Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Costco Wholesale Corporation reported its third quarter 2024 operating results, highlighting consistent growth and the manifestation of strategies driving member engagement and loyalty.</li><li>Notably, despite being beyond the typical five-year cycle for a membership fee increase, there are no immediate plans for such a move, suggesting continued confidence in the business’s performance.</li><li>Net income for the third quarter was $1.68 billion, or $3.78 per diluted share, a substantial increase from the previous year's third quarter results of $1.3 billion and $2.93 per diluted share.</li></ul>

Costco Wholesale Corporation reported its third quarter 2024 operating results, highlighting consistent growth and the manifestation of strategies driving member engagement and loyalty.Notably, despite being beyond the typical five-year cycle for a membership fee increase, there are no immediate plans for such a move, suggesting continued confidence in the business’s performance.Net income for the third quarter was $1.68 billion, or $3.78 per diluted share, a substantial increase from the previous year's third quarter results of $1.3 billion and $2.93 per diluted share.

Costco Wholesale Corporation: A Tale Of Value and Engagement through Core-on-Core Strategy! - Major Drivers

<ul><li>Costco Wholesale Corporation, during its second quarter of fiscal year 2024 earnings, provided a detailed financial summary and highlighted its numerous operational changes.</li><li>CFO Richard Galanti expressed his positive outlook for the company's future, citing specific achievements and future plans.</li><li>From a fiscal perspective, net income for the Q2 2024 was $1.743 billion or $3.92 per diluted share, up from $1.466 billion or $3.30 last year, signifying solid growth.</li></ul>

Costco Wholesale Corporation, during its second quarter of fiscal year 2024 earnings, provided a detailed financial summary and highlighted its numerous operational changes.CFO Richard Galanti expressed his positive outlook for the company's future, citing specific achievements and future plans.From a fiscal perspective, net income for the Q2 2024 was $1.743 billion or $3.92 per diluted share, up from $1.466 billion or $3.30 last year, signifying solid growth.

Costco Wholesale Corporation: Are Its Efforts With Respect To E-commerce Penetration & Delivery Expansion Working Well? - Major Drivers

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The changes to the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a>, S&amp;P400 Index and S&amp;P600 Index will be announced after market close on Friday.</li>
<li>The conclusions of the market consultation to change the index weighting methodology for the Select Sector Indices to reduce concentration and avoid reverse turnover should also be announced.</li>
<li>Changes in the index weighting methodology will result in a round-trip trade of US$35bn across the Select Sector indices. The largest turnover is in the <a href="https://www.smartkarma.com/entities/consumer-staples-select-sector-spdr-fund" target="_blank" data-smartkarma-citation="entities:27536:1" rel="noopener">XLP</a> and <a href="https://www.smartkarma.com/entities/technology-select-sector-spdr" target="_blank" data-smartkarma-citation="entities:27543:1" rel="noopener">XLK</a>.</li>
</ul>


The changes to the S&amp;P 500 INDEX (SPX INDEX), S&amp;P400 Index and S&amp;P600 Index will be announced after market close on Friday.
The conclusions of the market consultation to change the index weighting methodology for the Select Sector Indices to reduce concentration and avoid reverse turnover should also be announced.
Changes in the index weighting methodology will result in a round-trip trade of US$35bn across the Select Sector indices. The largest turnover is in the XLP and XLK.


Select Sector Indices - Updated Flows as Round-Trip Trade Hits US$35bn

<ul><li>Costco delivered an all-around beat in the most recent quarterly result.</li><li>The company reported net income for the 17-week fourth quarter came in at $2.16 billion or $4.86 per diluted share compared to $1.868 billion or $4.20 per diluted share in the 16-week fourth quarter last year.</li><li>In terms of sales, net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4% from $70.76 billion in the 16-week fourth quarter last year.</li></ul>

Costco delivered an all-around beat in the most recent quarterly result.The company reported net income for the 17-week fourth quarter came in at $2.16 billion or $4.86 per diluted share compared to $1.868 billion or $4.20 per diluted share in the 16-week fourth quarter last year.In terms of sales, net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4% from $70.76 billion in the 16-week fourth quarter last year.

Costco Wholesale Corp: Strategies for Consistent Membership Renewals! - Major Drivers

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Today, part-way through the day, the Nikkei ran an article saying that <a href="https://www.smartkarma.com/entities/alimentation-couche-tard-inc" target="_blank" data-smartkarma-citation="entities:25103:1" rel="noopener">Alimentation Couche-Tard (ATD CN)</a> had made a confidential non-binding proposal to buy <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>. </li>
<li>7&amp;i shares obviously went up (limit up in a hurry, staying there, large size traded limit up at close). </li>
<li>Now things get complicated. 7&amp;i has said they received a non-binding proposal for all the shares. There will be a Special Committee of all Independent Directors. All stakeholders will matter. </li>
</ul>


Today, part-way through the day, the Nikkei ran an article saying that Alimentation Couche-Tard (ATD CN) had made a confidential non-binding proposal to buy Seven &amp; I Holdings (3382 JP). 
7&amp;i shares obviously went up (limit up in a hurry, staying there, large size traded limit up at close). 
Now things get complicated. 7&amp;i has said they received a non-binding proposal for all the shares. There will be a Special Committee of all Independent Directors. All stakeholders will matter. 


MEGA M&A! 7&I (3382 JP) Gets Non-Binding Bid from Alimentation Couche-Tard (ATD CN)

United States

Costco Wholesale Corporation operates wholesale membership warehouses in multiple countries.  The Company sells all kinds of food, automotive supplies, toys, hardware, sporting goods, jewelry, electronics, apparel, health and beauty aids, as well as other goods.

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Costco Wholesale (COST US)

Costco Wholesale Corporation: A Tale Of Value and Engagement through Core-on-Core Strategy! - Major Drivers

Costco Wholesale Corporation reported its third quarter 2024 operating results, highlighting consistent growth and the manifestation of strategies...

Baptista Research

Costco Wholesale Corporation: Are Its Efforts With Respect To E-commerce Penetration & Delivery Expansion Working Well? - Major Drivers

Costco Wholesale Corporation, during its second quarter of fiscal year 2024 earnings, provided a detailed financial summary and highlighted its...

Baptista Research

Select Sector Indices - Updated Flows as Round-Trip Trade Hits US$35bn

US$300bn tracks the Select Sector Indices. Implementation of proposed changes will set off a US$35bn trade. Apple could be bought by multiple...

Brian Freitas

Costco Wholesale Corp: Strategies for Consistent Membership Renewals! - Major Drivers

Costco delivered an all-around beat in the most recent quarterly result. The company reported net income for the 17-week fourth quarter came in at...

Baptista Research

MEGA M&A! 7&I (3382 JP) Gets Non-Binding Bid from Alimentation Couche-Tard (ATD CN)

Canadian CVS owner Alimentation Couche-Tard has lobbed in a bid to buy all the shares of 7&i. This is not as surprising as it looks. It's huge, and...

Travis Lundy

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