Smartkarma Daily Briefs

The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
The rankings used for the December 2024 index rebal event will be based on yesterday’s (4th December 2024) opening prices. Announcement date will be
Inside we take a final look at the potential ADDs and DELs leading the rankings for the upcoming review.

S&P500 December 2024 Forecast (Final): Flipping the COIN

By Dimitris Ioannidis

Coinbase Global (COIN US) can be the unexpected addition by transition because of a high liquidity score and a close distance below the estimated transition threshold.
Lennox International (LII US) is the main candidate for addition by migration due to having the highest average mcap score and passing eligibility metrics.
Illumina Inc (ILMN US) has a muted conviction for addition because of ineligible earnings and a recent deletion from the index.

Janux Therapeutics: Transforming Prostate Cancer Treatment With Unprecedented Results!

Janux Therapeutics has taken the biopharmaceutical industry by storm with its recent announcement of groundbreaking results from its Phase 1 clinical trial of JANX007, a tumor-activated T-cell engager targeting advanced prostate cancer.
The data reveals a stunning 100% PSA50 response rate among heavily pretreated patients, with 63% achieving PSA90 and 31% achieving PSA99—a significant milestone in prostate cancer treatment.
The company has prioritized the development of second- and third-line therapies for metastatic castration-resistant prostate cancer (mCRPC), aiming to address a substantial unmet need in oncology.

SpaceX: Rocket Ship – [Business Breakdowns, EP.194]

By Business Breakdowns

Business Breakdowns series delves into SpaceX with investor Luke Ward from Bailey Gifford
Focus on SpaceX’s business model, cost curve of launches, and potential future of the space economy
SpaceX is a business and technology innovator, with a focus on economic sustainability and funding additional technology innovation to expand market capabilities, such as with Starlink.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Oil Prices Recover from Last Week’s Fall as Markets Bet on OPEC Postponing Output Hikes

By Suhas Reddy

OPEC+ will meet today (05/Dec), following a postponement from 01/Dec, to decide whether to delay planned output increases further.
The postponement caused market jitters, with WTI and Brent futures falling 1.1% and 0.6%, respectively, on 29/Nov. The uncertainty eased as the delay was attributed to scheduling conflicts.
For the week starting 02/Dec, WTI and Brent crude oil futures rebounded, rising 0.9% and 0.8%, respectively, driven by expectations of OPEC+ delaying planned output hikes due to price declines.

GM’s $1 Billion Stake Sale and $5.5 Billion Write-Off: China’s Auto Market Crisis Deepens!

General Motors (GM) is navigating turbulent waters as it steers towards an electric vehicle (EV)-focused future.
Recent developments, such as the sale of its stake in a Michigan battery cell plant for $1 billion to LG Energy Solution, underline GM’s efforts to streamline its operations and adapt to evolving market conditions.
Meanwhile, the company announced a significant write-off of $2.8 billion for its Chinese joint venture with SAIC Motor and an additional $2.7 billion restructuring charge to address declining profitability in one of its largest markets.

Super Micro Computer (SMCI): Investigation Clears Fraud Claims, But Is the Stock Still a Risk?

Super Micro Computer (SMCI) has been in the spotlight recently, with its stock experiencing wild swings amid developments that have left investors divided.
On one hand, a special committee investigation concluded there was no evidence of fraud or misconduct, a finding that alleviated fears sparked by Ernst & Young’s resignation as its auditor.
This positive news was coupled with robust growth in AI-driven revenues, innovative liquid-cooled server solutions, and ambitious manufacturing expansion plans.

Epr Properties (EPR) – Thursday, Sep 5, 2024

Investors are cautious about EPR Properties due to concerns about the movie theater industry’s impact on its financial performance
EPR has a diversified portfolio, strong lease metrics, and potential for growth in other leisure sectors
Despite short-term industry challenges, EPR Properties offers long-term value and potential for growth with solid underlying property fundamentals and a track record of success

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.

Microchip Hits Pause on CHIPS Act Funds & Faces Big Challenges: A Red Flag For Investors?

