Category

United States

Dec 01
0

Daily Brief United States: Crowdstrike Holdings Inc, Credit Acceptance, Oracle Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • FY3Q23: If It’s All Macro, Do You Buy the Dip?
  • A Blessing in Disguise
  • Oracle: What To Expect As It Reports Q2 2023 Results

FY3Q23: If It’s All Macro, Do You Buy the Dip?

By Aaron Gabin

  • First ever ARR miss, and big initial guide down on FY2024 ARR growth: low 30s vs. 37% into the Q. Pretty shocking given Crowdstrike’s track record.
  • Macro Macro Macro – deal close times pushed out for SMBs and Enterprise customers reworking timing of deal starts to match opex budgets.
  • Stock is overly punished down 20% and trading at 9x forward sales for a platform consolidator with 30% FCF margins.

A Blessing in Disguise

By Steven Chen

  • We try to stay away from the fool’s errand of forecasting the economy;
  • But often, we notice that high-quality businesses actually benefit from harsh economic conditions in terms of (long-term) shareholder value;
  • We provided an example of a company that we own to illustrate how.

Oracle: What To Expect As It Reports Q2 2023 Results

By Vladimir Dimitrov, CFA

  • Oracle’s share price drop presented a good opportunity for long-term shareholders to average down.
  • Lagging analysts’ sentiment still presents an opportunity for future multiple repricing.
  • Headwinds for profitability will likely be an issue for investors with short-term investment horizons.

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Nov 30
0

Daily Brief United States: Doosan Bobcat Inc, iShares Russell 2000 ETF, Becton Dickinson and Co, Twitter Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Doosan Bobcat Block Deal Sale – Overhang Remains
  • Time to Get Defensive After 1.5-Month Uptrend Breaks; High Yield Spreads Widening Much Like Mid-Aug.
  • Becton Dickinson and Co (BDX US): EO Ruling Is Positive; Strong Base Business to Drive Growth Ahead
  • Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt

Doosan Bobcat Block Deal Sale – Overhang Remains

By Douglas Kim

  • Doosan Bobcat Inc (241560 KS) announced a block deal sale of 5 million shares. representing 5% of outstanding shares.
  • There are three major reasons why we have a negative view of the block deal sale and on Doosan Bobcat. 
  • Two of these reasons include an overhang associated with remaining shares which could be sold as well as a potential downturn in construction markets in North America and Europe. 

Time to Get Defensive After 1.5-Month Uptrend Breaks; High Yield Spreads Widening Much Like Mid-Aug.

By Joe Jasper

  • Since early-October we have discussed our expectation for a bear rally, targeting the 200-day MAs on the $IWM and $SPX; targets were hit (within 0.5% of hitting on SPX).
  • We are now seeing short-term uptrend breaks on the IWM and the DJIA; this is a good time to get defensive and/or take profits, as the 1.5-month rally appears over.
  • We expect more weakness in the weeks ahead, and we cannot rule out another test of the 2022 lows.

Becton Dickinson and Co (BDX US): EO Ruling Is Positive; Strong Base Business to Drive Growth Ahead

By Tina Banerjee

  • Ruling on Ethylene Oxide in favor of Sotera is a positive for all the medical devices companies including Becton Dickinson and Co (BDX US), who have EO sterilization facilities.  
  • In FY22, BD reported strong base business, which grew 6.9% y/y on reported basis. On currency-neutral basis, base business increased 9.4% y/y in FY22, accelerated from 8.1% in FY21.
  • FY22 marks 51st consecutive year of dividend increase for BD, which makes it one of the leading dividend yield stocks. Currently, the stock has a dividend yield of 1.53%.

Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt

By Vicki Bryan

  • Twitter’s banks are stuck with 30% of total US LBO debt unsold debt.
  • The banks already had lost more than $500 million on Twitter’s LBO debt even before the deal closed. They could sell it even at 50-60 cents on the dollar.
  • The trouble with Elon aggressively blowing up Twitter is that it’s banks probably won’t take his calls when Twitter needs more cash—which it probably will in the near future.

