United States

• By combining TMG+TD+IFS into a single reportable segment, all internal demand will move to this new entity, leapfrogging Intel to global #2 foundry by Q1’24 instead of by 2030
• This new structure risks obfuscating the details of external foundry customer growth
• A much simpler step by step approach which achieves all Intel’s stated goals while retaining visibility into IFS would be far more preferable from a shareholder perspective

• Ambarella managed to exceed analyst expectations in terms of revenue as well as earnings.
• However, despite these headwinds, the company’s Q1 results exceeded expectations.
• The introduction of the CV3 platform marks a new phase in the development of the AI market for Ambarella.

• Amkor Technology delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
• Despite the decline in revenue, the company’s diversified end-market exposure provided stability and resilience.
• Amkor’s technology leadership in advanced packaging allowed them to win new programs in the communications market, offsetting the softening of the consumer and computing markets.

• Cirrus Logic managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• The company achieved a significant revenue of $1.9 billion.
• We give Cirrus Logic a ‘Hold’ rating with a revised target price.

• Curve Finance’s CEO Michael Egorov briefly found himself in the spotlight last week as Crypto Twitter spotted him depositing more CRV to Aave V2 in 3 large transactions worth a total of $35mn USD (represented by the orange plus signs below). 
• Currently, his position stands at nearly $200mn CRV deposited and $60mn USDT borrowed, making it one of the largest loans in DeFi history.
• So, why is this significant? And what are the implications for Aave and CRV?

• After market close on June 21, Steelcase reported 1QFY24 GAAP EPS of $0.01 and non-GAAP (adjusted) EPS of $0.09, beating consensus of $0.01 and our $0.03 estimate (both adjusted).
• Adjusted EPS excluded $0.05 of restructuring and $0.03 in purchased intangible amortization.
• Reported consolidated 1QFY24 revenue of $751.9 million was also better than consensus of $719 million and our $715 million estimate.

• DocuSign delivered an all-around beat in the most recent quarterly result.
• For the first quarter, their overseas revenue increased by 17% year over year to $168 million, accounting for 25% of total revenue.
• Additionally, the number of clients with annualized contract values over $300,000 increased by 20% from the previous year, totaling 1,063 consumers.

• DoorDash delivered an all-around beat in the previous quarter.
• DoorDash’s expansion into new verticals, particularly the grocery delivery sector, yielded positive results, with improved product quality and a wider selection of offerings.
• The company’s focus on enhancing the customer experience, including accurate order fulfillment and convenient delivery options, contributed to the overall success.

• Campbell Soup 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.
• Organic net sales climbed 5% year on year in the third quarter, with favorable inflation-driven net price realisation offset in part by volume and mix decreases.
• We give Campbell Soup Company a ‘Hold’ rating with a revised target price.

• Despite facing challenges such as the exit of Russian operations and the reduction in Russian customer revenues, EPAM managed to deliver revenues in line with Wall Street expectations in its recent result as well as an earnings beat.
• It saw growth in various industry verticals, including Travel and Consumer, Financial Services, and Business Information and Media.
• However, Software and Hi-tech experienced no growth, while Life Sciences and Healthcare declined due to the ramp-down of a large transformational program.

• PagerDuty delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• In terms of the pipeline, the total ARR and mix from new products significantly improved.
• PagerDuty AIOps offers end-to-end automation, from event intake through auto-remediation, to efficiently manage large volumes of data and events.

• Smartsheet delivered a solid result and managed an all-around beat in the last quarter.
• The quarter’s revenue increased by 31% year over year to $219.9 million, while billings increased by 20% year over year to $215.5 million.
• Enterprise expansions during the quarter included Eli Lilly, Foxtel, Motorola Solutions, and Novocure, and new customer wins included Liberty Media, Hostess Brands, and Eight Eleven Group.

