In today’s briefing:
- An Arbitrage Opportunity? Evaluating the GBTC Convergence Trade
- Home Depot Inc: Managing Labor Shortages & Other Developments
- NVIDIA Corp: New Product Launches & Other Drivers
- Cisco Systems Inc: Major Drivers
- Lowe’s Companies: Divestment Of Canadian Retail Operations & Other Drivers
- Target Corporation: Partnership With Apple & Other Drivers
An Arbitrage Opportunity? Evaluating the GBTC Convergence Trade
- Recent concerns on Genesis’ solvency arose after the broker/dealer halted redemptions on its lending unit and was reportedly looking to raise $1 billion of loans from investors.
- Contagion fears have extended to Genesis’ parent company, DCG, and its wholly owned Grayscale subsidiary, which has a steady fee generating business via its Bitcoin and ETH trust products.
- We analyze the potential arbitrage opportunity for the controversial GBTC convergence trade with its 42.7% discount to NAV.
Home Depot Inc: Managing Labor Shortages & Other Developments
- Home Depot delivered another good result and surpassed Wall Street expectations in terms of revenues as well as earnings.
- The company continued to observe high demand for home renovation projects throughout the third quarter.
- Sales growth for both Pro and DIY was good, with Pro surpassing DIY.
NVIDIA Corp: New Product Launches & Other Drivers
- NVIDIA Corp delivered a mixed performance as the company’s revenues exceeded the analyst consensus estimate.
- However, its earnings were below par given the persistent supply chain interruptions, increased export bans, and macroeconomic challenges.
- Leading U.S. cloud providers and a growing number of consumer Internet companies were the main drivers of year-over-year increases for workloads like big language models, recommendation systems, and generative AI.
Cisco Systems Inc: Major Drivers
- Cisco had a good start to fiscal 2023 and managed to deliver an all-around beat.
- The management continued their shift to greater software and subscription-based recurring revenue, even as they proactively manage through a developing and complicated market environment.
- Web-scale orders increased by double digits or more on a trailing 12-month basis for the ninth consecutive quarter.
Lowe’s Companies: Divestment Of Canadian Retail Operations & Other Drivers
- Lowe’s delivered an impressive set of results this quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
- The company’s Pro business maintained its momentum, resulting from the success of its Pro efforts and the tenacity of the demand for home renovation.
- Their ongoing focus on productivity and solid sales growth contributed to improved operating performance which ensured the earnings beat.
Target Corporation: Partnership With Apple & Other Drivers
- Target’s third quarter results were a mixed bag as the company’s revenues surpassed Wall Street expectations but it missed out on meeting earnings expectations.
- Their top-line continues to profit from increases in guest visitation and unit share gains across all of their main categories.
- While their performance in the third quarter compared favorably with the previous one, the period’s tendencies were very different.
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