Daily Brief United States: Webtoon Entertainment, Micron Technology, Corn Active Contract, Nasdaq-100 Stock Index, GLOBALFOUNDRIES , 3M Co, Pathward Financial, Coherent Inc, On Semiconductor, Qualys Inc and more

• Webtoon announced that it is targeting a valuation of up to US$2.7 billion in the upcoming IPO. The IPO price range is from US$18 to US$21 per share. 
• The company is aiming to raise as much as US$315 million in this IPO. Blackrock Asset Management has indicated interest of purchasing up to US$50 million in this IPO.
• Our base case valuation of Webtoon is market cap of US$3.6 billion or target price of US$27.9 per share (33% higher than the high end of the IPO price range). 

• HBM revenue on track to jump from a few hundred million in 2024 to “multiple” billions in 2025
• Micron expects to become FCF positive in the second half of their fiscal 2024 and to have a record revenue year in their fiscal 2025. 
• Micron’s is doing custom work on their HBM solutions. Customers are signing LTAs with defined pricing. This could easily spread to Micron’s non-HBM products also. 

• Corn futures show high potential for momentum trading, peaking in early-year gains and declining from June, matching seasonal harvest patterns in major producers like China and Brazil.
• Over the past five years, momentum trading in soybean futures outperformed other crops with average annual returns of USD 13,600, though 2024 saw significant losses reflecting its counter cyclical performance.
• Bearish outlook for corn in 2024 due to increased global production outlook from key regions, bearish shifts by asset managers, and USDA forecasts predicting lower season-average prices.

• Despite some more mixed signals, a majority of market dynamics still suggests a risk-on environment. Our bullish outlook since early November 2023 remains intact with SPX and QQQ uptrends intact.
• Near-Term we continue to expect to see support at the 20-day MA and 21-day EMA on the SPX (currently 5325-5330) and QQQ (currently $460-462).
• Longer-Term, we’re bullish as long as the SPX is above 5191 and QQQ is above $449. We’d need to see breakdowns below these levels in order to shift to neutral.

• Globalfoundries Inc. is an American semiconductor foundry spun out of Advanced Micro Devices in 2009.
• The company operates four fabs in the US, Germany, and Singapore, making it the only scaled pure-play outside of China and Taiwan.
• In 2018, Globalfoundries shifted its focus to producing lagging-edge, feature-rich semiconductors after halting investment in leading-edge chip development.

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.

• In the first quarter of 2024, 3M reported significant achievements and detailed the financial impacts of strategic decisions, including the successful spin-off of its Health Care business, now known as Solventum.
• The separation into two distinct entities is designed to enhance focused growth and improve capital allocation tailored to different market dynamics, thereby representing a strategic realignment to boost shareholder value.
• This quarter also saw the company addressing its legal challenges with settlements in the Public Water Suppliers and Combat Arms litigation, resulting in predictable future cash flows related to these issues.

• Pathward Financial, Inc. is a BaaS company that partners with prepaid card issuers to provide prepaid card services to consumers and businesses
• Prepaid cards are used for various purposes such as fintech apps, payroll, gift cards, or rebates, with Pathward acting as the banking sponsor for these programs
• Pathward earns revenue through collecting deposits, investing in higher-yielding assets, and earning revenue from payments such as interchange fees, with impressive financial metrics including an adjusted NIM of 4.5% and ROTE of 30%

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.

• Coherent Corp. reported a solid third-quarter performance for Fiscal Year 2024, signaling strong underlying business dynamics despite some operational hitches.
• The company emphasized a noteworthy sequential revenue increase of almost 7% and an almost 50% rise in non-GAAP EPS which marked significant growth.
• Operating cash flow stood robust at $117 million, with a substantial portion directed towards capital investments and debt repayment.

• In Q1 2024, ON Semiconductor Corporation reported revenue of $1.86 billion, with a non-GAAP gross margin of 45.9% and non-GAAP earnings per share of $1.08, exceeding the midpoint of the guidance.
• These figures demonstrate the company’s adeptness at navigating market dynamics, supported by a 30% increase in new design wins and growth in silicon and silicon carbide market share due to its innovative power and sensing technologies.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Based on the first quarter 2024 earnings of Qualys, the company has evidenced a progressive trajectory with significant developments in its strategic sectors, specifically cybersecurity asset management.
• The introduction of enhanced enterprise solutions such as VMDR with TruRisk and TotalCloud CNAPP reflects Qualys’ adaptation to evolving market needs and emphasizes the ever growing complexity of cybersecurity threats.
• These initiatives have notably increased product adoption across diverse verticals including healthcare, technology, retail, and financial services, suggesting robust demand and profitability potential.