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Smartkarma Daily Briefs

Oct 31
0

Daily Brief ESG: Do Not Miss the Movement of Deemed Cross-Held Shares and more

By | Daily Briefs, ESG

In today’s briefing:

  • Do Not Miss the Movement of Deemed Cross-Held Shares, Which Are the Last Resort of Cross-Held Shares

Do Not Miss the Movement of Deemed Cross-Held Shares, Which Are the Last Resort of Cross-Held Shares

By Aki Matsumoto

  • Clearly, the pace of decline of deemed cross-held shares held in retirement benefit trusts is slower than the pace of decline of ordinary cross-held shares held on the balance sheet.
  • Companies with deemed shareholdings tend to have larger total assets than companies with general policy shareholdings (policy shareholdings account for 7.3% of total assets).
  • Although they are less visible, the reduction of deemed shareholdings will come later because shares of important business partners and banks are contributed to retirement benefit trust as deemed shareholdings.

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Oct 31
0

Daily Brief Credit: Morning Views Asia: Vedanta Resources and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Vedanta Resources, Yankuang Energy Group

Morning Views Asia: Vedanta Resources, Yankuang Energy Group

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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Oct 31
0

Daily Brief Thematic (Sector/Industry): UK Utilities Rotation and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • UK Utilities Rotation
  • Smartkarma Webinar | ESG in Commodities: Beyond the Noise
  • Weekly Stock Bullfinder – Week of 10/31

UK Utilities Rotation

By Steven Holden

  • Utilities have benefited from sector rotation among UK managers over the last year.  Typically an underweighted sector, managers are now overweight by 0.22% on average, the highest on record.
  • Over the last year, average weights have increased by +0.55%, the percentage of funds with exposure by +1.18% and 7.85% of the UK funds in our analysis moved to overweight
  • Nearly 2/3rds of allocations are in National Grid plc, SSE plc and Northumbrian Water, though UK managers are raising exposure to Centrica, Drax Group and United Utilities. 

Smartkarma Webinar | ESG in Commodities: Beyond the Noise

By Smartkarma Research

In the next webinar, we have Smartkarma Analyst Kyle Rudden, who will be joined by the CEO of Helixtap, Farah Miller. They will run through the ESG landscape in agri commodities through a financial and data driven perspective. Through their discussion on the importance of data in planning ESG goals in supply chains, they will also highlight how Helixtap’s data and products can help companies meet their sustainability targets. 

The webinar will be hosted on Friday, 9 November 2022, 17:00 SGT/HKT.

Kyle Rudden is an ESG (Environmental, Social, Governance) analyst with an alpha-centric approach to ESG research. Previously, an Institutional Investor and Wall Street Journal All-Star sell-side analyst at J.P. Morgan, he believes global sustainability – i.e., environmental stewardship, social equality, and economic prosperity – is imperative, and private-sector capital is its cornerstone. Private-sector capital still has fiduciary responsibilities. Profitability is necessary for sustained impact. The Triple Bottom Line. People, Planet, AND Profit. You can expect his insights to be investigative research into emergent ESG issues; data-driven analyses of deals (pre-IPO ESG research, ESG-focused M&A consequence analyses, etc.); and trading-oriented ideas like ESG short selling and playing ESG index constituency changes. He brings both ESG expertise and traditional investing experience, as well as some rather unique perspectives on ESG (a lesson in governance from Enron, anyone?). Kyle has spent the last decade exclusively on ESG, researching links to equity returns, credit ratings, cost of capital, and yield spreads. He also contributed to ESG reporting standards (SASB and GRI), and the MBA curriculum (Impact Investing) at the Kellogg School of Management.

Weekly Stock Bullfinder – Week of 10/31

By Weekly Stock Bull Finder

  • An interesting dynamic has emerged over the past few months with mega cap technology companies like Meta, Alphabet, and Amazon all seeing considerable weakness while other pockets of the market have emerged to move higher.
  • The market has recently “shaken off” some pretty bad earnings reports from mega cap tech while other pockets of the market continue to see breakouts which is a notable character change from the past few years.
  • After seeing mega cap technology earnings results from this past week, some have questioned whether a new crop of market leadership is ready to take over the mantle from the big cap technology companies.

