In today’s briefing:
- Apple Inc (AAPL US): $43bn Passive Buying Driven by Berkshire Selling & Market Consultation
- Apple (AAPL): Berkshire’s Sell-Off Triggers $37bn Demand from S&P 500
- Copper Tracker August 19th, 2024: Markets Volatile, Accumulate Good Copper Names On Weakness
- Trex Company: How Are They Executing Market Expansion and Penetration? – Major Drivers
- Sunrun Inc.: Adopting A Strategic Approach to Market Expansion and Customer Acquisition! – Major Drivers
- Ingredion Incorporated: Will They Survive The Risk of Market Saturation in Texturizing and Healthful Solutions? – Major Drivers
- Inter Parfums Inc.: Will The Management’s Enhanced E-commerce & Digital Strategy Yield Dividends? – Major Drivers
- Lumen Technologies: Exploitation Of Digital Infrastructure Capabilities & Other Major Drivers
- The Mosaic Company: Enhanced Potash & Phosphate Projections & Their Expected Impact On The Top-Line! – Major Drivers
- nVent Electric plc: Expanded Electrification Capabilities With The Acquisition Of Trachte! – Major Drivers
Apple Inc (AAPL US): $43bn Passive Buying Driven by Berkshire Selling & Market Consultation
- Berkshire Hathaway Inc Cl B (BRK/B US) held over 5% of Apple (AAPL US). Nearly half of that was sold in the June quarter to take the holding to 2.63%.
- Berkshire’s selling should result in an increase in Apple (AAPL US)‘s free float in the S&P 500 INDEX (SPX INDEX) and other related indices.
- There will also be large buying in Apple (AAPL US) from the Technology Select Sector SPDR (XLK US) ETF if the proposals in the market consultation are implemented.
Apple (AAPL): Berkshire’s Sell-Off Triggers $37bn Demand from S&P 500
- Free float is forecasted to increase from ~94% to 100% in S&P 500 and other US and Global indices after Berkshire halved its stake in Apple (AAPL US) .
- Forecasted demand from S&P 500 and S&P TMI is 164.2m shares, $37.1bn and 3.0 ADV at the close of 20 September 2024.
- Materialization of the free float increase is uncertain due to debatable strategic shareholder classification. ETF ratios and current free float improve the confidence of the forecast.
Copper Tracker August 19th, 2024: Markets Volatile, Accumulate Good Copper Names On Weakness
- With increasing market volatility, base metals continue their rocky weekly performance. Copper is up marginally, taking it past 9000 USD/ton.
- Copper inventories continue to pile at the exchanges, with ~500k tons combined at Comex, LME, and Shanghai, up almost 7% in the last two weeks.
- We believe accumulating names like Southern Copper (SCCO US) and Ivanhoe Mines (IVN CN) with good long-term fundamentals is a great strategy.
Trex Company: How Are They Executing Market Expansion and Penetration? – Major Drivers
- Trex Company Inc., a leading manufacturer of wood-alternative decking and railing, reported mixed results for its second quarter of 2024.
- The financial performance showcased both strengths and challenges primarily influenced by changing consumer behavior and varying demand across product lines.
- On the positive side, Trex experienced robust demand for its high-end products, with double-digit growth in the sell-through of premium offerings like Trex Transcend Lineage decking and Trex Signature lines.
Sunrun Inc.: Adopting A Strategic Approach to Market Expansion and Customer Acquisition! – Major Drivers
- Sunrun Inc.’s second quarter 2024 earnings displayed a strategic dedication to a storage-first approach, reflective of broader transitions and consumer preferences within the solar power industry.
- The company achieved significant progress toward their goal of becoming the trusted provider of renewable energy solutions across America.
- This focus has led to record storage installation rates and a robust increase in customer growth, specifically in adding battery systems to existing setups.
Ingredion Incorporated: Will They Survive The Risk of Market Saturation in Texturizing and Healthful Solutions? – Major Drivers
- Ingredion Incorporated reported second-quarter 2024 earnings that surpassed expectations, highlighting a robust recovery in volumes and significant growth in profitability.
- Adjusted operating income saw an 8% increase while gross margins expanded by 240 basis points, despite a 9% reduction in sales mainly attributable to lower raw material costs and a previous divestiture in South Korea.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Inter Parfums Inc.: Will The Management’s Enhanced E-commerce & Digital Strategy Yield Dividends? – Major Drivers
- Inter Parfums’ second quarter earnings for 2024 provides a comprehensive update on the company’s performance and strategic direction in the fragrance market.
- CEO Jean Madar discussed the strategic product launches and collaborations with notable brand ambassadors such as John Legend, Victoria Song, and Jayson Tatum, aimed at leveraging celebrity influence to enhance brand value and appeal, particularly among younger demographics.
- The introduction of John Legend as the face of Montblanc Legend and the continuation of partnerships like those with Victoria Song for Jimmy Choo highlight the company’s effort to marry traditional and modern advertising tactics.
Lumen Technologies: Exploitation Of Digital Infrastructure Capabilities & Other Major Drivers
- Lumen Technologies provided a comprehensive overview of their strategic advances and financial performance in their latest quarterly earnings call.
- The discussion revealed a company at a pivotal juncture, keen on leveraging emerging technologies and enhancing infrastructure to bolster its market position.
- However, like any transformation of this magnitude, the journey involves both potential and challenges.
The Mosaic Company: Enhanced Potash & Phosphate Projections & Their Expected Impact On The Top-Line! – Major Drivers
- The Mosaic Company’s second quarter 2024 earnings were a mixed set of results amidst striving for strategic and operational enhancements during a challenging operational backdrop.
- The company reported an adjusted EBITDA of $584 million and revenues of $2.8 billion, which, when compared with the previous year’s $744 million EBITDA and $3.4 billion in revenues, marked a noticeable decrease.
- This decline is reflective of the tougher conditions in the market yet shows resilience given the macroeconomic pressures and fluctuating demand patterns across different geographies.
nVent Electric plc: Expanded Electrification Capabilities With The Acquisition Of Trachte! – Major Drivers
- NVT’s Q2 2024 earnings reveal a company in the midst of significant operational and strategic transitions.
- Their decision to divest the Thermal Management business and the recent acquisition of Trachte aligns with their goal of focusing on high-growth areas like electrical connection and protection, which plays into broader industry trends of electrification and digitalization.
- This strategic repositioning appears geared towards capitalizing on sectoral shifts and enhancing long-term growth prospects.
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