Microchip Technology reported its second-quarter fiscal year 2025 financial results amidst a challenging macroeconomic environment.
The company faced a sequential net sales decline of 6.2% to $1.164 billion.
Excluding a $13.3 million benefit from the settlement of a legal matter with a licensee, net sales declined by7.3%.

Intel CFO @ UBS Global Technology Conference “Core Strategy Remains Intact”

By William Keating

Earlier this week, at the UBS Global Technology Conference, Intel CFO and co-interim CEO David Zinsner declared that the company’s “core strategy remains intact”
Recently onboarded GM of IFS Dr. Naga Chandrasekaran, explained that while 18A remains on track, there are still “many milestones” to be met before it ramps in H225
He also admitted that 18A is more geared towards HPC, is skewed in favour of Intel Products and that 14A will likely be more suitable for the broader semiconductor ecosystem

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Dec 06

Daily Brief India: Varun Beverages , Vishal Mega Mart, Bombay Stock Exchange, Aditya Infotech Ltd, GMR Hyderabad International Airport and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Nifty Next50 Index Rebalance Preview: Big Capping Flows in December; Methodology Change Coming?
Vishal Mega Mart Pre-IPO – The Positives – One-Stop Shop
Riding the Derivatives Wave: Can BSE Seize the Opportunity Presented by SEBI’s Circular?
Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales
Vishal Mega Mart Pre-IPO – The Negatives – No Online Presence, PE Overhang
Lucror Analytics – Morning Views Asia

Nifty Next50 Index Rebalance Preview: Big Capping Flows in December; Methodology Change Coming?

By Brian Freitas

Following the introduction of 45 stocks in the F&O segment from 29 November, there will be big capping changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in December.
We estimate one-way turnover of 21.9% leading to a one-way trade of INR 75bn (US$881m). There are 25 stocks with over 1x ADV to trade.
There could be changes to the index methodology announced in the next few months and that could result in the deletion of a couple of constituents in March.

Vishal Mega Mart Pre-IPO – The Positives – One-Stop Shop

By Sumeet Singh

Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
In this note, we talk about the positive aspects of the deal.

Riding the Derivatives Wave: Can BSE Seize the Opportunity Presented by SEBI’s Circular?

By Sudarshan Bhandari

Implementation of SEBI’s new F&O circular to remove weekly option contracts, is expected to significantly impact BSE’s market share in derivatives.
The new F&O circular is anticipated to considerably affect BSE’s topline and bottom line. Management believes the initiatives will ultimately enhance market efficiency and benefit investors.
With removal of weekly contracts, it is expected that volumes will increase in existing contracts, which will benefit more to BSE vs NSE.

Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales

By Akshat Shah

Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$155m in its upcoming India IPO.
Aditya Infotech is a CCTV/video surveillance provider offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
In this note, we talk about the company’s historical performance.

Vishal Mega Mart Pre-IPO – The Negatives – No Online Presence, PE Overhang

By Sumeet Singh

Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
In this note, we talk about the not-so-good aspects of the deal.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, Rakuten Group
In the US, the ISM services index fell to 52.1 (55.7 e / 56.0 p). This was the slowest pace in three months, albeit the gauge remained in expansion territory for the ninth month this year. Meanwhile, the November (final) S&P services PMI rose to 56.0 (55.0 p), albeit below the preliminary estimate of 57.0.
The composite PMI climbed to 54.9 (54.1 p). Separately, the ADP employment survey showed that private sector job growth slowed to 146 k (150 k e / 184 k revised p).

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Dec 06

Daily Brief Japan: Seven & I Holdings, Shiseido Company, Paris Miki Holdings, Workman Co Ltd, Aoyama Zaisan Networks Co Lt, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Seven & I Holdings (3382 JP): The MBO Is Starting to Shape Up
Shiseido (4911) | Makeup for Lost Time: Shiseido’s Turnaround Strategy
Paris Miki Holdings (7455 JP): 1H FY03/25 report update
Workman Under Pressure
Aoyama Zaisan Networks Company (8929 JP) – Proactive Capital Allocation
Independent Directors Are Responsible for Disclosures that Have Gaps from the Investors’ Perspective

Seven & I Holdings (3382 JP): The MBO Is Starting to Shape Up

By Arun George

On 4 December, Bloomberg reported that the Seven & I Holdings (3382 JP) MBO is set to include plans for a US Assets IPO to raise more than JPY1 trillion.
The MBO faces two immediate challenges: securing financing and the Board’s approval. The US Assets IPO would help alleviate both these issues.
The potential market cap of US Assets is around US$24 billion, or 53% of 7&i’s market cap. The US Assets IPO should also encourage Couche-Tard to persist with its offer.

