United States

• The speaker reflects on the excitement and nervousness of facing a new platform shift in technology and the need for continual innovation
• They consider the broader economic impact of technological advancements, like AI, and the potential for breakthroughs in various industries
• The decision to partner with OpenAI was driven by Microsoft’s history of seeking out ambitious technology innovators to collaborate with, even when the outcome is uncertain.

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

• Broadcom reported consolidated net revenue of $12 billion, a 34% increase year-on-year, with semiconductor solutions contributing $7.4 billion, up 4% from the previous year.
• Infrastructure software revenue saw a significant increase of 153% year-on-year, totaling $4.6 billion.
• These improvements are due in part to the contribution from VMware, which has resulted in a sequential jump in revenue by 132%.

• CrowdStrike Holdings, Inc., a leader in the cybersecurity sector, reported an impressive fourth quarter and fiscal year for 2024 during its latest earnings conference call.
• The call highlighted several positive aspects of the company’s performance such as a record net new Annual Recurring Revenue (ARR) of $282 million, reflecting a year-over-year increase of 27%.
• Furthermore, the company achieved a record operating margin of 25%, an improvement of 10 percentage points when compared to the previous year.

• US commercial crude oil inventory build-up slows while refined products’ withdrawal accelerates.
• OPEC+ members announced the extension of their voluntary supply cut of 2.2 million barrels per day to end of June (from end of March as previously announced).
• US refinery utilisation rates show signs of a speedy recovery, rises for the second consecutive week and jumps to 84.9%.

• MongoDB reported robust Q4 results, with revenues reaching $458 million, marking a 27% YoY increase and exceeding the high end of the company’s guidance.
• MongoDB’s Atlas product line grew by 34% YoY, accounting for 68% of the company’s total revenue.
• The company also reported a healthy business quarter, owing much of this success to acquiring new workloads from existing Atlas customers.

• DocuSign demonstrated solid progress across its three strategic pillars in Q4 and the full fiscal year 2024, which include accelerating product innovation, improving omnichannel go-to-market initiatives, and strengthening operational and financial efficiency.
• Total Q4 revenue reached $712 million, up 8% YoY, with a full-year revenue of $2.8 billion, up 10% YoY. Both exceeded company expectations.
• Also, Q4 non GAAP operating margin increased to 25%, a slight rise from the prior year.

• There has been a renewed wave of optimism towards web3 in light of recent events, including the approval of the long-awaited spot Bitcoin ETF; and the surge in market activity in the early months of 2024.
• On the regulatory front, we have seen the conclusion of several high-profile court cases and lawsuits, including some of the charges involving Ripple and Binance.
• Beyond the results of the rulings (which many argue are in favour/support of web3), the resolution of these cases in itself has provided greater clarity and stability to the ecosystem.

• Ed Wachenheim, founder of Greenhaven Capital, discusses his experience in the homebuilding industry since the 1980s
• Ed shares insights on the evolution of the homebuilding business model and his investment approach
• Early investment in US Home led to a deep dive into the industry, identifying growth opportunities and the impact of market crises.

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

• In the fourth quarter of 2023, Burlington Stores reported their total sales growth to be 9% which exceeded their initial guidance projections of 5% to 7%.
• This was a result of better than expected comparative store sales, which increased by 2% against a guidance of “-2% to flat.” Contributing to this growth was the strong response of lower income customers, often referred to as “need a deal shoppers”, who favoured Burlington’s opening price points.
• Furthermore, the company managed to tap into a slightly higher income consumer base, the trade-down shoppers, who showed positive responses to the recognizable brands offered in Burlington’s merchandise mix.

• Cadence Design Systems, Inc. has achieved revenue growth, high profit margins, and a large customer base in the industry
• Their focus on computational software for semiconductor and systems design has established them as a key player
• Cadence provides tools that optimize performance, minimize power consumption, and shorten time to market, making them a crucial partner for semiconductor and systems companies

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 special, one-time report on Guess Inc., a notable entity in the fashion industry that recently made headlines with its strategic acquisition of the New York-based fashion brand Rag & Bone.
• This move signifies a significant leap towards expanding its portfolio and solidifying its presence in the highly competitive fashion sector.
• The announcement was followed by a surge in the company’s stock, further fueled by speculations of a possible take-private initiative.

