Daily Brief United States: USD, Inter Parfums, SurgePays , YETI Holdings Inc, Express and more

• The bond basis is a significant concern for investors, as the long end of the curve has been steepening and rates are rising, increasing the probability of shifts in the cheapest deliverable (CTD).
• There are several bonds that are nearly equally cheap, meaning they are not currently the CTD but are close enough to potentially become the CTD. This could impact futures pricing.
• Investors who are long the March bond futures contract can hedge against the risk of CTD duration extension by buying March bond contract puts with a strike price of 118. This can mimic a long basis position.

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• IPAR closed out 2023 with the same momentum that has been generating sales growth the last several years.
• The consumer has been receptive to fragrance and there has been no sign of slowing demand for the category
• IPAR provided preliminary fourth quarter sales of $329 million versus our estimate of $316.5 million. Sales growth within IPAR’s top selling brands was through Coach and Guess

• We are initiating coverage of SurgePays (SURG), a forward- looking financial technology and telecommunications firm dedicated to serving the underbanked.
• Its wireless subsidiaries provide mobile broadband, voice, and SMS services to subsidized and direct retail prepaid customers primarily through the US Federal Affordable Connectivity Program (ACP).
• SURG has built a profitable business in the ACP segment of the wireless market.

Key points (machine generated)

• YETI is recommended as a short investment for the next few years due to its declining growth and loss of ground to competitors like Stanley Tumbler.
• The sustainability of YETI’s brand advantage is questioned, comparing it to other companies that have failed in the past.
• The author suggests that YETI may face a similar fate if it does not reverse its current trends.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating and $20 price target for Express, but lowering our 4QFY23 projections after visiting stores in Long Island and Connecticut.
• That said, we believe the near term impact will be to reduce gross margins; as such, while we are maintaining our 4Q23 top line projections, we are lowering our gross margin projections, which results in increased 4Q losses.
• We believe the negative impact will be localized into FY23 and are leaving our FY24 projections unchanged.