In today’s briefing:
- Mitsubishi Heavy Industries (7011) | Three Reasons to BUY
- Fixing the Supply Chain
- Deere: Underperforming The Market Is The Most Likely Scenario Ahead
Mitsubishi Heavy Industries (7011) | Three Reasons to BUY
- The recent correction in the share price offers a good chance for long-term bulls to get into the stock
- MHI is the core play on Japan’s energy security given its portfolio of gas and nuclear power plant assets
- The unseasonably HOT weather and potential power cuts, at the same time as soaring energy costs, could be the catalyst for the government to push for nuclear restarts
Fixing the Supply Chain
- In an interesting turn of things, a leaked internal memo from Amazon dated back to the mid of 2021 showed that the company could run out of warehouse workers by 2024.
- Amazon, along with Walmart and Target, continues to suffer from high staff turnover across logistics & warehousing (the industry average stands at 49%, but is higher at the big three).
- This has resulted in companies offering incentives, wage increases, and flexible working hours to retain top talent, with margins shrinking as a result.
Deere: Underperforming The Market Is The Most Likely Scenario Ahead
- Deere’s share price underperformed the broader market, in spite of the company’s strong results.
- The expectations for the next half year are still highly optimistic and valuation seems to reflect that.
- Unfortunately, these results are unlikely to be sustained over the medium-term and valuation is at risk.
Before it’s here, it’s on Smartkarma