Key points

• Eventbrite has reduced friction in the customer experience to scale efficiently
• Expanded offerings include reserved seating, merchandise sales, and on-site check-in
• Eventbrite has become a one-stop shop for event creators, increasing customer satisfaction and retention

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.

• The increase in automotive revenue in 2023 has led to greater revenue diversification at Immersion (IMMR) reducing some of the variability the Company has historically experienced between quarters
• IMMR reported fourth quarter results better than we were projecting led by an increase in automotive and video game revenue.
• The fourth quarter results did not include the benefits of the settlement with Meta Platforms (META), which causes IMMR’s cash balance to rise further

• 1Q24 upgrade from JetBlue increases our confidence that consensus is too low for 2024.
• Investor Day on 30 May will provide the next leg of revenue self-help initiatives.
• We model a minor net profit of $22m in 2025, versus consensus expectations for further losses, and the next 3 months are crucial for the carrier’s long-term prospects.

• GEVO sold 90,666 MMBtu of RNG in 4Q23, up from 81,271 MMBtu in the previous quarter, which translates to 91% of capacity on an annualized basis, while generating standalone cash EBITDA of $1.3 million, down from $1.7 million in 3Q23.
• The RNG division is expected to achieve $12-16 million in cash EBITDA once the company receives the CARB CI score in 2024.
• This is further expected to increase to $30-38 million if California Low Carbon Fuel Standard (LCFS) prices recover to $200 per metric ton.

• During 2023, Granite Ridge executed its portfolio management strategy to grow the asset base and enhance its organic development growth opportunities.
• FY23 production increased 23% Y/Y, far ahead of management’s initial expectations.
• 4Q23 production averaged 26,036 BOE/d, including 12,283 b/d of oil.

• Ethan is the co-founder of Myshell, a company focused on AI technology in various sectors such as computer vision, deep learning, and robotics
• Myshell aims to empower creators on their platform to use multiple AI models to create unique and personalized experiences for users
• The company offers a diverse range of chatbot characters with unique personalities and voices, allowing creators to engage with users in a more interactive and personalized way.

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

• On 28 February, WeBull announced a merger with SK Growth Opportunities SPAC on NASDAQ. The proposed transaction represented an implied pro forma enterprise value of about $7.3 billion. 
• WeBull had 4.3 million funded accounts and  $8.2bn in assets under custody at end of 2023. In comparison, Robinhood had 23.4mn funded accounts and $102.6bn in assets under custody. 
• Given the numerous material concerns about this deal, we would avoid it. There are no financials including income statement and balance sheet of WeBull in the prospectus. 

• Gold price has rallied to new highs, but market cap of US’s biggest gold ETF has shrunk
• Push higher driven by quick money inflows, fundamental/ETF inflows, safe haven bid, technical drivers, FOMO
• Physical demand from central banks and Chinese retail buyers has been strong, but recent rally seems driven by financial quick money inflows

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

• This week is off to a great start.
• Bitcoin surged past $70,000, and Ethereum exceeded $4,000 today, marking a new all-time high for Bitcoin and Ethereum’s first breach of this level in over two years.
• At the office, there is a running joke that the crypto bull run has made me overly confident, leading my colleagues to secretly hope for a downturn.

• GSAT is a telecom infrastructure provider with two core businesses: Mobile Satellite Services and spectrum holdings
• Despite progress and validation from companies like Apple and Qualcomm, the stock price does not reflect the value of the assets
• Recent developments, including partnerships and leadership changes, indicate a promising future for GSAT, despite past challenges and skepticism from institutional investors

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.

On 20 February, Wheaton Precious Metals (WPM) announced that it had produced 14,615oz (15.2%) and sold 18,618oz (19.3%) more gold than our prior expectations for Q423, and produced 326koz (7.8%) and sold 530koz (20.0%) more silver. As a result, ahead of Q423/FY23 results scheduled for 14 March, we have increased our EPS forecast for Q423 by 25.3%, to close to the top of the range of market expectations for both the quarter and the full year.

• There are no constituent changes for the VanEck Vectors Semiconductor (SMH US) ETF in March but there are a lot of float and capping changes.
• Taiwan Semiconductor (TSMC) – ADR (TSM US) is the largest buy while capping results in NVIDIA Corp (NVDA US) being the largest sell by far.
• Estimated one-way turnover is 8.3% resulting in a round-trip trade of nearly US$3bn. There are a few stocks with more than 0.2x ADV to trade.

