Smartkarma Daily Briefs

Charter Communications is one of the leading cable operators and broadband connectivity companies in the U.S.
The company’s recent financial performance has been tepid despite consistent additions of new Internet customers throughout the year.
They further offer the nation’s fastest Internet, WiFi, and mobile speeds when combined with WiFi, all while saving consumers thousands of dollars a year or serving them.

Exact Sciences Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Exact Sciences is one of the leading cancer diagnostics companies across the globe.
The company has a resilient business model and a unique platform that it has created to engage patients and medical professionals.
Exact Sciences can support new cancer tests with a small incremental investment due to their well-known test, smart patient navigation, electronic ordering and resultant platform, extensive lab capabilities, and strong payer partnerships.

Sysco Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Sysco Corporation is one of the largest foodservice distribution companies in the U.S.
The company’s financial performance has shown a simultaneous recovery along with the foodservice sector after the pandemic.
Restaurant partners of the company continue to be resilient, and its travel hospitality and industry and business segment has regularly posted improvements in financial performance.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Daily Brief Macro: CX Daily: Shanghai’s Maternity Hospitals Struggle To Isolate Covid Patients and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

CX Daily: Shanghai’s Maternity Hospitals Struggle To Isolate Covid Patients
Surging Covid Infections Delay Chinese Exporters’ Deliveries
Split-Offs in Korea: Amendment by FSC & Implications

CX Daily: Shanghai’s Maternity Hospitals Struggle To Isolate Covid Patients

By Caixin Global

Hospitals /: Shanghai’s maternity hospitals struggle to isolate Covid patients
Covid-19 /: China to drop outbound travel restrictions with end of ‘zero Covid’
Banking /: China sets new risk rating system for foreign bank operations

Surging Covid Infections Delay Chinese Exporters’ Deliveries

By Caixin Global

The surge of Covid-19 across China is preventing exporters from delivering orders on time because their workers are falling sick.
The missed deadlines show how China’s Covid policy is again disrupting foreign trade, this time due to illnesses rather than lockdowns and other restrictions.
Suppliers in the Guangdong province cities of Guangzhou, Dongguan and Foshan said they have had to push back deliveries until the middle of January

Split-Offs in Korea: Amendment by FSC & Implications

The FSC recently made an amendment where when a listed company’s BOD decides on a split-off, the shareholders that oppose this physical division are granted the right to purchase shares.
The new regulations on the split-offs will encourage new spin-offs where the shares of the subsidiary company of the spun-off entity are distributed as special dividends on a pro-rata basis.
These capital market reforms in Korea will help the country to eventually reach Developed Country status by the MSCI, most likely in 2025-2027.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Daily Brief Event-Driven: O2Micro Trading Wide To Terms Ahead Of Shareholder Vote and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date
JPX-Nikkei 400 Rebal 2023: End-Dec 2022
MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition

O2Micro Trading Wide To Terms Ahead Of Shareholder Vote

By David Blennerhassett

Back on the 30 September, O2Micro International (OIIM US), an integrated circuits play, announced a definitive privatisation from management at US$5.00/ADS, a 68.9% premium to the undisturbed price.
An EGM will take place on the 31 January. The Offer requires shareholders representing at least two-thirds of O2Micro vote FOR. 16.9% of shares out are supportive.
This Offer is expected to close in the 1Q23. The IFA considers the Offer fair.

Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date

By Sanghyun Park

This year is less intense compared to previous years. However, given this year’s overall market returns and the lower visibility of yearend dividends, it is still a reasonably aggressive flow.
Most of this PROP flow should have been dividend hunting aimed at the distortion of ex-date price correction caused by RETAIL’s tax avoidance-driven selling flow.
The performance of the individual stock position strategy (entering on T-4~1 ex-date) might not have been as juicy as expected, but it still managed to deliver a positive return.

JPX-Nikkei 400 Rebal 2023: End-Dec 2022

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2023 based on trading data as of end-December 2022.

MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition

By Robert Sassoon

Amazon’s pursuit of robotic vacuum manufacturer iRobot is being scrutinized by the FTC, a merger which we think the regulator will be hard pressed to prove is harmful to competition.
However, although unlikely, the pending ruling next month on the FTC’s unusual lawsuit against Meta’s acquisition of virtual reality start-up Within could rewrite regulatory guidelines for vertical mergers
The 27% spread offers a potentially lucrative trade generating double-digit IRR even if deal completion is delayed by regulatory review, although it might be wise to entertain some downside protection

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Daily Brief Equity Bottom-Up: China Allows Import of 45 Foreign Video Games Including 7 Korean Games and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

China Allows Import of 45 Foreign Video Games Including 7 Korean Games
Bank Negara Indonesia (BBNI IJ) – Time to Play Catch Up?
Sinopharm Group (1099 HK): Industry Tailwind and China Reopening To Drive Growth
Mediatek: We Contacted Management Re: Latest Arm Restrictions, Accumulate
African Rainbow Minerals Vs. Impala Platinum: Which One Is A Better Buy?
BliBli (BELI IJ) – A Very Different Animal
Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers
Hon Hai: EV Growth Will Come Into Focus in 2023E, Can Hit NT$155 Per Share
Tencent/Netease: Tencent Behind Smaller Peers in This Year Game Approval
Honeys: Sweet Profit in a Downturn

China Allows Import of 45 Foreign Video Games Including 7 Korean Games

On 28 December, the Chinese regulators announced that it will allow import of 45 foreign video games in China, among which seven are Korean video games.
Now that the Chinese authorities have allowed greater imports of foreign games, this will act as a significant positive catalyst to boost share prices of Korean game companies.
Among the major Korean game companies, we believe that NCsoft and Netmarble are best positioned to capitalize on this catalyst.

Bank Negara Indonesia (BBNI IJ) – Time to Play Catch Up?

By Pearl Gray Equity and Research

Bank Negara Indonesia (BBNI IJ) has been a perennial underdog in terms of valuations versus its peers but as its ROE and ROA converge with those peers it should rerate.
The bank’s 3Q2022 reflected the changing shape of its loan portfolio towards higher-quality and lower-risk exposure in corporate loans and tier 1 clients’ value chain, KUR, and payroll loans.
BNI management is cautiously optimistic about the outlook for FY2023 in terms of loan growth and credit quality. Valuations remain attractive and ROEs may rise faster than consensus estimates.

Sinopharm Group (1099 HK): Industry Tailwind and China Reopening To Drive Growth

By Tina Banerjee

Sinopharm Group Co Ltd H (1099 HK) remains a beneficiary of both VBP and China reopening. Consensus expects double-digit revenue and earnings growth for the company in 2023 and 2024.
SinoPharm’s acquisition of VBP varieties constantly stood in the leading position in the industry. Through June 2022, China carried out seven batches of VBP, with 294 categories being included.
With China gradually re-opening, SinoPharm should record accelerated growth in its pharma distribution business. With subsiding COVID-19 cases in Q3, SinoPharm reported 10% YoY and 8% QoQ revenue growth.

Mediatek: We Contacted Management Re: Latest Arm Restrictions, Accumulate

By Vincent Fernando, CFA

We contacted Mediatek management in regards to the latest Arm restrictions for China; Mediatek doesn’t expect to be impacted.
Mediatek’s latest chipsets are competing well against Qualcomm, and its China competition has been stunted by U.S. restrictions in our view.
We have established our financial model for the company – We believe the shares should be held or accumulated on a value-basis.

African Rainbow Minerals Vs. Impala Platinum: Which One Is A Better Buy?

Impala Platinum and African Rainbow Minerals are overlooked mining stocks with tremendous total return prospects.
Both companies are breadwinners. Both stocks’ total returns prospects are unparalleled, according to the analysts.
Both stocks have strong buy ratings to both stocks, which are assigned strong buy Ratings to both.

BliBli (BELI IJ) – A Very Different Animal

Blibli (BELI IJ) is a very different animal from its listed peers given its omnichannel approach and its large 1P business plus a substantial private-public institutional B2B business.
The company’s IPO was a relative success, raising US$508m in fresh funds, and the share price is still above the IPO price after listing on 8th November.
Blibli (BELI IJ) is still loss-making but has a strong backer in the Djarum Group. Its travel business could move to profitability quite rapidly and Ranch is there already.

Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers

This is our first report on Chewy, the leading pure play e-commerce company in the U.S. in the domain of pet food, pet supplies, and pet healthcare products.
During the quarter, they announced the growth of CarePlus, their exclusive line of insurance and wellness products with Lemonade-powered plans.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Hon Hai: EV Growth Will Come Into Focus in 2023E, Can Hit NT$155 Per Share

By Vincent Fernando, CFA

Hon Hai’s Zhengzhou problems appear to be easing; Nevertheless, the company is expanding in India and Vietnam regardless.
We believe the company’s EV platform business and EV milestones will drive the shares in 2023E.
We have developed a financial model for Hon Hai and are establishing a 12-month price target of NT$155 per share, 55% above current levels. This is higher than the Street.

Tencent/Netease: Tencent Behind Smaller Peers in This Year Game Approval

By Ke Yan, CFA, FRM

China just announced game approval for December batch. The number of games approved is slightly higher than the previous three months.
Pace of China game approval stays flattish, at a much slower pace than pre-tightening.
In both December batch, as well as over the past year, we see Tencent behind its smaller peers in terms of receiving game approval.

Honeys: Sweet Profit in a Downturn

By Michael Causton

Honeys is proving a resilient provider of low-cost women’s basic fashions in Japan.
While it struggled after losing the fickle younger fan base five years ago, Honeys has bounced back through careful control of costs that has kept prices down.
Along with Workman and Shimamura, Honeys looks to be one of the longer-term beneficiaries of the shift to discount apparel, particularly in rising operating margins.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Most Read: Haidilao, Delta Electronics Thai, Meituan, O2Micro International, NCSOFT Corp, LG Household & Health Care, SBI Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Haidilao’s Spin-Off of Super Hi: Index Implications
SET50 Index Rebalance: CENTEL, COM7, DELTA, RATCH Added; BLA, IRPC, KCE, SAWAD Out
Index Rebalance & ETF Flow Recap: S&P/ASX, HSCEI, HSTECH, Haidilao/Super Hi, CSI REIT
Index Rebalance & ETF Flow Recap: SET50, Stock Connect, Kanzhun, Futu, AMFI
Meituan (3690 HK): Passive Selling Next Week; Plus the Prosus Overhang
“Buy the Worst” HSI Strategy: Big Win in 2022 and Let’s See if It Can Sustain in 2023
O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
China Allows Import of 45 Foreign Video Games Including 7 Korean Games
Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date
JPX-Nikkei 400 Rebal 2023: End-Dec 2022

Haidilao’s Spin-Off of Super Hi: Index Implications

Haidilao (6862 HK) intends to spin-off its 90% holding in Super Hi International Holding (SHI HK) with an ex-date of 16 December.
Super Hi International Holding (SHI HK) will be deleted from the Hong Kong Hang Seng Index and Hang Seng China Enterprises Index at the close on listing day.
There could be nationality changes and selling from MSCI and FTSE trackers as well, though the timing is uncertain at this point.

SET50 Index Rebalance: CENTEL, COM7, DELTA, RATCH Added; BLA, IRPC, KCE, SAWAD Out

Central Plaza Hotel, Com7 PCL, Delta Electronics Thai and Ratch Group will replace Bangkok Life Assurance, IRPC PCL, KCE Electronics PCL and Srisawad Power in the SET 50 Index.
Passive trackers will need to buy between 2-4 days of ADV on the adds while selling between 0.6-3 days of ADV on the deletes.
The adds have significantly outperformed the deletes over the last few months. We’d use any big moves over the next couple of days to trim positions.

Index Rebalance & ETF Flow Recap: S&P/ASX, HSCEI, HSTECH, Haidilao/Super Hi, CSI REIT

It was a busy Friday with the implementation of the December rebalance for multiple indices. The Yuanta/P-shares Taiwan Dividend Plus ETF will continue to rebalance over the next 4 days.
The coming week should be relatively quiet with the announcement of the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) changes expected.
There were large inflows to ETFs focused on China, Korea, Japan, Taiwan. There were inflows to Hang Seng H Share Index ETF and outflows from Tracker Fund of Hong Kong.

