Daily Brief United States: NVIDIA Corp, KKR & Co, Gold, Abbvie Inc, Bitcoin, BioLine RX , Air Lease Corp, POET Technologies and more

• Firms that split their shares show an avg. return of +25.4% one year after split. That’s more than 2x the average return of the S&P 500 during those periods. 
• Critically, returns post stock splits are mainly seen from announcement to actual split date. Mega caps have shown 9.3% absolute returns 12 months post split. Be cautious of misleading averages.
• On relative terms (v/s S&P500) price returns were down 6.3% 12-months after stock splits. All splits generated negative returns except for Tesla in 2020.

• On Friday, the S&P index committee announced the June 2024 changes to the three major indices in the S&P1500 universe. 
• KKR, Crowdstrike (CRWD), and GoDaddy (GDDY) replace Robert Half (RHI), Comerica (CMA), and Illumina (ILMN) in the S&P500. There are 6 ADDs to S&PMidCap400, 13 DELETEs from Sm600. 
• There are some BIG and impactful flows here. Some are very big. Netted 2-way flow on 21 June is ~US$66-80bn. But as always, details matter. 

• Unpredictable Corn Supply from South America The grain supply from South America, especially corn, is among the most unpredictable globally.
• During the 2022-23 season, Argentina’s corn production dropped by nearly 29% due to drought, but then surged by 26% in the 2023-24 season, influenced by the El Niño phenomenon.
• Similarly, favorable weather conditions boosted Brazil’s corn production by approximately 17% in 2022-23. However, in 2023-24, it declined by 16% due to varying weather patterns.

• Regenerative medicine remains an extremely exciting area of healthcare with vast investment potential.
• In spite of the usual setbacks in valuation and strategy, the sub-sector has pivoted and the market remains innovative and attracts investment capital.
• Rather than replace entire tissues, which is a complex activity, we believe the immediate future for stem cells is more likely to be in the successful stimulation of the bodies on repair mechanisms.

• Here is to another week in crypto, following an exceptionally strong performance for U.S.-based Bitcoin spot ETFs last week.
• Over the five trading sessions, these Bitcoin spot ETFs saw total net inflows of $1.829 billion.
• Last Tuesday was particularly notable, with the ETFs experiencing their second-best day since their launch on January 11, bringing in a net inflow of $887 million.

• BioLineRx is a commercial stage biopharmaceutical company with a development portfolio advancing motixafortide, a platform molecule targeting indications in stem cell mobilization (SCM) & in the treatment of advanced pancreatic cancer.
• The candidate is approved in the US for SCM and is undergoing studies for use in gene therapy and in pancreatic cancer.
• Partner Gloria Biosciences is developing motixafortide in Asia & is expected to be conducting bridging studies in the near term for SCM and longer-term studies for other indications.

• AL provides airlines with flexibility in fleet planning and finance
• Recent challenges such as the Boeing 737 Max grounding and global pandemic have impacted AL’s financial performance
• AL is well-positioned for future growth and improvement in returns due to strong management, diverse aircraft portfolio, positive industry trends, lower interest rates, and self-help initiatives.

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.

• POET Technologies is a startup disrupting the photonics industry with a new technology that eliminates parts of an optical transceiver and replaces them with a single integrated device which is smaller, cheaper, faster, more scalable and with much lower power consumption than the current solutions.
• It has a $50M joint venture with Sanan IC to make and sell optical engines to data centers and telecom.
• Its solution can be produced at wafer scale, eliminating costly manual steps, and allowing it to be easily produced in large quantities and at low cost.