In today’s briefing:
- Evolution Gaming: The World’s Largest Casino, Which You Probably Never Heard Of
- Investment Managers Should Seek Ways to Reflect ESG Investing in Their Investment Performance
- Intention to Float Porsche AG: A Good Deal for Porsche Automobile Holding SE
- Campbell Soup Inc: Online Sales As A Key Driver & Other Factors Driving Growth
- Capri Holdings: Digital Momentum & Other Drivers
- Ulta Beauty: The Beauty& Campaign
- Breaking Estimate Short Candidates: Upstart, Cerence, Zillow, Trex
Evolution Gaming: The World’s Largest Casino, Which You Probably Never Heard Of
- Although lesser-known, this Swedish company dominates one of the most lucrative segments of the global casino industry.
- In our view, it is probably the only investable casino company, and despite its size, still has a massive growth runway ahead.
- Our DCF model implies a 15%-20% total return for the company’s long-term shareholders.
Investment Managers Should Seek Ways to Reflect ESG Investing in Their Investment Performance
- The lackluster ESG investing trust performance is the main reason for the sharp decline in new setups, as retail investors tend to trade short term.
- The fact that Japanese companies aren’t leading the world in green practices and are reluctant to disclose their activities are the factors that prevent wash from occurring and being detected.
- While it’s difficult to evaluate ESG investing in short-term-performance, it’s important to pay attention to how management is taking measures to increase corporate value in ESG perspective in particular G.
Intention to Float Porsche AG: A Good Deal for Porsche Automobile Holding SE
- Volkswagen aims for an IPO of Porsche AG (operating company). 25% of preferreds will be placed and 25% of ords sold to Porsche Automobile Holding SE (combined, 25% equity capital).
- Thought a holding chain, the Pïech and Porsche families will directly control 25% of the votes of Porsche AG and 39.975% indirectly (total of 64.975%), with just a 24.275% economic interest.
- Porsche Automobile Holding SE will cover c.30% of the cost of its stake through the extraordinary dividend that Volkswagen will pay. It also gets the ords at a friendly price.
Campbell Soup Inc: Online Sales As A Key Driver & Other Factors Driving Growth
- The demand for Campbell’s portfolio of brands continued to be strong in the last quarter and it was able to match the market’s revenue expectations through its result.
- The company was able to deliver an earnings beat as it enhanced supply chain performance and put into place efficient revenue management to combat inflation.
- Their Win in Soup approach will remain strong in fiscal 2023 largely due to innovation.
Capri Holdings: Digital Momentum & Other Drivers
- Capri has seen a decent performance across all three of its luxury residences and 2022 has been delivering better results than the management had anticipated.
- The company delivered an all-around beat with a revenue of $1.36 billion, which exceeded management and market expectations.
- Fendace combined unique features with classic silhouettes from two renowned Italian luxury brands, Fendi and Versace.
Ulta Beauty: The Beauty& Campaign
- Ulta Beauty performed well in this quarter and delivered an all-around beat.
- Based on point-of-sale statistics from the NPD Group, all key categories for the quarter exceeded its expectations, and they grew their market share in prestige beauty compared to the previous year.
- Haircare, their second-largest category, experienced double-digit growth for another quarter due to newness and excellent participation in their semi-annual Gorgeous Hair Event.
Breaking Estimate Short Candidates: Upstart, Cerence, Zillow, Trex
- This model finds companies facing recent sharp cuts in estimates. These shorts can have very disparate characteristics.
- The key judgement involves whether the negative revisions are temporary or if they are indications of ongoing weakness in the business.
- Breaking Estimates stocks often continue to decline after the cuts. This week we flag: Upstart, Cerence, Zillow, Trex
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