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Nov 29
0

Daily Brief United States: Beyond Meat, Twitter Inc, Bitcoin Pro, Natural Gas and more

By | Daily Briefs, United States

In today’s briefing:

  • Solvency Risk Short Candidates: Beyond Meat, Madison Sqr Garden, Trinity, Portillo, Jack in the Box
  • Elon Is “Saving” Twitter To Death
  • Wrapped Assets Under Scrutiny
  • The Commodity Report #79

Solvency Risk Short Candidates: Beyond Meat, Madison Sqr Garden, Trinity, Portillo, Jack in the Box

By Eric Fernandez, CFA

  • This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. 
  • The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized.
  • This week we flag: Beyond Meat, Madison Sqr Garden, Trinity, Portillo, Jack in the Box

Elon Is “Saving” Twitter To Death

By Vicki Bryan

  • New owner Elon Musk is blowing up Twitter in record time by driving away revenue, gutting headcount to levels unable to sustain the platform, and accelerating its legal jeopardy. 
  • With Twitter now hurling toward bankruptcy, it’s also running out of cash as well as places to get it.
  • Too bad Elon also has already has caused hundreds of millions in losses for Twitter’s beleaguered bankers and his fellow equity buyers who he caused to “obviously” overpay. 

Wrapped Assets Under Scrutiny

By Kaiko

  • Price Movements: The stETH discount worsened after a whale withdrew $100m ETH from Curve. 
  • Market Liquidity: BUSD’s market share of volume on centralized exchanges is approaching all time highs. 
  • Derivatives: The ratio of futures to spot volume has experienced a 5x drop, meaning fewer derivatives are being traded relative to spot.

The Commodity Report #79

By The Commodity Report

  • The world economy will be as weak next year as it was in 2009 after the financial crisis as the conflict in Ukraine risks becoming a “forever war,” the Institute of International Finance said.
  • Global growth is expected to slow to 1.2% in 2023, according to the IIF.
  • The slowdown will be led by Europe, which is impacted most by the war, according to the IIF. 

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Nov 28
0

Daily Brief United States: Ethereum, Arko Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • Zero-Knowledge Rollups
  • Convenience is King

Zero-Knowledge Rollups

By Etherbridge

  • Over the past few weeks, we have covered some of the leading projects trying to help Ethereum scale, including Polygon, Optimism and Arbitrum.
  • Optimism and Arbitrum have used optimistic rollups as a scaling solution, while Polygon has taken a broader approach and allows developers to choose which solution suits them best.
  • Yet, they are all exploring how they could use Zero-knowledge rollups (ZK-rollups) to scale Ethereum in one form or another. 

Convenience is King

By subSPAC

  • Companies that went public through SPACs in 2020 and 2021 have struggled this year due to inflation and, most recently, a weakening economy.
  • SPACs have gotten a bad reputation for making unproven, unprofitable companies public, ultimately leading to a majority underperforming the broader market and a few even going out of business soon after their debut.
  • However, SPACs have also taken established companies public, like convenience store chain operator Arko, which has relatively fared better.

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Nov 25
0

Daily Brief United States: Revolution Medicines, Skyworks Solutions, VMware Inc Class A, Rpm International, Lattice Semiconductor, Packaging Corporation of America, Bitcoin and more

By | Daily Briefs, United States

In today’s briefing:

  • 2023 High Conviction: Revolution Medicines – Cracking The KRAS In Cancer
  • Skyworks Solutions Inc.: Initiation of Coverage – Business Strategy & Key Drivers
  • Skyworks Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • MergerTalk:Why Broadcom’s Pursuit of VMware Will Fare Better Than Nvidia’s Doomed Bid For ARM
  • RPM International Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • Lattice Semiconductor Corporation: Initiation of Coverage – Strong Macro & Other Drivers
  • Packaging Corporation of America: Detailed Credit Analysis & Financial Strength Evaluation Report
  • How to Manage Risk in Crypto

2023 High Conviction: Revolution Medicines – Cracking The KRAS In Cancer

By Andrei Zakharov

  • Revolution Medicines (RVMD US)  is focused on therapies to inhibit frontier targets in RAS-addicted cancers. The company’s pipeline is among the strongest in small-cap biotech. 
  • We expect Revolution Medicines shares to outperform the market over the next 12 months as solid performance from the RAS(ON) inhibitor pipeline and oral inhibitor of SHP2 continues. 
  • Investors gain confidence in the rest of the RAS(ON) inhibitor pipeline, including RMC-6291, RMC-6236, and RMC-5552. Management will provide topline data from RMC-4630-03 in 2H 2023. 

