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>The investment thesis of Steel Dynamics is centered around the company's strong operational performance and strategic differentials against its competitors.</li><li>In the Q4 and FY2023 earnings call, Steel Dynamics highlighted a record safety year, with steel shipments amounting to 12.8 million tons, the highest yet.</li><li>The company also boasted its second-best year for revenues at $18.8 billion and cash flow from operations at $3.5 billion.</li></ul>

The investment thesis of Steel Dynamics is centered around the company's strong operational performance and strategic differentials against its competitors.In the Q4 and FY2023 earnings call, Steel Dynamics highlighted a record safety year, with steel shipments amounting to 12.8 million tons, the highest yet.The company also boasted its second-best year for revenues at $18.8 billion and cash flow from operations at $3.5 billion.

Steel Dynamics: Can The Robust Demand and Favorable Market Conditions Catalyze Growth In 2024? - Major Drivers

<ul><li>Steel Dynamics, Inc. delivered mixed results in the quarter, with revenues above Wall Street expectations but below-par earnings.</li><li>Although the third quarter saw revenues of $4.6 billion and operating income of $734 million, these results were slightly lower than the second quarter due to decreased steel and steel fabrication pricing.</li><li>The company's steel operations generated an operating income of $474 million in the third quarter.</li></ul>

Steel Dynamics, Inc. delivered mixed results in the quarter, with revenues above Wall Street expectations but below-par earnings.Although the third quarter saw revenues of $4.6 billion and operating income of $734 million, these results were slightly lower than the second quarter due to decreased steel and steel fabrication pricing.The company's steel operations generated an operating income of $474 million in the third quarter.

Steel Dynamics Inc.: Transformative Growth Initiatives Unveiled! - Major Drivers

<ul><li>Steel Dynamics had a disappointing second quarter with revenues below Wall Street expectations though they did manage to report improved net income and EBITDA.</li><li>The management noted increased pricing and metal spread across flat-rolled and long-product steel operations.</li><li>Steel Dynamics' net income stood at $812 million, operating income at $1.1 billion, and EBITDA at $1.2 billion.</li></ul>

Steel Dynamics had a disappointing second quarter with revenues below Wall Street expectations though they did manage to report improved net income and EBITDA.The management noted increased pricing and metal spread across flat-rolled and long-product steel operations.Steel Dynamics' net income stood at $812 million, operating income at $1.1 billion, and EBITDA at $1.2 billion.

Steel Dynamics Inc: 4 Surprising Reasons For Their Growth - Financial Forecasts

Equity Capital Markets

<ul><li>Steel Dynamics delivered a mixed result in the recent quarter with revenues below analyst expectations but managed an earnings beat.</li><li>Its first-quarter operating income of $835 million was 10% higher than the fourth-quarter results, owing to significant steel volume.</li><li>Steel Dynamics' steel operations earned a solid operating income of $345 million in the first quarter.</li></ul>

Steel Dynamics delivered a mixed result in the recent quarter with revenues below analyst expectations but managed an earnings beat.Its first-quarter operating income of $835 million was 10% higher than the fourth-quarter results, owing to significant steel volume.Steel Dynamics' steel operations earned a solid operating income of $345 million in the first quarter.

Steel Dynamics Inc.: Does The Steel Fabrication Giant Have A Sustainable Competitive Advantage? – Key Drivers

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

iShares Russell 2000 ETF / Technical Analysis

<ul>
<li>The market remains in "lockout rally" mode, where prices continue to move higher with little-to-no pullbacks, while ignoring overbought readings.</li>
<li>We have discussed this on a weekly basis since 11/21/23. Still no reason to fight this bullish trend, and we continue to expect more upside into year-end and early 2024.</li>
<li>We highlight buys in Steel: NUE, STLD, RS, WOR, TMST, ZEUS, LatAm Banks: ITUB, BSBR, BBD, BAP, BCH, Industrials: ITT, FSS, SPXC, ATS, KAI, CR, BRC, SXI, and HSC</li>
</ul>


The market remains in "lockout rally" mode, where prices continue to move higher with little-to-no pullbacks, while ignoring overbought readings.
We have discussed this on a weekly basis since 11/21/23. Still no reason to fight this bullish trend, and we continue to expect more upside into year-end and early 2024.
We highlight buys in Steel: NUE, STLD, RS, WOR, TMST, ZEUS, LatAm Banks: ITUB, BSBR, BBD, BAP, BCH, Industrials: ITT, FSS, SPXC, ATS, KAI, CR, BRC, SXI, and HSC


Russell 2000 Testing 1.5+ Year Resistance; Downgrading Communications; Steel Buys $NUE $STLD $ZEUS

United States

Steel Dynamics, Inc. is a diversified carbon-steel steel producer and metals recycler in the U.S, located in Fort Wayne, IN. The Company's operating segments include Steel Operations, Metals Recycling & Ferrous Resources Operations, and Steel Fabrication Operations. Steel Dynamics products include flat rolled steel sheet, engineered bar special-bar-quality, structural beams.

Steel Dynamics (STLD US)

Steel Dynamics: Can The Robust Demand and Favorable Market Conditions Catalyze Growth In 2024? - Major Drivers

The investment thesis of Steel Dynamics is centered around the company's strong operational performance and strategic differentials against its...

Baptista Research

Steel Dynamics Inc.: Transformative Growth Initiatives Unveiled! - Major Drivers

Steel Dynamics, Inc. delivered mixed results in the quarter, with revenues above Wall Street expectations but below-par earnings. Although the...

Baptista Research

Steel Dynamics Inc: 4 Surprising Reasons For Their Growth - Financial Forecasts

Steel Dynamics had a disappointing second quarter with revenues below Wall Street expectations though they did manage to report improved net...

Baptista Research

Steel Dynamics Inc.: Does The Steel Fabrication Giant Have A Sustainable Competitive Advantage? – Key Drivers

Steel Dynamics delivered a mixed result in the recent quarter with revenues below analyst expectations but managed an earnings beat. Its...

Baptista Research

Russell 2000 Testing 1.5+ Year Resistance; Downgrading Communications; Steel Buys $NUE $STLD $ZEUS

Market remains in a "lockout rally" where prices continue to move higher with little-to-no pullbacks, while ignoring overbought readings -- as we...

Vermilion Research