United States

• This week, news broke that the oldest crypto market maker, GSR, has been scaling back operations – particularly in the U.S. – while a number of top executives have left the company.
• This is yet another hit to U.S. and global liquidity and volumes; in May, Jump Crypto and Jane Street revealed they were reducing crypto operations.
• This week, we’ll take a look at the state of the crypto market, including volatility, liquidity, and volumes, and then examine some budding narratives and tokens.

Immix reported Q223 results, which were largely as expected. Operational highlights included rolling positive newsflow for CAR-T therapy NXC-201 and interim results for IMX-110 in colorectal cancer patients. With the ramp-up in clinical activity, mainly the NEXICART-1 trial, as well as the two ongoing Phase Ib/IIa trials for IMX-110, management reported R&D expenses of $2.2m, notably higher than $0.6m in the previous year. At end June 2023, cash was $12.7m, supported by a $5m (gross) at-the-market fund-raise in H123. Based on our estimated cash burn, we continue to forecast an operating cash runway into Q224, consistent with management guidance. As we update our FY23 and FY24 expense estimates based on the H123 run rate, roll forward our model and update the net cash figure, our valuation adjusts to $81.1m versus $83.3m previously.

• McDonald’s Corporation delivered an all-around beat in the previous quarter.
• The second quarter was yet another example of their continually strong success, driven by their execution and guided by their Accelerating the Arches strategy.
• McDonald’s continued its outstanding success in Q2 by reaching global comparable sales of 11.7% and double-digit comparable sales in each of its sectors.

• AbbVie managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• Skyrizi and Rinvoq are exhibiting exceptional growth in immunology, with sales for both treatments increasing over the previous year.
• Skyrizi and Rinvoq are now approved across ten significant indications and are projecting combined revenue growth this year.

• ADP delivered an all-around beat in the previous quarter.
• The HCM demand environment remained healthy, and the company’s worldwide sales and marketing team delivered exceptional results, exceeding expectations with double-digit overall growth in Employer Services and new business Bookings.
• With a focus on innovation, client service, and expanding its reach, ADP aims to capitalize on the growth opportunities in the HCM industry.

• Abbott Laboratories managed to exceed the revenue expectations as well as the earnings expectations of analysts.
• Organic sales showed steady growth, led by solid performances in Medical Devices, Established Pharmaceuticals, and Nutrition.
• Abbott’s various segments, such as Nutrition, Established Pharmaceuticals, Diagnostics, and Medical Devices, reported solid growth and significant achievements in product innovations.

• Johnson & Johnson managed to exceed analyst expectations in terms of revenue as well as earnings.
• It was a strong quarter for Johnson & Johnson, with market-leading performance and significant advances in their innovative Pharmaceutical and MedTech pipelines.
• The company reported solid sales and earnings growth in the second quarter of 2023, raising expectations for the year.

• We think Futu has proved its ability to retain its mainland China users. The DAU remained stable, and the growth rate of clients’ HK assets outpaced the market in July.
• Futu’s overseas expansion is quickly ramping up in Japan, Malaysia, and is progress steadily in Singapore and Australia. We expect the monetization in Malaysia begin in 2024.
• We expect Futu 2Q23 revenue 4.5% higher than consensus, our non-GAAP NI 8.7% higher than consensus. We maintain BUY rating on FUTU and raise TP by US$4 to US$55.

• Tower to collect a cool $353 million termination fee from Intel
• Intel claims its foundry ambition to become the global #2 by end of the decade remains unchanged
• The key thing Intel needed from Tower was access to its broad, diverse portfolio of specialty process technologies. These will take Intel years to develop on their own.  

• Workday’s share price is at risk of a downward multiple repricing.
• GAAP profitability would be very hard to achieve, according to recent rhetoric.
• An outside deal is a highly likely scenario that would resolve the company’s current disadvantage to its larger peers.

