Daily Brief United States: Crude Oil, USD, Gold, Ubiquiti Inc., Deckers Outdoor, NortonLifeLock, Zoetis Inc, Mettler-Toledo International I, Cocoa Futures, PetroTal and more

• Observable crude inventories in key regions have steadily drawn down, reaching 40 million barrels below December levels.
• Global onshore crude inventory is at a record low of 4.4 billion barrels, signaling increased demand.
• Refinery runs and healthy refinery cracks and margins are drawing down on crude inventories, supported by strong gasoline cracks.

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• The increase in news articles mentioning tariff and trade war risks is making it difficult for cyclical currencies like the euro to factor in any potential growth outside of the US.
• US exceptionalism is evident in strong services ISM and relative equity performance, which is leading to the dollar’s dominance in capital flows.
• The Chinese yuan is facing bearish sentiment due to double-digit drawdowns in onshore equity indices, deepening deflation, weak sentiment in the housing market, and limited policy options for policymakers. Outbound travel restrictions during the Chinese New Year season also add to the pressure on the currency. However, there have been some positive signs in financial flows, such as stabilization in equity flows and increased bond purchases by foreigners. Overall, the outlook for the yuan remains bearish.

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• Gold platinum ratio (“GPR”) measures the price of gold relative to platinum. it is affected by recessions, monetary policy, and stock market returns.
• GPR has been rising since 2008, it has outperformed gold and platinum individually since 2006 and other gold spreads (gold-silver, gold-palladium, gold-copper) since 2000. 
• The outlook for both gold and platinum remains uncertain. A bullish view of the GPR looks more favorable.

• Ubiquiti (UI) reported fiscal second quarter (December) results showing sequential improvement in enterprise revenue while service provider remains a headwind for the business
• Ubiquiti introduced several products in the December quarter which started to gain customer traction. There could be momentum in the March quarter as customers become familiar with the new products
• The year over year revenue performance has been challenged with Ubiquiti lapping the initial customer enthusiasm about the Company having product in stock

• This is our first report on global footwear and apparel major, Deckers Outdoor.
• The company saw a strong fiscal third quarter for 2024, but the company did recognize certain risks and uncertainties that could potentially impact future performance.
• Total company revenue saw an increased 16% to reach $1.56 billion, largely thanks to full-price consumer demand.

• Gen Digital, like all businesses, experienced both ups and downs in its third quarter of 2024.
• Their fiscal year marked a tremendous opportunity for consumer cybersafety, with Genesis Digital consistently executing towards their goal.
• They reported cybersafety bookings growing to $1 billion, up by 4%, cybersafety revenue up 3%, and their 18th consecutive quarter of growth.

• Zoetis is the global leader in the animal health industry. It discovers, develops, manufactures and commercializes medicines, vaccines, diagnostic products and services.
• Zoetis counts with over 300 product lines, with 15 of them generating over 100M in annual sales.
• The latter are called blockbusters, and the company holds

Key points (machine generated)

• Mettler-Toledo attracts a wide range of customers, from large corporations to individual researchers, by providing significant value and profitability for the company.
• The company’s business model is highly resilient, as 80% of its revenue comes from recurring sales of consumables, services, and software, ensuring stable cash flow.
• Mettler-Toledo has a strong track record of innovation, developing new products and solutions that address customer needs and industry trends, such as automation and digitization. 

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cocoa Reaches All-Time High – First Time since 1960 A long-held commodity price record has fallen: The price of NY cocoa futures has surged to almost $5,400 a ton, surpassing the $5,379 peak in place since 1977 ( roughly 46 years ago).
• Cocoa was one of the few commodities that hadn’t set a fresh nominal price record in the 2000s.
• The current rally is fuelled by the El Nino weather phenomenon which is causing drier temperatures in West Africa, where three-quarters of the world’s cocoa is produced – this fundamental weather event has now led to a short squeeze situation in the cocoa futures market.

• YE23 1P, 2P and 3P reserves were estimated at 48 mmbbl, 100 mmbbl and 200 mmbbl respectively.
• This represents an increase of 6%, 4% and 19% respectively compared to YE22.
• The YE23 1P and 2P reserves estimates imply a Reserves Replacement Ratio of 150% and 167% during 2023.