In today’s briefing:
- Quiddity Leaderboard NIFTY Sep 23: Some Interesting Long-Short Trades
- Rio Tinto: Final Chapter in the Consolidation of Its Mongolian Crown Jewel Oyu Tolgoi
- Freeport-McMoRan Inc: Is The Volumes Expectation For 2023 Too High? – Key Drivers
- SDRL: Aquadrill Numbers Ahead of Q1 Results
- BP p.l.c.: The NewMed Investment & Other Developments
- DuPont de Nemours Inc.: Acquisition Of Spectrum Plastics & Other Key Drivers
Quiddity Leaderboard NIFTY Sep 23: Some Interesting Long-Short Trades
- In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50 and NIFTY 100 indices in the September 2023 rebalance.
- The HDFC Limited (HDFC IN) – HDFC Bank (HDFCB IN) merger could complete earlier than previously expected, triggering intra-review index replacements.
- Separately, I have presented some interesting new trading ideas involving some of the index change candidates, and I discuss the status of pre-existing trade ideas.
Rio Tinto: Final Chapter in the Consolidation of Its Mongolian Crown Jewel Oyu Tolgoi
- Rio Tinto Ltd (RIO AU) last year started the long-awaited simplification of its Oyu Tolgoi ownership via the $3.1 billion purchase of Turquoise Hill Resources (TRQ CN).
- With Oyu Tolgoi having an 80-year mine life and ramping up to become the world’s fourth-largest copper mine the ultimate consolidation of its last remaining minority investment is upon us.
- Entree Resources (ETG CN), where Rio already owns 16%, is the final M&A target to consolidate ownership. With arbitration set for April 2024, the clock is ticking.
Freeport-McMoRan Inc: Is The Volumes Expectation For 2023 Too High? – Key Drivers
- It was a challenging first quarter for Freeport-McMoRan due to disruptions caused by extreme weather conditions and labor shortages.
- The company managed an all-around beat and achieved essentially in-line consolidated unit net cash costs, averaging $1.76 per pound despite lower-than-expected volumes.
- Freeport-McMoRan ended the quarter with $1.3 billion in net debt, and its balance sheet, liquidity, and financial flexibility are in great shape.
SDRL: Aquadrill Numbers Ahead of Q1 Results
- SDRL is scheduled to report first quarter results on May 23, 2023, before the market open and has provided a glimpse to the profitability Aquadrill is operating at
- The Aquadrill fourth quarter results affirm our investment thesis of the profitability the business is operating at with the day rates Aquadrill has secured
- SDRL is the last company of the major drill ship owners to report first quarter results. Peers have shed a positive outlook on the industry and day rate trend
BP p.l.c.: The NewMed Investment & Other Developments
- BP delivered a mixed set of results with revenues below the analyst consensus estimate but managed an earnings beat.
- Underlying earnings were $5 billion for the first quarter, and the company decreased net debt to $21.2 billion.
- Looking ahead, the company remains focused on delivering strong results with good momentum throughout its organization.
DuPont de Nemours Inc.: Acquisition Of Spectrum Plastics & Other Key Drivers
- DuPont de Nemours had a challenging 2023 first quarter as organic revenue declined by 3%, although there was broad demand strength in areas including water, automotive, aerospace, and healthcare.
- DuPont de Nemours recently announced a $1.75 billion definitive agreement to acquire Spectrum, a leading manufacturer of critical components and devices for medical end markets.
- We give DuPont de Nemours, Inc. a ‘Hold’ rating with a revised target price.
💡 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