• PayPal managed to surpass the revenue and earnings expectations of Wall Street.
• The company’s strategic priorities, including branded checkout, merchant solutions, and digital wallets, drive innovation and growth, supported by AI and data utilization investments.
• In addition, PayPal introduced the development of a stablecoin pegged to the U.S. dollar called PayPal USD.

• Qualcomm delivered a mixed result in the recent quarter, with revenues below market expectations, but it managed to surpass the analyst consensus in terms of earnings.
• Its chipset and licensing business’s strong performance supported the company’s revenues.
• Qualcomm’s success in delivering premium mobile experiences, advancing 5G adoption, and expanding its presence in areas like automotive and IoT underscores its commitment to innovation and market leadership.

Wheaton’s Q223 results exceeded our expectations. Production of gold equivalent ounces (GEOs) was 4.6% higher than our prior forecasts, while sales of GEOs were 6.9% higher, driving a positive variance in revenue of 6.6%, or US$16.4m. This was partially offset by costs but nevertheless resulted in a US$7.8m (or 5.4%) positive variance in earnings from operations that, to all intents and purposes, dropped through to the bottom line.

• IMMR reported second quarter results where the income from the Company’s securities portfolio led to earnings exceeding our expectations. 
• IMMR’s revenue declined more than expected as softer unit volumes resulted in lower royalty revenue. We would expect a recovery in smartphone units to result in higher revenue in 2024
• The utilization of haptics within automobiles remains the most promising source of revenue growth for IMMR. The market is broadening to lower priced models

• HHH continues to exhibit the benefits of having operating assets as part of its MPCs. These operating assets provide essential cash flow to the rest of HHH
• Operating assets becoming the core part of the business and HHH no longer requiring debt to fund its expansion needs
• The Company has six unstabilized properties that could add $13.7 million of NOI by 2025 and has another six properties under construction to be completed by 2026.

• Cognizant Technology Solutions managed to exceed the revenue expectations as well as the earnings expectations of Wall Street.
• The company exceeded expectations in the second quarter for adjusted operating margins and revenue at the high end of its target range.
• We give Cognizant Technology Solutions Corporation a ‘Hold’ rating with a revised target price.

• Fidelity National Information Services exceeded Wall Street’s revenue and earnings expectations in the last quarter.
• In the quarter, revenue, adjusted EBITDA, and adjusted EPS exceeded expectations, driven by strong execution across their three business divisions and a continued emphasis on expenditure restraint.
• Fidelity National Information is seeing strong traction, with increased penetration in atypical sectors like large corporates, insurance, and auto loan organizations.

• AmerisourceBergen Corporation managed to surpass the revenue and earnings expectations of Wall Street in the last quarter.
• The company observed continued progress across its businesses in the quarter, producing significant revenue growth.
• We give AmerisourceBergen Corporation a ‘Hold’ rating with a revised target price.

• Brands delivered mixed results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• The company produced same-store sales growth of 9% and unit growth of 6% for the quarter, with KFC setting the standard with a remarkable system sales growth on the back of Yum’s industry-leading development momentum, standout marketing initiatives, and pertinent new product layers like the introduction of original recipe hand-breaded chicken nuggets in the U.S.
• Taco Bell’s global system sales increased for the quarter, driven by unit expansion and same-store sales growth as the management continued elevating the brand and launching digital initiatives.

• The 2023 multi-month rally in APAC markets started roughly in autumn 2022, in sync with the US market rally, then stalled when the US market began to pull back.
• We propose an analysis of the S&P500 MONTHLY, to find support levels to be used as a proxy for predicting APAC bloc’s markets supports.
• Main forecast: August/September could be down, but the current MRM pattern reading is bullish – the correction (currently at Q2 supports) should not last beyond end of September.

• Honeywell International delivered a mixed set of results for the quarter, with revenues well below Wall Street expectations but managed an earnings beat.
• The company’s organic sales increased year on year in the quarter, led by double-digit growth in commercial aerospace, process solutions, and UOP.
• We give Honeywell International a ‘Hold’ rating with a revised target price.