• Current market valuation only gives credit for existing projects, making the project pipeline a free option.
• Earlier this year, Spring Lane Capital and Navitas Global bought their project stakes at an implied valuation of $566K and $941K per MW of capacity.
• Using the average price paid gives a $31.3 million value for Soluna’s 100% share of Project Sophie and a 15% and 51% share of Project Dorothy 1A and 1B, about equal to the current $31.9 million enterprise value (Source: YCharts).

• Dynatrace managed to exceed analyst expectations in terms of revenue as well as earnings.
• Despite a dynamic macroeconomic environment, the company exceeded expectations, delivering impressive results across key operating metrics such as ARR, total revenue, subscription revenue, operating margin, free cash flow, and EPS.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• The S&P 500 is 1% above the 4300-4325 area which we anticipated would cap upside for 2023.
• Our view since our 5/30/23 ETF Pathfinder is that we cannot be bearish if the SPX is above 4050, and we subsequently moved that line-in-the-sand up to 4165-4200 on 6/6/23.
• We are moving that threshold up to 4300, which is short-term support to watch; a break below it could bring selling pressure.

• BlackRock, Inc. stock is overlooked, as most market participants have yet to recognize the firm’s recent inflection points.
• The firm’s base rates improved in Q1, which we think will continue into late 2023 and early 2024.
• However, we still back BlackRock’s stock to succeed.

• Agnico Eagle Mines has outperformed the S&P 500 and gold on an absolute basis.
• Agnico’s business fundamentals remain strong, in spite of market-wide headwinds and more aggressive business expansion.
• Short-term volatility due to outside factors is to be expected, but AgnICO’s business fundamental remains strong.

• After the market close on 20 June, Doosan Enerbility announced that it will sell 5 million shares of Doosan Bobcat through a block deal worth about 300 billion won.
• The block deal price range is from 54,800 won to 56,200 won, which represents a discount range from 6.18% to 8.51% (versus current price).
• We have a negative view of Doosan Bobcat block deal as we expect lower share price of Doosan Bobcat in 2H 2023 due to construction sector downturn in North America.

• Elastic managed to exceed analyst expectations in terms of revenue as well as earnings.
• In Q4, total revenue increased by 19% year over year in constant currency, while Elastic Cloud increased by 30% year over year in constant currency.
• The subscription revenue was $256 million, increasing 16% year over year or 18% in constant currency, and made up 91% of the overall revenue.

• Risks such as potential asset impairments, the stock’s volatility, and industry fragmentation persist.
• However, key valuation metrics coupled with our analysis leaves us with the conclusion that Tesla’s stock remains grossly undervalued.
• The company’s price cuts might be phased out by softening material costs, the company says.

• Broadcom delivered a positive result and managed an all-around beat in the last quarter.
• Semiconductor Solutions’ revenue showed an increase, driven by stable growth in core software despite some challenges in the Brocade business.
• They remain confident about their prospects and anticipate continued growth in semiconductor revenue for the upcoming quarter.

• Cooper delivered a solid result and managed an all-around beat in the last quarter.
• CooperSurgical also reported high revenues and achieved ten consecutive quarters of double-digit organic revenue growth, led by their fertility business.
• In addition to the strong financial performance, CooperVision’s new product launches, expanded product ranges, and market-leading flexibility contributed to the positive results.

• Dell Technologies managed to exceed analyst expectations in terms of revenue as well as earnings.
• They also made significant strides in their innovation agenda, introducing new cloud platforms, edge solutions, AI collaborations, and security initiatives.
• We give Dell Technologies a ‘Hold’ rating with a revised target price.

• Guidewire Software delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
• Their third quarter result was highlighted by continuous demand for InsuranceSuite Cloud and ARR and profitability, which exceeded expectations.
• We give Guidewire Software a ‘Hold’ rating with a revised target price.

• Workday managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
• In the quarter, subscription revenue increased by 20% year over year to $1.53 billion.
• Outside of the United States, overall revenue was $420 million, which represents 25% of total sales.