Shiseido (4911) | Makeup for Lost Time: Shiseido’s Turnaround Strategy

By Mark Chadwick

Shiseido’s stock price has dropped 70% from its post-pandemic peak, presenting a buying opportunity amid ongoing industry challenges.
The company’s two-year action plan aims to restore profitability through aggressive cost-cutting and restructuring measures.
Successful execution could drive significant upside, while failure may attract acquisition interest due to Shiseido’s strong Asia-Pacific brand presence.

Paris Miki Holdings (7455 JP): 1H FY03/25 report update

By Shared Research

Sales increased 3.6% YoY to JPY26.1bn, while operating profit decreased 25.3% YoY to JPY1.2bn.
Japan segment sales rose 4.2% YoY to JPY23.2bn, driven by inbound demand and higher unit prices.
SG&A expenses grew 4.1% YoY to JPY16.5bn, with a 0.4pp increase in the SG&A ratio to 63.3%.

Workman Under Pressure

By Michael Causton

Workman was a purveyor of durable gear for workers in jobs like construction but then had the brilliant idea to transpose that expertise to create activewear like Decathlon.
This was working well but then it decided to take on the likes of Fast Retailing and Shimamura by moving into casual clothing.
Since then, same-store sales growth has been negative in many months and profits have fallen. The outlook is increasingly poor.

Aoyama Zaisan Networks Company (8929 JP) – Proactive Capital Allocation

By Astris Advisory Japan

By driving double-digit sales and OP growth at both Wealth Consulting and Real Estate Solutions during Q1-3 FY12/24, the company continues to demonstrate positive earnings momentum as well as its ability to ride the powerful trend in Japan’s aging demographics.
Management continues to show improvement in capital allocation by announcing an earnings- accretive acquisition of the Chester Group, a domestic inheritance specialist firm, together with a 5.12% share buyback program.
This approach to reinvesting capital into the growth of the business together with the buyback shows an effort to offset dilution, demonstrating a commitment to shareholder value and financial strength.

Independent Directors Are Responsible for Disclosures that Have Gaps from the Investors’ Perspective

By Aki Matsumoto

In many cases of bad disclosures where the capital allocation policy has not been adequately considered, the company often fails to develop a concrete growth strategy using cash.
The reason for the misaligned disclosures with investors may be that the company lacks the process to produce projected financial statements and to estimate corporate value/share price calculated from DCF.
If a plan containing unreasonable figures is disclosed as is, the independent outside director may not be involved in the decision making or may not be accompanied by adequate skills.

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Dec 06

Most Read: Seven & I Holdings, Kakao Corp, Ecopro BM , ESR Group , Kioxia Holdings , Apollo Global Management , HKBN Ltd, Greatview Aseptic Packaging, NIO and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal
Latest Scoop on President Yoon’s Impeachment Motion and How to Play It in the Market
Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears
ESR (1821 HK): HK$13.00/Share Offer
Kioxia IPO: Peer Comparison and Valuation
Seven & I Holdings (3382 JP): The MBO Is Starting to Shape Up
Quiddity Leaderboard S&P 500 Dec 24 Rebal – Final Predictions
HKBN (1310 HK): Just How Likely Is An I Squared Offer?
GAPack (468 HK): No Further Progress On Co-Founder’s Offer. That’s Good For XJF
2025 High Conviction: Short NIO (NIO US/9866 HK)

7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal

A Bloomberg article late in the trading session today said the Seven & I Holdings (3382 JP) MBO proposal by Ito family scion Ito Junro includes a US assets IPO.
The idea? IPO proceeds would help pay down MBO debt to Japanese banks. Seven & i would retain a stake. This is not dissimilar to Berkshire Hathaway buying a stake.
But more directly, this leads us back to 7&I (3382) – What If… A Modest Proposal. Possible strategic mistake by Ito-san here. ACT should act on this.