• Ford Motor delivered an all-around beat in the previous quarter.
• With over $47 billion in liquidity at the end of the quarter, Ford Motor has sufficient funds for future investments.
• We give Ford Motor Company a ‘Hold’ rating with a revised target price.

• Mondelez International managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• The company managed double-digit organic net revenue growth across each area, good pricing execution, decent profit dollar growth, and carried out considerable brand investments.
• We give Mondelez International a ‘Hold’ rating with a revised target price.

• Procter & Gamble surpassed the revenue and earnings expectations of Wall Street.
• Growth was widespread across the company’s segments, with organic sales increasing in all ten product categories.
• Fabric Care, Home Care, and Hair Care increased by high single digits, while Skin and Personal Care, Baby Care, Family Care, and Grooming increased by mid-singles.

• KLA Corporation delivered a positive result and managed an all-around beat in the last quarter.
• KLA demonstrated consistent execution amid a competitive market by delivering results at the upper end of the guidance and commitment range.
• We give KLA Corporation a ‘Hold rating with a revised target price.

• Norfolk Southern delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
• Materials, Automotive shipping was strong owing to new lane offerings and a weak local crop in the Southeast.
• Despite increased export volumes, the mix of export steam and export metallurgical coal shifted negatively, and lower seaborne coal prices resulted in poorer revenue per unit.

• Northrop Grumman managed to exceed analyst expectations in terms of revenue as well as earnings.
• The company’s revenues increased in the second quarter, with each of its 4 business sectors making significant contributions.
• Global demand for their products is also increasing as their allies increase defense spending to combat emerging threats.

Despite the active second quarter with developments across all operational fronts, OpGen’s cash concerns have increased the risk of the company as a going concern. With a cash balance of $3.2m at end Q223, OpGen has a cash runway into September 2023, meaning the need for immediate financing will be critical. Key quarterly highlights included the extension of the FIND R&D collaboration, a non-exclusive distribution agreement with Fisher Healthcare and new commercial contracts for both Unyvero and ARES services. While topline growth was a little subdued year-on-year due to one-off income in Q222, the operating loss for the period slightly improved to $5.2m (vs $5.3m in Q222), reflecting tighter cost controls and low clinical activity. If management is able to bridge the funding gap, its efforts in building the commercial groundwork could benefit the second half of the year across Unyvero, Acuitas and ARES. Due to the funding announcement, we have put our estimates and valuation on hold and will reassess as financing updates become available.

• Ford Motor Company’s recent selloff likely provides a lucrative entry point.
• Ford’s robust second quarter earnings paired with a positive output gap in the U.S. speaks volumes.
• Ford possesses high-quality characteristics, lending it the latitude to blossom as credit spreads recede.

• Eastman Chemical Company delivered a mixed result in the recent quarter, with revenues below market expectations, but it managed to surpass the analyst consensus in terms of earnings.
• Despite signs of improvement and expectations for lessening destocking in the upcoming quarters, these challenges reduced the company’s earnings outlook for the rest of the year.
• We give Eastman Chemical Company a ‘Hold’ rating with a revised target price.

• International Paper Company delivered a mixed set of results in the last quarter, with revenues falling short of analysts’ anticipations but above-par earnings.
• Although underlying demand for their products improved during the quarter, it remained constrained by inventory destocking.
• We give International Paper Company a ‘Hold’ rating with a revised target price.

• Juniper Networks delivered an all-around beat in the previous quarter, achieving total revenue growth of 13% year-over-year.
• Despite some challenges in the cloud and service provider segments due to the timing of projects and digestion of prior purchases, Juniper’s Enterprise business showed remarkable momentum, accounting for over 45% of total revenue and posting nearly 40% year-over-year growth.
• While revenue growth is expected to face some pressure soon due to macro uncertainties, Juniper remains optimistic about its long-term growth prospects, especially in the cloud and SP Metro opportunities.

