In today’s briefing:
- ARM Holdings Limited – The Negatives – Tepid Growth and China JV Issues
- RCI Hospitality Holdings, Inc. – Solid 3Q Results
- Crypto Selloff: What now?
- Cleveland-Cliffs: Consolidation At Any Cost Comes With Strings Attached
- Tecnoglass: Massive Backlog Supported By Operational Efficiency
ARM Holdings Limited – The Negatives – Tepid Growth and China JV Issues
- Softbank Group (9984 JP) aims to raise around US$8-10bn via selling some of its stake in ARM Holdings ’ US IPO.
- ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
- In this note, we talk about the not-so-positive aspects of the deal.
RCI Hospitality Holdings, Inc. – Solid 3Q Results
Summary thesis. RCI reported another solid quarter, slightly exceeding our expectations.
The company is well- positioned for accelerating earnings growth looking out to 2HFY24 and FY25 given the opening of new clubs, Bombshells, and its first casino properties in Central City, CO, as well as our expectation of improving same-store sales (SSS).
With RCI’s industry-leading growth metrics and margins (40%+ for nightclubs), RCI’s valuation remains below peers on both an EV/EBITDA and P/E basis (see page 3 for valuation analysis).
Crypto Selloff: What now?
- The recent 7% drop in Bitcoin’s value coincided with SpaceX’s announcement of selling off its entire $375 million worth of holdings.
- This event highlighted two crucial factors: the lack of liquidity in the market and the end of the bear flag counter-trend rally.
- Additionally, Binance Coin was already showing signs of breaking down, which could decrease the overall crypto market cap.
Cleveland-Cliffs: Consolidation At Any Cost Comes With Strings Attached
- Cleveland-Cliffs is becoming too aggressive in its consolidation goals, says author.
- Cliffs continues to underperform its peers, I outline some important red flags associated with the company’s acquisition spree. I remain sceptical that a deal for U.S.
- Steel would be beneficial for shareholders.
Tecnoglass: Massive Backlog Supported By Operational Efficiency
- Tecnoglass Inc’s backlog of nearly $800 million, paired with a production capacity increase, might contribute to significant growth.
- The company’s single-family offerings are gathering pace amid sound regional targeting by the firm.
- A potential opportunity exists for expansion in Colombia, the firm says.
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