In today’s briefing:
- Nikkei 225 Sep 2023 PREVIEW – Lasertec, Toshiba, Nitori, Maybe Zozo
- Korean Court Rules Against SM Entertainment From Issuing New Shares to Kakao
- KOSPI Size Indexes Migrants: Official Results & Price Performances So Far
- Lowe’s Companies Inc.: Collaboration With Klein Tools & Other Drivers
- Las Vegas Sands Corp: Major Drivers
- Dollar Tree Inc.: Major Drivers
- Gale-Force Headwinds Rage Against Culp Top Line and Profits
Nikkei 225 Sep 2023 PREVIEW – Lasertec, Toshiba, Nitori, Maybe Zozo
- The March 2023 Nikkei 225 Review was announced Friday. Discussion is in Nikkei 225 March 2023 Review – OLC, JAL, Renesas IN.
- That means a Sep-2023 preview. ADDs: Lasertec (6920), Toshiba (6502), and Nitori (9843). DELETEs: Nippon Sheet Glass (5202), Mitsui E&S (7003), and Matsui Securities (8628).
- Zozo (3092) is a possible alternate add to Toshiba on a sector balance basis if Toshiba’s disposition changes in the interim.
Korean Court Rules Against SM Entertainment From Issuing New Shares to Kakao
- On 3 March, it was announced that a Korean court has ruled against SM Entertainment from issuing new shares and CB to Kakao Corp (035720 KS).
- HYBE’s tender offer period ended on 1 March. It is highly unlikely for HYBE to have successfully completed the tender offer reaching the entire 25% of outstanding shares.
- We maintain our position of a high probability of Kakao initiating its own tender offer of SM Entertainment shares in the coming weeks at about 140,000/150,000 won or more.
KOSPI Size Indexes Migrants: Official Results & Price Performances So Far
- Once again, the profit from Long Short basket trading has also been significant this time. The returns were quite juicy even if the period is shortened to From-February.
- The critical question now is whether the juice remains until the effective date. From what I can see, there is still some juice left.
- This is because it is generally observed that the flow trading window for this event tends to continue beyond the effective date.
Lowe’s Companies Inc.: Collaboration With Klein Tools & Other Drivers
- Lowe’s Companies delivered a mixed set of results in the fourth quarter.
- Another notable category, Paint, saw strong pro-growth driven by its MVPs Pro Paint Rewards and Pro JobSIGHT delivery.
- Among other updates, Lowe’s collaborated with Klein Tools to give Klein Tools a strong presence in the electrical and tool departments of Lowe’s.
Las Vegas Sands Corp: Major Drivers
- Las Vegas Sands delivered a highly disappointing result as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
- The track record in the non-gaming, scale, and diversity makes Las Vegas Sands uniquely position to cater to all the segments of the market.
- We provide the stock of Las Vegas Sands with a ‘Hold’ rating with a revision in the target price.
Dollar Tree Inc.: Major Drivers
- Dollar Tree maintained its momentum in the fourth quarter and delivered an all-around beat.
- Operational income climbed 6.8% to $618.1 million, or 8% of total revenue, and the operating margin fell by 20 basis points.
- Inventory increased by 24.8%, owing mostly to unit growth from early spring 2023 merchandise receipts, Family Dollar combo expansion and new store unit growth, and cost growth from product inflation.
Gale-Force Headwinds Rage Against Culp Top Line and Profits
- After the close Wednesday, Culp reported a 3QFY23 GAAP EPS loss of $0.73 on sales of $52.5 million, both missing our estimates (loss of $0.49, sales of $57 million) and consensus (loss of $0.62 and $54.9 million).
- Adjusted for a restructuring charge, the EPS loss was $0.67.
- Culp continues to confront weak markets in both the Mattress Fabrics (CHF) and Upholstery Fabrics (CUF) segments.
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