In today’s briefing:
- Ohayo Japan | S&P Slips but Stays Above 5k
- Automotive (NXPI, IFX) Optics (FN, COHR), MKSI, MPWR, ACLS, SLAB, RMBS, ARM
- Furniture/Furnishings Weekly – Earnings from LEG, FLXS, and TPX
- The Highlights – Cannabis News for the Week Ending February 9, 2024
Ohayo Japan | S&P Slips but Stays Above 5k
- S&P slips slightly on Monday after closing above 5,000 for the first time on Friday
- Diamondback Energy +9% after announcing tie-up with Endeavour worth over $50 billion
- Recruit reported Q3 results post close on Friday. US hiring remains in the doldrums, but cost cutting pushes EBITDA above expectations
Automotive (NXPI, IFX) Optics (FN, COHR), MKSI, MPWR, ACLS, SLAB, RMBS, ARM
Welcome to this week’s earnings. My spark notes are the NXPI and IFX did better than I feared, but I continue to be unconstructive on automotive.
Fabrinet and Coherent both achieved good results, but Fabrinet disappointed expectations for Nvidia’s pluggable revenue. Is this a weak read-through? Unlikely. Marvell should have an amazing year if Coherent’s TAM is remotely correct.
MKSI put up the exact results I was looking for, and this continues to be my favorite idea. As WFE increases, inventory builds will happen, and then financial and operational leverage will take care of the rest.
Furniture/Furnishings Weekly – Earnings from LEG, FLXS, and TPX
- Mattress sales and companies tied to the mattress supply chain showed weakness in sales results reported last week.
- After market close on Thursday, supplier Leggett & Platt (LEG) reported 4QFY23 adjusted EPS of $0.26.
- On January 16, management disclosed a massive restructuring plan, causing analysts’ estimates to change before the “print”.
The Highlights – Cannabis News for the Week Ending February 9, 2024
- After five straight positive weeks, we were due for a pullback. The US cannabis MSOS ETF fell 5.68%, while the global YOLO ETF fell 3.95%. YTD, MSOS is +37.37% and YOLO is +20.86%.
- The potential for Schedule III and 280E removal is driving the outperformance of US names. For the week, MSOS had $44.07 million in inflows.
- Ascend (CSE: AAWH, OTCQX: AAWH) gained 11.41% this week and was finally added to the MSOS ETF.
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