Daily Brief United States: Intel Corp, On Semiconductor, Ethereum, Immersion Corporation, Ring Energy Inc, IDEXX Laboratories, Servisfirst Bancshares, Tyson Foods Inc Cl A, Amgen Inc, USD and more

• Investment firms are using Ten East to diversify their personal portfolios.
• Business Breakdowns is a podcast series that explores the history, business models, and competitive advantages of different businesses.
• Todd Austin, CIO of Parnassus Investments, discusses Intel’s fall from its iconic status and the factors that contributed to it.

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• ON Semiconductor concluded the fourth quarter in 2023 with remarkable achievements depicted by its transformation and ability to mitigate headwinds in challenging market conditions.
• The quarter delivered non-GAAP gross margins of 46.7%, surpassing previous expectations.
• Though utilization shrank to 66%, the gross margin reflects significant structural adjustments made over the past three years.

• It has been just over a month since the first Bitcoin spot ETFs hit the market on January 11th.
• The initial weeks saw a slow start in terms of net inflow into these ETFs, mainly because investments into the two Bitcoin ETF titans from BlackRock’s iShares and Fidelity were lower than expected.
• This situation was made worse by the significant outflow from Grayscale’s Bitcoin Trust ETF.

• Immersion (IMMR) reached a licensing settlement with Meta Platforms (META) resulting in a payment of $17.5 million to IMMR
• The initial response to the announcement is likely due to investors’ high expectations based on META’s significant market capitalization and the anticipated scale of returns
• As a result of the cash received, we estimate IMMR to have approximately $6.20 per share in cash and securities, without consideration for fourth quarter of 2023

• Ring’s 4Q23 production averaged ~19,400 BOE/d, near the high end of management’s 18,900-19,500 BOE/d guidance range.
• Average production increased 11% from 3Q23, reflecting the full-quarter inclusion of  volumes acquired in the Founders acquisition, which closed in August 2023, and from volumes added from the completion of the 2023 development program in the quarter.
• Management expects 1Q24 production to average 18,000-18,500 BOE/d. 1Q24 volumes were adversely affected by winter weather disruptions in January, which deferred ~1,900 BOE/d for 10 days and natural declines from wells completed during 2H23.

• In 2023, IDEXX Laboratories posted strong quarterly and annual results.
• The company reported an 8% organic revenue increase in Q4, largely driven by gains in CAG Diagnostic recurring revenues.
• Operating profits also rose 8% as reported, with a 10% increase on a comparable basis, aided by robust gross margin gains and OpEx leverage.

Key points

• ServisFirst, an Alabama bank, is observing strong loan and deposit growth, despite a temporary decrease in net interest margin.
• The bank is expected to achieve sustainable 20-25% return on equity within the next two years, thereby expanding profitability.
• ServisFirst is the leading local bank for privately owned businesses in Alabama, with impressive organic core deposit growth and comparable net interest margins. Additionally, its balance sheet is strong, and its financial forecast predicts further expansion in multiples and profitability.

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.

• The Q1 2024 financial results from Tyson Foods demonstrated a positive beginning to the fiscal year.
• The $175 million improvement in adjusted operating income and near doubling of adjusted EPS on a sequential basis showcases momentum for the firm.
• Chicken and pork served as offset points to beef headwinds while the prepared foods division continued to generate strong profit and margins.

• Amgen’s Fourth Quarter 2023 Financial Results Conference Call highlighted several strategic moves and positive outcomes for the biotechnology company.
• This past year, the company acquired Horizon Therapeutics, which foundationalized a new branch contributing to its growth.
• Also, 18 of Amgen’s medicines reached record annual sales, including Repatha, Prolia, EVENITY, TEZSPIRE, BLINCYTO, KRYSTEXXA, and UPLIZNA. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• During the period under consideration, i.e. December 28th , 2023 to January 26th, 2024, the USD/AED exchange rate fluctuated between 3.672 and 3.673. AED is pegged to the US Dollar at 3.67.
• The MA-10 line was moving above the MA-20 line for the whole period. Both MA 10 and MA-20 lines maintained a steady upward trend throughout the entire period.
• Based on Graph 2, the PPO (red line) was moving upwards at the beginning of the period under consideration but after January 15th the movement changed.