out better than the management’s expectations, with net sales increasing by 19% in comparison to the previous year.
• The company’s adjusted EBITDA also showed considerable growth, rising by 18%.

• The third quarter 2024 financial results for Lionsgate reveal positive trends contributing to the company’s growth and strategic developments.
• In this update, there are strong indicators of continued growth owing to an impressive performance across the business segments.
• Conversely, there are risks due to the competitive landscape and the strong reliance on hit content titles.

• Reynolds Consumer Products managed to maintain strong growth in Q4 2023, raising its share in some of its largest categories, including household foil and waste bags, achieving record profits, and boosting its cash flow.
• This was driven by double-digit profit growth across its various businesses.
• The operational stability of its Reynolds Cooking business has been restored and it has returned to historical earnings.

• Alternus Clean Energy and Acadia Energy have announced a joint venture to co-develop 200 MW of Sustainability Hub™ microgrid projects in New York State.
• Acadia has a pipeline of 1.5-2.0 GW of renewable energy projects in New York, with an average size of 20-50 MW per project.
• The partnership aims to develop and operate a portfolio of scalable microgrid projects over the next two to three years, which are expected to begin achieving commercial operations within two years.

• USA’s Strategic Petroleum Reserves (SPR) is currently at its lowest in 40 years. Should this be a source of concern? Perhaps not.
• USA is the world’s largest producer of crude oil. From being vulnerable to imported oil, US has become self-reliant.
• SPR expressed differently now, stands at 188 days of net imports compared to less than 100 days as was seen in the 1980s, 1990s, and early 2000s.

• Nvidia CEO Jensen Huang has repeatedly emphasized that the data center is the new unit of compute.
• While this concept seemed straightforward at first, the deeper implications became clearer after Nvidia’s presentations at GTC and OFC 2024.
• I only recently grasped exactly what is happening, and a simple reframing of the underlying principles that drove Moore’s Law makes the entire picture clearer.

• Chinese authorities are to limit steel production while pushing forward industrywide structural adjustments as steel mills suffer from growing losses amid sluggish demand.
• Several ministries led by the National Development and Reform Commission (NDRC) Wednesday said regulators will continue efforts to control crude steel production this year, focusing on energy conservation and carbon reduction.
• The authorities will foster industry strengths and weed out weak players to promote the structural adjustment and optimization of the steel industry.

• In the third quarter of 2023, PGT Innovations displayed a strong financial performance despite operating in an unpredictable market environment.
• The company’s balanced exposure to new construction and repair and remodeling channels has enabled them to deliver consistent record sales and impressive profits over the year.
• By combining a continued focus on operational efficiency and productivity, PGT Innovations managed to achieve a total revenue of $400 million and an adjusted EBITDA of $78 million in the third quarter.

• IAS 2023 fourth quarter and full year results depict a robust performance that exceeded expectations, noting an increase of 14% in quarter four revenue to reach $134.3 million and a year growth of 16% to reach $474.4 million.
• This growth marks a path for IAS’s strong commitment toward advancing the industry with its AI-driven measurement systems and optimization solutions.
• 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.

• Papa John’s International, Inc. reported another year of record global system-wide sales for the fourth consecutive year of positive North America comps in 2023.
• The company’s success is attributed to the dedication and focus of its team, franchisees, and the restructuring efforts, especially the foundation improvements to restaurant operations, menu amelioration with novel products, the digital advancements of their operations platforms, and the expansion of the restaurant footprint.
• 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.

• Post Holdings began fiscal 2024 with a strong first quarter, with manufacturing performance, pricing and cost management aiding in growth momentum.
• Diverse channel, product, and price point offerings have allowed the company to weather various volume fluctuations.
• Although volume decreases were observed in branded retail businesses, Foodservice remained strong with shifts toward value offerings and positive momentum in their Refrigerated Retail business.

