In today’s briefing:
- The Energy Cable #29 – A weak USD paving the way for commodities?
- DXY Break Below $101 Suggests Breakouts Likely Coming for Equal-Weight SPX, Dow, and Russell 2000
- RCI Hospitality Holdings, Inc. – Revenues Meet Expectations
- Ally Financial Earnings: 3 Areas To Focus On
The Energy Cable #29 – A weak USD paving the way for commodities?
- Welcome to your weekly maverick energy newsletter from both sides of the pond.
- Stars are starting to align for energy as i) the business cycle seems to be holding up better than feared, ii) the USD is weakening and iii) ongoing supply negative news (prolonged Saudi Arabian supply cut and Russia abandoning the grain deal).
- Time to go long energy?
DXY Break Below $101 Suggests Breakouts Likely Coming for Equal-Weight SPX, Dow, and Russell 2000
- Ever since our 5/30/23 ETF Pathfinder, our view has been that we cannot be bearish unless a key support level breaks (at the time, that was 4050 on the SPX).
- The S&P 500 is now above 4300-4325 — a level that, in January this year, we had anticipated would cap upside for 2023.
- We believe 4300-4325 will act as major support moving forward, and we are bullish as long as the SPX is above 4300; we discussed this in our 7/3/23 ETF Pathfinder.
RCI Hospitality Holdings, Inc. – Revenues Meet Expectations
Multiple Catalysts on the Horizon. Total revenues were essentially in line with our forecast, and we see an attractive runway for growth with at least 10 new locations contributing to revenues through FY24: (1) 4Q23: First full quarter of another Baby Dolls, the reopening of a closed club, and the opening of a new Bombshells, all in Texas; (2) FY24: Opening of two new clubs in Texas, three new Bombshells in Texas and Colorado, and two casinos in Central City, CO. Potential club M&A activity could provide additional upside.
Potential club M&A activity could provide additional upside.
Nightclubs + Bombshells’ sales increased 8.9% Y/Y. On July 11, RCI announced its preliminary revenues for nightclubs and Bombshells.
Ally Financial Earnings: 3 Areas To Focus On
- Ally Financial is about to release its Q2 2023 earnings tomorrow as tightening within the auto loans market continues.
- The deposit mix will be a key area to watch as it will have a major impact on the company’s return on tangible common equity.
- The company is expected to report its second quarter of 2023 on Thursday.
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