Latest Scoop on President Yoon’s Impeachment Motion and How to Play It in the Market

By Sanghyun Park

The key point is Saturday—watch if eight ruling party lawmakers defect. Hahn Dong-hoon may push for an early election, with 15 loyalists backing him, so it’s definitely possible.
I’d bet on the ruling party leader pivoting, accepting impeachment, and pushing for an early election. Time to scout beneficiaries and set up an aggressive trading play.
Short-Term, I’m eyeing Kakao affiliates, under-the-radar IT stocks, and those likely to benefit from corporate governance changes. Low birth rate-related sectors are also set for strong upside.

Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears

By Brian Freitas

Eight months after shareholders approved the transfer from the KOSDAQ to the KOSPI market, Ecopro BM (247540 KS) has submitted the application for section transfer to the KRX.
Given historical precedent, the transfer could take place in February. Ecopro BM‘s deletion will mean an inclusion to the KOSDAQ150 Index to maintain the number of index constituents at 150.
Ecopro BM (247540 KS) will be deleted from the KOSDAQ 150 Index leading to passive selling and some short covering. Then will come the inclusion to the KOSPI 200 Index.

ESR (1821 HK): HK$13.00/Share Offer

By Shifara Samsudeen, ACMA, CGMA

HK$13.00/Share (deemed final). That’s the key takeaway here as the Starwood/Warburg Pincus Consortium (finally) tables a firm offer, by way of a pre-conditional Scheme.
Pre-Conditions are extensive, with a long stop date of the 4th September 2025.
HK$13.00 is below prior expectations of a HK$14+ handle. But with irrevocables of 30.79% of the register (and 51.24% of Scheme shares), this is done. A scrip option is afforded.

Kioxia IPO: Peer Comparison and Valuation

Kioxia has announced the terms for its IPO, and plans to raise $730m through issuing new shares as well as offer by existing shareholders, at a market capitalisation of $819bn.
Kioxia Holdings (285A JP) ‘s earnings have been volatile and margins have trailed compared to peers Micron and SK Hynix. Earnings are approaching a new peak.
Kioxia’s implied valuation multiples are at a deep discount to peer multiples, suggesting there is significant upside to the indicative IPO price range.

Seven & I Holdings (3382 JP): The MBO Is Starting to Shape Up

By Arun George

On 4 December, Bloomberg reported that the Seven & I Holdings (3382 JP) MBO is set to include plans for a US Assets IPO to raise more than JPY1 trillion.
The MBO faces two immediate challenges: securing financing and the Board’s approval. The US Assets IPO would help alleviate both these issues.
The potential market cap of US Assets is around US$24 billion, or 53% of 7&i’s market cap. The US Assets IPO should also encourage Couche-Tard to persist with its offer.

Quiddity Leaderboard S&P 500 Dec 24 Rebal – Final Predictions

The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
The rankings used for the December 2024 index rebal event will be based on yesterday’s (4th December 2024) opening prices. Announcement date will be
Inside we take a final look at the potential ADDs and DELs leading the rankings for the upcoming review.

HKBN (1310 HK): Just How Likely Is An I Squared Offer?

Two hours before China Mobile’s pre-conditional voluntary Offer announcement on the 2 December, HKBN Ltd (1310 HK) flagged a possible separate Offer from I Squared Asia-backed HGC Global Communication (HGC).
No price was mentioned, although HKBN and I Squared “are in discussions on the terms of the proposal (including the price).” The media is reporting a HK$5-HK$6/share price range.
Apart from anti-competition concerns via a HKBN/HGC tie-in; would HGC even get approval from the powers that be to proceed with a merger?

GAPack (468 HK): No Further Progress On Co-Founder’s Offer. That’s Good For XJF

In Greatview Aseptic Packaging (468 HK) (GAPack)’s monthly update, there is no update.
No further progress on the management Offer. Four months and counting. In the meantime, Shandong Xinjufeng Technology (301296 CH) (XJF) secured SAMR approval; and the appointment of two friendly directors.
IF (and when) XJF’s Offer becomes open to acceptance and the IFA is supportive, management should back the Offer if their own Offer is unlikely to materialise.

