United States

• IBM Corp. is shutting down two major research and development (R&D) units in China, amid declining business in the country and mirroring a broader trend of U.S. tech firms scaling back their presence in China.

• The units affected by the pullback are IBM’s China Development Lab (CDL) and China Systems Lab (CSL), both established in 1999.

• CDL, which focused on application software development, has more than 1,000 employees, while CSL, which focused on system development such as mainframe database, has a team of 695, one IBM worker told Caixin.

• RLI Corp. reported strong financial results for the second quarter of 2024, reflecting a comprehensive picture of growth and financial stability across its various segments.
• The company, with its broad portfolio of insurance products, demonstrated robust underwriting profitability and significant net investment income growth.
• The deep dive into each segment reveals both strengths and areas with scope for vigilance.

• Globe Life Inc., in the second quarter of 2024, reported a net income of $258 million, or $2.83 per share, compared to $215 million, or $2.24 per share, a year ago—an impressive growth of around 20%.
• The net operating income also saw a notable increase to $271 million, or $2.97 per share, reflecting a 14% rise from the previous year.
• This indicates a robust improvement in profitability, underscoring the company’s operational efficiency and financial strength.

• MGIC Investment Corporation reported its financial results for the second quarter of 2024, demonstrating a solid performance with sustained earnings and robust capital management strategies.
• The company reported net income of $204 million and a substantial annualized return on equity of 16%, reflecting its continued financial health and profitability.
• A key driver of revenue, MGIC’s insurance in force, stood at $292 billion, showing a slight increase over the quarter, which signals stability in this core aspect of its business.

• Progressive Corporation’s recent investor event highlighted its strategic focus and ongoing efforts to consolidate and grow its market presence, specifically through its direct acquisition channel.
• The event, led by executives including Personal Lines President Pat Callahan and media business leader Jay VanAntwerp, aimed to reaffirm Progressive’s commitment to being a leading insurance provider by enhancing customer experience and optimizing media spend.
• 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.

• Prudential’s recent earnings underscored a period of robust growth and strategic realignment aimed at enhancing long-term stakeholder value.
• This quarter, Prudential reported a pretax adjusted operating income of $1.6 billion, reflecting a 10% increase from the previous year, underpinned by higher interest rates and equity markets which bolstered spread and fee income.
• The earnings per share on an after-tax basis stood at $3.39.

• Radian Group Inc. has reported a robust set of results for the second quarter of 2024, indicating consistent progress across its primary sectors of business operations amidst a variable interest rate environment.
• The highlights of the quarter included an increase in book value per share by 12% year-over-year, reaching $29.66, and a revenue surge to $321 million.
• Additionally, the firm achieved a net income of $152 million.

• Reinsurance Group of America, Incorporated (RGA) reported robust second quarter 2024 results, delivering adjusted operating earnings of $5.48 per share, showcasing strong performance across its business lines and geographies.
• This was supported by a pipeline of robust new business activities, contributing to an adjusted operating return on equity of 15.3% for the past 12 months, surpassing intermediate-term targets.
• 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.

• Ryan Specialty Holdings continued its robust growth trajectory in the second quarter of 2024, achieving impressive financial results with an 18.8% year-over-year increase in total revenue to $695 million, driven by robust organic growth of 14.2%.
• This growth is underpinned by the company’s clear focus on niche market specialization and talent.
• Adjusted EBITDAC saw a considerable rise of 27.6% to $248 million, while the adjusted EBITDAC margin expanded by 240 basis points to 35.6%.

• Selective Insurance Group Inc. delivered a mixed performance in the second quarter of 2024, navigating challenges that reflect broader industry-wide issues affecting insurers.
• John Marchioni, the CEO, highlighted the company’s commitment to disciplined underwriting, pricing, and reserving practices, which remain intact despite the pressures of social inflation affecting liability lines, particularly general liability.
• 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.

• NVIDIA delivered another blockbuster quarter with record revenues of $30 billion, blowing well past the guided $28 billion, up 15% QoQ and up 122% YoY.
• $5.6 billion in revenues were attributed to Singapore, making up more than 18% of overall revenues and up >5 times YoY
• What the heck is the city state doing with all of those GPUs?

• It is far from common for a stock to be up 4% after missing the revenue guide for the quarter and slashing the full-year revenue guide for the year.
• That’s exactly what happened with Lululemon today which should tell you the kind of sentiment going into the earnings!
• The crux of the bear thesis on Lulu usually circles around their US business. 

• First American Financial Corporation recently disclosed its financial results for the second quarter of 2024, navigating a market fraught with challenges yet buoyed temporarily by a seasonal uplift in demand.
• The company reported a total revenue of $1.6 billion with an adjusted earnings per diluted share of $1.27.
• The title segment, a primary revenue generator for the company, saw an adjusted pretax margin of 11.9%, a slight decrease from the previous year’s 12.6%.

• Equitable Holdings’ second quarter earnings report for 2024 highlighted the company’s strategic financial performance and growth initiatives.
• Non-GAAP operating earnings reached $494 million, translating to $1.43 per share, a 23% increase year-over-year.
• Adjusted for non-recurring items, the earnings per share stood at $1.52, surpassing the annual growth target.