• The Pilgrim’s Pride Corporation has encountered several ups and downs in the fiscal year 2023.
• The company possessed an impressive net revenue of $4.5 billion in Q4 2023, with an adjusted EBITDA of $310 million and an adjusted EBITDA margin of 6.8%.
• Their revenue for the fiscal year was $17.4 billion, marking an EBITDA of $1 billion and margins of 6%.

• Acquisitions are expected to remain a centerpiece of management’s three-pronged strategy to increase scale in the asset base, reduce outstanding debt, and ultimately position the company to return cash to shareholders.
• The Stronghold acquisition in 3Q22, followed by the Founders acquisition in 3Q23, added operational scale and inventory depth on the southern portion of the Central Basin Platform (CBP).
• Together with Ring’s Northwest Shelf (NWS) assets, the inventory provides a diverse set of horizontal and vertical development opportunities.

SIGA Technologies announced a strategic step in fortifying its distribution partner, Meridian, allowing greater control over planning and executing its international development efforts, a key growth pillar. The amended terms allow the company to actively manage future promotion activities outside the US (effective 1 June 2024). While Meridian will continue to administer existing international contracts, we expect the renegotiated terms to benefit the bottom line in the medium term as SIGA gains traction internationally. In a separate development, and one that could have a positive read-across for SIGA’s TPOXX, Bavarian Nordic, a key vaccine peer, has commenced the commercial launch of its mpox vaccine Jynneos in the US, which has only been available through the strategic national stockpile to date. We view this as a positive milestone for this therapeutic group and SIGA as TPOXX is the only approved anti-viral treatment for a range of orthopox viruses (including mpox) in Europe and is currently undergoing clinical trials in the US for expansion into mpox (presently approved for smallpox).

• Q1 Deliveries trailed plunging market consensus, my even lower number, and Tesla’s expectations as sales crashed while it overproduced to a new record cumulative excess inventory which jumped 70% y/y
• This doesn’t square with Tesla’s explanation that sales were hurt by ongoing production issues—much like when the company used the same excuse for the disappointing Q3 2023. 
• This time deliveries were much lower, the miss versus market expectations much worse, and the deep well of unsold inventories even more formidable.

• D.R. Horton is a leading homebuilder with high returns on equity and strong balance sheets, yet trades at a low price-to-earnings ratio.
• The company has shifted to being asset-light, generating significant free cash flow and maintaining a strong balance sheet.
• With a focus on market share expansion and efficiency, D.R. Horton is positioned as a growth company in a stable industry.

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.

• Century Communities has reported its Q4 and Full-Year 2023 results, which demonstrated notable growth and profitability.
• The company’s Q4 deliveries hit a record high of 3,157 homes, reflecting a 9% year-on-year increase, and the year 2023 marked the firm’s 21st consecutive year of profitability.
• The housing market also witnessed considerable improvement, contributing to the company’s success.

• Oil prices are buoyant as the market largely expects OPEC+ to keep the supply cut policy intact till June. 
• Global oil demand outlook improves as the US and China see pick up in manufacturing activity after one-and-a-half years and six months, respectively. 
• Russia decides to focus on reducing oil output rather than exports in Q22024, implying a surprise shift in policy.  

• Life Time Group Holdings, Inc.’s Q4 2023 earnings call emphasized impressive financial performance and strategic growth plans.
• The revenue increased by 18.2% in Q4, driven by a rise of 20.9% in membership dues and enrollment fees, and an 11% increase in in-center revenue.
• Access memberships increased by 5.2%, ending the year with over 763,000 memberships, while average monthly dues stood at $183, a rise of 13.2% from the previous year.

• Shake Shack Inc. delivered an impressive 2023 full year, marking transformative milestones and exhibiting substantial profitable growth.
• Key metrics indicate a steady growth of 24% year-over-year in the company’s system-wide sales, reaching a record $1.7 billion.
• The company launched 85 total restaurants (an unprecedented number in a single year) and ended 2023 with 518 Shake Shacks worldwide.

• 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.