• Zscaler managed to exceed analyst expectations in terms of revenue as well as earnings.
• The company’s disciplined approach, high gross retention rates, and high operating income contributed to its success.
• We give Zscaler a ‘Hold’ rating with a revised target price.

• Hormel Foods Corporation delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
• The company made progress in rectifying inefficiencies and plans to responsibly manage and lower inventory levels in the future despite the margin impact from inventory adjustments.
• We give Hormel Foods Corporation a ‘Hold’ rating with a revised target price.

• During the weekend, I asked my twitter followers: What do you think Facebook’s DAU to MAU ratio was in 2009?
• The number that got the highest votes was ~80% even though I mentioned the most recent number was ~68%.
• I asked this question a couple of friends in real life too and they too picked the ~80% number.

• El Nino is here (like we forecasted) S&P Global highlighted some facts regarding the effects of the weather phenomenon on crop yields.
• I found the following chart about soybean yields quite interesting and also important going forward.
• Makes one think how sustainable last week’s price surge in beans actually is!!! El Nino tends to be good for soybean yields in Argentina and Brazil but also in the US.

• Last week, there was a possible attempt to depeg Tether (USDT), the world’s largest stablecoin.
• The company has since claimed the destabilization was caused by manipulation ahead of a big documents release, which shed new light on the firm’s banking relationships and commercial paper exposure. 
• While the facts remain blurry, the selling started a few days before USDT dipped to as low as $.995 on both centralized and decentralized exchanges, suggesting some holders may have had advanced warning of the release. 

• Human beings are engineers. Our historical narrative is marked by our constant ability to control our environment through innovative strides known as technology.
• Typically, our most significant collective progress is linked with technologies that enhance our capacity to distribute information and foster trust.
• Consider the societal transformation that occurred after the invention of the printing press. It was not just about more books – the dissemination of knowledge it facilitated catalysed the Scientific Revolution, forever altering our understanding of the world. 

• The pandemic triggered a surge in e-commerce, prompting a scramble for innovative delivery solutions.
• Amongst this evolution, the need for sustainable packaging emerged as a priority for companies aiming to reduce industrial emissions.
• Ranpak Holdings, a provider of eco-friendly packaging, thrived amidst this landscape, capitalizing on pandemic-driven growth.

• Explosive SPX upside is a result of funds having to chase as most have not participated in the rise above 4,200. 
• Our 4,500 target may need to be upgraded with a fresh projection at 4,547. Bull energy slated to extend into late June and like buying dips.
• Will A and H shares be the next rotation flavor? HSCEI 6,600 bull pivot. A50 13,200 resistance.

• Revenue: Digital Media net new ARR $470 Mn ($50 mn higher than guide).

• Gross Margin: Digital Media gross margin remains steady at ~96%, but Digital Experience posted its highest ever gross margin of 67.3% in 2Q’23.

• Cost Structure: 2Q’23 GAAP operating margin was 33.7%, down from 34.9% in 2Q’22.

• First of all, Apple is the most valuable company on the planet with a $2.8 trillion market capitalisation and eying for the whooping $3 trillion: +41% in 2023 alone.
• And that equates to a total return in the last 10 years of a whooping 1,266%! Note also it was not a smooth run with some big drawdowns which even they had: 2016: 32%, 2019: 39%
• Key take-away: business ownership vs stock ticker mentality is key …

• Ralph Lauren delivered an all-around beat in the previous quarter.
• In the fourth quarter, the company’s total revenues climbed 9% in constant currency, driven mostly by double-digit growth in Asia.
• Mid-single-digit revenue declines in constant currency were seen in their digital environment.

• While CeFi liquidity has been on a gradual decline this year, which will be the main focus of this article, DeFi is facing a liquidity crisis of sorts in the last few days as one of the most liquid pools in the space becomes heavily imbalanced, so we’ll start there.
• After the latest round of fears surrounding Tether, the 3pool moved to a weight of 75% Tether in the last day, as users rushed out of crypto’s largest stablecoin at once.
• This resulted in Tether depegging to a price of $0.996. This is the most imbalanced the Curve pool has been this year.