• American Financial Group delivered a mixed performance in their second quarter of 2024, reflecting strength in several areas alongside areas of strategic pullback.
• The company reported an 18.5% annualized core operating return on equity, denoting a robust utilization of equity in achieving profits.
• Their specialty property and casualty (P&C) businesses continued to show strength with underwriting margins outperforming expectations due to higher rates, driving a 15% year-over-year increase in P&C net investment income excluding alternatives.

• Cincinnati Financial has reported a strong performance for the second quarter of 2024, reflecting a robust financial position and sustained growth across various segments.
• The company registered a net income of $312 million, bolstered by an after-tax increase of $112 million due to the appreciation in the fair value of equity securities.
• Non-GAAP operating income also saw an uptick, rising by $13 million from the previous year to $204 million, a change attributed primarily to a $17 million increase in investment income.

• F&G’s latest quarterly results showcase a robust performance with significant growth across various metrics.
• The company, under the leadership of CEO Christopher Blunt and CFO Wendy Young, has effectively implemented strategies that are yielding fruitful results, aligning with the targets set out during the Investor Day in October 2023.
• Starting with asset growth, F&G reported a substantial increase in assets under management (AUM), which stood at $61.4 billion, marking a 21% increase year-over-year.

• The Hartford Financial Services Group, Inc. (The Hartford) demonstrated robust results for the second quarter of 2024, marking a continuation of its steady performance during the first half of the year.
• Highlights of the quarter include substantial growth in both commercial and personal lines, a solid core earnings margin from Group Benefits, and strong performance across its investment portfolio.
• 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.

• On August 8, 2024, MediciNova, Inc. (MNOV) filed form 10-Q with financial results for the second quarter of 2024.
• The company is conducting a Phase 3 clinical trial of MN-166 (ibudilast) in amyotrophic lateral sclerosis (ALS), which includes 12 months of double-blind treatment plus a six-month open label extension period.
• The primary endpoint is change from baseline in ALSFRS-R at Month 12 and survival time.

• Ensysce Biosciences is committed to finding a solution to the opioid crisis plaguing the US and other developed countries around the world.
• Through its proprietary TAAP technology Ensysce is in the process of receiving approval for an abuse-resistant yet still pain-relieving opioid.
• The company announced that it has received a $14 million grant from the NIH for the continued development of its abuse deterrent opioid-PF614-MPAR.

• NVIDIA’s Q2 revenue soared 122% to $30.04 billion, exceeding estimates, driven by unprecedented demand for AI-driven data center chips. 
• The data center segment grew 154% YoY, generating $26.3 billion, reflecting NVIDIA’s strong position in AI hardware with major contributions from cloud providers. 
• Despite approving a $50 billion stock buyback, NVIDIA’s shares fell 8% after-hours due to concerns over future chip supply and broader market trends, though the stock is up 150% YTD.

• For the week ending 23/Aug, US crude inventories fell by 846k barrels, while analysts expected a 2.7 mb drawdown. Gasoline stocks dropped more than expected, while distillate inventories unexpectedly rose.
• US natural gas inventories rise 35 bcf for the week ending 23/Aug, exceeding analyst expectations of a 33 bcf buildup. Inventories are 12.1% above the 5-year seasonal average
• Exxon expects global crude oil demand to remain around 100m bpd through 2050. Brokerages lowered target prices on Occidental and Halliburton.

• Paul Cerro, founder of the Cedar Grove Empire, discusses his investment in Redcat Holdings
• Redcat is a US-based drone manufacturer specializing in unmanned drones for military purposes
• Redcat is poised to potentially win a lucrative US Army contract, driving significant upside potential

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• Chubb Limited’s second-quarter earnings for the period ending June 30, 2024, revealed a robust financial performance, characterized by significant growth in premium revenue and substantial increases in both core operating and investment income.
• The insurer reported a core operating EPS of $5.38, marking a 9.3% increase from the previous year.
• This was supported by a growth in net premiums of 11.8% (or 12.3% on a constant dollar basis) facilitated by a diversified portfolio across geographical regions and business segments.

• I first wrote my Deep Dive on Dollar General back in August 2023.
• While I wasn’t initially excited about owning a piece of the company despite the stock being down 40% from peak then, I changed my mind when the stock went down another ~25% following 2Q’23 earnings.
• After today’s dismal earnings, the stock went down almost another 30% since 2Q’23 earnings. 

• Public Service Enterprise Group (PSEG) recently disclosed its second-quarter 2024 earnings, revealing a nuanced performance marked by both challenges and sustained strategic growth.
• The company reported a net income of $0.87 per share for this quarter, which marks a decrease from last year’s figures of $1.18 per share.
• The non-GAAP operating earnings stood at $0.63 per share, slightly below the previous year’s $0.70 per share.