• Carnival Corporation plc recently released its Q1 2024 earnings.
• The company’s CEO, Josh Weinstein, and CFO, David Bernstein, detailed its financial performance.
• Despite recent disruptions caused by an event at the Francis Scott Key Bridge, which is expected to have a less than $10 million full-year impact, the company reported a strong first quarter.

• This is our first report on consumer products major, Helen of Troy.
• The company reported its third quarter fiscal 2024 earnings, with the results slightly surpassing expectations.
• The firm has shown consistent results over the past several quarters and is on pace to meet full-year financial targets.

• Carter’s, Inc. finished its fiscal year 2023 on a strong note with a sequential increase in their Q4 comparable U.S. retail sales.
• The demand for their new spring product offerings was earlier than planned leading to better than expected earnings and cash flow in the quarter.
• Earnings per share were up over 20% with margin expansion in each of their three business segments.

• We remain bullish on the S&P 500 and Nasdaq 100 (QQQ), as they both refuse to close below their 20-day MAs or 21-day EMAs for more than 2-3 consecutive days.
• Once we do get 2-3 closes below the 20-day MAs on SPX and QQQ, it would mark the beginning of a pullback (a potentially rapid one, at that)
• Next supports currently at 4983-5050 on the S&P 500 and $425-$433 on QQQ (gap supports from 2/22/24), but anything in the 4800-4930 SPX range is a buyable pullback.

• The best combination of events for TPL is energy prices and production going up. This year, production levels in the Permian Basin recovered quickly from the seasonal decline.
• The hinderance to TPL’s quarter could come from the price of natural gas, which declined throughout much of the first quarter due to the warmer winter weather
• A majority of TPL’s revenue is from crude oil and natural gas royalties with production becoming the biggest factor in each quarter

• ABL’s SPAC merger did not generate significant proceeds, leading to limited research coverage and low visibility in the market
• Investors have identified ABL as a promising long-term investment with the potential for a 20% return on equity over the next five years
• ABL’s unique trading setup, with only 1.5 million shares available for trading due to insider ownership and a staggered lock-up period, presents challenges and opportunities for investors. Additionally, a $15 million share repurchase program has been announced, further adding to the intrigue surrounding the company.

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.

• As we predicted in the last few weeks’ Crypto Crisp, the crypto market has been relatively stable in recent weeks.
• However, things are beginning to shift.
• During a speech in San Francisco on Friday, Federal Reserve Chairman Jerome Powell mentioned that robust economic growth in the US allows Federal Reserve officials to take their time with interest rate cuts.

• VIC has featured HGV multiple times, with the latest update in April 2021
• Stock price has remained stagnant, but potential upside of over 100% in next 2-3 years
• HGV became independent in 2017, acquired Diamond Resorts International in August 2021, and Bluegreen Vacations in November 2023, becoming the largest timeshare operator

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 my insight, I discuss valuation framework for comparable company analysis and outline revenue growth scenario under my base case.
• Considering Ibotta achieved profitability in 2023 driven by strong growth in the segment of third-party publishers, I view EV/Revenue as the most appropriate methodology to value Ibotta.
• I have a positive view of the upcoming Ibotta IPO. The company’s efficient B2B2C business model, success-based marketing approach and scale provide Ibotta with a long runway of growth.

• Goldman also highlights that cyclical risks from the business cycle are fading.
• An upswing in the global industrial cycle typically leads to broad metals upside over the next 12 months the investment bank added.
• According to data from PIERS, a trade flow analytics tool within S&P Global, Baltimore port held just 4% share of the total trade volumes on the East Coast compared with other major regional ports like New York, with a nearly 38% share according to S&P Global.

• This is our first report on Nordstrom, Inc., a company that has captured the market’s attention given the recent rumors of a takeover offer from the founding family.
• The company’s fourth quarter results delivered revenues of $4.3 billion and an earnings per share of $0.96, an improvement over the previous year.
• Importantly, 2023 results met or exceeded company guidance.