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Oct 31
0

Daily Brief Technical Analysis: SPX 3 and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • SPX 3,500 Transitioning Higher

SPX 3,500 Transitioning Higher

By Thomas Schroeder

  • Our bullish risk call at SPX 3,500 has panned out nicely while using our short group to sell squeeze rallies. Increasing evidence sides with a more bullish November for risk.
  • USD and the US 10yr yield face pivot support with a tactical bounce bias. Conviction is to sell the USD and Yield into strength.
  • RTY long from 1,650 has been the star performer while shorting the NDX on squeeze spiked has worked fairly well. Update SPX, RTY and NDX buy and sell level outlined.

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Oct 31
0

Daily Brief Equity Bottom-Up: Keyence(6861 JP) | The Rise of the Phoenix – A Company like No Other and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Keyence(6861 JP) | The Rise of the Phoenix – A Company like No Other
  • Seiko Epson(6724 JP)| Neutral 2Q Earnings; Negative Outlook – Remain Bearish
  • Intel Vs. TSMC/​​​​​UMC Long/​​​​​Short Monitor: Intel Results Drive Share Spike, Still Can Re-Rate
  • Dongfang Electric (1072 HK): Surge in 3Q22 Profit and Acceleration of New Orders
  • Delta Taiwan Vs. Thailand Monitor: Delta Taiwan Reports Better Margin Trend, Rel Valuation Reverts
  • Aeon: Making Omnichannel a Reality
  • Mediatek Results Takeaways — Inventory Correction Bottom Potential 4Q22, Mobile, TV Recovery 1H23?
  • Chipotle Mexican Grill: Major Drivers
  • Moody’s Corporation: ESG Insurance Underwriting Solutions & Other Drivers
  • China Internet Weekly (31Oct2022): Alibaba, Tencent, Meituan, Kuaishou, S.F.

Keyence(6861 JP) | The Rise of the Phoenix – A Company like No Other

By Mark Chadwick

  • Keyence reported record 2Q Sales and OP, thoroughly beating street expectations. The company recorded high double-digit growth in all regions – even in Europe. 
  • Pricing power is on display 10-35% price hikes to shore up the dip in GPM to 81.3%, depressed on higher raw material costs.  Sets up for future earnings growth.
  • The share price has underperformed the TOPIX -26%YTD. Valuations at the bottom of the recent range. We expect a share price recovery and are bullish.

Seiko Epson(6724 JP)| Neutral 2Q Earnings; Negative Outlook – Remain Bearish

By Mark Chadwick

  • 2Q Earnings Neutral; Mainly FX driven. The company sidestepped the worse of what we are seeing in broader printer market (See XEROX; Canon)
  • The outlook remains Negative. Macro conditions set to be worse in H2 vs H1. Core Home & Office Printing Business key IJP unit sales struggling with severe margin pressures.
  • Ongoing share buyback mildly supportive but unlikely to be a game changer with falling earnings.  Target-based 0.8x PBR implying ¥1700 TP.  

Intel Vs. TSMC/​​​​​UMC Long/​​​​​Short Monitor: Intel Results Drive Share Spike, Still Can Re-Rate

By Vincent Fernando, CFA

  • Intel’s 3Q22 earnings beat expectations, and the shares reacted positively, rising 10.7%.
  • The company announced $3bn of cost savings for 2023E and $8-10bn in annual cost savings by 2025E. 2023E earnings guidance will be provided at the company’s February Investor Day.
  • Intel has outperformed TSMC and UMC since our pre-Intel Innovation Conference catalyst piece. Intel could still re-rate further relative to the companies into its next earnings.