• We are reiterating our Buy rating, $20 price target and projections with Lands’ End announcing 2QFY24 (July) results before the open on Thursday.
• We believe Lands’ End management, under CEO Andrew McLean has continued to refocus the company on driving higher returns via lower discounting, fashion and product newness and innovation, reduced overall inventories and licensing non-core categories and relationships.
• When combined with an increased emphasis on core winning categories such as swimwear and women’s bottoms in 2Q and shifting to outerwear in 2H, we believe Lands’ End is well positioned to drive near and longer term upside, and register returns we believe investors will find compelling.

• We are reiterating our Buy rating and $41 price target for BBW and materially raising our projections after the company reported record 2Q results which beat Street expectations on both the top and bottom line, as Build-A-Bear stores registered solid results, while the high margin Commercial and International Franchising segment began their expected material ramp a little earlier (and with greater impact) than we projected.
• Further, management continued to aggressively return capital to shareholders, purchasing 5% of BBW shares outstanding in FY24.
• With an early Halloween driving strong initial 3Q results, we believe management reiterating FY24 guidance for top line growth in low to mid single digits and low singled digit pre-tax income could prove conservative, and we reiterate our Buy rating and $41 price target for BBW.

• Ormat Technologies’ second-quarter earnings for 2024 demonstrated significant financial growth and solid operational performance across all its segments.
• The company reported a 9.3% increase in total revenues, which amounted to $213 million.
• This revenue growth was driven primarily by the Electricity segment, attributed to asset acquisitions and improvements at specific facilities.

• UGI Corporation reported improved financial results for the fiscal third quarter of 2024, reflecting progress in executing strategic priorities such as enhancing cost efficiencies, strengthening the balance sheet, and optimizing its portfolio.
• Adjusted earnings per share (EPS) for the quarter rose to $0.06 from $0.00 in the previous year.
• The company’s focus on sustainable cost savings and critical financing transactions bolstered their financial standing, with available liquidity by quarter-end reported at $1.9 billion.

• It’s about to be primetime for the AI semiconductor trade, and for the first time in a long time (maybe ever), I wanted to write an earnings preview. It might be the first time (ever) and hopefully the last time.
• Two critical companies report this week. I’ll start with Marvell, the less important but the one I like, and then talk about some exciting dynamics at Nvidia that could lead to volatility and why it might not even matter.
• Marvell has always been a favorite of this newsletter. I won’t lie; I root for the hometown on this one. Inphi was my first paid post, and it worked out with a buyout by Marvell only two weeks later.

• This Wednesday, after the Wall Street close, NVIDIA Corp (NVDA US) will release its second-quarter figures, concluding the current earnings season. The stock has returned 155% YTD.
• Nvidia’s results will be crucial in determining whether its stock recovery continues (+25% since its August 5 low and 11.8% below its all-time high of $140.76 on June 20).
• Historically, when Nvidia’s earnings and guidance have been strong, its stock has rebounded by c. 30% and over in four occasions.

• IOS 18 beta offers new Home Screen and Control Centre customization; AI features like Advanced Siri Capabilities delayed until iOS 18.1, set to arrive later this year. 
• Morgan Stanley forecasts Apple will ship five hundred million iPhones over two years, driven by the AI-powered Apple Intelligence, with a 4%-5% growth in iPhone average selling prices. 
• Only 15% of current Apple devices support new AI features, pushing a significant upgrade cycle; 24% of iPads are compatible, suggesting a mini-upgrade cycle in the tablet market.

• Chipotle has grown to 3500 restaurants without relying on franchising or compromising on food quality and people investments
• CFO Jack Hartung discusses Chipotle’s unique business model and competitive advantages on Magellan’s podcast
• Hartung’s background in finance led him to join Chipotle after working with McDonald’s and being impressed by the attention to detail and potential for growth

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• Cisco Systems, Inc. reported its financial results for the fourth quarter and fiscal year 2024, demonstrating solid performance despite a challenging macroeconomic environment.
• The company closed the fiscal year with $13.6 billion in revenue for the fourth quarter and $53.8 billion for the year.
• Both annualized recurring revenue and subscription revenue grew, reflecting Cisco’s strategic pivot towards a more sustainable, subscription-based model.

• Zoom Video Communications delivered strong financial performance in the second quarter of fiscal year 2025, surpassing market expectations and demonstrating resilience in a competitive landscape.
• The company’s revenue rose by 2.1% year-over-year to $1.16 billion, slightly exceeding analyst forecasts.
• Adjusted earnings per share also impressed, reaching $1.39, which was significantly higher than the anticipated $1.21.

• American Water’s Second Quarter 2024 Earnings Conference Call highlighted a mixed financial performance with several strategic progresses and challenges.
• The company reported a slight decrease in quarterly earnings per share from $1.44 in the previous year to $1.42, maintaining steady performance year-on-year with earnings at $2.37 per share for both the first half of 2024 and 2023.
• Despite this slight dip, the company raised its 2024 earnings per share guidance to $5.25 – $5.30 from the previous range of $5.20 – $5.30, attributing this adjustment to less significant customer usage declines than anticipated.