• Our base-case scenario calls for a period of minor weakness in the S&P 500 or sideways consolidation, marked by a rolling correction.
• A review of market internals reveals weakness in growth stocks and better performance by value and cyclical stocks.
• The risk is a major scare in the extended growth names which drag down the S&P 500 further than we expect.

• The SPX  has been rallying for 4 months, rising >+24%, is is OVERBOUGHT but we see the current pullback as a BUY opportunity.
• The index could pullback another 1-2 weeks before it restarts the rally.
• Price areas to buy are between 5069 and 5000, lower prices may indicate a deeper correction is unfolding (lasting up to 3 weeks down in total).

• Astera Labs, which offers connectivity solutions tailored for AI accelerators, GPUs, FPGAs and other high-performance computing platforms, announced terms for its IPO today.
• California-Based semiconductor company plans to raise ~$392M by offering ~14.8M shares at a price range of $27 to $30. Selling stockholders offer ~3M shares of common stock in this IPO.  
• At the midpoint of the proposed price range, Astera Labs would command a fully diluted market value of $5B, above their last private round of $3.15B.

• Iberdrola SA (IBE SM) launches a $34.25/share cash offer to acquire the minorities (18.4%) in its US subsidiary Avangrid (AGR US). Premium is 6.8%, and the cost c. $2.5 billion.
• The market was awaiting this move since the cancellation of the PNM deal, which explains the recent rise in the share price of Avangrid.
• Gross spread is 4.5%. It seems investors are buying in the hope of an offer sweetening, knowing that Iberdrola has some cash available to spend from the profitable Mexico exit.

• This is our first report on Permian Resources, a Delaware-based independent oil and natural gas company.
• The company reported its Q4 and full-year 2023 earnings with significant growth and progress.
• The company finished the year delivering industry-leading returns, exceeding both internal and external expectations.

• In December 2023, American multinational pharmaceutical company Bristol Myers Squibb has agreed to acquire Karuna Therapeutics for $330 per share in cash, implying a total equity value of $14B.
• The special meeting of Karuna’s shareholders to be held on March 12, 2023, to consider and vote on various proposals necessary to approve upcoming M&A deal.
• I expect the bidding battle among big pharma to acquire Karuna Therapeutics and its valuable pipeline of transformative medicines to treat schizophrenia and psychosis in Alzheimer’s disease.

• Skechers ended the 2023 fiscal year on a high note, reaching an annual sales record of $8 billion, a $556 million increase compared to the prior year.
• This milestone was the result of four quarterly sales records, including $1.96 billion for the fourth quarter.
• The company also achieved an annual gross margin record of 51.9%.

• Monolithic Power Systems (MPS) enters 2024 with a cautiously optimistic outlook, following a record revenue of $1.82 billion for the full year of 2023, marking its 12th consecutive year of revenue growth.
• The highlights of MPS’ performance in 2023 were the consistent execution, continuous innovation, and robust customer focus.
• However, the visibility beyond the current quarter remains limited due to uncertain customer ordering patterns reflecting overall economic uncertainty.

• This is our first report on food and beverage major, J. M. Smucker.
• In its 3rd quarter earnings for fiscal year 2024, J. M. Smucker Company (Smucker) effectively outlined promising growth indicators across its portfolio, validated the strategic maneuvering of its product mix, and reaffirmed confidence in its forecasting.
• On the surface, company executives displayed a marginal optimism, with the company reporting 6% comparable sales growth.

• Over the quarter, Nutanix reported record revenue of $565 million, which surpassed guidance expectations, as well as an impressive annual recurring revenue (ARR) increment of 26% YoY reaching $1.74 billion.
• Besides solid financial performance, the company also accomplished its first GAAP operating profitability in Q2 which showcased the effective workings of their subscription model.
• 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.

• Autodesk demonstrated strong performance in the fourth quarter and full year results of fiscal 2024 with 14% constant currency revenue growth in Q4.
• The report reflects Autodesk’s resilience and discipline manifested through its subscription business model, product diversification, and robust customer base.
• The company’s diversified consumer base spans various regions and industries, enabling balanced growth.