• Roku Inc. managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• The company demonstrated growth in scale, engagement, and platform revenue.
• Roku’s TV streaming platform and its innovation and scale continue to attract users, advertisers, streaming services, and content owners.

• ARLO reported another quarter of net subscriber adds above expectations and putting the Company on a faster pace to achieve 3 million paying subscribers
• At the end of the June quarter, ARLO had annualized recurring revenue of approximately $200 million even though hardware revenue has remained at levels not seen in two years
• The recurring revenue model gave ARLO the ability to generate free cash flow in the Q2. This inflection point should solidify ARLO’s valuation on a recurring revenue basis

• ________________________________________ ADX Energy (ADX AU)C; target price of A$0.08 per share: A high-quality industry partner in Austria to fund and accelerate Anshof development – ADX is farming out 30% WI in the Anshof discovery to MND.
• MND will also fund ADX’s share of drilling and completion costs of A$3.9 mm per well (total of A$7.8 mm for two wells).
• Kosmos Energy (KOS US/LN): 2Q23 results – 2Q23 net production was ~58 mboe/d.

SIGA has reported Q223 results, which came in largely as expected, and management has provided key operational highlights. Activity in the second half of the year has started to firm up with upcoming TPOXX deliveries (for H223) and better-than-expected international orders (offsetting IV orders that will likely be received in FY24). We maintain our FY23 product revenue estimate of $155m and note H223 management sales guidance of $143–158m. We await further clarity on PEP immunogenicity trials, which we believe are the next material catalyst. As we incorporate the reported quarterly results and slight shift in revenue mix for the balance of the year, our valuation adjusts to $1.24bn or $17.46 per share (vs $1.25bn or $17.53 per share previously).

• In Egypt, 2Q23 WI production was 11,579 boe/d (guidance of 10.6-11.6 mboe/d) with 13 new wells drilled in 1H23. • As a result of this strong operational performance, VAALCO has increased the lower end of the FY23 production guidance range from 20.4-24.4 mboe.d to 22.4-24.3 mboe/d.
• With better drilling efficiency in Canada and Egypt, the FY23 capex guidance has been reduced from US$70-90 mm to US$65-75 mm.

• ECVT has gone from one maintenance issue at the beginning of the year to another that is expected to impact second half results and creates near-term headwind for investor sentiment.
• Maintenance and CapEx spending is likely to receive much of the scrutiny from investors after ECVT had two issues this year. However, they are unrelated, and one was from weather
• The sell-off in ECVT’s stock price after the quarterly results reflects investor anxiety over the business being able to generate free cash flow on a consistent basis

• The EUR/USD exchange rate ended up moving upwards in June 2023 despite the various fluctuations occurring during the month.
• During the first ten trading days of the period under consideration, the pair was fluctuating along a narrow range, i.e. 1.07-1.08.
• From June 13th – 21st, the exchange rate increased significantly whereas in the following trading sessions, the pair faced some ups and downs, finally closing with a slight rise on monthly basis, i.e.compared to end of May.

• XPER reported second quarter results underscoring the progress the Company has made in securing new design wins and revenue opportunities for its connected car and media platform segments
• Simultaneous with the second quarter results, XPER announced Sharp would use TiVo operating system for smart TVs starting in 2024
• New design wins for DTS AutoSense and DTS AutoStage are expected to translate into revenue towards the end of 2024

• Colgate-Palmolive Company delivered a solid result and managed an all-around beat in the last quarter.
• The company produced a decent performance in terms of organic sales growth.
• In addition to increasing its gross margin, Colgate-Palmolive also increased its operating margin.