• CMS Energy, a major energy company based in Michigan, continues to demonstrate resilience and strategic foresight amid regulatory, operational, and market challenges.
• The company’s latest quarterly results indicate a robust execution of its long-standing strategy, combining regulatory maneuvering, aggressive cost management, and substantial investments in system reliability and clean energy transition.
• 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.

• Allient, formerly Allied Motion, is a niche industrial company in motion/power/controls industry
• Strong returns on tangible capital and run by owner/operator Dick Warzala
• Undervalued at $26.75 per share, with potential for 20%+ IRRs over 3-4 year period

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.

• Powell’s Pivot: A New Era for Crypto Markets as Interest Rates Shift. Discover how the Fed’s changing stance may ignite new demand in the crypto market.
• BTC’s Rally: Can It Sustain Its Momentum Amidst Shifting Economic Policies? Explore the critical market movements and the implications of BTC’s recent surge.
• Stablecoin Growth: The Catalyst for the Next Crypto Boom? Understand the vital role of stablecoins and credit in the future of crypto market growth.

• NVIDIA’s dominance in AI GPUs, with 80% market share, has driven data center revenue growth by 427% YoY, with analysts expecting a 112% YoY revenue increase to $28.68 billion.
• NVIDIA’s GPUs are crucial for AI workloads, with significant adoption by cloud giants like AWS and Microsoft Azure. AI-specific chips are expected to drive 40% of 2024 revenue.
• 47 out of 61 analysts rate NVIDIA a strong buy, with average 12-month price targets showing 13% upside, reflecting confidence in its AI leadership despite potential market volatility.

• Intel Corporation, once the undisputed leader in the semiconductor industry, is currently grappling with a series of challenges that have significantly impacted its market position and share price.
• Amidst these struggles, Intel is reportedly working with advisors like Morgan Stanley to prepare a defense against potential activist investors, a clear signal of the growing pressure the company faces.
• The need for such a defense highlights the precarious situation Intel finds itself in—a company in the throes of operational difficulties, financial underperformance, and strategic missteps.

• Advanced Micro Devices (AMD) has made headlines with its recent acquisition of ZT Systems for $4.9 billion, a move that signals the company’s intent to become a formidable force in the AI space.
• As the industry leader, NVIDIA has long dominated the AI hardware market, but AMD’s latest strategic acquisition could shift the competitive landscape.
• This acquisition is not just about expanding AMD’s capabilities; it’s about positioning the company as a viable alternative to NVIDIA in the rapidly growing AI infrastructure market.

• The SPX is back near YTD highs and testing resistance in the 5670-5783 range, and we view this as an ideal time to reduce risk and shift to defensives.
• We continue to believe that the SPX and Nasdaq 100 (QQQ) are going through a 1- to 4-month pullback/consolidation that could end up being a topping pattern.
• After laying out expectations in our 8/13/24 Compass report for a bounce and test of YTD highs, we now expect SPX to roll over near current levels 

• Evolent Health, a prominent player in the healthcare industry, has recently garnered significant acquisition interest, making it the focus of sale talks.
• As a company with both strengths and challenges, Evolent Health presents a complex investment thesis.
• On the positive side, Evolent has demonstrated consistent revenue growth, a strong pipeline, and a strategic focus on delivering clinical value through its Performance Suite and Specialty Technology and Services.

• Over the weekend, both Bitcoin and Ethereum reached their highest levels since the crash three weeks ago.
• As we have emphasized repeatedly in recent weeks, we continue to anticipate a gradual yet steady recovery of the crypto market, with prices to return to their pre-crash levels over the next month.
• Now, let us dive into this week’s top news.

• Bicara Therapeutics, a clinical-stage biotech company with focus on the treatment of patients with HPV-negative head and neck cancer, files for a $200M IPO.
• The biotech firm was backed by Biocon Limited, India’s largest biopharmaceutical company, venture capital and investment firms, among others.  
• I believe Bicara Therapeutics will succeed in its pivotal Phase 2/3 trial of their bifunctional antibody in combination with Keytruda (pembrolizumab) during 2025.

• ZT is a large server company focused on serving hyperscalers like Microsoft and AWS
• They design customized infrastructure products tailored to specific customer needs
• AMD sees ZT as an asset to drive competitive advantage in the data center and AI markets, enabling them to design systems that optimize performance and efficiency.

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

• US oil and gas rig count fell by one to 585 for the week ending 23/Aug, marking a decline in rig count for the second straight week.
• US oil rig count was unchanged at 483, after falling by two the week prior. Gas rigs fell by one to 97, after rising by one the previous week.
• For the week ending 16/Aug, US crude oil production rose back to its record high of 13.4m bpd, after slipping down to 13.3m bpd the week prior.  

• We continue to believe TRC has an opportunity to strengthen its management team and improve its interaction with public shareholders with the upcoming retirement of the CEO and search for his replacement.
• The new CEO should steer the company on a path that creates sustainable value for shareholders.
• We believe the 2023 appointment of Brett Brown as TRC’s new CFO added strength to the C-suite and see another opportunity for the company to improve the senior management team.