Index Rebalance & ETF Flow Recap: SET50, Stock Connect, Kanzhun, Futu, AMFI

The announcement of the changes to the Stock Exchange of Thailand SET 50 Index was made on 20 December and will be implemented at the close on 30 December.
There are a lot of review cutoffs for different indices in the coming week with announcements in January and February.
There were big inflows to Vanguard FTSE Emerging Markets ETF (VWO US) and big outflows from IShares Core MSCI Asia Ex Japan ETF (3010 HK) during the week.

Meituan (3690 HK): Passive Selling Next Week; Plus the Prosus Overhang

Tencent (700 HK)‘s in-specie distribution of Meituan (3690 HK) shares goes ex-dividend next Thursday. Passive Hang Seng trackers will sell Meituan (3690 HK) stock at the close on 4 January.
The passive impact is not very large but there could be selling from active investors, both before and after settlement of the shares that is scheduled for 24 March.
Prosus/Naspers will receive 258.93m shares (HK$47.69bn; 6.5x ADV; 4.18% of shares outstanding) of Meituan (3690 HK) and that will be an overhang on the stock for the near future.

“Buy the Worst” HSI Strategy: Big Win in 2022 and Let’s See if It Can Sustain in 2023

By Osbert Tang, CFA

“Buy the Worst” strategy returned 1.9% in 2022, sharply outperformed HSI’s 15% drop. In the last two years, this strategy recorded massive aggregate outperformance of 41pp against HSI.
For 2023, we expect to switch into Country Garden (2007 HK), Sunny Optical (2382 HK), Country Garden Services (6098 HK), Geely Auto (175 HK) and Techtronic Industries (669 HK).
Aggressive investors can consider shorting 2022 best-performing portfolio of Sands China (1928 HK), Haidilao (6862 HK), Galaxy Entertainment (27 HK), China Shenhua (1088 HK) and China Unicom (762 HK).

O2Micro Trading Wide To Terms Ahead Of Shareholder Vote

By David Blennerhassett

Back on the 30 September, O2Micro International (OIIM US), an integrated circuits play, announced a definitive privatisation from management at US$5.00/ADS, a 68.9% premium to the undisturbed price.
An EGM will take place on the 31 January. The Offer requires shareholders representing at least two-thirds of O2Micro vote FOR. 16.9% of shares out are supportive.
This Offer is expected to close in the 1Q23. The IFA considers the Offer fair.

China Allows Import of 45 Foreign Video Games Including 7 Korean Games

On 28 December, the Chinese regulators announced that it will allow import of 45 foreign video games in China, among which seven are Korean video games.
Now that the Chinese authorities have allowed greater imports of foreign games, this will act as a significant positive catalyst to boost share prices of Korean game companies.
Among the major Korean game companies, we believe that NCsoft and Netmarble are best positioned to capitalize on this catalyst.

Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date

By Sanghyun Park

This year is less intense compared to previous years. However, given this year’s overall market returns and the lower visibility of yearend dividends, it is still a reasonably aggressive flow.
Most of this PROP flow should have been dividend hunting aimed at the distortion of ex-date price correction caused by RETAIL’s tax avoidance-driven selling flow.
The performance of the individual stock position strategy (entering on T-4~1 ex-date) might not have been as juicy as expected, but it still managed to deliver a positive return.