• SmartRent’s 2Q was a bit of a head-scratcher. The significant growth in sales from 1Q didn’t carryover into 2Q, with top-line decelerating from ~74% YoY in Q1 to 26% YoY in 2Q.
• Trends of key KPIs suggest deterioration in the underlying business is continuing and in fact worsening, as we have seen from industry peers recently.
• The exact cause of such is unclear given management’s hesitance to provide clear commentary.

• SS&C delivered mixed results for the previous quarter, with revenues above the analyst consensus.
• The company’s strength was evident in its alternative business, particularly private markets, which saw a significant growth of over 20%, as well as in its Intralinks and retirement businesses.
• SS&C plans to focus on expense management, prioritize innovation, and continue product rollouts.

• ACCO reported second quarter results with a greater pull-in of back-to-school related sales, but management took a cautious stance on outlook for the rest of the year
• The second quarter is seasonally one of the stronger periods of the year due to the timing of retailers taking inventory for the back-to-school season
• Without a stable back to school shopping season ACCO would be dependent on the holiday season in fourth quarter to achieve its free cash flow guidance for the year

• HWKN reported fiscal first quarter (June) results where higher prices had offset the decline in unit volume.
• Without having to take LIFO reserves, HWKN was able to materially beat our expectations. We do not believe this is likely to occur again in the September quarter
• There is no evidence of unit volumes rising in the short-term. However, input costs might have stabilized in the June quarter

• AMD reported Q2’23 revenues of $5.4 billion, $100 million above the guided midpoint, flat sequentially but down 18% YoY, largely attributable to weakness in their client segment revenues.
• Q3’23 revenue of $5.7 billion at the midpoint,  a modest 5.5% increase sequentially and ~2.5% YoY.
• AMD has a lot riding on its MI300 launch but can it really take a bite from NVIDIA’s lunch?

• Charter Communications delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
• The company attracted 77,000 new Internet users in the second quarter, and its Spectrum One product and network development plans continue to pay off.
• The overall number of mobile lines was over 6.6 million at the end of the second quarter.

• DexCom delivered an all-around beat in the previous quarter.
• The company generated another fantastic quarter, with organic revenue growing by 26% in the second quarter compared to the second quarter of 2022.
• As the availability of their products expands more quickly than at any other point in the company’s history, demand for DexCom CGM keeps rising.

• On 8 August, Nikkei Asia reported that Arm plans to complete its IPO on NASDAQ in September in a deal expected to be worth more US$60 billion or more.
• Global tech giants including Apple, Samsung Electronics, NVIDIA, and Intel are expected to invest in Arm once the company is listed on the market.
• The IPO offering amount is expected to be between $8 billion and $10 billion.

• Fitch’s U.S. credit downgrade has done little to change the intermediate-term trend; we continue to believe the path of least resistance is higher for the major equity indexes.
• We remain bullish on the S&P 500, and we expect to see support at its 50-day MA moving forward (currently 4415).
• Short term supports we are watching include 4460-4475 on the S&P 500, $371.50 on the $QQQ, and $190-193 on the $IWM.

• PayPal stock has fallen dramatically on speculations regarding the near-term future.
• The market is now pricing-in significant deterioration of the company’s top or bottom line.
• The management is making the right moves to secure long-term competitive advantages, while also rewarding shareholders, according to the report.

• The main focus will remain on Direct-to-Consumer profitability, but areas such as the recently announced restructuring plan and pricing power in parks & experiences also deserve attention.
• The main focus is on the company’s Direct- to- consumer profitability.
• It has been three months since my latest update on The Walt Disney Company (NYSE:DIS) when I highlighted a number of reasons why the company is finally in a good position to deliver on its bottom line figures.

• Glencore plc’s first half earnings landed softer than most of its shareholders would’ve liked.
• We think a period of stability is near, but key indicators fail to suggest the miner is set for a steep recovery.
• Mining powerhouse, Glencore plc (OTCPK:GLCNF) released its first-half earnings results on Tuesday and delivered a few surprises by doing so.