Skyworks Solutions Inc.: Initiation of Coverage – Business Strategy & Key Drivers

By Baptista Research

  • This is our first report on Skyworks, one of the leading suppliers of radio frequency (RF) components to the electronics industry.
  • The company delivered another all-around beat in the last quarter driven by its diversified portfolio and expanding set of customers.
  • Furthermore, the management delivered strong earnings in the automotive industry, with revenue strength emphasizing their connectivity and power isolation portfolio.

Skyworks Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • Skyworks Solutions is a major supplier in the field of radio frequency (RF) components.
  • The company has been performing well financially off-late with its growth driven by its diversified portfolio and expanding set of customers.
  • Furthermore, the management delivered strong earnings in the automotive industry, with revenue strength emphasizing their connectivity and power isolation portfolio.

MergerTalk:Why Broadcom’s Pursuit of VMware Will Fare Better Than Nvidia’s Doomed Bid For ARM

By Robert Sassoon

  • While the size of the $61BN Broadcom/VMware deal has naturally attracted the scrutiny of regulators, the transaction’s regulatory obstacles are far less  onerous than the failed Nvidia/Arm deal
  • Timing risk is a consideration as we can expect a protracted review process 
  • If the regulatory review timeline  does not stretch too far beyond  the end 2023, there are still decent IRRs to be earned by arbs

RPM International Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • RPM International is a well-known specialty chemicals company and has been performing well financially off-late as per its recent results.
  • As the company increased its market share, concrete mix and repair products have also experienced good growth in recent times.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Lattice Semiconductor Corporation: Initiation of Coverage – Strong Macro & Other Drivers

By Baptista Research

  • This is our first report on Lattice Semiconductor.
  • The company delivered impressive results in the third quarter, with an all-around beat and a quarterly revenue growth of 31% year over year.
  • Overall, we initiate coverage on the stock of Lattice Semiconductor Corporation with a ‘Hold’ rating.

Packaging Corporation of America: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • Packaging Corporation of America (PCA) is a leading manufacturer of containerboard and corrugated packaging products in the U.S.
  • The company has had a decent financial performance despite supply chain issues and continues to receive good realizations from the implementation of its previously announced increase in price across all product lines, corrugated prices, and domestic containerboard.
  • PCA is also benefiting from its plants and mills through material usage initiatives and process efficiency optimization efforts.

How to Manage Risk in Crypto

By Kaiko

  • We’ve seen enough incidents over the last few months, let alone years, to conclude there is a complete lack of adequate risk management in crypto.
  • Throughout the Terra collapse, crypto credit crisis, and spectacular implosion of FTX we have collectively witnessed the industry’s largest (and most opaque) firms become insolvent in an instant. 
  • This begs the question: where were the basic financial risk controls that are mandatory in any other industry? 

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Nov 24
0

Daily Brief United States: Russell 2000 Index, Oracle Corp, Intl Flavors & Fragrances, Inter Parfums, Blackline Inc, Broadridge Financial Solutions, Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Small- And Mid-Cap Indexes Poised to Break Out?; Further Upside Expected; Buys Within Cyclicals
  • Oracle Corporation (ORCL US): TSS Recommendation Closed After One Week (-4.5%)
  • International Flavors & Fragrances Inc.: Initiation of Coverage – Business Strategy & Other Drivers
  • IPAR: Guidance Removes Overhang
  • BlackLine Inc.: Initiation of Coverage – Customer Attractiveness Scoring & Other Drivers
  • International Flavors & Fragrances Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • Broadridge Financial Solutions Inc.: Initiation of Coverage – Industry Dynamics & Key Drivers
  • Broadridge Financial Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Small- And Mid-Cap Indexes Poised to Break Out?; Further Upside Expected; Buys Within Cyclicals

By Joe Jasper

  • Despite $IWM already hitting our price target at 200-day MA/YTD downtrend, and the $SPX getting to within 1% of our target at 200-day MA, we see this 1.5-month rally continuing.
  • We expect further upside as long as the 1.5-month uptrend channels remain intact on the SPX and IWM, and we believe that breakouts above their 200-day MAs could be coming
  • Breakouts above their 200-day MAs that would likely signal the end to this bear market.

Oracle Corporation (ORCL US): TSS Recommendation Closed After One Week (-4.5%)

By David Coloretti, CMT

  • The development of TSS has been a life’s work. We anticipate a high win / loss ratio and accept than not every recommendation will be profitable. 
  • On 15 November we determined that extreme ST momentum failure would likely deliver a 4.0% to 5.5% decline in ORCL US in 1-2 weeks. 
  • ORCL US failed to deliver, declining only 0.6% before closing 1 week later, on 22 November, 4.5% above our recommendation entry level. This recommendation is now closed.