• We are cutting estimates on Culp, responding to weak demand, and bracing for a restructuring in 4QFY24.
• Culp’s 3QFY24 earnings report, issued Wednesday after the close, highlighted improved revenue and operating results, Y/Y and sequentially.
• Consolidated sales were $60.4 million, up 15% Y/Y and 3% sequentially, aided by a calendar shift in the Chinese New Year from 3Q to 4Q.

• Due to large patient population and strong clinical demand for new therapies, the future commercialization prospects of effective drugs in the field of schizophrenia would be relatively certain and promising.
• Our forecast on the peak sales of KarXT is about US$10 billion. In other words, at this peak sales level, BMS is able to recover the US$14 billion in cost.
• Karuna’s P/B is much higher than peers. If investors already have Karuna in portfolio, they may consider taking profits in time.But another rally is possible when KarXT is officially approved.

• The cryptocurrency market is probably the most speculative, largely because it has not had enough time for price discovery, lacks consistent and measurable metrics, and has seen minimal institutional involvement.
• The crypto market is unique for its overwhelming number of retail investors compared to institutional ones, a rarity in most other markets where institutions lead the way.
• This dynamic has led to significant volatility, primarily driven by the emotional reactions of retail investors, more so than in any other market.

• Zoom Video Communications, Inc reported financial results for its fiscal Q4 and full-year 2024.
• The company’s revenue for the Q4 reached $1.146 billion, up 3% YoY. Zoom’s Enterprise revenue grew by 5% YoY and formed 58% of total revenue.
• The company’s non-GAAP income from operations grew 10% YoY to $444 million.

• Bristol Myers Squibb Co (BMY US) is acquiring Karuna Therapeutics Inc (KRTX US) for $330/share in cash for equity value of ~$14B. The transaction is expected to close in 1H24. 
• Karuna’s lead asset, KarXT has FDA action date of September 26, 2024 for the treatment of schizophrenia in adults. KarXT has peak annual sales potential of $6–7B.
• Considering strong clinical efficacy and favorable risk profile of KarXT, the deal seems to be fairly valued. Current market price of Karuna shares of $318.41 represents absolute spread of ~3.6%.

• Snowflake reported strong annual performance for fiscal 2024 with a 38% YoY product revenue growth reaching $2.67 billion, highlighting the company’s continued growth trajectory.
• The company also saw an expansion of its non-GAAP product gross margins to 77.8% and it reported non-GAAP adjusted free cash flow worth $810 million, indicating robust fiscal health.
• The company’s exceptional bookings in Q4 with $5.2 billion of remaining performance obligations mark a significant 41% YoY growth, this along with 14 Global 2000 new customers, underscores strong customer adoption and trust in Snowflake’s offerings.

• Salesforce announced its Q4 and full year results for fiscal 2024, reporting a strong performance across all its key metrics.
• This signifies an exceptional year for the company, with revenue, margin, earnings per share (EPS), cash flows, and current remaining performance obligations (cRPO) all recording increased growth.
• The overall transformation seen in Salesforce and its industry has been noted to be substantive, primarily driven by the surge in artificial intelligence.

• Bloomberg Audio Studios podcasts Radio News with hosts Weisenthal and Tracy Alloway
• Discussion on energy drinks like Celsius and their rise in popularity
• Interview with John Fieldley, President and CEO of Celsius holdings, discussing the competitive energy drink market and distribution strategies

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

• Domino’s Pizza had a strong Q4 which the company attributes to its new “Hungriest for MORE” strategy, focusing on increased sales, store growth, and profits.
• Throughout the earnings call, the company pointed at positive U.S. same-store sales and transaction growth in both delivery and carryout, signaling strong momentum in the business.
• In 2023, Domino’s added over 60 new franchisees to its system, the most in 15 years, highlighting the company’s expansion strategy.

• In its recent results, Heico is showing a significant growth trajectory in its recent financial results.
• This growth can be attributed to a couple of key factors, but there are also a number of risks and potential downsides that investors should be aware of.
• In terms of positives, HEICO’s first quarter of fiscal 2024 showed dramatic improvement over the first quarter of fiscal 2023.