• Group 1 Automotive presented solid performance in the fourth quarter of 2023 through all lines of business, reaching a total revenue of $17.9 billion, marking the highest for the company and attaining a record of total gross profit exceeding $3 billion.
• Though the company reported $131.2 million in adjusted net income, it is clearly driven by the parts and service gross profit, which amounted to $1.2 billion.This is our first report on retail player, the Kohl’s Corporation.
• The company’s Fourth Quarter 2023 Earnings showed a mix of positives and negatives in terms of the company’s financial performance and future outlook.

• This is our first report on RV producer, Lippert (LCI Industries).
• In its Q4 2023 earnings, LCI Industries reported net revenue of $3.8 billion.
• This was a decline from the previous year’s revenue of $5.2 billion, mostly due to lower RV OEM and Marine industry production levels.

• This is our first report on HVAC player, Modine Manufacturing Company.
• Its recent results showed that the company had another successful quarter, highlighted by strong margin expansion and earnings growth.
• This is attributed to the company’s continued focus on faster-growing and higher margin businesses that has greatly improved their earnings profile.

• This is our first report on retail player, the Kohl’s Corporation.
• The company’s Fourth Quarter 2023 Earnings showed a mix of positives and negatives in terms of the company’s financial performance and future outlook.
• Despite reporting a decrease of 1.1% in net sales and 4.3% in comparable sales for Q4, on the positive side, Kohl’s expressed optimism about its ability to realize growth through various strategic initiatives.

• This is our first report on bedding and other specialty products manufacturer, Leggett & Platt.
• The company has been facing some tough times but its management seems to remain optimistic amid challenging circumstances.
• While lower volumes in residential end markets and certain pricing responses have elicited predictions of lower earnings for 2024 from the company, other factors like the advancement of key product growth and improvement in profitability, accompanying a refocused bedding strategy are cause for increased optimism.

• LGI Homes had a solid fourth quarter and met all of its operational and financial goals for the full year.
• Despite being faced with a few challenges, the company manages to outperform its initial expectations.
• Among the notable achievements included the delivery of 6,729 homes, which was on the high end of their original guidance and represented a 1.6% increase year-over-year.

• This is our first report on Wendy’s Company.
• In Q4, Wendy’s global systemwide sales grew over 3%, supported by global same-restaurant sales growth and the benefit of global net unit growth.
• U.S. company-operated restaurant sales grew due to higher average check figures driven by cumulative pricing of around 4.5%.

• Micron Technology’s Fiscal Second Quarter 2024 Earnings showcased a lean towards optimism with some cautionary notes.
• It was revealed that the Micron sees substantial demand for High Bandwidth Memory (HBM) which has even surpassed their expectations and as such the HBM supply for 2024 is already sold out, with most of 2025’s capacity also already allocated.
• This is due in part to the product’s high performance specs and 30% lower power consumption.

• Russia has pledged to cut oil output to 9 million barrels per day by June, potentially causing Brent oil prices to rise to $90 in April and above $100 in the future
• The US has the option to release up to 60 million barrels of crude oil from the Strategic Petroleum Reserve to mitigate the impact of high oil prices
• SPR inventories currently cover 188 days of net import demand for crude oil, suggesting that the reserve may not need to be as large as it once was and could be used for funding infrastructure and federal spending priorities

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

• FactSet Research Systems Inc., a multinational financial data and software company, posted a mixed result for its second fiscal quarter of 2024.
• Despite enduring difficult market conditions and an industry rife with uncertainties, FactSet revealed a year-over-year growth of 5.4% in organic ASV plus professional services.
• The quarter-end showed over 8,000 clients with 75 net new logos added.

• This is our first report on golf distributor, Acushnet Holdings Corp.
• The company’s 2023 performance has been buoyed by the growth of its Titleist golf balls, increased 13%, led by strong demand for its new Pro V1 models; golf ball sales increased in all regions with the U.S. and EMEA markets leading the way.
• Despite concerns about the EMEA region, golf balls and clubs were vibrant, affirming golfers’ trust in the quality, consistency, and game performance of the Titleist brand.