2025 High Conviction: Short NIO (NIO US/9866 HK)

By Arun George

NIO (NIO US) is a Chinese premium electric vehicle manufacturer listed across three exchanges.
NIO will likely struggle to reignite its growth with its three-brand strategy in a fiercely competitive market. Its promise to reach breakeven in 2026 is likely to be broken.
NIO’s valuation is stretched as it trades at a material premium to median Chinese EV peers’ EV/Sales and growth-adjusted EV/Sales multiples.

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Dec 06

Daily Brief Utilities: NorthVolt and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

Why Northvolt failed to become Europe’s battery champion

Why Northvolt failed to become Europe’s battery champion

By Behind the Money

Northvolt was once seen as Europe’s battery champion but faced challenges with management, safety standards, reliance on foreign machinery, and misuse of capital
Northvolt filed for bankruptcy after facing issues with production output, leading to job cuts and a strategic review to restructure the company. Investors like Goldman Sachs wrote down their investments in Northvolt to zero, raising questions about the future of battery making in Europe.
Investors like Goldman Sachs wrote down the value of their Northvolt investments to zero.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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Dec 06

Daily Brief Industrials: MNC Solution, Seatrium , Aditya Infotech Ltd, SpaceX, GMR Hyderabad International Airport, bpost SA, Severfield PLC, Universal Logistics, Kraken Robotics and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

MNC Solution IPO Book Building Results Analysis
Seatrium – Overhang Remains but Huge Option Value
Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales
SpaceX: Rocket Ship – [Business Breakdowns, EP.194]
Lucror Analytics – Morning Views Asia
What’s News in Amsterdam – 5 December (Ahold Delhaize | Shell | InPost/PostNL/bpostgroup | Black Friday update)
Severfield – Short-term issues cloud long-term outlook
Universal Logistics Hldgs (ULH) – Wednesday, Sep 4, 2024
Kraken Robotics Inc (PNG.) – Wednesday, Sep 4, 2024

MNC Solution IPO Book Building Results Analysis

By Douglas Kim

MNC Solution reported its IPO book building results. The IPO price has been determined at 65,000 won, which is 18.8% lower than the low end of the IPO price range.
A total of 198 institutional investors participated in the IPO demand forecast. The competition rate was low at 8.2 to 1.
Our base case valuation of MNC Solution is target price of 92,842 won per share, which is 43% higher than the IPO price of 65,000 won.

Seatrium – Overhang Remains but Huge Option Value

By Rikki Malik

The core business continues to perform well with a growing order backlog
Due to the company’s historical issues it has hugely underperformed its smaller peers
The disconnect from the oil price provides asymmetric upside once the overhang clears

Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales

By Akshat Shah

Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$155m in its upcoming India IPO.
Aditya Infotech is a CCTV/video surveillance provider offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
In this note, we talk about the company’s historical performance.

SpaceX: Rocket Ship – [Business Breakdowns, EP.194]

By Business Breakdowns

Business Breakdowns series delves into SpaceX with investor Luke Ward from Bailey Gifford
Focus on SpaceX’s business model, cost curve of launches, and potential future of the space economy
SpaceX is a business and technology innovator, with a focus on economic sustainability and funding additional technology innovation to expand market capabilities, such as with Starlink.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, Rakuten Group
In the US, the ISM services index fell to 52.1 (55.7 e / 56.0 p). This was the slowest pace in three months, albeit the gauge remained in expansion territory for the ninth month this year. Meanwhile, the November (final) S&P services PMI rose to 56.0 (55.0 p), albeit below the preliminary estimate of 57.0.
The composite PMI climbed to 54.9 (54.1 p). Separately, the ADP employment survey showed that private sector job growth slowed to 146 k (150 k e / 184 k revised p).

What’s News in Amsterdam – 5 December (Ahold Delhaize | Shell | InPost/PostNL/bpostgroup | Black Friday update)

By The IDEA!