• eBay’s Fourth Quarter 2023 results demonstrated an approximate organic GMV (gross merchandise volume) growth breakdown of roughly 1% for the full year, despite discretionary spending pressure across major markets.
• This resilience was due to an improvement in this metric during each quarter of 2023.
• Focus category GMV indicated a promising upward trend, with growth close to 4%, significantly outpacing the other areas of eBay’s business by around 7 points.

• Softbank Group (9984 JP)’s 180-day lock-up period on its 89.75% ARM Holdings (ARM US) shareholding expires on 12 March. SoftBank’s stake is worth US$124 billion.
• SoftBank will likely monetise its ARM stake using the Alibaba (ADR) (BABA US) playbook. This playbook uses prepaid forward contracts to raise capital with eventual settlement through shares. 
• ARM is currently trading 2.6x its IPO price on AI-driven hype. ARM trades at a premium multiple to NVIDIA Corp (NVDA US), despite forecasted lower growth and margin.  

• Gold and Silver have remained unresponsive to lower rates, escalating geopolitical risks and higher China and India seasonal demand.
• Notably, early February saw the emergence of two contrarian signals that merited closer attention.
• While these signals are not foolproof market timing tools, they warrant attention when they align with technical support levels within an established consolidation pattern.

• A highly unpopular acquisition driving investors and sell-side analysts up the wall. Forward Air is OVERSOLD on almost all technical indicators and valuations are the lowest in its history  
• Our analysis suggests it is not all that bad, the business will still be profitable and generate positive free cash flow 
• Our fair value of USD59.50 (+97% UPSIDE) is derived by 2x current Book Value. A potential double-bagger, will be rewarding for the patient investors     

Key points

• HPE is a $21.5 billion provider of networking, servers, and storage products, with a focus on higher quality businesses and services
• The company generates cash from operations and divestitures, presenting an attractive investment opportunity with potential for upside to $29/share or a 35% IRR through 10/2025
• HPE’s recent Security Analysts Meeting emphasized its business segments, particularly highlighting opportunities in the Compute segment for AI inferencing needs and Proliant Gen 11 servers

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.

INPP recently held a strategy day. This provided a detailed overview of its business and the outlook for a continuation of the strong, predictable, inflation-linked returns that have been generated since the company listed in 2006. INPP’s operational and financial performance is at odds with its discount to NAV and the company has a clear strategy to address this. No new financial details were provided ahead of INPP’s 2023 results, due to be published on 28 March.

• We are reiterating our Buy rating, $10 price target and projections for Vera Bradley with the company reporting 4QFY24 (January) results before the open next Wednesday.
• We look to the 4Q call for management to provide even more detail on the material changes to the company, as CEO Jackie Ardrey and her team begin to take full control of the shopping and product experience.
• We believe Vera Bradley has become increasingly more relevant and appealing to a wider customer base, and the company is positioned, with a cash rich and materially leaner balance sheet, to fund potential higher-margin growth drivers going forward.

• Global wheat prices have been defying expectations and have continued on a downward trend since the start of 2024
• Russia is expected to have a high wheat production of over 90 million tons in 2024 due to favorable growing conditions
• Ukrainian wheat exports are expected to improve with better logistics and an estimated production of nearly 20.5 million tons in the 2024-25 season

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

• CNX is an ENP exploration and production business focusing on natural gas with a long history in the energy sector
• CNX evolved from a coal company to a natural gas producer under new management led by CEO Nick
• The current business model focuses on monetizing assets, separating coal business, and leveraging the productive Marcellus shale for low-cost advantage.

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

• Merger with Cambridge Bancorp seen as strategic move to bolster asset management business
• Market initially reacted negatively to merger announcement
• Both EBC and CATC stocks have started to bounce back, reflecting overall recovery of bank stocks; Eastern Bankshares remains significant player in industry with strong asset base

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.

• Softbank raised around US$4.9bn via selling some of its stake in ARM Holdings (ARM US)’ US IPO. Its remaining 90% stake will be released from its IPO linked lockup soon.
• ARM develops and licenses high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
• In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.