• First, let’s start with Intel. Intel had a pretty poor earnings result. There’s no two ways about it.
• Intel reports Q2 EPS $0.02 ex-items vs FactSet $0.10, announces $10B cost reduction plan; suspends dividend
• There was another layoff of around 15% of employees, a full dividend suspension (finally, guys), and a capex cut.

• Ubiquiti delivered its first quarterly revenue of more than $500 million as the Company generated free cash flow to further reduce its debt balance.   
• Ubiquiti reported fiscal fourth quarter (June) results that were lower than we were forecasting as we assumed service provider segment would continue to trend higher sequentially. 
• Ubiquiti is now on a revenue trajectory of achieving over $500 million in quarterly revenue along with gross margin of over 40 percent. 

• Hedge Funds Pushing into Commodities Markets Big trading houses like Glencore, Trafigura, Mercuria or Vitol are benefiting since years now from the increasing fluctuations on the commodities markets.
• This trend increased, especially since crude oil went negative when the Covid pandemic started and was followed by further volatility since the macro environment became even more fragile with the war in Ukraine and now the conflicts in the Middle East.
• According to Ney York based consulting firm Oliver Wyman, the gross margin of trading houses amounted to 105 billion dollars in 2023.

• The biggest shift in FX markets is a lower range of interest rates in the US, signaling a regime shift towards Fed rate cuts.
• Dollar strength is diminishing due to lower rates and softer US inflation, impacting carry trades and high yield currencies.
• Euro-Dollar may benefit from lower yields, but its upside potential is uncertain amidst ongoing market volatility and economic uncertainty.

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• We are reiterating our Buy rating, $10 price target and projections as we review our mail line store visits for August.
• August represents the first monthly store tours where the main line stores have their full compliment of fixtures and products to represent the launch of their New Day (which was July 11th); further, unlike the outlet stores (which completed their New Day conversion on August 22nd), the change for the main line locations was a complete product reset, a true “shock to the system,” positioning Vera Bradley on a new course with a wider offering of fabrics, a materially easier to shop store, an emphasis on handbags, complete leather collections and even new logos.
• While we view these changes as longer term positives which position Vera Bradley for a new generation of shoppers, we do acknowledge that, like any shock, the near term impacts can be messy as the prior core shopper adjust and new shoppers slowly shift their views on Vera Bradley.

• IMMR reported second quarter results that included partial results from Barnes & Noble Education (BNED), which IMMR owns approximately 42 percent of.   
• We believe the decision to carry the BNED position at investment value might have distorted the true value of IMMR.  
• Hidden in IMMR’s 10Q filing was the resolution of the patent lawsuit against Xiaomi. The settlement resulted in IMMR reporting a larger than expected revenue figure for IMMR. 

• Reviva is a research and development pharmaceutical company with two portfolio compounds targeting nine indications.
• The candidates address multiple related mental disorders, rare diseases & other categories of un met need.
• Reviva’s lead indication in schizophrenia with brilaroxazine (RP5063) completed its 1st Phase III trial & began its 2nd in 2Q:24.

• Cingulate is developing its Precision Timed Release (PTR) technology to deliver ADHD drugs to improve onset & efficacy of previously approved products.
• The company licensed rights to manufacturing a 3-layer tablet that releases dexmethylphenidate (CTx-1301) over the active day.
• CTx-1301 provides immediate onset, eliminates the need for a booster dose, reduces diversion & simplifies dosing among other benefits.

• JT plans to acquire 100% of Vector Group at $15.00/share, a 29.9% premium. The offer requires over 50% acceptance, with Board support and completion expected by late 2024, pending approvals.
• The shares go ex-dividend on August 30, with payment on September 12. Adjusted for the dividend, shares trade at a -0.4% gross spread. My fair value estimated is $15.92/share.
• Consensus sets a target price of $16/share. JT may consider raising its offer to this level (6.67%), especially if they see Vector as a strong long-term investment.

• Lowe’s Companies’ second quarter 2024 earnings outlined a mixed performance amid challenging market conditions, reflecting both the strengths and weaknesses of its current business strategy.
• The company reported Q2 sales of $23.6 billion, with comparable sales down by 5.1%.
• This decline was attributed to a decrease in demand for Do-It-Yourself (DIY) projects, partially mitigated by solid performance in the Professional (Pro) segment and a growth in online sales.

• Oddity Tech, owner of famous global brands IL MAKIAGE and SpoiledChild, is growing slower than in 2022 and 2023. The overall growth will slow down to ~20% y/y in 2025.
• According to my estimates and SEC filings, private equity firm L Catterton, the largest shareholder, reduced its stake in Oddity Tech to 18.4%, down from ~42% prior to an IPO.
• I see ~34% downside risk in Oddity Tech stock as growth will slow down and the company will launch new brands only in the second half of 2025.

• Deere & Company reported its third-quarter earnings, revealing a mixed financial performance amid varied market conditions across its segments.
• Despite a tough macroeconomic environment, the company maintained a disciplined approach, particularly in managing inventory and costs, which was evident from an equipment operations margin of 18.5%.
• However, the reduced demand in both agricultural and construction sectors, coupled with price competition, led to a decline in net sales and revenues by 20% and 17% respectively, totaling $11.387 billion and $13.152 billion.