JPX-Nikkei 400 Rebal 2023: End-Dec 2022

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2023 based on trading data as of end-December 2022.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Daily Brief India: Radiant Cash Management Services, Big Basket and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Radiant Cash Management IPO: A Bland Mix
Tata-owned BigBasket adds $200m funding to cart

Radiant Cash Management IPO: A Bland Mix

By Nitin Mangal

Radiant Cash Management Services (1926794D IN) has come up with INR 3.9 bn IPO which includes fresh issue to the tune of INR 600 mn.
In spite of being one of the largest players in the retail cash management segment, there are few cautions one must take note of.
These primarily include related party transactions with promoters, concentration risk and few industry related restraints

Tata-owned BigBasket adds $200m funding to cart

By Tech in Asia

BigBasket, an India-based online grocery player owned by conglomerate Tata Sons, has raised US$200 million at a US$3.2 billion valuation, the platform’s co-founder and CEO Hari Menon told Tech in Asia.
Founded from a small office in Bengaluru in 2011 by Menon and four other partners, V S Sudhakar, Vipul Parek, Abhinay Choudhari, and V S Ramesh, BigBasket was acquired by Tata Sons through its subsidiary Tata Digital in 2021.
Largely focusing on online grocery, BigBasket has also expanded to quick commerce via BB Now and subscription-based service via BB Daily.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Daily Brief South Korea: LG Household & Health Care, NCSOFT Corp and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date
China Allows Import of 45 Foreign Video Games Including 7 Korean Games

Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date

By Sanghyun Park

This year is less intense compared to previous years. However, given this year’s overall market returns and the lower visibility of yearend dividends, it is still a reasonably aggressive flow.
Most of this PROP flow should have been dividend hunting aimed at the distortion of ex-date price correction caused by RETAIL’s tax avoidance-driven selling flow.
The performance of the individual stock position strategy (entering on T-4~1 ex-date) might not have been as juicy as expected, but it still managed to deliver a positive return.

China Allows Import of 45 Foreign Video Games Including 7 Korean Games

On 28 December, the Chinese regulators announced that it will allow import of 45 foreign video games in China, among which seven are Korean video games.
Now that the Chinese authorities have allowed greater imports of foreign games, this will act as a significant positive catalyst to boost share prices of Korean game companies.
Among the major Korean game companies, we believe that NCsoft and Netmarble are best positioned to capitalize on this catalyst.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Daily Brief Indonesia: Bank Negara Indonesia Persero, Blibli, Akulaku and more

By Smartkarma Daily Briefs | Daily Briefs, Indonesia

In today’s briefing:

Bank Negara Indonesia (BBNI IJ) – Time to Play Catch Up?
BliBli (BELI IJ) – A Very Different Animal
Mitsubishi arm injects US$200M investment into digital finance platform Akulaku

Bank Negara Indonesia (BBNI IJ) – Time to Play Catch Up?

Bank Negara Indonesia (BBNI IJ) has been a perennial underdog in terms of valuations versus its peers but as its ROE and ROA converge with those peers it should rerate.
The bank’s 3Q2022 reflected the changing shape of its loan portfolio towards higher-quality and lower-risk exposure in corporate loans and tier 1 clients’ value chain, KUR, and payroll loans.
BNI management is cautiously optimistic about the outlook for FY2023 in terms of loan growth and credit quality. Valuations remain attractive and ROEs may rise faster than consensus estimates.

BliBli (BELI IJ) – A Very Different Animal

Blibli (BELI IJ) is a very different animal from its listed peers given its omnichannel approach and its large 1P business plus a substantial private-public institutional B2B business.
The company’s IPO was a relative success, raising US$508m in fresh funds, and the share price is still above the IPO price after listing on 8th November.
Blibli (BELI IJ) is still loss-making but has a strong backer in the Djarum Group. Its travel business could move to profitability quite rapidly and Ranch is there already.

Mitsubishi arm injects US$200M investment into digital finance platform Akulaku

By e27

Indonesia-based banking and digital finance platform Akulaku has secured a US$200 million investment from Japanese megabank Mitsubishi UFJ Financial Group (MUFG).
The investment will support its expansion of banking services across Southeast Asia, including underserved customers and markets.
The company’s future growth plans align with MUFG’s, and their joint expansion into new territories, markets, and products will accelerate heading into 2023.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 30

Daily Brief United States: O2Micro International, Ishares 3-7 Year Treasury Bo, Chewy Inc, Charter Communications A, iRobot Corp, Sysco Corp, Cigna Corp and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

