In today’s briefing:
- A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal
- Monthly Container Shipping Tracker | Rates Stable | Fuel (Barely) Lower Y/Y | (September 2023)
- Caterpillar Inc.: North America’s Construction Boom: How Caterpillar Is Capitalizing on It! – Major Drivers
- AMETEK Inc.: Recent Acquisition Could Skyrocket Its Growth! – Major Drivers
- Odyssey Marine Exploration, Inc. – Minerals for the Future
- PACCAR Inc.: Road to Dominance: Profits
- Trex Company Inc.: Innovating Beyond Traditional Decking Boundaries! – Major Drivers
A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal
- We need to focus on the top 2 candidates among the Mid→Large candidates in the screening table mentioned above and the bottom 4 candidates among the Large→Mid candidates.
- Since they are relatively far from the borderline, there is a significant likelihood that their classification will change. So, flow trading timing on these candidates could be brought forward.
- Monitoring Doosan Robotics’s market cap potentially nearing ₩3T and keeping an eye on the listing date of Ecopro Materials, we should make changes to the Mid→Large candidates from early December.
Monthly Container Shipping Tracker | Rates Stable | Fuel (Barely) Lower Y/Y | (September 2023)
- Our index suggests pricing momentum remains depressed, but stable in Q3; fuel prices have begun to rise from Q2 lows, but probably don’t offer much lift to earnings now
- We looked at intra-Asian carrier TS Lines (which applied to list its shares in Hong Kong in April) and provided a quick update on market conditions in the Intra-Asian trade
- Shares of a few container shipping companies — including Evergreen Marine of Taiwan — have performed well YTD in 2023; we remain positive on the sector’s medium-term outlook
Caterpillar Inc.: North America’s Construction Boom: How Caterpillar Is Capitalizing on It! – Major Drivers
- Caterpillar managed to exceed analyst expectations in terms of revenue as well as earnings, with sales and revenues soaring by 22%, primarily driven by increased sales volume and price realization.
- This remarkable growth extended across all three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, with sales to users registering a substantial 16% increase year-over-year.
- Energy & Transportation also witnessed a remarkable increase in sales to users across all applications, including oil and gas, power generation, industrial, and transportation.
AMETEK Inc.: Recent Acquisition Could Skyrocket Its Growth! – Major Drivers
- AMETEK Inc. delivered an all-around beat in the most recent quarterly result, characterized by outstanding operational execution and significant results.
- The company achieved strong sales growth, surpassing expectations and setting histories for sales, operating income, operating margins, earnings per share, and EBITDA.
- AMETEK’s Electronic Instruments Group demonstrated exceptional performance with widespread sales growth across divisions, while the Electromechanical Group also reported strong sales growth.
Odyssey Marine Exploration, Inc. – Minerals for the Future
Initiating coverage of Odyssey Marine Exploration (OMEX), a pioneer in deep-ocean exploration that has pivoted away from exploring shipwrecks and is now using the vast experience accumulated over decades of undersea work to discover, validate, and develop subsea deposits rich in critical metals and minerals that are beneficial to society, including polymetallic nodules containing metals critical to battery production and phosphate, an important fertilizer component.
It’s all over but the waiting. Having completed the evidentiary phase and submitted post-hearing briefs in September 2022, OMEX is currently awaiting the decision of a NAFTA tribunal related to its arbitration against Mexico over what it believes was an illegal denial of an environmental permit to develop a phosphate resource located off the western coast of the country.
The potential for an award of monetary damages may exceed $2 billion and can provide longer-term project funding and development opportunities that would be made possible by such an infusion of capital.
PACCAR Inc.: Road to Dominance: Profits
- PACCAR Inc. managed to exceed analyst expectations in terms of revenue and earnings.
- PACCAR Parts reported double-digit revenue growth, accompanied by substantial pretax profit increases.
- PACCAR Financial Services also contributed positively to the company’s strong quarter, benefiting from an excellent portfolio and favorable used truck results.
Trex Company Inc.: Innovating Beyond Traditional Decking Boundaries! – Major Drivers
- Trex Company, Inc. delivered an all-around beat in the previous quarter, demonstrating the durability of customer demand for its goods and the power of the outdoor living market.
- Despite a slight sales dip compared to the significant second quarter of last year, Trex saw mid-single-digit growth in channel sell-through.
- Trex unveiled the Trex Select T-Rail system in the quarter.
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