In today’s briefing:
- Mega Caps Thrive But Other Tech Firms Are Punished for Lack of AI-Linked Earnings Potential
- Liquidity Headwinds Play Catch Up
- US Crude Oil Output at Risk as Rig Count Plummets
- Nu Ride (NRDE) – Friday, Mar 22, 2024
- VRA: Snapping the Store: The Calm before the “New Day;” Reiterate Buy, $10 PT
- Fund Managers Reduce Commodities Again
- Lincoln National Corp (LNC) – Monday, Mar 25, 2024
- Crypto Crisp: There it was, the height of Mt. Gox fear
- Aviat Networks Inc. (AVNW) – Monday, Mar 25, 2024
- Spruce Power Holding Corporation – Initiating Coverage
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Mega Caps Thrive But Other Tech Firms Are Punished for Lack of AI-Linked Earnings Potential
- Mega cap stocks like Nvidia, Alphabet, and Microsoft surpass lofty market expectations, in the latest earnings season leading to continued rallies.
- Profits from AI innovations are accumulating predominantly at the bottom of the supply chain, benefiting large hardware and cloud service providers.
- Smaller tech companies, including Salesforce, MongoDB, and Dell, have experienced sharp corrections due to lofty expectations and their limited capacity to generate significant AI revenue.
Liquidity Headwinds Play Catch Up
- BTC faces headwinds as global liquidity contracts, impacting recent price action.
- Spot BTC ETFs initially fueled highs, but inflows and volumes are now declining.
- Crypto markets need a major catalyst to counteract waning liquidity support.
US Crude Oil Output at Risk as Rig Count Plummets
- US oil rig count falls to 485 as of the week ending on 21/June, its lowest since January 2022.
- US oil and gas rig count is falling as producers prioritize shareholder returns over increasing output.
- Rising labour and equipment costs along with macroeconomic uncertainties further discourage producers from adding rigs.
Nu Ride (NRDE) – Friday, Mar 22, 2024
- Nu Ride is a SPAC with $2.5 per share in cash and $1 billion in net operating losses
- Company has $2.9 per share of net cash and $2.0 per share of perpetual preferred held by Foxconn
- Ongoing litigation actions against Foxconn and former executives could result in potential increase in net cash value to $4.5 per share
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.
VRA: Snapping the Store: The Calm before the “New Day;” Reiterate Buy, $10 PT
- We are reiterating our Buy rating.
- $10 price target and projections for Vera Bradley after visiting stores in Long Island and Connecticut.
- With the soft launch of “New Day” set for July 11th (and formal premier on July 15th, June is, with one major exception, a month for the stores to clear goods and prepare for the new offerings; replenishment has been placed on hold and the end-of-season sales have been moved up to drive lower inventories and reduce the stresses from rolling out new looks at the main line stores and shifting older goods to the outlets.
Fund Managers Reduce Commodities Again
- Fund managers recently reduced their broad commodity position as well as energy position, compared to last month, according to the latest BofA survey.
- Compared to the long-term z-score, fund managers are now heavily under-positioned in energy but close to neutral positioned in broad commodities.
- In a recent note, Goldman Sachs explained their views about commodities if inflation would re-accelerate again – or in detail beat the market estimates and lead to an inflation upside surprise.
Lincoln National Corp (LNC) – Monday, Mar 25, 2024
- LNC is poised for growth in the U.S. life insurance market due to improving fundamentals, positive earnings per share revisions, and an attractive valuation
- Despite past challenges with capital and credibility, management has successfully addressed issues and reshaped the business, leading to a clear roadmap for future growth
- With potential catalysts on the horizon, LNC has significant upside potential and the possibility of a shift in investor sentiment in the near future.
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.
Crypto Crisp: There it was, the height of Mt. Gox fear
- It was only a matter of time. Today, Mt. Gox confirmed that it will begin distributing its Bitcoin and Bitcoin Cash holdings to creditors, primarily former clients, starting in July.
- The announcement did not specify the exact date or the timeline for the repayments.
- The crypto market reacted poorly to this news, with Bitcoin dropping nearly 4% since the announcement this morning.
Aviat Networks Inc. (AVNW) – Monday, Mar 25, 2024
- Aviat Networks has successfully turned around its business in the telecom equipment sector despite challenges
- The company has outperformed larger competitors by focusing on execution during the COVID boom-bust cycle
- Despite investor caution due to competitive landscape and poor sector valuations, Aviat Networks’ fundamentals are strong and outpacing its stock performance, positioning it well for future growth
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.
Spruce Power Holding Corporation – Initiating Coverage
- Spruce Power Holding Corporation (Spruce) is one of the largest third-party owner-operators of residential solar assets.
- The company is not an installer of solar assets and instead grows through the acquisition of mature portfolios of residential solar assets and contracts.
- Spruce’s portfolio consists of residential solar power purchase agreements (PPAs) and solar lease agreements (SLAs) and has grown at a 29% CAGR since 2018, reaching 75,000 home solar assets and contracts.