Dongfang Electric (1072 HK): Surge in 3Q22 Profit and Acceleration of New Orders

By Osbert Tang, CFA

  • Dongfang Electric (1072 HK) logged a 40.1% growth in reported profit and a 36.5% increase in new orders in 3Q22, both represent excellent sequential momentum.
  • A 0.5pp 3Q22 gross margin expansion demonstrated order execution and cost control strengths. We also forecast end-FY22 backlog at 1.8x FY22F revenue, well securing outlook.  
  • DEC is set to see accelerated growth momentum from rising power storage, particularly pumped storage, demand in the medium term. Yet, it only trades on cheap 8.1x FY23F PER.

Delta Taiwan Vs. Thailand Monitor: Delta Taiwan Reports Better Margin Trend, Rel Valuation Reverts

By Vincent Fernando, CFA

  • Delta Electronics (2308 TT) reported its earnings on October 28th, after its subsidiary Delta Electronics Thai (DELTA TB) had reported on October 25th.
  • Sales grew 33% YoY and gross margin expanded sequentially, which outperformed Delta Thailand’s margin performance.
  • Delta Taiwan shares have outperformed Delta Thailand since having dropped to a historically-extreme relative market cap below 1.0x. However, Delta Taiwan remains historically cheap on a relative basis.

Aeon: Making Omnichannel a Reality

By Michael Causton

  • In search of ¥1 trillion in ‘digital-related’ sales by 2026, Aeon opened its first, built-from-scratch online-offline marketing store in Yokohama this month. 
  • The new Aeon SC introduces a range of features and processes to make e-commerce a natural supplement to the store and the shopping experience.
  • Aeon has a way to go to reach its targets for e-commerce but is moving in the right direction and has a clearer direction than rival, Seven & I.

Mediatek Results Takeaways — Inventory Correction Bottom Potential 4Q22, Mobile, TV Recovery 1H23?

By Vincent Fernando, CFA

  • Mediatek’s business continues to grow YoY, albeit slower than earlier expected. Management comments provided insight into the inventory cycle.
  • Management expects to see the worst impact of the inventory correction cycle in 4Q22E, but then in 1H23E sees potential for a turn around.
  • We are still developing a conviction view, however we see the latest results as net-positive for the shares given signs of a turn around ahead and the stock’s laggard status.

Chipotle Mexican Grill: Major Drivers

By Baptista Research

  • Chipotle Mexican Grill delivered a mixed set of results.
  • In the quarter, Chipotle continues to view broadening trends by the income levels with the consumers with lower income reducing frequency.
  • We provide the stock of Chipotle Mexican Grill with a ‘Hold’ rating and a revision in the target price.

Moody’s Corporation: ESG Insurance Underwriting Solutions & Other Drivers

By Baptista Research

  • Moody’s Corporation delivered a disappointing result, failing to meet Wall Street expectations with respect to both, revenues as well as earnings.
  • The Moody’s Analytics business continued to perform quite well with strong revenue growth and an increase in the annualized recurring revenue.
  • We provide the stock of Moody’s with a ‘Hold’ rating with a revision in the target price.

China Internet Weekly (31Oct2022): Alibaba, Tencent, Meituan, Kuaishou, S.F.

By Ming Lu

  • In 3Q22, S. F. Holdings’s revenue grew by 45% YoY and net profit increased by 89% YoY.
  • Alibaba resumed its link on Kuaishou’s live streaming sales before Singles’ Day.
  • Tencent denied the rumor that it would be acquired by China Mobile.

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Oct 31
0

Daily Brief Macro: Global Equity:  Consensus Positioning and more

By | Daily Briefs, Macro

In today’s briefing:

  • Global Equity:  Consensus Positioning
  • Equity Market Expectations Ahead of FOMC Meeting
  • How to Trade the Fed Whisperer Rally
  • Global Supply Chains: Pressures Ease in 2022, but Geopolitical Forces Will Shape Their Future

Global Equity:  Consensus Positioning

By Steven Holden

  • We analyse our Global fund universe to find out the consensus overweight and underweight exposures, together with the consensus and under-owned stock holdings.
  • Consensus overweights are led by Developed Europe, Health Care and countries in the EMEA region.  On a stock level, Microsoft and Alphabet are the most widely held companies.
  • Consensus underweights are led by Asia and selected industry groups such as Telcos and Banks.  Raytheon Technologies and Al Rajhi Bank are among the most under-owned stock in the world.