• According to the FedEx Corporation’s third quarter earnings report for the Fiscal Year 2024, profits continued to increase for the third successive quarter.
• This is attributed to the FedEx team’s prompt customer service and progress with transformation initiatives.
• Although revenues declined, operating income and profit margin showed growth—a dynamic the CEO attributed to FedEx’s transformation and its management prowess in controlling what is within its purview.

• Despite being impacted by unfavorable weather during January, Five Below’s sales ended within the guidance and comparable sales were slightly more than their expected figures.
• The company’s growth was mainly driven by the increasing popularity of Five Beyond format stores and the upward trend of customers embracing the value-for-money concept.
• The total fourth quarter sales were $1.34 billion, witnessing a growth of over 19%, and the comparable sales increased by 3.1%.

• General Mills reported encouraging third quarter results, especially with the underlying performance improvement in North America retail and the pet segment.
• CEO Jeff Harmening forecasts that the fourth quarter sales would look similar to the third quarter in terms of annual performance.
• However, there is uncertainty due to innumerable external variables that could influence the outcome.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.

• The Q4 2023 earnings of Lululemon Athletica Inc. highlighted positive operational results with revenue increases across most regions.
• Total revenue was reported to have increased by 16% for the quarter.
• In the Americas, the increase was 9%, while Mainland China saw a rather prominent rise of 78%.

• This is our first report on M.D.C Holdings, a major American construction company specialising in property development and mortgage services.
• The company reported strong profitability for its third quarter earnings call in 2023, with a net income of $107 million ($1.40 per diluted share).
• Despite the rise in mortgage rates, M.D.C. witnessed a robust demand trend, mainly attributable to the company’s financial incentives and lack of existing homes supply that drew more buyers to the new home market.

• Ibotta, a cashback rewards platform provider, files to list IPO on NYSE. The Denver-based technology company was backed by VC investors, GGV Capital, Walmart and Koch Disruptive Technologies.
• Ibotta is a trusted and well-known brand in the cashback space in the United States, and means “I-bought-a”. The company is led by its Founder & CEO, Bryan Leach.
• Considering Ibotta’s strong and profitable growth, low penetration of the addressable market opportunity, and potential international expansion, they should have a successful IPO.

• The electronic financial transactions industry is expanding, with a focus on personalization, the gig economy, and fraud prevention
• Mastercard is well positioned to benefit from the shift away from cash and towards digital payments
• Magellan’s portfolio manager Alyssa DeMarco discusses Mastercard’s growth and innovation with Devin Core, highlighting the company’s evolution over the past decade and its strategic focus on diversification and global expansion

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

• Astera Labs, an overvalued fabless semiconductor company, has completed its IPO and raised ~$565M of net proceeds in the offering. The IPO was priced at $36/share.
• Astera Labs shares jumped 70%+ in their first trading day and finished session at $62.03. The stock peaked at $95.21 on Tuesday and fell ~21% over the next 2 days.
• According to their prospectus, ~5.9M shares of Astera Labs will be available for sale following the public release of earnings for 1Q’24, which I expect to be announced in April.

• TLNE announced the sale of three power plants in Texas for a higher figure than we were expecting. TLNE is selling 1.7GW of power in Texas for $785 million
• The Texas power plants decrease TLNE’s footprint to thirteen sites and a total of 10.7 GW owned capacity.
• After the Texas assets are sold TLNE would have thirteen power plants mostly in Pennsylvania with several across other states. Three of which are minority ownerships.

• As of the week ending 15/March, crude inventories fell more than expected (2 million barrels vs 900k barrels expected) led by higher exports and refinery activity.
• Refineries operations have picked up faster than anticipated, with the utilization rate jumping from 80% in early February to nearly 88% by 15/Mar.
• OPEC members like Iraq, UAE, Gabon, and Kuwait, have exceeded their production quotas, raising concerns about adherence.