• Estée Lauder Companies’ fiscal 2024 results reflect a challenging environment particularly impacted by market conditions in China and the Asia-Pacific region.
• The fiscal year witnessed a 2% contraction in organic sales, with a modest gross margin expansion and a decline in adjusted operating margin by 120 basis points to 10.2%.
• The company’s performance in various regions displayed disparity, with noted declines in Mainland China contrasted by growth in EMEA (Europe, the Middle East, and Africa) primarily due to a recovery in Asia travel retail.

• Lumentum Holdings, a provider of optical and photonic solutions, reported mixed performance in its fourth quarter fiscal year 2024 results.
• The company experienced a decrease in both the Cloud & Networking and Industrial Tech segments but made significant progress in expanding its customer base and advancing its technology for future growth, particularly in high-speed optical transceivers and datacom components.
• 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.

• Madison Square Garden Sports Corp. (MSG Sports) has presented a robust financial performance in its fiscal 2024 fourth quarter and year-end earnings, reflecting effective management and promising developments within its operations.
• The company, as part of its year-end declarations, showcased record-setting revenues exceeding $1 billion and an adjusted operating income of $172 million.
• These figures surpassed the previous fiscal year’s outcomes, underscoring the company’s financial growth trajectory.

• Medtronic PLC reported its fiscal 2025 first-quarter results, reflecting a sustained performance trajectory with key financial metrics meeting or exceeding expectations.
• Highlights from the earnings call emphasize continued growth across several of Medtronic’s business segments, along with strategic advancements in product innovations and global market expansions.
• Revenue growth was reported at 5.3%, surpassing the midpoint of guidance, with significant contributions from the Cardiovascular, Neuroscience, and Diabetes segments.

• Paycor’s fourth quarter and full year 2024 earnings call, which ended on June 30, 2024, reflects a company strategically navigating its growth amidst an evolving market landscape.
• With an 18% revenue growth for the quarter and a 19% increase for the fiscal year, Paycor appears to have successfully executed its strategic initiatives.
• The company managed to increase the average number of employees on its platform by 9% and expanded the amount earned per employee per month by 6%, signaling efficient scaling and value addition.

• Tapestry, Inc. reported its fourth quarter earnings where it demonstrated notable strengths internationally with a 6% growth led by significant contributions from various regions including Europe, Other Asia, and Japan.
• However, modest revenue declines in North America, coupled with more challenging conditions in Greater China, posed challenges in otherwise robust financial outcomes.
• Revenue in Greater China grew by 3% overall for the year but showcased declines in the latter half.

• Diverse AI Portfolio: Microsoft’s diversified AI investments, including partnerships with G42 and Mistral AI, reduce reliance on OpenAI and ensure continued innovation across multiple AI ventures.
• Azure’s Competitive Edge: The partnership with OpenAI strengthens Azure’s position by offering exclusive AI-driven cloud services, boosting demand from enterprises seeking advanced automation and productivity tools.
• Industry Leadership: As AI investment intensifies across the tech sector, Microsoft’s significant spending outpaces peers, positioning the company as a frontrunner while highlighting competitive pressures in the growing AI landscape.

• Boston Scientific Corporation recently reported its second-quarter results, surpassing expectations with a strong performance driven by its cardiovascular portfolio and robust execution across multiple regions.
• The company saw a remarkable 16% growth in operational sales, with organic sales climbing 15%, well above its projected range.
• This growth was bolstered by innovation, clinical evidence, and strategic leadership in various categories.

• The summer of 2020 marked a pivotal moment for decentralized finance (DeFi), as it gained significant momentum, reflected by the surge in Total Value Locked (TVL) across DeFi protocols.
• Chart 1: Total Value Locked (TVL) in 2019 and 2020While DeFi continued to grow through 2021, it was the rapid expansion during the summer of 2020 that left a lasting impression on the community, earning the period the moniker ‘DeFi Summer.’Chart 2: Total Value Locked (TVL), All TimeAlthough the actual season may be shifting towards winter, ‘DeFi Summer’ is making a comeback, but the Total Value Locked is still quite far from its 2021 peak.
• However, it is likely only a matter of time before we surpass that all-time high – potentially as soon as the first half of 2025.

• KLA Corporation reported its financial results for the June quarter of 2024, reflecting growth and improvement across several key metrics.
• Key highlights from the report include revenue, gross margin, and EPS exceeding their respective guidance midpoints.
• Revenue growth was witnessed both sequentially and year-over-year, indicating a robust market environment that benefits from advanced technology adoption and escalating complexity in semiconductor processes.

• XPER selling Perceive is of greater benefit than the proceeds XPER would immediately receive. 
• The sale of Perceive to AMZN gives clarity as to the value of the technology XPER has been incubating for many years. 
• We estimate XPER recognizes approximately $3.5 million to $4 million in quarterly operating losses from Perceive. The cost savings would be material to XPER’s non-GAAP net income.

