Daily Brief United States: Hollysys Automation Technologies, Amazon.com Inc, Regis Corp, Janus International Group , Meta Platforms (Facebook), Transunion and more

• Back on the 26th January, proxy advisor Glass Lewis issued a report recommending Hollysys Automation (HOLI US) shareholders vote against Ascendent’s merger. Two days later, ISS shared a similar view.
• Both proxy advisors should read HOLI’s latest proxy statements. Negotiating with Dazheng is like something out of the wild west. The Special Committee gave the consortium considerable latitude. 
• Passive investors will follow GL/ISS, which could jeopardize the vote on the 8th Feb. It should not come to this. 

• 1P revenue grew HSD and Amazon’s revenue ex 1P increased by high-teens last quarter.
• Since I continue to rate Amazon retail to be relatively overlooked driver for Amazon, let me start with margin discussions on retail.
• North America’s operating margin bottomed at -2.3% 1Q’22 and has since then increased by more than 800 bps to reach 6.1% in 4Q’23, just shy of the pre-pandemic high of 6.4% in 1Q’19.

• Due to a reallocation of resources, we are terminating coverage of Regis Corporation (RGS).
• Our previous rating, price target and estimates for Regis Corporation (RGS) should no longer be relied upon.
• Historical disclosures will be provided upon request.

Key points (machine generated)

• Janus International Group is a leading manufacturer and provider of self-storage doors and locks, operating in three main sales channels.
• The company is a pioneer in smart lock technology with its Noke wireless solution, giving it a competitive advantage.
• Janus has a strong value proposition due to the high cost of failure of its products, which are considered mission-critical, allowing the company to capture high margins and outpace market growth in a recession-proof industry.

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.

• Take a look at the Facebook’s DAU or MAU number for the last time because Meta will stop reporting them from next quarter.
• Investors usually assume the worst when any important KPI gets deprecated by the company.
• Thankfully, along with Family “Daily Active People” (DAP), Meta will report YoY changes in ad impressions and average price per ad by region.

Key points (machine generated)

• TransUnion has diversified its offerings beyond credit reporting, reducing its sensitivity to the consumer credit cycle.
• The company has a strong competitive advantage and generates high margins and free cash flow.
• Despite a recent decline in share price and a soft Q3 earnings report, the current valuation presents a good entry point for long-term investors.

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.