International Flavors & Fragrances Inc.: Initiation of Coverage – Business Strategy & Other Drivers

By Baptista Research

  • This is our first report on International Flavors and Fragrances (IFF), one of the global market leaders in the production of cosmetic active and natural health ingredients for use in consumer products.
  • The increase in sales in the quarter was driven primarily by double-digit growth in its pharma and nourish solutions divisions.
  • In spite of its volatile market environment, IFF continues to execute its operational priorities for achieving strong bottom and top-line results.

IPAR: Guidance Removes Overhang

By Hamed Khorsand

  • IPAR continues to experience a strong consumer spending environment for fragrances where it has become increasing difficult to have all the components to manufacture a bottle
  • IPAR reported third quarter sales of $280.5 million compared to our original estimate of $275.3 million. The increase in sales was the result of a strong showing from new licenses
  • At the start of 2022, our 2022 EPS forecast was $3.05. It is now $3.40. IPAR’s stock has shown little movement for such an achievement

BlackLine Inc.: Initiation of Coverage – Customer Attractiveness Scoring & Other Drivers

By Baptista Research

  • This is our first report on BlackLine, the renowned cloud-based solutions provider for accounting and financial management operations.
  • The company delivered solid financial results in the last quarter and managed an all-around beat with good growth in revenue.
  • Moreover, continued free cash flow and margin improvement were seen due to further disciplined expense management and operating efficiencies.

International Flavors & Fragrances Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • International Flavors and Fragrances, commonly abbreviated as IFF, is one of the world leaders in the manufacture and distribution of cosmetic active and natural health ingredients for use in consumer products.
  • In spite of its volatile market environment, IFF continues to execute its operational priorities for achieving strong bottom and top-line results.
  • It also continues to progress against its portfolio optimization efforts, having completed successfully the divestiture of its Microbial Control business.

Broadridge Financial Solutions Inc.: Initiation of Coverage – Industry Dynamics & Key Drivers

By Baptista Research

  • This is our first report on Broadridge Financial Solutions, a major investor communications and technology-driven solutions provider for the financial services industry.
  • The company delivered a mixed set of results for the quarter meeting revenue expectations of Wall Street but missing out on earnings.
  • Given their forward testing, Broadridge anticipates steady growth in investor positions throughout the coming two quarters.

Broadridge Financial Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

By Baptista Research

  • Broadridge Financial Solutions is a well-known investor communications and technology-driven solutions provider for the financial services industry.
  • The company has had a decent financial performance in recent times and has seen a continuous expansion in investor positions, notwithstanding the market downturn.
  • Given their forward testing capabilities, Broadridge is confident of seeing steady growth in investor positions in the coming year.

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Nov 23
0

Daily Brief United States: Laser Photonics, Organicell Regenerative Medicine, Save Foods Inc, Sharps Technology and more

By | Daily Briefs, United States

In today’s briefing:

  • Laser Photonics Inc. – Investment Thesis
  • Organicell Regenerative Medicine Inc. – Investment Thesis
  • Save Foods Inc. – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 11/22
  • Sharps Technology – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 11/22

Laser Photonics Inc. – Investment Thesis

By Baptista Research

  • This is our first report on Laser Photonics and we look to provide a detailed account of the various drivers that will be responsible for the company’s growth in the coming years.
  • The revenues of Laser Photonics have more than doubled in the last two years.
  • We believe that there is a good chance the company’s offering may become universally accepted in the years to come.

Organicell Regenerative Medicine Inc. – Investment Thesis

By Baptista Research

  • This is our first report on Organicell and we look to provide a detailed account of the various drivers that will be responsible for the company’s growth in the coming years.
  • Organicell’s drug candidates’ utilization of extracellular vesicles and perinatal-derived nanoparticles, represent the technological revolution of regenerative biologic drug treatments.
  • Overall, we believe that Organicell has phenomenal growth prospects and is an excellent investment prospect.

Save Foods Inc. – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 11/22

By Baptista Research

  • This is our first report on Save Foods and we look to provide a detailed account of the various drivers that will be responsible for the company’s growth in the coming years.
  • Despite catering to a sizable addressable market, Save Foods is currently trading at valuation ratios far lower than its competitors.
  • Baptista Research looks to evaluate the different factors that could influence Save Foods’ price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology to determine a suitable price for the company’s stock.

