Daily Brief United States: Royal Gold Inc, Texas Instruments, USD, Etsy Inc, Amazon.com Inc, Lions Gate Entertainment , Bassett Furniture Inds and more

• The MV J-Gold Miners index represents the performance small-cap gold and silver mining companies listed around the world.
• This index is reviewed semi-annually in March and September. During these reviews, names can be added or deleted from the index.
• In this insight, we take a look at the potential ADDs and DELs and our flow expectations for the index rebal event in March 2024. 

Key points

• TI has continued to innovate in analog chip design over time
• Their chips are used in a variety of industries including automotive, industrial, and consumer electronics
• TI’s analog chips are found in a wide range of products from smartphones to medical devices

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.

• U.S. interest rates have been climbing since early January 2024 after reaching their lowest points between December 27th and January 11th.
• For example, the yield on 2-year Treasury bonds has increased by 52 basis points (bps), and the yield on 10-year bonds has risen by 49 bps since their respective lows.
• Similarly, the Dollar Index (DXY), which measures the value of the U.S. dollar against a basket of other currencies, experienced its weakest point on December 28th, 2023.

Key points

• ETSY’s end markets are expected to grow at a high single digit rate, allowing for 10% compound annual growth rate in Gross Merchandise Sales (GMS)
• ETSY’s international market, comprising 45% of revenue, is growing faster than its US market
• ETSY has room to increase its take rate slightly, with its current rate of 19.8% in line with industry standards, positioning the company for continued growth in e-commerce.

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.

• Amazon.com Inc (AMZN US) will replace Walgreens Boots Alliance (WBA US) in the Dow Jones Industrial Average (INDU INDEX) at the close on 23 February.
• Passives will need to sell a lot of Walmart (WMT US) following the 3:1 stock split and buy a lot of Amazon.com Inc (AMZN US). 
• Given the ad hoc nature of the rebalances and the short timeline between announcement and implementation, the stocks could move over the rest of the week.

Key points

• Recommendation to short Lions Gate with 40-70% upside potential
• Unsustainable leverage and expected earnings misses cited as reasons for shorting
• Studio’s underperforming content and high debt levels are key concerns for investors

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.

• We are initiating coverage of Bassett Furniture Industries, Inc., publicly traded under the ticker BSET.
• Bassett primarily operates in two segments: Retail and Wholesale.
• A third segment, Corporate & Other, accounts for corporate and unallocated expenses, as well as the operating results of Noa Home, a recent e-commerce acquisition.