Equity Market Expectations Ahead of FOMC Meeting

By Cam Hui

  • Ahead of the upcoming FOMC, meeting, what is the equity market discounting? We conduct a factor and sector review for some answers.
  • We find the market is starting to discount a cyclical rebound, but much depends on Fed policy.
  • However, even if the Fed were to signal an imminent pause in rate hikes, that’s not necessarily very equity bullish.

How to Trade the Fed Whisperer Rally

By Cam Hui

  • How should investors interpret the recent risk-on episode? We call it the Fed Whisperer rally.
  • The S&P 500 continues to be inversely correlated to the USD Index, which is mainly driven by the expectations of a less hawkish Fed.
  • Tactically, the S&P 500 may have more upside as it regained its 50 dma, which gives it a shot at its inverse head and shoulders measured objective of about 4120.

Global Supply Chains: Pressures Ease in 2022, but Geopolitical Forces Will Shape Their Future

By Said Desaque

  • Hopes of ending China’s zero tolerance policy to COVID-19 were dashed by President Xi at the recent National Congress, thereby making further lockdowns and supply disruptions a distinct possibility. 
  • Based on data calculated by the New York Fed, stress on global supply chains has eased significantly in 2022, suggesting a reduction in price pressures for traded goods in 2023.
  • Restrictions on technology transfers by the US could lead to the evolution of competing technological eco systems that will raise costs for Western companies wanting to do business with China. 

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Oct 31
0

Daily Brief Event-Driven: CSI500 Index Rebalance Preview: 50 Adds/Deletes in December and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • CSI500 Index Rebalance Preview: 50 Adds/Deletes in December
  • Merger Arb Mondays (31 Oct) – Jinke, Fengxiang, Lifestyle, Kingston, Pushpay, Nitro, Elmo, DTAC/True
  • Fengxiang (9977 HK): PAG’s Unconditional MGO And Proposed Delisting
  • Moya Holdings: 21 Nov EGM For Salim’s Exit Offer
  • Ad Hoc S&P500 Change on Twitter Deletion
  • LX Semicon KOSPI Migration & KOSDAQ 150 Special Change
  • MSCI Korea IR: Market Cap Cutoff, NOC, & Constituent Changes
  • Moya Holding’s EGM for S$0.092 Offer on 21 November
  • Weekly Deals Digest (30 Oct) – Keppel, GoTo, Fengxiang, Lifestyle, Jinke Services, Kingston, Pushpay
  • EQD | Volatility Update: Bi-Weekly Review of Vol Changes and Best Trades

CSI500 Index Rebalance Preview: 50 Adds/Deletes in December

By Brian Freitas

  • With a day left in the review period, we forecast 50 changes (the maximum permitted) for the CSI500 Index at the close on 9 December.
  • We estimate a one-way turnover of 13.53% at the December rebalance leading to a one-way trade of CNY 8.01bn. The Materials, Consumer Discretionary and Information Technology sectors are net gainers.
  • The potential adds and potential deletes have performed in line over the last few weeks, and we’d look to position for outperformance post the end of the review period.

Merger Arb Mondays (31 Oct) – Jinke, Fengxiang, Lifestyle, Kingston, Pushpay, Nitro, Elmo, DTAC/True

By Arun George

Fengxiang (9977 HK): PAG’s Unconditional MGO And Proposed Delisting

By David Blennerhassett

  • PAG Capital has won the judicial auction to acquire 70.92% of Shandong Fengxiang (9977 HK). 
  • The acquisition remains subject to regulatory clearance (including SAMR). Once greenlit, PAG will be required to make an unconditional Offer for the H-shares at HK$1.5132/share.
  • Separately, it is PAG’s intention to delist Fengxiang which involves Scheme-like delisting resolutions. 