Sharps Technology – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 11/22

By Baptista Research

  • This is our first report on Sharps Technology and we look to provide a detailed account of the various drivers that will be responsible for the company’s growth in the coming years.
  • As the company starts reporting revenues in 2023, Sharps is expected to see its stock fly.
  • With the Nephron transaction and income generation from the Hungarian facility, this is anticipated to start reporting a positive top-line starting in Q1 2023.

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Nov 22
0

Daily Brief United States: Uniswap, The Walt Disney Co, Copper, Nike, True Velocity Ammunition, DeXe and more

By | Daily Briefs, United States

In today’s briefing:

  • Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap
  • Disney: Could Iger Sell to Apple?
  • Disney Replaces Bob Chapek with Bob Iger – Will The Magic Return at Disney?
  • The Commodity Report #78
  • Sporting Crypto – Nov 21st: Nike Launch Web3 Platform Dot Swoosh
  • Ready, Aim, Fire
  • Markets Dip Lower as FTX Contagion Spreads

Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap

By Edward Wu

  • Despite Centralized exchanges (CEX) being unregulated and opaque in operation, over 90% of crypto transactions happened on CEXs.
  • DeFi exchanges are transparent and impossible for appropriation, but gain market share very slowly due technically difficult of building on blockchain.
  • Uniswap is the largest spot decentralized exchange that stands to benefit from capital relocation from CEX to DEX, Uniswap token is a pure governance token without value capture.

Disney: Could Iger Sell to Apple?

By Aaron Gabin

  • The suprise return of Bob Iger as Disney CEO can fix certain Bob Chapek specific issues: relationships with investors, politicians, and creative types.
  • But Iger faces similar intractable issues: accelerating cord cutting, a transition to a less profitable form of media distribution, and a potential recession.
  • We think Iger will refocus investors on revenues/profits at Disney+ rather than subscribers, will more efficiently spend on content through decentralizing decision making… and potentially sell Disney to Apple.

Disney Replaces Bob Chapek with Bob Iger – Will The Magic Return at Disney?

By Douglas Kim

  • On 21 November, The Walt Disney Co announced that it has replaced the incumbent CEO Bob Chapek with Bob Iger who has successfully headed Disney previously for nearly 15 years.
  • We believe this is a wonderful change and will have a huge impact in turning around Disney’s share price which is down nearly 50% from its peak in March 2021.
  • The previous CEO Bob Chapek did not focus enough on delivery great contents. Rather, the company got involved too much in politics turning off millions of customers. 

The Commodity Report #78

By The Commodity Report

  • The Rabobank issued a research note last week where they forecasted that prices for agricultural commodities like coffee, feed grains and oilseeds could dip next year as many major economies enter recession, but also stated that they will remain high in historical terms.
  • We think the general call is correct, but the timing isn’t. We already see this dip move playing out at the moment.
  • Just take a look at coffee, cotton, oil, or copper. We believe this dip in the long-term cyclical bull market will end towards Q2 of 2022 before the rally in many commodity markets resumes again as demand strikes back.

Sporting Crypto – Nov 21st: Nike Launch Web3 Platform Dot Swoosh

By Sporting Crypto

  • The most successful mainstream brand in Web3 is without a doubt, Nike.
  • That’s mostly thanks to their acquisition of NFT studio RTFKTin late 2021 for an undisclosed fee.
  • Since then, Nike have generated almost $200m in revenue from digital products in primary and secondary sales.

Ready, Aim, Fire

By subSPAC

  • Since the boom in 2020, SPACs have been instrumental in taking high-risk, technologically disruptive companies public.
  • This includes space startups building rockets focused on carrying payloads to space, Quantum Computing firms creating solutions for challenging tasks, and a host of Electric Vehicle Makers looking to challenge Tesla’s crown in building environmentally sound vehicles.
  • Texas-based True Velocity Ammo, which develops and markets composite-case ammunition, aims to disrupt the highly mature ammunition industry on the same scale as these other emerging firms, delivering lighter and more efficient solutions to the public and military.

Markets Dip Lower as FTX Contagion Spreads

By Kaiko

  • Price Movements: DEX tokens have been least impacted by the market collapse while L1 tokens have been the worst performers, led by SOL.
  • Market Liquidity: Uniswap v3 recorded one of its highest volume days ever, although both CEX and DEX volumes have since tumbled.
  • Derivatives: Binance and Bybit captured FTX’s market share of perpetual futures since the exchange collapsed.

