In today’s briefing:
- O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
- Bond Market Monitor: Bonds Are Back
- Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers
- Charter Communications Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Exact Sciences Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition
- Sysco Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Sysco Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- Charter Communications Inc.: Initiation of Coverage – Strong Barriers To Entry & Other Drivers
- Cigna Corporation: Initiation of Coverage – Business Strategy & Key Drivers
O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
- Back on the 30 September, O2Micro International (OIIM US), an integrated circuits play, announced a definitive privatisation from management at US$5.00/ADS, a 68.9% premium to the undisturbed price.
- An EGM will take place on the 31 January. The Offer requires shareholders representing at least two-thirds of O2Micro vote FOR. 16.9% of shares out are supportive.
- This Offer is expected to close in the 1Q23. The IFA considers the Offer fair.
Bond Market Monitor: Bonds Are Back
- 10 months + since Russia invaded Ukraine and there is yet no end to the war in sight.
- The negative 2/10 spread generates quite a conviction by almost all of market participants that the world is heading into recession next year.
- We believe inflation could slow down and the on-going rate hikes may end faster than expected. Slower/smaller than expected rate hikes provide a bullish case for bond investments in 2023..
Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers
- This is our first report on Chewy, the leading pure play e-commerce company in the U.S. in the domain of pet food, pet supplies, and pet healthcare products.
- During the quarter, they announced the growth of CarePlus, their exclusive line of insurance and wellness products with Lemonade-powered plans.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Charter Communications Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Charter Communications is one of the leading cable operators and broadband connectivity companies in the U.S.
- The company’s recent financial performance has been tepid despite consistent additions of new Internet customers throughout the year.
- They further offer the nation’s fastest Internet, WiFi, and mobile speeds when combined with WiFi, all while saving consumers thousands of dollars a year or serving them.
Exact Sciences Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Exact Sciences, a leading cancer diagnostics company.
- It has created a robust engine that will enable them to realize their goal of assisting in the eradication of cancer.
- Besides, Exact Sciences can support new cancer tests with a small incremental investment due to their well-known test, smart patient navigation, electronic ordering and resultant platform, extensive lab capabilities, and strong payer partnerships.
MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition
- Amazon’s pursuit of robotic vacuum manufacturer iRobot is being scrutinized by the FTC, a merger which we think the regulator will be hard pressed to prove is harmful to competition.
- However, although unlikely, the pending ruling next month on the FTC’s unusual lawsuit against Meta’s acquisition of virtual reality start-up Within could rewrite regulatory guidelines for vertical mergers
- The 27% spread offers a potentially lucrative trade generating double-digit IRR even if deal completion is delayed by regulatory review, although it might be wise to entertain some downside protection
Sysco Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Sysco Corporation is one of the largest foodservice distribution companies in the U.S.
- The company’s financial performance has shown a simultaneous recovery along with the foodservice sector after the pandemic.
- Restaurant partners of the company continue to be resilient, and its travel hospitality and industry and business segment has regularly posted improvements in financial performance.
Sysco Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Sysco Corporation, one of the largest foodservice distribution companies in the U.S.
- Sysco delivered a mixed set of results for this quarter, surpassing revenue expectations of Wall Street with continued positive momentum in its business.
- The market share gains continued in the quarter, with the company posting 1.4 times sales growth in the industry.
Charter Communications Inc.: Initiation of Coverage – Strong Barriers To Entry & Other Drivers
- This is our first report on Charter Communications, one of the largest cable operators and broadband connectivity companies in the U.S.
- The company delivered a disappointing set of results in the quarter failing to meet Wall Street expectations in terms of revenues as well as earnings.
- The company also had around 4.7 million mobile lines at the end of the quarter.
Cigna Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Cigna Corporation, a leading player in health services and insurance.
- Evernorth delivered strong top-and bottom-line results because of their innovation and affordability across pharmacy benefit services, specialty pharmacies, and Evernorth Care Solutions.
- This collaboration with Centene builds on Express Scripts’ reputation as a reliable partner and will eventually offer expansion options to offer more Evernorth Health services.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