In this edition: • Ahold Delhaize | regulatory approval for Profi Rom acquisition • Shell | no new offshore wind projects • InPost/PostNL/bpostgroup | EC plans to address problems with Chinese parcels • Black Friday update | again a new all-time high in daily volumes for PostNL

Severfield – Short-term issues cloud long-term outlook

By Edison Investment Research

Severfield remains the leading UK structural steel fabricator, with a strong presence in Northern Europe and an Indian joint venture. However, news that it is required to remediate 12 bridge structures and that its underlying markets are showing signs of short-term weakness have resulted in a downgrade to profit estimates and a material share price correction. We believe the markets will recover in time and that there is potential for third-party cost recoveries relating to the bridge issues, but resolution of either is not likely to be imminent. That said, the stock trades on a low FY26e P/E.

Universal Logistics Hldgs (ULH) – Wednesday, Sep 4, 2024

Universal Logistics Holdings operates in logistics and transportation in North America
Stock believed to have 50% or more upside to fair value despite risks such as family control and limited float
Strong earnings growth, lower leverage, and better margins not fully reflected in stock price, favorable outlook for future growth

Kraken Robotics Inc (PNG.) – Wednesday, Sep 4, 2024

Kraken Robotics is a marine technology company based in Newfoundland, Canada, specializing in underwater exploration devices
Founded in 2008, the company has grown through mergers and acquisitions to become a leader in marine robotics, sensors, and underwater batteries
Focus on autonomous underwater vehicles with products catering to industries such as oil and gas, defense, ocean science, and renewable energy, including the KATFISH towed synthetic aperture sonar system and SEAPOWER pressure-tolerant battery system

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Dec 06

Daily Brief Financials: Apollo Global Management , Hotel Property Investments, Bombay Stock Exchange, Aoyama Zaisan Networks Co Lt, Epr Properties and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Quiddity Leaderboard S&P 500 Dec 24 Rebal – Final Predictions
Hotel Properties (HPI AU): Charter Hall Declares Offer Unconditional
Riding the Derivatives Wave: Can BSE Seize the Opportunity Presented by SEBI’s Circular?
Aoyama Zaisan Networks Company (8929 JP) – Proactive Capital Allocation
Epr Properties (EPR) – Thursday, Sep 5, 2024

Quiddity Leaderboard S&P 500 Dec 24 Rebal – Final Predictions

The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
The rankings used for the December 2024 index rebal event will be based on yesterday’s (4th December 2024) opening prices. Announcement date will be
Inside we take a final look at the potential ADDs and DELs leading the rankings for the upcoming review.

Hotel Properties (HPI AU): Charter Hall Declares Offer Unconditional

Declaring its Offer unconditional was always a possibility as Hotel Property Investments (HPI AU) board continues to reject terms. The alternative was a likely deal fail.
Charter Halls currently has 31.37%, including 6.66% via the acceptance facility. That facility has now closed following this unconditional statement.
It will be challenging for Charter Hall to clear 50% without board support. But IF they get 50%+, expect the board to change their mind and recommend shareholders accept terms.

Riding the Derivatives Wave: Can BSE Seize the Opportunity Presented by SEBI’s Circular?

By Sudarshan Bhandari

Implementation of SEBI’s new F&O circular to remove weekly option contracts, is expected to significantly impact BSE’s market share in derivatives.
The new F&O circular is anticipated to considerably affect BSE’s topline and bottom line. Management believes the initiatives will ultimately enhance market efficiency and benefit investors.
With removal of weekly contracts, it is expected that volumes will increase in existing contracts, which will benefit more to BSE vs NSE.

Aoyama Zaisan Networks Company (8929 JP) – Proactive Capital Allocation

By Astris Advisory Japan

By driving double-digit sales and OP growth at both Wealth Consulting and Real Estate Solutions during Q1-3 FY12/24, the company continues to demonstrate positive earnings momentum as well as its ability to ride the powerful trend in Japan’s aging demographics.
Management continues to show improvement in capital allocation by announcing an earnings- accretive acquisition of the Chester Group, a domestic inheritance specialist firm, together with a 5.12% share buyback program.
This approach to reinvesting capital into the growth of the business together with the buyback shows an effort to offset dilution, demonstrating a commitment to shareholder value and financial strength.