O2Micro Trading Wide To Terms Ahead Of Shareholder Vote
Bond Market Monitor: Bonds Are Back
Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers
Charter Communications Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
Exact Sciences Corporation: Initiation of Coverage – Business Strategy & Key Drivers
MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition
Sysco Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
Sysco Corporation: Initiation of Coverage – Business Strategy & Key Drivers
Charter Communications Inc.: Initiation of Coverage – Strong Barriers To Entry & Other Drivers
Cigna Corporation: Initiation of Coverage – Business Strategy & Key Drivers

O2Micro Trading Wide To Terms Ahead Of Shareholder Vote

By David Blennerhassett

Back on the 30 September, O2Micro International (OIIM US), an integrated circuits play, announced a definitive privatisation from management at US$5.00/ADS, a 68.9% premium to the undisturbed price.
An EGM will take place on the 31 January. The Offer requires shareholders representing at least two-thirds of O2Micro vote FOR. 16.9% of shares out are supportive.
This Offer is expected to close in the 1Q23. The IFA considers the Offer fair.

Bond Market Monitor: Bonds Are Back

By Warut Promboon

10 months + since Russia invaded Ukraine and there is yet no end to the war in sight.
The negative 2/10 spread generates quite a conviction by almost all of market participants that the world is heading into recession next year.
We believe inflation could slow down and the on-going rate hikes may end faster than expected. Slower/smaller than expected rate hikes provide a bullish case for bond investments in 2023..

Chewy Inc.: Initiation of Coverage – Post-Pandemic Recovery & Key Drivers

This is our first report on Chewy, the leading pure play e-commerce company in the U.S. in the domain of pet food, pet supplies, and pet healthcare products.
During the quarter, they announced the growth of CarePlus, their exclusive line of insurance and wellness products with Lemonade-powered plans.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Charter Communications Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Charter Communications is one of the leading cable operators and broadband connectivity companies in the U.S.
The company’s recent financial performance has been tepid despite consistent additions of new Internet customers throughout the year.
They further offer the nation’s fastest Internet, WiFi, and mobile speeds when combined with WiFi, all while saving consumers thousands of dollars a year or serving them.

Exact Sciences Corporation: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Exact Sciences, a leading cancer diagnostics company.
It has created a robust engine that will enable them to realize their goal of assisting in the eradication of cancer.
Besides, Exact Sciences can support new cancer tests with a small incremental investment due to their well-known test, smart patient navigation, electronic ordering and resultant platform, extensive lab capabilities, and strong payer partnerships.

MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition

By Robert Sassoon

Amazon’s pursuit of robotic vacuum manufacturer iRobot is being scrutinized by the FTC, a merger which we think the regulator will be hard pressed to prove is harmful to competition.
However, although unlikely, the pending ruling next month on the FTC’s unusual lawsuit against Meta’s acquisition of virtual reality start-up Within could rewrite regulatory guidelines for vertical mergers
The 27% spread offers a potentially lucrative trade generating double-digit IRR even if deal completion is delayed by regulatory review, although it might be wise to entertain some downside protection

Sysco Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Sysco Corporation is one of the largest foodservice distribution companies in the U.S.
The company’s financial performance has shown a simultaneous recovery along with the foodservice sector after the pandemic.
Restaurant partners of the company continue to be resilient, and its travel hospitality and industry and business segment has regularly posted improvements in financial performance.

Sysco Corporation: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Sysco Corporation, one of the largest foodservice distribution companies in the U.S.
Sysco delivered a mixed set of results for this quarter, surpassing revenue expectations of Wall Street with continued positive momentum in its business.
The market share gains continued in the quarter, with the company posting 1.4 times sales growth in the industry.

Charter Communications Inc.: Initiation of Coverage – Strong Barriers To Entry & Other Drivers

This is our first report on Charter Communications, one of the largest cable operators and broadband connectivity companies in the U.S.
The company delivered a disappointing set of results in the quarter failing to meet Wall Street expectations in terms of revenues as well as earnings.
The company also had around 4.7 million mobile lines at the end of the quarter.

Cigna Corporation: Initiation of Coverage – Business Strategy & Key Drivers