Moya Holdings: 21 Nov EGM For Salim’s Exit Offer

By David Blennerhassett

  • On the 14 September, Indonesian water treatment play Moya Holdings Asia (MHAL SP) announced a S$0.092/share Exit Offer from an Anthoni Salim-controlled entity. The Offer price will not be increased.
  • The Offer requires approval from 75% of disinterested shareholders. Tamaris and its concert parties hold 72.84%.
  • The Circular is now out. The EGM takes place on the 21 November. The IFA reckons the Offer is fair and reasonable. 

Ad Hoc S&P500 Change on Twitter Deletion

By Travis Lundy

  • S&P DJI announced late 27 October 2022 that Twitter Inc (TWTR US) would be deleted from the S&P500, replaced by Arch Capital (ACGL US). 
  • RXO would be added to the MidCap400 while Bread Financial Holdings (BFH) would move from MidCap400 to SmallCap600 and Unifi Inc (UFI US) would get deleted from the 600.
  • This insight presents the issues and the flows, which are not to be separated. 

LX Semicon KOSPI Migration & KOSDAQ 150 Special Change

By Sanghyun Park

  • LX Semicon (108320 KS) will be traded on KOSPI from November 3rd. This event has no trade suspension. So, it will be traded on KOSDAQ until November 2nd.
  • Nextin (348210 KS) will replace LX Semicon for KOSDAQ 150. Again, the effective date is November 3rd. So, the index trackers will rebalance-trade at the close on November 2nd.
  • LX Semicon will see an outflow of -1.91x ADTV, whereas Nextin will enjoy an inflow of 3.93x ADTV. This Special Change will likely save AptaBio Therapeutics (293780 KS) from deletion.

MSCI Korea IR: Market Cap Cutoff, NOC, & Constituent Changes

By Sanghyun Park

  • The NOC of MSCI Korea Standard is 111, and the market cap of the 111th-ranked company is ₩2.44T on Day 1 and ₩2.40T on Day 2.
  • In addition to Hyundai Mipo, Ecopro passed the screening. On the other hand, only Meritz Securities and CJ ENM managed to stay inside the safe zone among the deletion candidates.
  • The recently increased price fluctuations likely resulted in delaying the entry timing of flow trading. So, we should set the expected return of our basket trade a bit more aggressively.

Moya Holding’s EGM for S$0.092 Offer on 21 November

By Arun George

  • Moya Holdings Asia (MHAL SP) released its delisting circular. The EGM to approve the delisting proposal from Tamaris Infrastructure (Anthoni Salim) at S$0.092 per share is on 21 November.
  • The IFA says the offer is fair and reasonable. Gateway Partners, which holds a blocking stake, will likely use the offer as an opportunity to exit an underperforming investment.
  • The offer price is attractive and will likely succeed. At the last close price, the gross and annualised spread for a 30 November payment is 3.4% and 45.8%, respectively.

Weekly Deals Digest (30 Oct) – Keppel, GoTo, Fengxiang, Lifestyle, Jinke Services, Kingston, Pushpay

By Arun George

EQD | Volatility Update: Bi-Weekly Review of Vol Changes and Best Trades

By Simon Harris

  • Two Week summary of vol changes and moves across Global Markets
  • Analysing ATM volatility and skew changes over the last 10 days
  • We suggest a few trades to take advantage of the implied vol surfaces