Epr Properties (EPR) – Thursday, Sep 5, 2024

Investors are cautious about EPR Properties due to concerns about the movie theater industry’s impact on its financial performance
EPR has a diversified portfolio, strong lease metrics, and potential for growth in other leisure sectors
Despite short-term industry challenges, EPR Properties offers long-term value and potential for growth with solid underlying property fundamentals and a track record of success

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Dec 06

Daily Brief Health Care: Janux Therapeutics , Electromed , Incyte Corp, Lexaria Bioscience , Roche Holding Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Janux Therapeutics: Transforming Prostate Cancer Treatment With Unprecedented Results!
Electromed Inc (ELMD) – Thursday, Sep 5, 2024
The Takeover Buzz Around Incyte: What Makes It Irresistible to Big Pharma?
LEXX: Phase I Start Imminent
Kronos Bio Strategic Review: Workforce Reduction, Leadership Changes, and Potential Sale Amid Genentech Partnership Uncertainty

Janux Therapeutics: Transforming Prostate Cancer Treatment With Unprecedented Results!

Janux Therapeutics has taken the biopharmaceutical industry by storm with its recent announcement of groundbreaking results from its Phase 1 clinical trial of JANX007, a tumor-activated T-cell engager targeting advanced prostate cancer.
The data reveals a stunning 100% PSA50 response rate among heavily pretreated patients, with 63% achieving PSA90 and 31% achieving PSA99—a significant milestone in prostate cancer treatment.
The company has prioritized the development of second- and third-line therapies for metastatic castration-resistant prostate cancer (mCRPC), aiming to address a substantial unmet need in oncology.

Electromed Inc (ELMD) – Thursday, Sep 5, 2024

Electromed is a debt-free micro-cap medical device company specializing in HFCWO airway clearance products for home use
With $16.2 million in cash on hand, the company is growing revenue and profitability, attracting shareholder activists
Flagship product, SmartVest® Airway Clearance System, offers comfortable, easy-to-use device; direct-to-patient model streamlines referral process, insurance claims, product delivery, and training

The Takeover Buzz Around Incyte: What Makes It Irresistible to Big Pharma?

Incyte Pharmaceuticals has been the center of takeover speculation recently, with its stock rallying amid whispers of a potential acquisition.
Investors are abuzz with the possibility of a major pharmaceutical player eyeing Incyte for its innovative pipeline, robust revenue growth, and established commercial products.
In the third quarter of 2024, Incyte delivered strong financial results, including a 24% increase in total revenues, driven by its blockbuster drug Jakafi and rapid growth in Opzelura sales.

LEXX: Phase I Start Imminent

By Zacks Small Cap Research

Lexaria is a biotechnology company seeking to enhance the bioavailability of multiple drug agents using DehydraTECH (DHT), its technology using oral and topical delivery.
It combines lipophilic APIs with specific fatty acid and carrier compounds followed by dehydration.
DHT offers several attractive features: substantial improvement in bioabsorption in terms of time to measurable plasma levels & AUC, brain permeation, taste masking & side effect reduction.

Kronos Bio Strategic Review: Workforce Reduction, Leadership Changes, and Potential Sale Amid Genentech Partnership Uncertainty

By Dalius Tauraitis

Kronos Bio’s NAV is estimated at $1.39/share, 48% above current price, with strategic review ongoing for sale/reverse merger.
Significant insider ownership includes 14.7% by ex-CEO Norbert Bischofberger and 5.8% by chairman Arie Belldegrun.
Kronos Bio’s partnership with Genentech offers potential milestone payments, but no compounds identified for further development.