• Packaging Corporation of America (PCA) reported second-quarter 2024 financial results with both strengths and challenges.
• The company announced a net income of $199 million, resulting in $2.21 earnings per share (EPS).
• Excluding special items, the EPS stood at $2.20, showing a slight decrease compared to the same quarter of the previous year at $2.31.

• In reviewing the latest results from Edwards Lifesciences, notable elements of growth and development paired with challenges shed light on the company’s financial and operational trajectory during the second quarter of 2024.
• With total company sales reaching $1.6 billion, this marked an 8% increase on a constant currency basis compared to the same period last year.
• While Transcatheter Aortic Valve Replacement (TAVR) growth was not as robust as expected, increasing by 6% globally, the Transcatheter Mitral and Tricuspid Therapies (TMTT) segment demonstrated impressive growth, with a 75% increase in sales.

• In the second quarter of 2024, Schlumberger showcased a strong ability to capitalize on the ongoing growth cycle while driving efficiency throughout its operations.
• The company reported a 5% increase in revenue compared to the first quarter.
• Schlumberger’s adjusted EBITDA grew 11%, and its adjusted EBITDA margin expanded 142 basis points.

• The Clorox Company presented its fiscal year 2024 fourth-quarter earnings with a moderate sense of optimism and caution, reflecting a period of recovery and strategic realignment.
• In a context of considerable operational challenges, including a notable cyberattack which the company has recovered from, Clorox has managed to end the fiscal year on a stable note, achieving flat organic sales year-over-year, marked by a robust recovery in subsequent quarters following an 18% decline in the first quarter due to the cyber incident.
• 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.

• AMS’s Versa HD Linac in Mexico began patient treatments this month, representing a new revenue stream set to begin in 2H24.
• AMS also recently signed a JV for a Gamma Knife facility in Guadalajara, Mexico, marking its 4th international O&O location.
• AMS will upgrade an existing Gamma Knife Perfexion system there to an Esprit & also extended another lease agreement with a planned Esprit upgrade.

• Choice Hotels International has portrayed a strong growth trajectory in its latest quarterly result, evidenced by a significant increase in adjusted EBITDA and EPS.
• The company raised its full-year adjusted EPS guidance, reflecting confidence in its financial outlook and operational strategy.
• Central to its growth strategy is the expansion of its portfolio of revenue-intense hotels.

• For the week ending 16/Aug, US crude inventories dropped by 4.6 mb, exceeding the expected 2 mb drawdown. Gasoline and distillate stocks also declined, surpassing analyst expectations.
• US natural gas inventories rise 35 bcf for the week ending 16/Aug, exceeding analyst expectations of a 26 bcf buildup. Inventories are 12.6% above the 5-year seasonal average.
• UBS cut its target prices on Halliburton and Schlumberger but raised it for ExxonMobil and Occidental. Jefferies lowered its target price on Chevron.

• Hilton Grand Vacations reported its second-quarter earnings for 2024, revealing mixed results that indicate both challenges and strategic advancements.
• The quarter’s financials showcased a slowdown in some areas, notably impacted by global economic pressures and internal execution hurdles, leading to the company adjusting its full year guidance downward.
• Despite these setbacks, the company’s strategic moves, such as the integration of acquisitions and a restructuring of its sales and marketing operations, suggest forward-thinking adjustments aimed at strengthening its market position.

• Capri Holdings Limited recently reported its earnings for the fourth quarter and full fiscal year of 2023.
• The company saw a revenue increase in high single digits and a mid-single digit rise in earnings per share on a 52- week constant currency basis.
• Despite not fully meeting initial expectations, there were significant areas of performance strength.

• With a strategy to design products to treat multiple indications, QNRX intends to study QRX003 for several conditions & build a database supporting its efficacy and safety as a treatment for a range of dermatological conditions.
• The company plans to begin a clinical study of QRX003 in Peeling Skin Syndrome (PSS), a rare autosomal disease that has no approved treatment.
• By developing its assets for multiple indications, QNRX aims to increase the potential for an expedited regulatory pathway, attain economies of scale on R&D, sales & marketing and other costs and potentially broaden the target market if/when commercial sales launch.

• Under Armour’s first quarter fiscal 2025 earnings reflected a blend of strategic advancement and lingering challenges.
• With Kevin Plank at the helm, the company appears focused on fortifying its branding, signifying a pivot towards a clearer segmentation of their market and a concerted effort to enhance product value rather than volume.
• Starting with the positive aspects, Under Armour has delineated a path to refine its identity as an athletic brand through its “Protect This House” strategy, aiming to invigorate its connection with athletes and consumers globally.

• After selling its coking coal business to Glencore Plc (GLEN LN), Teck Resources (TECK US) has pivoted to copper as its primary growth driver. 
• The 7.3 bn CAD cash (20% of Mkt cap) received from the sale of the coal business stake is being used for buybacks, debt repayment, and growth opportunities.  
• The stock is cheap on an EV-EBITDA basis at 7.5x, but we are not too fond of the business’s low ROCE. 

