In today’s briefing:
- Smartkarma Webinar | High Conviction Trade Ideas in the US
- ECVT: The Earnings Normalcy
- Comment On Exchange Rate EUR/USD
- XPER: Connected Car Connected Earnings
- Colgate-Palmolive Company: Strong Sales
- SMRT – Accounting vs. Reality
- SS&C Technologies Holdings Inc.: Can The New SS&C Flex Become A Major Catalyst For Revenue Growth? – Key Drivers
- ACCO: Caution Reigns Supreme
- HWKN: Returning to Buy Rating
- IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business
Smartkarma Webinar | High Conviction Trade Ideas in the US
- In the next installment of our Webinar series, we go live with Smartkarma Insight Provider Andrei Zakharov
- He will be discussing some U.S. SaaS stocks, crypto mining companies as part of his High Conviction Trade Ideas in the US.
- He will also be sharing his insights into his high-conviction trade idea in biotech – oncology-focused company, Revolution Medicines.
The webinar will be hosted on Wednesday, 14 August 2023, 17:00 SGT/HKT.
Andrei Zakharov is the founder of independent equity research firm Algosun Global Limited, with broad professional experience at leading multinational banks Citibank and Morgan Stanley. Andrei has a respectable background in wealth advisory services for UHNW individuals, alternative energy buy-side research, in-depth analysis of pre-IPO technology unicorns, and portfolio management.
ECVT: The Earnings Normalcy
- ECVT has gone from one maintenance issue at the beginning of the year to another that is expected to impact second half results and creates near-term headwind for investor sentiment.
- Maintenance and CapEx spending is likely to receive much of the scrutiny from investors after ECVT had two issues this year. However, they are unrelated, and one was from weather
- The sell-off in ECVT’s stock price after the quarterly results reflects investor anxiety over the business being able to generate free cash flow on a consistent basis
Comment On Exchange Rate EUR/USD
- The EUR/USD exchange rate ended up moving upwards in June 2023 despite the various fluctuations occurring during the month.
- During the first ten trading days of the period under consideration, the pair was fluctuating along a narrow range, i.e. 1.07-1.08.
- From June 13th – 21st, the exchange rate increased significantly whereas in the following trading sessions, the pair faced some ups and downs, finally closing with a slight rise on monthly basis, i.e.compared to end of May.
XPER: Connected Car Connected Earnings
- XPER reported second quarter results underscoring the progress the Company has made in securing new design wins and revenue opportunities for its connected car and media platform segments
- Simultaneous with the second quarter results, XPER announced Sharp would use TiVo operating system for smart TVs starting in 2024
- New design wins for DTS AutoSense and DTS AutoStage are expected to translate into revenue towards the end of 2024
Colgate-Palmolive Company: Strong Sales
- Colgate-Palmolive Company delivered a solid result and managed an all-around beat in the last quarter.
- The company produced a decent performance in terms of organic sales growth.
- In addition to increasing its gross margin, Colgate-Palmolive also increased its operating margin.
SMRT – Accounting vs. Reality
- SmartRent’s 2Q was a bit of a head-scratcher. The significant growth in sales from 1Q didn’t carryover into 2Q, with top-line decelerating from ~74% YoY in Q1 to 26% YoY in 2Q.
- Trends of key KPIs suggest deterioration in the underlying business is continuing and in fact worsening, as we have seen from industry peers recently.
- The exact cause of such is unclear given management’s hesitance to provide clear commentary.
SS&C Technologies Holdings Inc.: Can The New SS&C Flex Become A Major Catalyst For Revenue Growth? – Key Drivers
- SS&C delivered mixed results for the previous quarter, with revenues above the analyst consensus.
- The company’s strength was evident in its alternative business, particularly private markets, which saw a significant growth of over 20%, as well as in its Intralinks and retirement businesses.
- SS&C plans to focus on expense management, prioritize innovation, and continue product rollouts.
ACCO: Caution Reigns Supreme
- ACCO reported second quarter results with a greater pull-in of back-to-school related sales, but management took a cautious stance on outlook for the rest of the year
- The second quarter is seasonally one of the stronger periods of the year due to the timing of retailers taking inventory for the back-to-school season
- Without a stable back to school shopping season ACCO would be dependent on the holiday season in fourth quarter to achieve its free cash flow guidance for the year
HWKN: Returning to Buy Rating
- HWKN reported fiscal first quarter (June) results where higher prices had offset the decline in unit volume.
- Without having to take LIFO reserves, HWKN was able to materially beat our expectations. We do not believe this is likely to occur again in the September quarter
- There is no evidence of unit volumes rising in the short-term. However, input costs might have stabilized in the June quarter
IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business
iPower has built a growing, efficient e-commerce platform to market a wide range of home and commercial goods, including hydroponics supplies, fans, shelving systems, pet supplies, and furniture.
The company has multiple product expansion opportunities, setting the business up for continued strong long- term top-line growth.
iPower leverages extensive data analytics at every step of the value chain to optimize its processes, from product conception and design, to sourcing, logistics, and marketing.
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