• U.S. chipmaker Micron Technology Inc. expects deeper cooperation with the Chinese government as Beijing ramps up efforts to boost foreign investment, its CEO said at a forum in the capital Monday.
• Speaking at the China Development Forum, Sanjay Mehrotra hailed the recent release by the State Council of a 24-point plan designed to promote high-level opening-up and attract foreign investment as the latest show of China’s determination to improve its business environment for foreign companies.
• Micron cannot grow its business in China without government support, Mehrotra added, while reaffirming the company’s commitment to expand its business in the world’s second-largest economy, where it has a presence in Beijing, Shanghai, Shenzhen and Xi’an.

• We are reiterating our Buy rating and $8 price target, but lowering our 2024 projections after urban-gro reported disappointing 4Q23 (December) results, as the company had three material commercial contracts shift from late 4Q into 2024, obscuring what would have been a strong end to the year.
• While the contracts are expected to be materially completed in 2024, management has decided to be highly conservative in their guidance and rebuild credibility going forward.
• Given the current valuation, we believe investors are discounting the urban-gro business model and the potential for the company to register positive EBITDA. While we understand investor skepticism, we believe CEO Brad Nattrass and his team have aggressively cut costs and positioned urban-gro to surprise low Street expectations.

• We are reiterating our Buy rating, $37 price target and projections after visiting Guess?
• stores in the Metro NYC area and Long Island.
• We believe, with Spring now beginning to fully flow into stores, Guess?

• Gaia reported solid 4Q23 results, with revenue of $20.7 million, up 6% Y/Y.
• More importantly, the company reported its fourth consecutive quarter of member growth, ending the year with 806,000 members versus 759,000 at the beginning of the year.
• In fact, Gaia resumed member growth in 1Q23 with 7,000 new members. 

• Abercrombie & Fitch Co.
• emerged from 2023 with significant achievements, marking it as a defining year for the company.
• The brand witnessed a 15.8% increase in sales, reaching $4.28 billion, which not only represents its second highest annual sales level in history but also a testament to its robust growth strategy.

• Symbotic is a warehouse automation technology leader and offers end-to-end AI-powered robotic and software platform for supply chains.
• SYM’s hi-tech platform forms its deep competitive moat underpinned by significant R&D spend of $800 million and 575 issued or pending patents.
• Our positive outlook for SYM is underpinned by its hi-tech platform , a large TAM, robust order backlog ($23.2B) and its JV deal with Softbank that opens a large market.

• Powell’s dovish tone at the press conference led to initial market reaction, but subsequent dollar rally due to revised growth and inflation forecasts in the SCP release
• Market leaning towards higher median dot in SCP, but overall outlook remains for shallower cutting cycle by Fed
• Yen vulnerability due to negative real yields despite BOJ rate hikes, yen weakening may impact other Asian currencies and markets

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

• This is our first report on sports products major, Academy Sports and Outdoors.
• In the Q4 and 2023 fiscal year call of Academy Sports and Outdoors, the management reported impressive sales improvement during the quarter and significant progress in their long-term strategic objectives.
• Sales came in at $1.8 billion, which was a 2.8% increase in total and adjusted earnings per share increased by 8%.

• This is our first report on Fortrea Corporation, a renowned contract research organization (CRO).
• The company reported its fourth quarter 2023 earnings, recording revenue growth of 1.8% year-over-year to $775.4 million.
• CEO Tom Pike praised the company’s transformation over 2023, managing to transition from a division within a larger parent company to a stand-alone entity.

• In October 2023, Zephyr announced the acquisition of at least a 75% WI in the Salt Wash field, located ~3 miles to the south of the Paradox project.
• Salt Wash has a 15 feet oil rim, above which is an inert gas cap (~500 feet of gas column) which consists of ~72% nitrogen, 22% hydrocarbon gases, and 1.4% to 1.7% helium content.
• The field was abandoned in 2014 after having produced 1.65 mmbbl of oil and 11.7 bcf of natural gas.