• Tenax has licensed the calcium sensitizer/K-ATP activator levosimendan and is pursuing approval for an indication in Group 2 Pulmonary Hypertension in the US and Canada.
• The drug has been approved in over 60 countries with 35 published trials supporting its safety and efficacy and has over 1 million patient exposures.
• In January 2018 Tenax announced a new indication for Levo and met with the FDA to confirm trial design.

• CarGurus, Inc. delivered a mixed yet fundamentally strong performance in its second quarter of 2024, reflecting a robust narrative of growth and strategic enhancements paired with the typical challenges inherent in rapidly expanding and diversifying market operations.
• The management effectively articulated their strategic intentions, focusing on driving value through innovation in their service offerings and deepening market penetration, particularly within robustly growing sectors like digital transactions and international expansion.
• 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.

• On August 8, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced financial results for the third quarter of fiscal year 2024 that ended June 30, 2024 and provided a business update.
• Arrowhead recently presented preclinical data on ARO-INHBE and introduced ARO-ALK7 at its summer seminar on obesity/metabolic disorders.
• We anticipate both programs entering the clinic in 2025.

• The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
• In this insight, we take a look at the upcoming constituent changes in the run up to the September 2024 index rebal event.
• We expect two regular changes in September 2024. There are also several live M&A events which could trigger intra-review index changes in the late-2024/early-2025.

• Expedia Group, in its second-quarter 2024 earnings, exhibited a dual-faced performance characterized by significant achievements and emerging challenges that mirror the broader complexities of the travel industry.
• The management has focused on revitalizing core brands, particular emphasis on enhancing execution within the company’s consumer segment, and fine-tuning their long-term strategic direction.
• Under her leadership, Expedia Group has seen a robust growth in room nights and gross bookings indicating a strong recovery trajectory from previous downturns.

• IonQ’s second quarter financial and operational performance for 2024 reveals a mix of significant technological advancements and robust commercial progress, underscoring both opportunities and challenges as the company advances in the quantum computing sector.
• Starting with the financial metrics, IonQ reported a revenue of $11.4 million, surpassing the upper range of its guidance.
• This indicates effective contract execution and perhaps a growing demand for their quantum computing solutions.

• The Trade Desk reported a robust performance for the second quarter of 2024, with notable year-over-year revenue growth of 26%, totaling $585 million.
• This growth considerably surpasses the growth rates experienced by peer companies within the digital marketing sector, emphasizing The Trade Desk’s consistent ability to capture increased market share.
• This trend is particularly highlighted in areas like Connected TV (CTV), which continues to be a strong driver of the company’s expansion.

• Martin Marietta’s second quarter 2024 earnings highlighted several key developments and challenges that reflect both positive and negative aspects impacting its performance and future outlook.
• The company experienced a decrease in product shipments primarily due to an unprecedented increase in rainfall, specifically in the Dallas Fort Worth area, which is a critical market for Martin Marietta.
• Furthermore, the lagging effects of restrictive monetary policy also pressured demand for private construction, exacerbating the decrease in shipments.

• SharkNinja reported its second quarter 2024 earnings with a remarkably robust performance, significantly accelerating its financial growth and expanding its market presence.
• The company achieved a 38% increase in adjusted net sales and a substantial 48% rise in adjusted EBITDA, indicating strong organic growth.
• Adjusted earnings per share also soared by 51%, reflecting a successful operational strategy focused on innovation and market expansion.

• Gilead Sciences Inc. showcased a solid performance for the second quarter of 2024, marked by robust commercial execution and growth across key therapeutic areas such as HIV, liver diseases, and oncology.
• Notably, Biktarvy, an HIV treatment, observed an 8% year-over-year growth, while Trodelvy in oncology saw a 23% increase, and cell therapy revenues increased by 11%.
• Additionally, the company reported disciplined management of operating expenses which significantly contributed to bottom-line growth.

• Viatris has delivered a solid performance in the second quarter of 2024, marking the fifth consecutive quarter of operational revenue growth.
• Under the leadership of CEO Scott Smith, the company, which was formed from the merging of Mylan and Upjohn, a division of Pfizer, has effectively integrated two global entities and streamlined its operations through strategic divestitures.
• This strategic realignment has evidently positioned Viatris at a pivotal point for future growth, focusing strongly on expanding its innovative products alongside its stable base business.

• Royalty Pharma experienced a strong second quarter for the 2024 fiscal year, outperforming earlier guidance with a 12% increase in portfolio receipts which include royalty and other income.
• The company’s robust performance can be attributed to an 11% growth in royalty receipts, indicating solid recurring cash flow from their extensive and high-quality portfolio of more than 35 commercial products.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Akamai Technologies’ second quarter of 2024 earnings presentation highlighted a mix of sustained growth and evolving strategic focus amidst industry challenges.
• The company reported a 5% increase in total revenue year over-year, amounting to $980 million, reflecting steady growth particularly in its security and compute sectors, despite ongoing macroeconomic and geopolitical challenges.
• 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.