Daily Brief Equity Bottom-Up: Global Markets Plummet as Recession Fears and more

• July saw only 114,000 new jobs versus a forecast of 180,000. Unemployment rose to 4.3%, the highest since October 2021. 
• The S&P 500 fell 1.8% and dropped below its 50-day moving average, tech and semiconductor sectors led significant market declines. 
• Implied volatility surged as the S&P 500 saw high put options activity. Analysts expect a potential market rebound later in August.

• Palantir Technologies Inc. provides software solutions for government customers in national security and intelligence
• Facing competition in AI products in the commercial sector, which may affect stock performance
• Company founded in 2003, known for utilizing technology to extract insights from data for government operations, with significant impact on Western society.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Q1 Operating Profit -2% YoY; weaker than analyst consensus; Full year guidance unchanged but risk to the downside
• Key concerns around EU and China remain in Q1. Both regions seeing zero top line growth and heat pumps have cratered 
• The stock price has declined 16% since our last note, underperforming Topix by around 6%. Valuation more supportive

• The 2Q24 revenue was NT$15.3bn, 1.6% QoQ and -14.4% YoY. GM in 2Q24 was 32.3%, -5.8% QQ and -14.3% YoY. OPM in 2Q24 was 22.0%, -16.3% QoQ and -24.1% YoY.
• The widespread adoption of AI-driven electronic devices, along with the onset of the AI-powered device replacement cycle, is likely driving increased demand for peripheral ICs and sensors. 
• With inventory levels gradually depleting and downstream customers ramping up production capacity in 2025, the semiconductor industry is expected to recover in 2H24 and maintain an optimistic outlook for 2025.

• In this update, we analyzed recent NWD’s corporate actions, which show their de-leveraging plan is on track
• NWD, having the highest gearing among HK RE names, will become the biggest beneficiary if Fed starts a new rate cut cycle
• Valuation is compelling.  There is ample upside assuming a bear case scenario.  It is a BUY

• Wacom is a technology company specializing in the development of graphic tablets (pen tablet products), pen displays (display products), and related digital interface solutions.
• Leveraging its high reputation for its branded products, it is expanding in the OEM solutions market.
• Due to changes in market structure driven by demand shifting towards general-purpose tablets and lengthening replacement cycles, Wacom is focused on improving its sales mix and earnings quality by developing a service-centric growth engine. 

• Amid recent market turmoil, we believe that SK Telecom could be a solid blue-chip, defensive Korean stock that could outperform the market in the next 6-12 months.
• SK Telecom reported better than expected profits in 2Q 2024. The company’s sales were 0.5% higher than the consensus and its operating profit was 3.9% higher than the consensus estimates.
• SK Telecom’s shareholder return policy is to return at least 50% of adjusted profit for the year on a consolidated basis.

• The 3Q24 revenue is expected 10.5% higher than 2Q24, but the GM/OPG outlook will be 5.1%/3.6% lower because of pricing adjustments and limited NRE sales .  
• Smartphone’s demand will enter peak season with expected stockpiling for new models. Automotive inventory adjustment is needed due to muted demand.  
• Dividend payout ratio has remained at 80-85% in recent years, with no major changes expected.

• FiscalNote is a legal data and analytics company with a $170 million market cap
• The company provides software and services in the public policy and geopolitical intelligence sector
• FiscalNote generates revenue through recurring subscription services and is seen as a compelling investment opportunity with potential for margin expansion.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Revenue increased by 4.5% YoY to JPY49.7bn, while operating profit decreased by 50.5% YoY to JPY1.9bn.
• Logistics segment revenue was JPY49.0bn (+4.4% YoY) with operating profit of JPY2.4bn (-36.4% YoY).
• Other segment revenue was JPY689mn (+14.1% YoY) with operating profit of JPY94mn (+32.4% YoY).