Daily Brief United States: Crowdstrike Holdings , Arlo Technologies Inc, VAALCO Energy, Talen Energy , RCI Hospitality Holdings, BILL Holdings , Tether, Soluna Holdings , Satellos Bioscience , Build A Bear Workshop and more

• Zscaler missed billings estimates and lowered full-year revenue guidance due to extended sales cycles and deal closures delays
• Declining performances in the cybersecurity sector indicate potential underperformance for Crowdstrike
• Author predicts potential significant miss in Crowdstrike’s upcoming earnings based on current trends in the market

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• Anticipate significant downward revision in Arlo Technologies’ long-term revenue guidance
• Management’s lack of transparency regarding key performance indicators may have misled investors
• Initiate a short position before Feb. 29th guidance update to benefit from potential share price decline.

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• VAALCO has brought online four new long (2.75 mile) lateral wells in Canada.
• Three wells delivered IP rates of 500 bbl/d while the fourth well flowed 350 bbl/d for a total production capacity addition of 1.85 mbbl/d.
• This is a good result and compares with individual IP30 oil rates of 374-444 bbl/d achieved at the two wells drilled in 2023.

• TLNE is putting its growing cash balance to use by announcing a Dutch tender buyback of up to $600 million of its stock.
• The Dutch tender establishes our price target of $120 is too low as we look ahead to 2025.
• Our price target of $120 was based on TLNE generating approximately $700 million of adjusted EBITDA in 2024. We are now using our 2025 estimate for our price target

• RICK is the largest strip club operator that also owns the struggling restaurant chain, Bombshells
• Strip clubs in RICK’s targeted locations are generally profitable due to limited competition and high barriers to entry
• Tootsie’s, a club owned by RICK, experienced significant revenue and EBITDA growth since its acquisition in 2007, showcasing the company’s ability to generate attractive returns on acquisitions in the strip club industry

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.

• BILL Holdings shares significantly underperformed in 2024 with shares down ~37% year-to-date versus a 12% gain on the Nasdaq Composite Index.  
• Shares saw sell-off post 3Q’FY24 earnings as results indicated a weak 4Q’FY24 guidance and customer churn while SMBs continue to be pressured by high inflation and interest rates.
• My bear case implies a $31 valuation (vs. prior $25 PT), based on ~2x FY25E EV/Revenue and bear case FY25E revenue of $1368M, representing ~40% downside vs. current levels.

• Recently, we have discussed the significant positive shift in the U.S. regulatory environment for crypto.
• You might be weary of regulatory discussions, but we need to address the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework.
• This framework is set to take full effect on December 30, 2024.

• 214MW of new projects to more than double the existing 75MW in operation and further builds on Soluna’s impressive corporate turnaround.
• In the past year, Soluna has launched its flagship Project Dorothy with both hosting (1A) and propriety mining (1B), moved to more profitable hosting contracts at its 25MW Project Sophie, began diversifying revenue through AI hosting at Project Sophie, and launched a new AI cloud venture and the Helix AI datacenter design.
• In addition, the company has been adjusted EBITDA positive for the past two quarters, while the balance sheet has improved. 

• On May 14, 2024, Satellos Biosciences Inc. (MSCLF) announced financial results for the first quarter of 2024 and provided a business update.
• Satellos is on track to initiate a Phase 1 first-in-human clinical trial of its lead development asset SAT-3247 in mid-2024.
• The company has completed manufacturing bulk quantities of the drug and formulated the first tablets for use in the trial.

• We are reiterating our Buy rating and $41 price target for Build-A-Bear Workshop after the company reported lower than consensus 1Q results, driven by weaker-than-expected online revenue, but reiterated both revenue and pre-tax income guidance for FY24.
• Given the multiple shifts in FY24, the potential for the company to drive material franchised and commercial revenue and what we view as a highly appealing experiential shopping experience, we remain positive on the potential for Build-A-Bear to achieve their guidance for FY24.
• Further, with the company remaining committed to returning capital to shareholders via share repurchases and dividends and maximizing a cash rich, debt-free balance sheet, we view today’s weakness in BBW as an opportunity to invest in one of the strongest (and highest margin) specialty retailers.