• The number of risk-on signals continues to grow, while risk-off signals remain virtually non-existent. We will be sure to point it out when this dynamic starts to change
• In the meantime, we want to continue riding this bull market higher, and our bullish outlook on the S&P 500, Russell 2000, and Nasdaq 100 (since early-November 2023) remains intact.
• Gold is breaking out of a 3.5-year base to all-time closing highs — buy. Silver is breaking out above a 3-month base at $23.50. Fueled by toppy DXY and rates

• TLNE announced the sale of Cumulus Data for a valuation higher than we were expecting and includes a long-term power purchasing agreement
• TLNE’s management has also mentioned an ongoing sales process for TLNE’s assets in Texas, which could generate additional value.
• TLNE sold Cumulus Data for $650 million to Amazon Web Services (“AWS”). TLNE sold the assets the Company had situated adjacent to Susquehanna nuclear power plant

• Culp reports 3QFY24 results after the close on Wednesday, March 6. An investor conference call is scheduled for 11:00 am ET on Thursday, March 7.
• Culp revised its guidance for the second half of 2023 in January in conjunction with the WTR Furniture/Furnishings Virtual Conference.
• Recovery in the mattress segment had been slower than previously expected.

• SHEN announced the sale of its tower assets for a price that would equivalently pay for the purchase of Horizon Telecom, effectively creating an asset trade that creates considerably value.
• SHEN has unlocked value by selling assets that are expected to experience a decline in revenue after this year for assets that should realize revenue and adjusted EBITDA growth
• The growth SHEN is purchasing without the need of cash financing should have a positive impact on SHEN’s valuation.

• Attractive valuation and low multiples compared to peers make Turning Point Brands an intriguing investment opportunity
• Company is poised for significant top-line and bottom-line growth despite past struggles and negative sentiment
• Strong position in tobacco alternative market and focus on non-cigarette products set TPB up for future success, offering potential upside for investors.

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.

• Reddit plans to price its IPO between $31 to $34 a share, which would suggest equity value of US$6.0 billion to US$6.5 billion on a fully diluted basis.
• Our base case valuation of Reddit is implied market cap of US$7.9 billion or implied price of US$41.2 per share. 
• Given the moderate upside relative to the IPO price range, we have a Positive view of the Reddit IPO. 

• On the 2 January, TDCX (TDCX US), a Singapore-headquartered digital customer experience (CX) provider, announced it had received a preliminary non-binding proposal from Laurent Junique to be acquired at $6.60/ADS.  
• On the 1st March, TDCX entered in a definitive agreement by way of a short form merger at US$7.20/ADS, a 48% premium to undisturbed.
• As Laurent Junique holds 98.4% of the voting power, there is no shareholder vote on the merger. This is done. The Offer should close in the 2Q24.  

• Recently, a friend of mine asked me why I own positions in Markel and Brookfield, as they do not align with my typical investment style of small niche companies trading at attractive free cash flow yields. 
• I consider both companies as alternatives to index funds, benefiting from the expertise of two exceptional capital allocators, Tom Gayner and Bruce Flatt, at no additional cost.
• Over time, if my investment process proves itself as sound, the positions in Markel and Brookfield should naturally decrease in size.

• Reddit, an American social news aggregation, content rating, and forum social network, filed to go public. The company plans to trade on the NYSE under the ticker “RDDT”.
• Reddit was founded in 2005 by Steven Huffman, Aaron Swartz and Alexis Ohanian. The company is forecasted to surpass $1B in total revenue in 2024.
• They chose the right time to go public. I have a positive view of the upcoming Reddit IPO and looking forward to seeing them trade as a public company.

• If you are concerned about the YOLO and FOMO frenzy in the stock market, you may wish to consider gold and gold mining stocks as refuges.
• The technical pattern for gold is constructive, but not unabashedly bullish. 
• Gold miners appear to be washed out against gold and present the best opportunity for gains in the next 6–12 months.

• CTA Positioning Update According to UBS’ biweekly CTA momentum study, CTAs bought oil and sold precious metals in size in February.
• The investment bank expects ⅔ of those flows to reverse in the next two weeks.
• CTA’s have meanwhile built a decent short position in agriculturals, and flows should remain negative there.

• According to Pitchbook and their S-1, Reddit has raised ~$1.5B in equity financing. Their last private round, a Series F led by Fidelity in August 2021, was around ~$10B valuation.
• I derive a target valuation for Reddit using a ~8x EV/Revenue multiple on my 2024 estimates. The multiple represents a top-range multiple of the peer group.
• I arrived at my ~$9.6B target valuation, which implies 50% upside to indicative IPO valuation at the midpoint. I expect Reddit will trade above their last round valuation of $10B.

