In today’s briefing:
- Greentree Hospitality
- TLT: Higher Rates For Longer Appears Less Likely Following The SVB Collapse
- Goldman Sachs: Critical Risks Assessed
- Colgate-Palmolive: Well-Positioned For The Future, But I Wouldn’t Hold My Breath
- Advance Auto Parts Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- Rockwell Automation Inc.: Initiation of Coverage – Logix & Other Innovations
- W.W. Grainger Inc.: Initiation of Coverage – Business Strategy & Key Drivers
Greentree Hospitality
- Greentree Hospitality (GHG) is a Chinese hotel franchiser and operator that trades at a large discount to other US traded peers and had some rumours floating around in 2022 that it would be taken private by its controlling shareholder who owns 88.7% economic interest in the shares.
- The controlling shareholder also indicated that the reason for its late Q1 2021 report was that they had hired capital market consultants to explore a take-private offer.
- It does have some hair on it, but let’s first focus on the positives
TLT: Higher Rates For Longer Appears Less Likely Following The SVB Collapse
- Market participants are re-repricing risk, says iShares 20+ Year Treasury Bond ETF.
- Policymakers are in a tough spot where they need to combat inflation while also providing liquidity for the banking sector.
- iShares are once again in the spotlight as market participants are Re-re pricing risk.
Goldman Sachs: Critical Risks Assessed
- Despite its robust asset base, a structural break in the economy might tilt The Goldman Sachs Group, Inc.’s fortunes.
- The “bird in hand” dividend theory might phase out some of Goldman’s pro-cyclical risk.
- However, a scenario analysis paints an unsightly appearance.
Colgate-Palmolive: Well-Positioned For The Future, But I Wouldn’t Hold My Breath
- Colgate’s management seems to be making the right moves in pet food, but performance would need to improve in other segments as well.
- Upside appears limited in the short-run and I will be looking for more evidence that management could deliver higher gross margins, I am cautiously optimistic that Colgate will deliver better results in 2023.
- Performance of Colgate-Palmolive (NYSE:CL) in recent years could hardly be described as success.
Advance Auto Parts Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Advance Auto Parts, a leading provider of automotive aftermarket parts in the U.S.
- Advance Auto Parts had a difficult year in 2022 though it did manage to improve its top-line results in the fourth quarter and managed an all-around beat.
- Mid-single-digit comp sales growth in DIY multichannel dominated the fourth quarter.
Rockwell Automation Inc.: Initiation of Coverage – Logix & Other Innovations
- This is our first report on Rockwell Automation, a major provider of digital transformation and industrial automation solutions across the globe.
- Rockwell Automation produced an all-around beat in its last result as organic sales and earnings both exceeded market expectations and increased year over year.
- In a very dynamic supply chain environment, organic sales were 10% higher than they had been the previous year.
W.W. Grainger Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on W.W.
- Grainger, Inc., a global distributor of MRO materials and other related products and services.
- The company delivered an all-around beat for the final quarter of 2022 with a sales growth was 13.2% or 17.2% on a daily constant currency basis and solid growth in both segments.
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