Smartkarma Daily Briefs

• Bloomberg reports that Glass Lewis has recommended Hollysys Automation Technologies (HOLI US) shareholders vote against Ascendent Capital’s US$26.50 offer on 8 February.
• Glass Lewis notes that Hollysys could fetch “potentially materially greater value” from other bidders. Glass Lewis seems to ignore that Dazheng failed to demonstrate that it could complete its offer.
• Despite Glass Lewis’s recommendation, the vote will likely get up. At the last close, the gross/annualised spread for an end-March close is 4.5%/28.0%.

• As I warned, troubled Q4 results were worse than investors expected, even with further drops in already plunging market expectations following disappointing deliveries dubiously called a “beat.”
• Even numbers as reported were weaker than reported when I stripped out subsidies and accounting boosts which mask underlying trouble—as is typical with Tesla (see attached model).
• Tesla continues to foster the false impression that it’s healthier, more profitable and more successful than it is, which greatly overstates its ability to weather the storm already upon it.

• Goldman reported FY and Q4 2023 earnings and revenue that topped analysts estimates. Goldman stands to benefit from higher deal-making and lower operating expenses in 2024.
• FY2023 earnings and revenue were lower than FY2022 as Goldman faced large losses on its real estate portfolio and retreat from its consumer banking push.
• Q4 earnings beat expectations by a huge margin but investment banking fees continued to lag; heading into a looser monetary environment in 2024, Goldman stands to outperform.

Key points (machine generated)

• Fidelity National has a track record of creating value through acquiring and spinning off financial businesses, making it an attractive investment opportunity.
• The recent partial spin-off of F&G Annuities & Life Inc. and the decline in mortgage origination volumes make now a good time to invest in Fidelity National.
• The author recommends taking a long position in Fidelity National, while hedging exposure to FG, as they believe the title business is undervalued.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Expanding into emerging markets like mobile gaming presents potential for growth.
• The founder’s strong understanding of the industry and long-term approach align with the company’s growth potential.
• Untapped value in the game pipeline and potential expansion into mobile gaming could drive further growth for tinyBuild.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are initiating coverage of Starco Brands, Inc. (“Starco” or the “Company”), an emerging owner and marketer of branded consumer goods, with a Buy rating and price target of $0.25, or 26X our December 2024 Adjusted EBITDA.
• Starco’s stable of brands includes: Art of Sport body and skincare products, Skylar hypoallergenic fragrance and beauty products; Soylent plant-based food products, Whipshots vodka infused whipped cream aerosols and Winona butter flavored popcorn spray.
• As such, we view STCB as a rapidly growing owner of highly differentiated brands, with the business model to register consistent and strong overall top and EBITDA returns and are initiating coverage of STCB with a Buy rating and $0.25 price target.

Key points (machine generated)

• Integra enjoys a high level of trust in the quality and reliability of its products, particularly in the neurosurgical equipment and wound healing grafts segments.
• The acquisition of Codman in 2017 resulted in a significant expansion of Integra’s neurosurgery sub-segment.
• Surgeons prefer Integra’s brands due to their superior performance and the trust they have in the company’s products. The tissue segment uses a variety of raw materials, including animal sources and synthetic materials.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• A case involving Ambase is expected to go to trial or be resolved through summary judgment in early 2025.
• The outcome of this litigation will have a significant impact on the potential value of Ambase as an investment, as its current market cap is significantly below the potential claim.
• The upcoming document discovery process and motions for summary judgment will allow investors to evaluate the chances of a positive outcome and potential net recovery for Ambase shareholders.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Lamb Weston’s stock price has dropped by about 30% since July 2023 due to market concerns regarding the potential impact of GLP-1s on consumer consumption and caloric intake behavior, particularly in the greasy fried foods category.
• Despite this decline, experts believe it is an overreaction and a good opportunity for investors. Lamb Weston is considered a high-quality business with strong pricing power and long-term earnings growth potential.
• The stock decline is attributed to misunderstandings, including reports of volume decline and concerns about demand and pricing power, which are not accurately reflecting the company’s true prospects.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.