Daily Brief United States: Broadcom , Copper, Mattel Inc, Rani Therapeutics Holdings , Talen Energy , White Mountains Insurance, Madison Square Garden Sports Corp., GameStop, Casey’s General Stores, Brunswick Corp and more

• Broadcom’s Strong Q2 Performance: Broadcom’s Q2 revenue surged 43% year-over-year to USD 12.5 billion, driven by AI demand and VMware contributions.
• Dominance in AI ASIC Market: Broadcom holds a 60% market share in AI-specific integrated circuits, serving major clients like Alphabet and Meta.
• Lead up to Stock Split Upside Potential: Mega caps have seen an average 17% outperformance relative to S&P 500 from announcement to actual stock split, signaling sharp upside for Broadcom.

• Southern Copper (SCCO US) in the equity space is the best way to play bullish copper long-term with its long-term (10-year) ROCE of >22% 
• With low-cost production assets in Peru and Mexico, the company has managed EBITDA margins of> 39% across the cycle (last 15 years) and averaging 50%.
• A 100% payout results in a dividend yield of 3.5%. We believe there is a price for everything, and in the event of a 20% correction, it would be attractive.

• Mattel Inc.’s first quarter 2024 financial results reflected a mixed performance, demonstrating resilience in some areas while facing challenges in others.
• The company reported a slight decline in net sales, down 1% both as reported and in constant currency, totaling $810 million for the quarter.
• Despite the dip in sales, Mattel showed considerable strength in profitability metrics.

• Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.
• Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).
• Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.

• TLNE has come under pressure after news of AEP and EXC protesting the power purchase agreement between TLNE and AWS. AEP and EXC are asking for a hearing by FERC
• The process creates a headwind for TLNE and the timing of when, or if, the remaining $300M would be released in TLNE’s agreement with AWS.  
• The signal AEP and EXC are sending supports the long-term view on power supply. The power being diverted to AWS would put greater stress on the regulated power companies

• White Mountains Insurance Group, LTD was founded by Byrne in Bermuda
• The company has shown consistent growth in book value and stock price, with an average annual return of around 10% since 2001
• WTM operates as a smaller version of Berkshire Hathaway, with a market cap of $4.55 billion and a focus on prudent acquisitions and management

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Madison Square Garden Sports Corp. has recently shared its fiscal 2024 second quarter results, offering a mix of solid strengths and areas for cautious observation.
• The company reported revenues of approximately $327 million and an adjusted operating income of $37 million for the quarter.
• This reflects a dynamic scenario where, despite 9 fewer Knicks and Rangers home games comparative to the prior year, per game revenues across the majority of categories including tickets, suites, food, beverage, and merchandise increased, indicating robust per unit profitability and consumer spending resilienc 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.

• GameStop has exhibited a transformative rebound in the challenging retail sector environment over the recent years.
• The efforts to reshape its operational and financial structures have manifested into some noticeable improvements in its financial health and operational strategy, as detailed in recent company reviews.
• GameStop management has successfully navigated through burdensome debt, strained vendor relationships, and a dwindling cash position that marked the beginning of 2021.

• Casey’s General Stores recently reported results for the fiscal fourth quarter and full year of 2024, showcasing robust performance with a range of strategic expansions and operational enhancements that underscore the company’s resilience and proactivity in a volatile retail environment.
• Positive outcomes were plentiful in the report.
• Casey’s notably achieved a record diluted earnings per share at $13.43, a 13% increase year-over-year, with net income also hitting a new high at $502 million.

• Brunswick Corporation reported a solid first quarter for 2024, consistent with its projections despite ongoing economic uncertainties and a cautious consumer environment.
• The company acknowledged the robust market share gains, especially by Mercury Marine in the U.S. outboard retail market, and lauded the positive response to its newly launched products.
• Through effective cost control measures and strategic debt management, Brunswick has maintained a stable financial position.