• Burlington Stores delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
• Comparable store sales increased by 4%, while overall sales increased by 11% during the quarter.
• Product sourcing costs increased by 60 basis points as a percentage of sales.

• Dollar Tree delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings.
• Both the Dollar Tree and Family Dollar sectors had good top-line growth.
• At Family Dollar and Dollar Tree, in-stock positions improved by 200 basis points and 400 basis points, respectively.

• ECVT has experienced a series of block trades over the past year after its largest shareholder decided to liquidate its position.
• The block sales overshadow the second quarter that is expected to show a rebound in ECVT’s ecoservices
• For second quarter 2023 we are raising our sales and adjusted EBITDA estimate

Immix Biopharma has completed its $5.0m at-the-market (ATM) offering program. The funding is as a result of the initial share sales agreement in March 2023 and is anticipated to further support Immix’s pipeline activities with the development of its key assets: the CAR-T treatment, NXC-201, and the tissue-specific therapeutic, IMX-110. We view the ATM offering as a positive, especially in light of the current macro funding environment for biotech companies.

• Kimberly-Clark’s disappointing performance in recent years is hardly a surprise and does not make the company a bargain.
• The short-term perspective on margins remains mixed, in spite of the management’s optimism.
• KMB could no longer support these activities, according to the company’s management.

• Cirrus Aircraft (0153126D US) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC.
• Cirrus Aircraft designs, develops, manufactures, and sells premium aircrafts. Its two aircraft product lines, the SR2X Series and the Vision Jet, are currently certified and validated in over 60 countries. 
• According to F&S, the SR2X Series aircraft represented 46.3% of the market share in the fixed tricycle gear certified piston aircraft segment based on delivered units in 2022. 

• Hello from Kyoto! If there was a single big story from VLSI this year, it had to be Backside Power Delivery (BSPDN). VLSI is one of the premier conferences for semiconductor design and has been held since the 1980s.
• Today it’s one of the best places to present cutting-edge research in circuit technology.
• The key revolutionary announcement at VLSI this year was BSPDN. Let’s discuss.

• New Twitter CEO is only days into her new job and there already are warning signs she and Musk are bound to clash.
• Musk demonstrates he’s not interested in anyone else actually running Twitter or making it safe for key advertisers or even breakeven.
• Bad news for all of Twitter’s stakeholders, including its wary bankers still unable to offload to investors a refi of its crushing debt.

• This is our first report on ASP Isotopes and we look to provide a detailed account of the various assets owned by the company and the drivers that will be responsible for the company’s growth in the coming years.
• ASP Isotopes’ proprietary isotope enrichment technology should enable the company to produce many of these isotopes, as shown in the diagram below.
• When combined with the company’s second manufacturing plant, scheduled to start production during 2H 2023, ASP Isotopes should generate substantial free cash flow during 2024.

• The S&P 500 has marginally surpassed the 4300-4325 area which we have anticipated would cap upside for 2023. 
• As noted in our 6/6/23 Compass, we are vigilant at these levels given we expect inflation to remain elevated, but we cannot be bearishif the SPX is above 4165-4200
• Breadth has continued to improve within the Russell 2000, and the $IWM is approaching our first target of $190 following the breakout above $180. Also see breadth improving within SPX.

• The SPDR® S&P 500 ETF Trust is primed to receive support from lower implied risk premiums amid an interest rate slowdown from the Federal Reserve.
• However, a broad-based analysis suggests that the S&R 500 and the SPDR S &P 500ETF Trust are potentially undervalued.
• The S&P 500’s (SP500) year-to-date surge might have surprised many, as the talk of the town at the turn of the year was geared toward a sustained market drawdown until an interest rate pivot occurred.