• This is our first report on software player, ACI Worldwide Inc. The company delivered a solid earnings performance for the fourth quarter and full year ended 2023.
• The company witnessed a strong acceleration in growth, with a revenue growth of 9% and an EBITDA growth of 32% in its Biller segment.
• The company also demonstrated growth in its banking segment, with revenue growth of 35% and 24% in its anti-fraud and real-time payment solutions respectively.

• This is our first report on Asbury Automotive Group Inc. The company’s fourth quarter 2023 earnings showcased a year of considerable growth and progress.
• The company delivered $14.8 billion in revenue, had a gross profit margin of 18.6%, and an adjusted earnings per share of $32.60.
• Asbury generated an adjusted operating margin of 7.3% and an adjusted EBITDA of over $1.1 billion.

• This is our first report on popular meme stock, GameStop Corporation.
• GameStop’s transformation over the past two years is evident in its financial results and strategic shifts.
• In 2021, it faced bulky debt, a diminishing cash balance and strained vendor relationships.

• This is our first report on Madison Square Garden Sports Corp.
• The company’s Fiscal 2024 second quarter exhibited a mix of positives and negatives that provide a balanced perspective for potential investors.
• Beginning with the positives, the company’s performance reflected a positive operational momentum that has resulted in a growth in revenues and adjusted operating income.

• I wrote about this in my recent post about HBM, and it seems almost everything I talked about became true. HBM is going to bail out the memory markets meaningfully.
• Let’s talk about earnings, but I was hoping you could keep this post in mind while I discuss Micron.

• These are the kinds of beats we start to see when the cycle turns. Now, the stocks have begun to anticipate this, but given the pricing dynamics of HBM, I feel very confident in Micron’s ability to hit a new cycle high in profitability.

• We are witnessing an unexpected showdown in the crypto world.
• On one side stands Larry Fink, co-founder and CEO of BlackRock, the world’s largest asset manager.
• On the opposite side is Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC).

• Oracle Corporation had a strong performance in its third-quarter fiscal year 2024, with revenue in-line with expectations and EPS $0.02 above the high-end guidance.
• However, both potential future performance and inherent risks were noted, which investors should closely observe.
• A significant part of the discussion was centered on Oracle Cloud Infrastructure (OCI), tagged as the primary driver for the company’s overall revenue acceleration.

• Charter Communications is contending with a narrowing competitive advantage in the cable industry due to the entrance of new rivals like fiber overbuilders and fixed wireless providers.
• The company must make ongoing capital investments to stay competitive, despite uncertain returns on these investments.
• Charter’s aggressive capital allocation approach, motivated by management incentives, is raising doubts about the company’s investment potential and future outlook.

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.

• This is our first report on recreation products manufacturer, Brunswick Corporation.
• Despite market headwinds, the company reports another successful year, claiming to have accomplished the second highest sales and adjusted earnings per share in its existence.
• In particular, Brunswick stresses the progress of its strategic initiatives, continued market share increases, cost control, the launch of new products, and an enhancement in operational efficiency.

• Our bullish outlook initiated on November 7, 2023 remains intact; this intermediate-to-long-term outlook is likely to stay in place as long as 4800 support holds on the SPX (7-10% downside).
• To be clear, we aren’t calling for a pullback to 4800; we view it as a worst-case scenario for the S&P 500, and we want to be prepared for anything.
• Shorter-Term, we remain bullish on the S&P 500 and Nasdaq 100 (QQQ) as they both refuse to close below their 20-day MAs for more than 2-3 consecutive days.

• This is our first report on motorcycle giant, Harley-Davidson.
• The company has demonstrated progress in key aspects of its strategic plan, the Hardwire strategy, despite challenges due to high-interest-rate environment and consumer confidence and affordability concerns impacting premium discretionary products.
• The company’s focus on its profitable categories, innovation, and enhancing the customer experience has enhanced its business and contributed to long-term value creation.

• This is our first report on powersport vehicles and marine products, BRP Inc. The company’s fiscal year 2024 third quarter results conference call highlighted mixed performances across its categories of operation.
• Revenue reached $2.5 billion, which fell short of expectations due to softer demand in international markets and a temporary slowdown at the Texas-Mexico border.
• Although these conditions negatively impacted deliveries of its off-road vehicles and ETVs over three weeks, normalcy has been restored.

