In today’s briefing:
- JETS US Equity: Takeoff Accomplished, Time to Return to Base
- Orthofix International (OFIX US): Limited Downside Likely; Looking Ahead to 2024 with New Management
- Culp, Inc.- Culp Reports Improved 2QFY24
- MariMed, Inc. – Begins Manufacturing and Processing in Illinois
- Upgrading Real Estate, Transportation to Market Weight; Smid-Caps With Bullish RS Reversals
JETS US Equity: Takeoff Accomplished, Time to Return to Base
- The surprise US$1.9 billion acquisition of Hawaiian Holdings (HA US) by Alaska Air Group (ALK US) could potentially rerate the U.S. airline sector
- US Global Jets ETF (JETS US) is up 16% from our initiation on 13 November, a mere 5% to our target price of US$19
- We advocate to take profits and square this trade in the upcoming days
Orthofix International (OFIX US): Limited Downside Likely; Looking Ahead to 2024 with New Management
- In November, Orthofix International Nv (OFIX US) named Massimo Calafiore as incoming President and CEO. Mr. Calafiore has extensive knowledge in orthopedics and spine, and M&A integration expertise.
- Orthofix has performed well and operated smoothly following management transition. In 3Q23, revenue increased 61% YoY on a reported basis and 1% YoY on a pro forma basis to $184M.
- The company expects to deliver much higher adjusted profits next year and to exit 2024 cash-flow positive from an estimated $100 million outflow for 2023.
Culp, Inc.- Culp Reports Improved 2QFY24
- Culp, Inc. issued results for its 2QFY24 on Monday, December 4 after market close.
- Revenue and operating profit were better for the just-reported quarter than those posted in 2QFY23 and our estimates, bolstering management’s contention that it would deliver—and investors would witness—sequential quarterly improvements in operating profitability for the balance of FY24.
- Management also noted its belief of posting positive consolidated operating profitability by 4QFY24.
MariMed, Inc. – Begins Manufacturing and Processing in Illinois
- MariMed has begun manufacturing and processing cannabis products in its new kitchen in Mount Vernon, Illinois.
- As often happens in cannabis, there were construction and regulatory delays, but the company expects to have its award-winning edibles in Illinois stores in time for the holidays.
- Illinois is the sixth-most populated state with 12.7 million residents.
Upgrading Real Estate, Transportation to Market Weight; Smid-Caps With Bullish RS Reversals
- Ongoing developments have been almost exclusively of the risk-on variety ever since we discussed that risk/reward favored buyers in late-October (10/24/23 and 10/31/23 Compass reports).
- The latest risk-on developments include the Russell2000 (IWM) and DJI breaking above resistances of $180 and 35,650, to go along with bullish 9-month RS reversals for small-, mid-, and micro-caps.
- Breadth improvement and broadening participation was a big reason why we recommended buying the IWM when it was testing $162-$163 support (10/31/23 Compass). We remain bullish
💡 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