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Nov 21
0

Daily Brief United States: S&P 500, Bitcoin and more

By | Daily Briefs, United States

In today’s briefing:

  • SPX 4,100 Top Build Ahead of 3,300
  • The 2022 Crypto Debt Crisis

SPX 4,100 Top Build Ahead of 3,300

By Thomas Schroeder

  • SPX has another tactical leg up within our Q4 bull cycle toward 4,100-200 where a top is expected to form.
  • Lead warning signals are emerging in the RTY relative performance and well-defined rising wedge. NDX trading new key lows is a negative for growth.
  • SPX 4,100 wedge sell zone stands out for a final down leg to 3,300/200, that sets the stage for a macro low a new bull cycle.

The 2022 Crypto Debt Crisis

By Etherbridge

  • Over the past week and a half, we witnessed the unravelling of the $32 billion empire that was FTX and the fall of its “benevolent” leader Sam Bankman-Fried, otherwise known as SBF.
  • This story of overleveraging and outright fraud has formed a part of the bigger crypto debt crisis of 2022.
  • This article will explore how this debt crisis has unfolded and how all parties were closely interlinked. 

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Nov 20
0

Daily Brief United States: Bitcoin, Home Depot Inc, NVIDIA Corp, Cisco Systems, Lowe’s Companies Inc, Target Corp and more

By | Daily Briefs, United States

In today’s briefing:

  • An Arbitrage Opportunity? Evaluating the GBTC Convergence Trade
  • Home Depot Inc: Managing Labor Shortages & Other Developments
  • NVIDIA Corp: New Product Launches & Other Drivers
  • Cisco Systems Inc: Major Drivers
  • Lowe’s Companies: Divestment Of Canadian Retail Operations & Other Drivers
  • Target Corporation: Partnership With Apple & Other Drivers

An Arbitrage Opportunity? Evaluating the GBTC Convergence Trade

By Rose Choy

  • Recent concerns on Genesis’ solvency arose after the broker/dealer halted redemptions on its lending unit and was reportedly looking to raise $1 billion of loans from investors.
  • Contagion fears have extended to Genesis’ parent company, DCG, and its wholly owned Grayscale subsidiary, which has a steady fee generating business via its Bitcoin and ETH trust products.
  • We analyze the potential arbitrage opportunity for the controversial GBTC convergence trade with its 42.7% discount to NAV.

Home Depot Inc: Managing Labor Shortages & Other Developments

By Baptista Research

  • Home Depot delivered another good result and surpassed Wall Street expectations in terms of revenues as well as earnings.
  • The company continued to observe high demand for home renovation projects throughout the third quarter.
  • Sales growth for both Pro and DIY was good, with Pro surpassing DIY.

NVIDIA Corp: New Product Launches & Other Drivers

By Baptista Research

  • NVIDIA Corp delivered a mixed performance as the company’s revenues exceeded the analyst consensus estimate.
  • However, its earnings were below par given the persistent supply chain interruptions, increased export bans, and macroeconomic challenges.
  • Leading U.S. cloud providers and a growing number of consumer Internet companies were the main drivers of year-over-year increases for workloads like big language models, recommendation systems, and generative AI.

Cisco Systems Inc: Major Drivers

By Baptista Research

  • Cisco had a good start to fiscal 2023 and managed to deliver an all-around beat.
  • The management continued their shift to greater software and subscription-based recurring revenue, even as they proactively manage through a developing and complicated market environment.
  • Web-scale orders increased by double digits or more on a trailing 12-month basis for the ninth consecutive quarter.

Lowe’s Companies: Divestment Of Canadian Retail Operations & Other Drivers

By Baptista Research

  • Lowe’s delivered an impressive set of results this quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
  • The company’s Pro business maintained its momentum, resulting from the success of its Pro efforts and the tenacity of the demand for home renovation.
  • Their ongoing focus on productivity and solid sales growth contributed to improved operating performance which ensured the earnings beat.

Target Corporation: Partnership With Apple & Other Drivers

By Baptista Research

  • Target’s third quarter results were a mixed bag as the company’s revenues surpassed Wall Street expectations but it missed out on meeting earnings expectations.
  • Their top-line continues to profit from increases in guest visitation and unit share gains across all of their main categories.
  • While their performance in the third quarter compared favorably with the previous one, the period’s tendencies were very different.

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