Smartkarma Daily Briefs

• Duolingo has made headlines recently with a sharp rise in users flocking to its Mandarin courses.
• This surge coincides with a wave of U.S. users abandoning TikTok amidst uncertainty about its future, following potential bans discussed by the U.S. Supreme Court.
• As TikTok users migrate to RedNote (Xiaohongshu), a Chinese social media app, interest in Mandarin has grown significantly, contributing to a 216% year-over-year increase in Mandarin learners on Duolingo.

• There do not seem to be many companies that have executed large one-time dividends that have subsequently grown in corporate value.
• Now that the exit from deflationary economy is seen and profit margins have room to grow, the environment is conducive to investing in growth, and companies have opportunities to change.
• Limited profit growth is making it easier for market risk-taking investors to leave. Unless companies can grow profitably, Tokyo market will be full of private equity funds and activist investors.

• Walgreens Boots Alliance’s latest earnings reveals a mixed financial and strategic picture for the company, which has been taking significant strides in response to ongoing challenges and strategic realignments.
• On the positive side, the company has initiated a turnaround strategy for its U.S. Retail Pharmacy business as a crucial focus area.
• The company made progress in optimizing its store footprint, with positive early results and better-than-expected script retention rates following store closures.

• The Simply Good Foods Company’s first quarter fiscal year 2025 earnings call has provided insights into the company’s performance and strategy going forward, reflecting both opportunities and challenges within their portfolio.
• The company reported a 10.6% increase in net sales, boosted primarily by the acquisition of Only What You Need (OWYN).
• Legacy net sales remained flat, impacted by shipment timing issues, although net sales growth in the Quest brand was strong despite some initial stockouts.

• WD-40 Company reported solid financial results for its first fiscal quarter of 2025, indicating growth and strategic shifts in priority areas.
• Net sales for the quarter were $153.5 million, a 9% increase from the same quarter last year, driven largely by maintenance products, which saw a 10% rise.
• This growth in core products underscores the company’s strategic focus on expanding its footprint in the maintenance market.

• Shankara Building Products L (SHANKARA IN) plans to demerge its steel manufacturing and building materials marketplace, enabling each business to operate independently with tailored leadership and capital allocation strategies.
• This separation allows for targeted expansions in non-steel product lines and dedicated manufacturing improvements, potentially raising margins and fueling profitable growth in India’s booming construction market.
• Focused leadership, improved transparency, and strategic capital deployment could enhance investor confidence, offering significant upside as Shankara refocuses on high-growth segments and streamlines its operations post-demerger.

• Macromill, Inc (3978 JP) disclosed a revised tender offer from CVC at JPY1,250, an 8.7% premium to the previous JPY1,150 offer. The offer has been declared final.
• The revised offer is reasonable compared to historical trading ranges. Since the announcement of the offer, the share price has never exceeded it.
• CVC seeks an irrevocable from Oasis, but Oasis has several reasons to ignore the overtures. Due to the high required acceptance rate, a gross spread of 0.2% is unattractive. 

• Hepsiburada, a Turkish e-commerce company, is being acquired by Kazakh ‘super app’ Kaspi at a price of $4.75 per Class B share
• Current market price of HEPS is $3.35, presenting a potential merger arbitrage opportunity for investors
• Market misunderstanding of Turkish capital market rules may lead to a mandatory offer for remaining Class B shares at the same price in cash

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• For the first time in decades, Ahold Delhaize’s main Dutch rival Jumbo saw its FY24 sales falling short of the prior year’s level.
• Besides, its market share decreased for the third consecutive year. According to Jumbo, both are mainly the result of price cuts and the ban on tobacco sales, which has been in force since July.
• Royal Jumbo Food Group’s FY24 sales came in at EUR 10.72bn, down by about 2.7% when compared to a year earlier.