• This is our first report on Boyd Gaming Corporation.
• The company’s fourth-quarter earnings call wrapped up another successful year for the company.
• Throughout 2023, they maintained strong performances and achieved record revenues and EBITDAR. This success is largely thanks to a diverse portfolio which includes strong growth from their online and managed businesses.

• This is our first report on gaming technology player, International Game Technology PLC (IGT).
• The company ended fiscal year 2023 with an impressive set of accomplishments, with their Q4 operating income growing 11% and significant free cash flow generation.
• This enabled them to meet their fiscal year 2023 financial goals which were raised twice during the year.

• It seems like every week, Bloomberg reports a HK-listed company weighing privatisation options. HKBN (1310 HK), ESR (1821 HK), and Samsonite (1910 HK) have all been rumoured of late.
• Last Friday, Samsonite announced it was focused on pursuing the listing of its shares on a second exchange.
• No preferred exchange was mentioned. Nor whether the goal is to secure a dual primary listing, or a secondary listing. A buyout, for now, appears to be on the backburner.

• You know it’s bad when Tesla’s delivery trends blow through even my lowest estimates, which already had trailed market projections.
• With no help from the hapless CyberTruck which, not surprisingly, continues to shoot Tesla in the foot.
• See my latest Q1 and full-year estimates—which still prove to be too high.

• Fund Manager Positioning In March fund managers added to their energy position but reduced overall commodities like grains, softs and metals on a MoM basis — the latest BofA survey shows.
• Investors have been underweight commodities now for the past 4 months (longest underweight streak since Aug’19) Compared to the past 20-year z-score, fund managers remain heavily underweight in commodities and even more in energy.
• In March fund managers added to their energy position but reduced overall commodities like grains, softs and metals on a MoM basis — the latest BofA survey shows.

• Fiscal spending has been the key driver for this bull market as it reaccelerated in late 2022 following the inflation and subsequent interest rate shock.
• This impulse will likely diminish over the next months. It will be replaced by a credit impulse from rate cuts, the first few of which will be very powerful.
• Market mechanics will be accommodating. Leverage in the system is low. In fact, the pain trade is still higher.

• We are reiterating our Buy rating and $0.25 price target for Starco Brands with the company announcing 4Q23 (December) results after the close on Monday.
• We believe 2024, with a full compliment of unique, value-added brands which leverage Starco’s aerosol and marketing infrastructure in hand, and a laser focus on adding key categories and new relationships, is shaping up as another year of material progress for Starco.
• We believe there are also continued margin expansion opportunities from both economies of scale and the company’s manufacturing expertise.

• The macroeconomic conditions continue to pose as a tailwind for Ecovyst (ECVT) with commodity prices holding and the USA’s GDP expected to remain positive in 2024
• ECVT faced several challenges in 2023 that should be a non-factor in 2024’s financial results. ECVT has already set expectations for a soft first half of the year
• The scheduled maintenance cycle at oil refineries played a role in ECVT’s fourth quarter results and how ECVT is projecting 2024 to pan out

• We are reiterating our Buy rating, $10 price target and projections for Vera Bradley after visiting stores in Connecticut and Long Island.
• We believe, as we near the launch of management’s full vision for Vera Bradley in July, both the outlets and main line locations increasingly reflect what is being added and what will be discarded in the shift.
• As such, we are seeing less inventory, especially in the outlet stores, flow in; further, there is an increasing emphasis on core categories, especially handbags, totes and luggage.

• Jensen Huang showcased Nvidia’s dominance in the data center during his keynote address
• Nvidia’s new Blackwell architecture involves stitching together two monolithic cores, not using chiplets, to create a single functioning chip
• The innovation behind Blackwell and its impact on Nvidia’s technological advancements were not fully appreciated during the event, highlighting the complexity and ingenuity of the design.

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