In today’s briefing:
- Brilliance China (1114 HK): Driving Back Into Passive Portfolios
- Now Is the Time to Seek Ingenuity in Cash Allocation, Not Lament the Decline in Equity Financing
- Procter & Gamble: The Driving Force Behind their Amazing Organic Sales! – Key Drivers
- Mondelez International Inc.: Why They Are Called the Titans of the Snack World! – Key Drivers
- Ford Motor Company: Does It Have Any Kind Of Competitive Edge In This EV Wave? – Key Drivers
- Serve It Up
- Cocoa Market Started Collapsing // Soybean Spreads crash down
Brilliance China (1114 HK): Driving Back Into Passive Portfolios
- Brilliance China Automotive (1114 HK) was deleted from local and global indices following its prolonged trading suspension from April 2021 to September 2022.
- Following the resumption of trading, Brilliance China Automotive (1114 HK) was added to the HSCI in March and subsequently to Southbound Stock Connect.
- The stock should be bought by global passive trackers over the next few months and there should be substantial passive inflows.
Now Is the Time to Seek Ingenuity in Cash Allocation, Not Lament the Decline in Equity Financing
- Companies enjoy the benefits of going public, as a larger market capitalization expands their financing and makes it easier to acquire other companies, without capital raising through equity issuance.
- In a market economy, cash returned to shareholders through share buybacks etc is rationally allocated by investing it in companies that need more funds or are worthy of investment.
- Companies should successfully communicate their strategies for expanding corporate value and how to use cash to do so. More such companies will lead to the expansion of Tokyo market.
Procter & Gamble: The Driving Force Behind their Amazing Organic Sales! – Key Drivers
- Procter & Gamble surpassed the revenue and earnings expectations of Wall Street.
- Growth was widespread across the company’s segments, with organic sales increasing in all ten product categories.
- Fabric Care, Home Care, and Hair Care increased by high single digits, while Skin and Personal Care, Baby Care, Family Care, and Grooming increased by mid-singles.
Mondelez International Inc.: Why They Are Called the Titans of the Snack World! – Key Drivers
- Mondelez International managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- The company managed double-digit organic net revenue growth across each area, good pricing execution, decent profit dollar growth, and carried out considerable brand investments.
- We give Mondelez International a ‘Hold’ rating with a revised target price.
Ford Motor Company: Does It Have Any Kind Of Competitive Edge In This EV Wave? – Key Drivers
- Ford Motor delivered an all-around beat in the previous quarter.
- With over $47 billion in liquidity at the end of the quarter, Ford Motor has sufficient funds for future investments.
- We give Ford Motor Company a ‘Hold’ rating with a revised target price.
Serve It Up
- The delivery market is booming, set to hit a whopping $1 trillion by 2030. And right in the middle of this rush is Serve Robotics.
- Fresh from a new deal with Uber Eats, Serve Robotics has made headlines, revealing plans to go public via a SPAC merger.
- The company’s big plan is to shake up the delivery game by blending AI, robotics, and autonomy
Cocoa Market Started Collapsing // Soybean Spreads crash down
- Cocoa Market Started Collapsing Run-ups in commodity markets tend to be slow but steady but meltdowns on the other hand fast and sharp – a bit comparable with equity markets but definitely more volatile.
- Especially Parabolic advances, like the one in cocoa futures, often end with a sweeping reversal.
- Fortunately, the soybean complex is one we covered intensively during this year.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
