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>This is our first report on bedding and other specialty products manufacturer, Leggett & Platt.</li><li>The company has been facing some tough times but its management seems to remain optimistic amid challenging circumstances.</li><li>While lower volumes in residential end markets and certain pricing responses have elicited predictions of lower earnings for 2024 from the company, other factors like the advancement of key product growth and improvement in profitability, accompanying a refocused bedding strategy are cause for increased optimism.</li></ul>

This is our first report on bedding and other specialty products manufacturer, Leggett & Platt.The company has been facing some tough times but its management seems to remain optimistic amid challenging circumstances.While lower volumes in residential end markets and certain pricing responses have elicited predictions of lower earnings for 2024 from the company, other factors like the advancement of key product growth and improvement in profitability, accompanying a refocused bedding strategy are cause for increased optimism.

Leggett & Platt Incorporated: Initiation Of Coverage - These 4 Pivotal Factors Are Driving Its Future Performance! - Financial Forecasts

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>S&amp;P DJI Global Indices on Friday announced the changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P 600 to be implement at the close on 17 December. </li>
<li>There were no surprises and the whole exercise is one of rearranging the deckchairs. Stocks move up an index, or down an index, but nothing moves out of the three.</li>
<li>The proprietary S&amp;P data suggests little opportunity, but empirical data suggests otherwise, and as in most cases, the interesting trades are the smaller ones.</li>
</ul>


S&amp;P DJI Global Indices on Friday announced the changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P 600 to be implement at the close on 17 December. 
There were no surprises and the whole exercise is one of rearranging the deckchairs. Stocks move up an index, or down an index, but nothing moves out of the three.
The proprietary S&amp;P data suggests little opportunity, but empirical data suggests otherwise, and as in most cases, the interesting trades are the smaller ones.


S&P500 Rebalance for December 2021 - Rearranging the Deckchairs

<ul>
<li>The S&amp;P500 rebalance traded with appropriate-to-expectations volumes, but the path from announcement to actual event was somewhat surprising.</li>
<li>Historically, DELETEs underperform peers and index from announcement to event date, including an initial jump weaker. This time they saw initial strength, but fell hard on the last day.</li>
<li>"The trade" from here, statistically speaking, would be to buy the S&amp;P500 DELETEs (<a href="https://www.smartkarma.com/entities/leggett-platt-inc" target="_blank" data-smartkarma-citation="entities:15843:1" rel="noopener">Leggett &amp; Platt (LEG US)</a>, <a href="https://www.smartkarma.com/entities/hanesbrands-inc" target="_blank" data-smartkarma-citation="entities:13641:1" rel="noopener">Hanesbrands Inc (HBI US)</a>, and <a href="https://www.smartkarma.com/entities/western-union-co" target="_blank" data-smartkarma-citation="entities:16761:1" rel="noopener">Western Union Co (WU US)</a>) against index.</li>
</ul>


The S&amp;P500 rebalance traded with appropriate-to-expectations volumes, but the path from announcement to actual event was somewhat surprising.
Historically, DELETEs underperform peers and index from announcement to event date, including an initial jump weaker. This time they saw initial strength, but fell hard on the last day.
"The trade" from here, statistically speaking, would be to buy the S&amp;P500 DELETEs (Leggett &amp; Platt (LEG US), Hanesbrands Inc (HBI US), and Western Union Co (WU US)) against index.


S&P500 Rebalance Recap - Strange Path Ends As Expected.

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Factset Research Systems Inc / Event-Driven

<ul>
<li>There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.</li>
<li>The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.</li>
<li>There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.</li>
</ul>


There are 3 stocks migrating from the S&amp;P500 to the S&amp;P400 and vice versa and another 3 stocks migrating from the S&amp;P600 to the S&amp;P400 and vice versa.
The impact of changes in the number of index shares for quite a few index constituents and the funding trade take the one-way trade size to US$18.5bn.
There appear to be pre-positions on some of the stocks. While the flow is large on many stocks, there are only a few that have over 2 days of ADV.


S&P500 Index Rebalance: Migrations Across the Indices

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Man Wah Holdings / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/man-wah-holdings-ltd" target="_blank" data-smartkarma-citation="entities:15846:1" rel="noopener">Man Wah Holdings (1999 HK)</a> plans to raise around US$260m to expand manufacturing facilities in China and open stores.</p><p>The stock has been doing well this year on the back of planned domestic retail expansion and analyst continue to remain bullish on the stock.</p>

Man Wah Holdings (1999 HK) plans to raise around US$260m to expand manufacturing facilities in China and open stores.The stock has been doing well this year on the back of planned domestic retail expansion and analyst continue to remain bullish on the stock.

Man Wah Placement - Riding High on Planned Store Expansion

United States

Leggett & Platt, Incorporated manufactures a wide range of engineered products. The Company's products include components for bedding, furniture, and other residential furnishings, as well as office and institutional furnishings components, retail store fixtures, and displays, specialty wire products, and automotive seating suspension and lumbar systems.

Leggett & Platt (LEG US)

Leggett & Platt Incorporated: Initiation Of Coverage - These 4 Pivotal Factors Are Driving Its Future Performance! - Financial Forecasts

This is our first report on bedding and other specialty products manufacturer, Leggett & Platt. The company has been facing some tough times...

Baptista Research

S&P500 Rebalance for December 2021 - Rearranging the Deckchairs

The S&P announced its changes to the S&P500, S&P Midcap 400, and S&P Small 600 Indices. All names moving in and out of these indices are coming...

Travis Lundy

S&P500 Rebalance Recap - Strange Path Ends As Expected.

S&P500 Rebalance Recap - performance ends as expected with unexpected path to last day. Volumes largely as tracking amounts would predict. The next...

Travis Lundy

S&P500 Index Rebalance: Migrations Across the Indices

There are 3 migrations from the S&P400 to the S&P500 and vice versa and another 3 migrations from the S&P600 to the S&400 and vice versa. The one...

Brian Freitas

Man Wah Placement - Riding High on Planned Store Expansion

Man Wah Holdings (1999 HK) plans to raise around US$260m to expand manufacturing facilities in China and open new stores. The stock has nearly...

Sumeet Singh