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Oct 31
0

Most Read: Keyence Corp, Sichuan Tianyi Science & A, Jinke Smart Services, Monadelphous, Shandong Fengxiang, Moya Holdings Asia, Nextin, Pushpay Holdings, Arch Capital, LX Semicon and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Keyence(6861 JP) | The Rise of the Phoenix – A Company like No Other
  • CSI500 Index Rebalance Preview: 50 Adds/Deletes in December
  • Merger Arb Mondays (31 Oct) – Jinke, Fengxiang, Lifestyle, Kingston, Pushpay, Nitro, Elmo, DTAC/True
  • Index Rebalance & ETF Flow Recap: S&P/ASX, STAR50, CSI300, SSE50, IDX, GOTO, SMM/KEP
  • Fengxiang (9977 HK): PAG’s Unconditional MGO And Proposed Delisting
  • Moya Holdings: 21 Nov EGM For Salim’s Exit Offer
  • KOSDAQ150 Ad Hoc Index Rebalance: LX Semicon OUT, Nextin IN
  • Pushpay: BGH/Sixth Street Keep The Faith With $1.34/Share Tilt
  • Ad Hoc S&P500 Change on Twitter Deletion
  • LX Semicon KOSPI Migration & KOSDAQ 150 Special Change

Keyence(6861 JP) | The Rise of the Phoenix – A Company like No Other

By Mark Chadwick

  • Keyence reported record 2Q Sales and OP, thoroughly beating street expectations. The company recorded high double-digit growth in all regions – even in Europe. 
  • Pricing power is on display 10-35% price hikes to shore up the dip in GPM to 81.3%, depressed on higher raw material costs.  Sets up for future earnings growth.
  • The share price has underperformed the TOPIX -26%YTD. Valuations at the bottom of the recent range. We expect a share price recovery and are bullish.

CSI500 Index Rebalance Preview: 50 Adds/Deletes in December

By Brian Freitas

  • With a day left in the review period, we forecast 50 changes (the maximum permitted) for the CSI500 Index at the close on 9 December.
  • We estimate a one-way turnover of 13.53% at the December rebalance leading to a one-way trade of CNY 8.01bn. The Materials, Consumer Discretionary and Information Technology sectors are net gainers.
  • The potential adds and potential deletes have performed in line over the last few weeks, and we’d look to position for outperformance post the end of the review period.

Merger Arb Mondays (31 Oct) – Jinke, Fengxiang, Lifestyle, Kingston, Pushpay, Nitro, Elmo, DTAC/True

By Arun George

Index Rebalance & ETF Flow Recap: S&P/ASX, STAR50, CSI300, SSE50, IDX, GOTO, SMM/KEP

By Brian Freitas

Fengxiang (9977 HK): PAG’s Unconditional MGO And Proposed Delisting

By David Blennerhassett

  • PAG Capital has won the judicial auction to acquire 70.92% of Shandong Fengxiang (9977 HK). 
  • The acquisition remains subject to regulatory clearance (including SAMR). Once greenlit, PAG will be required to make an unconditional Offer for the H-shares at HK$1.5132/share.
  • Separately, it is PAG’s intention to delist Fengxiang which involves Scheme-like delisting resolutions. 

Moya Holdings: 21 Nov EGM For Salim’s Exit Offer

By David Blennerhassett

  • On the 14 September, Indonesian water treatment play Moya Holdings Asia (MHAL SP) announced a S$0.092/share Exit Offer from an Anthoni Salim-controlled entity. The Offer price will not be increased.
  • The Offer requires approval from 75% of disinterested shareholders. Tamaris and its concert parties hold 72.84%.
  • The Circular is now out. The EGM takes place on the 21 November. The IFA reckons the Offer is fair and reasonable. 

KOSDAQ150 Ad Hoc Index Rebalance: LX Semicon OUT, Nextin IN

By Brian Freitas

Pushpay: BGH/Sixth Street Keep The Faith With $1.34/Share Tilt

By David Blennerhassett

  • Church donor management tech play Pushpay (PPH NZ) has been fielding expressions of interest since April. Earlier this month,  Pushpay announced it had received another proposal, reportedly from BGH/Sixth Street.
  • On the 28 October, Puspay announced it had entered into a Scheme Implementation Agreement at NZ$1.34/share with BGH/Sixth Street, which collectively hold 20.34%. This is  a 30.1% premium to undisturbed.
  • The offer is subject to shareholder and regulatory approval, with a possible completion date in early 2Q23. 