• Last week was notably positive for the cryptocurrency market, particularly for Bitcoin and Ethereum, which both experienced impressive gains.
• Bitcoin’s price has surged to $65,000, marking an increase of over 25%, while Ethereum has increased to $3,510, up by approximately 15%.
• This puts Bitcoin close to its highest ever price, just below $69,000.

• Gold held flat in February, continuing a long period of consolidation, and most other metals were down modestly.
• The precious metal equities further sold off in February, compounding the losses in January, highlighting to the market this industry is still out of favour.
• We had several significant updates from companies within our coverage.

• On Friday after the close, the S&P DJI Index Committee announced changes to the S&P 100, S&P500, S&P MidCap400, and S&P SmallCap600. Changes happen at the close 15 March 2024.
• Super Micro Computer (SMCI US) and Deckers Outdoor (DECK US) replace Zions Bancorporation (ZION US) and Whirlpool Corp (WHR US) in the S&P500. 2 changes to 400, 6 to 600.
• The immediate reaction was to send SMCI up 12.5%. That’s shortsighted. It pays to count the pennies involved. There are a LOT of pennies.

• Altria Group’s recent earnings call has raised important topics worth considering for investors.
• The company, known for its strong position in the tobacco industry, showed a clear intent to diversify into smoke-free product categories, such as heated tobacco, oral tobacco, and e-vapor.
• These steps are seen as a strategic move to cushion the company from declining cigarette volumes and broaden its consumer base, thereby improving its long-term growth prospects.

• In the Q4 earnings, Merck & Co.
• reported a strong financial performance, underpinned by a robust demand for their innovative portfolio, including Keytruda, Welireg, and Gardasil, among others.
• The company has embarked on various collaborations further bolstering its product pipeline with a promising line of innovations.

• This is our first report on e-commerce player, Carvana.
• The company’s Fourth Quarter 2023 Earnings included an optimistic forecast regarding the company’s economic performance.
• The company’s fiscal year GPU (Gross Profit per Unit) augmented by nearly $1,000, setting a fresh record and exceeding their previous best in 2021.

• Insulet Corporation reported strong Q4 2023 results, marking its eighth straight year of 20-plus percent revenue growth.
• The company’s automated insulin delivery system, Omnipod 5, played a significant role in its financial success as it generated $1 billion in revenue in 2023.
• The achievement of approximately 425,000 global customers using the Omnipod platform represented a growth of around 25% from the previous year, including almost 250,000 using the Omnipod 5.

• This is our first report on entertainment major, Live Nation Entertainment.
• The company has been experiencing an upward performance trajectory in the final quarter and full year of 2023.
• The company’s growth is informed by several business strategies, including deferred revenue, early planning, and shifting to outdoor amphitheaters.

• LKQ Corporation reported its Fourth Quarter and Full Year 2023 Earnings, highlighting the company’s performance.
• According to Joseph Boutross, Vice President of Investor Relations, LKQ Corporation delivered strong full year organic revenue growth for parts and services.
• This is reflective of the company’s continued strive to maintain operational excellence, drive organic revenue growth and achieve excellent free cash flow.

• This is our first report on Pool Corp, the world’s largest wholesale distributor of swimming pool supplies.
• The company saw its total sales for 2023 decline by 10% from the previous year to $5.5 billion.
• The drop was attributed to an abnormal selling environment during the first half of the year due to unusually poor weather conditions and elevated inventory levels across the industry.

• Teleflex Incorporated’s fourth quarter 2023 earnings were decent.
• Firstly, the revenues grew at 2.1% year-over-year, showing the company’s overall financial robustness.
• Additionally, Teleflex saw a stable-to-improving environment for material inflation and supply chains, with continued improvements expected through 2024.

• Universal Display Corporation (UDC), a leading provider of OLED technology and materials, experienced a revenue of $576 million, operating income of $217 million, and net income of $203 million in 2023.
• Its robust display impacted net income per diluted share, which amounted to $4.24.
• Several factors on both sides of the company’s balance sheet deserve attention while crafting an investment thesis.