In today’s briefing:
- Pro-Dex Inc: A Specialty Contract Manufacturer in Medical Devices with a Burgeoning Order Backlog
- [Counting Beans #4]: Soybean Price Tumbles as Headwinds Prevail
- Amer Sports IPO: The Bear Case
- [Earnings Preview] JP Morgan Poised to Outperform on Superior NIM & Fortuitous Acquisitions
Pro-Dex Inc: A Specialty Contract Manufacturer in Medical Devices with a Burgeoning Order Backlog
- Pro-Dex specializes in the design, development and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets.
- Pro-dex has patented adaptive torque-limiting software and proprietary sealing solutions which appeals to their customers, primarily medical device distributors
- They also manufacture and sell rotary air motors to a wide range of industries.
[Counting Beans #4]: Soybean Price Tumbles as Headwinds Prevail
- US Soybean futures have tumbled 4% from their close in 2023 due to favourable weather in Brazil as well as fading demand outlook in US.
- Rainfall in Brazil has arrived in droves and remains strong this week but forecasts point to inconsistent rain next week.
- CONAB and USDA reports this week should be watched for potential downward revisions in Brazil’s production, following Safras e Mercado’s lead.
Amer Sports IPO: The Bear Case
- Amer Sports (AS US) is a global iconic sports and outdoor brand group. According to press reports, it has filed for a NYSE IPO to raise US$2 billion.
- In Amer Sports IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on ball & racquet sports’ deteriorating performance, EBIT margin not materially improving under the consortium’s ownership, cash burn and high leverage.
[Earnings Preview] JP Morgan Poised to Outperform on Superior NIM & Fortuitous Acquisitions
- JPM generated USD 38.9B in profits for the first 9 months of 2023, or about 18% of the industry total.
- Since start of 2023, JPM has outperformed S&P by 450 bps and Invesco KBW Bank ETF by a staggering 32.47%.
- Tight financial conditions, inflation, elevated rates, & lacklustre M&A activity, will hammer Q4 bank earnings. But JPM will buck the trend.
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