Ad Hoc S&P500 Change on Twitter Deletion

By Travis Lundy

  • S&P DJI announced late 27 October 2022 that Twitter Inc (TWTR US) would be deleted from the S&P500, replaced by Arch Capital (ACGL US). 
  • RXO would be added to the MidCap400 while Bread Financial Holdings (BFH) would move from MidCap400 to SmallCap600 and Unifi Inc (UFI US) would get deleted from the 600.
  • This insight presents the issues and the flows, which are not to be separated. 

LX Semicon KOSPI Migration & KOSDAQ 150 Special Change

By Sanghyun Park

  • LX Semicon (108320 KS) will be traded on KOSPI from November 3rd. This event has no trade suspension. So, it will be traded on KOSDAQ until November 2nd.
  • Nextin (348210 KS) will replace LX Semicon for KOSDAQ 150. Again, the effective date is November 3rd. So, the index trackers will rebalance-trade at the close on November 2nd.
  • LX Semicon will see an outflow of -1.91x ADTV, whereas Nextin will enjoy an inflow of 3.93x ADTV. This Special Change will likely save AptaBio Therapeutics (293780 KS) from deletion.

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Oct 30
0

Daily Brief United States: Tesla Motors, Abbvie Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Elon Has “Freed” Twitter: Send The Ravens
  • AbbVie (ABBV US): Q3 Sales Miss as Humira OUS Declines; 2022 Guidance Narrowed; Dividend Raised

Elon Has “Freed” Twitter: Send The Ravens

By Vicki Bryan

  • Elon Musk closed his Twitter deal Thursday as confirmed today via a filing with the SEC to delist its stock. 
  • We don’t know if Elon sold more Tesla to cover his cash shortfall. If not, where did he get it? 
  • He also sent Tesla’s engineers to assess how to fix Twitter. Like, sharing resources. Establishing synergies. Maybe creating an excuse to direct Tesla to “invest” into Twitter, as I suspected.

AbbVie (ABBV US): Q3 Sales Miss as Humira OUS Declines; 2022 Guidance Narrowed; Dividend Raised

By Tina Banerjee

  • Abbvie Inc (ABBV US) reported Q3 revenue of $14.8 billion, an increase of 5% y/y operationally, mainly driven by a 16% y/y operational growth in immunology portfolio.
  • While Humira revenue increased 7% y/y in the U.S. to $5 billion, internationally Humira revenue declined 26% y/y to $603 million due to biosimilar competition.
  • While management reiterated mid-point of 2022 adjusted EPS guidance range, they have narrowed the range to $13.84–13.88 from $13.76–13.96. 2022 revenue guidance has been slightly lowered to $58.2 billion.

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Oct 30
0

Daily Brief Australia: Monadelphous, Nitro Software Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: S&P/ASX, STAR50, CSI300, SSE50, IDX, GOTO, SMM/KEP
  • Nitro’s Carrot-And-Stick A$1.80 Takeover Offer from Potentia

Index Rebalance & ETF Flow Recap: S&P/ASX, STAR50, CSI300, SSE50, IDX, GOTO, SMM/KEP

By Brian Freitas

Nitro’s Carrot-And-Stick A$1.80 Takeover Offer from Potentia

By Arun George

  • Nitro Software Ltd (NTO AU) entered a trading halt in response to Potentia’s off-market takeover offer of A$1.80 per share, a 13.9% premium to its previous rejected offer of A$1.58.
  • Potentia will block rival schemes and not accept competing takeover offers. This move will make it hard for the Board to convince a rival bidder to table an offer.
  • Potentia wants a friendly offer and placed majority Board support as a condition. The offer is unattractive but Potentia has hinted at improved terms if provided due diligence access. 

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