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Dec 06

Daily Brief Industrials: MNC Solution, Seatrium , Aditya Infotech Ltd, SpaceX, GMR Hyderabad International Airport, bpost SA, Severfield PLC, Universal Logistics, Kraken Robotics and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

MNC Solution IPO Book Building Results Analysis
Seatrium – Overhang Remains but Huge Option Value
Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales
SpaceX: Rocket Ship – [Business Breakdowns, EP.194]
Lucror Analytics – Morning Views Asia
What’s News in Amsterdam – 5 December (Ahold Delhaize | Shell | InPost/PostNL/bpostgroup | Black Friday update)
Severfield – Short-term issues cloud long-term outlook
Universal Logistics Hldgs (ULH) – Wednesday, Sep 4, 2024
Kraken Robotics Inc (PNG.) – Wednesday, Sep 4, 2024

MNC Solution IPO Book Building Results Analysis

By Douglas Kim

MNC Solution reported its IPO book building results. The IPO price has been determined at 65,000 won, which is 18.8% lower than the low end of the IPO price range.
A total of 198 institutional investors participated in the IPO demand forecast. The competition rate was low at 8.2 to 1.
Our base case valuation of MNC Solution is target price of 92,842 won per share, which is 43% higher than the IPO price of 65,000 won.

Seatrium – Overhang Remains but Huge Option Value

By Rikki Malik

The core business continues to perform well with a growing order backlog
Due to the company’s historical issues it has hugely underperformed its smaller peers
The disconnect from the oil price provides asymmetric upside once the overhang clears

Aditya Infotech Pre-IPO – Expanding Channel Network and Increased Production Capacity to Drive Sales

By Akshat Shah

Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$155m in its upcoming India IPO.
Aditya Infotech is a CCTV/video surveillance provider offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
In this note, we talk about the company’s historical performance.

SpaceX: Rocket Ship – [Business Breakdowns, EP.194]

By Business Breakdowns

Business Breakdowns series delves into SpaceX with investor Luke Ward from Bailey Gifford
Focus on SpaceX’s business model, cost curve of launches, and potential future of the space economy
SpaceX is a business and technology innovator, with a focus on economic sustainability and funding additional technology innovation to expand market capabilities, such as with Starlink.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, Rakuten Group
In the US, the ISM services index fell to 52.1 (55.7 e / 56.0 p). This was the slowest pace in three months, albeit the gauge remained in expansion territory for the ninth month this year. Meanwhile, the November (final) S&P services PMI rose to 56.0 (55.0 p), albeit below the preliminary estimate of 57.0.
The composite PMI climbed to 54.9 (54.1 p). Separately, the ADP employment survey showed that private sector job growth slowed to 146 k (150 k e / 184 k revised p).

What’s News in Amsterdam – 5 December (Ahold Delhaize | Shell | InPost/PostNL/bpostgroup | Black Friday update)

By The IDEA!

In this edition: • Ahold Delhaize | regulatory approval for Profi Rom acquisition • Shell | no new offshore wind projects • InPost/PostNL/bpostgroup | EC plans to address problems with Chinese parcels • Black Friday update | again a new all-time high in daily volumes for PostNL

Severfield – Short-term issues cloud long-term outlook

By Edison Investment Research

Universal Logistics Hldgs (ULH) – Wednesday, Sep 4, 2024

Universal Logistics Holdings operates in logistics and transportation in North America
Stock believed to have 50% or more upside to fair value despite risks such as family control and limited float
Strong earnings growth, lower leverage, and better margins not fully reflected in stock price, favorable outlook for future growth

Kraken Robotics Inc (PNG.) – Wednesday, Sep 4, 2024

Kraken Robotics is a marine technology company based in Newfoundland, Canada, specializing in underwater exploration devices
Founded in 2008, the company has grown through mergers and acquisitions to become a leader in marine robotics, sensors, and underwater batteries
Focus on autonomous underwater vehicles with products catering to industries such as oil and gas, defense, ocean science, and renewable energy, including the KATFISH towed synthetic aperture sonar system and SEAPOWER pressure-tolerant battery system

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

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

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Dec 06

Daily Brief TMT/Internet: HKBN Ltd, LG CNS, AppLovin , Super Micro Computer, Hyundai Motor, Waystar Holding, Intel Corp, Microchip Technology, Greenidge Generation Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

HKBN (1310 HK): Just How Likely Is An I Squared Offer?
LG CNS IPO Details Out: My Read on This IPO
LG CNS IPO Preview
S&P500 December 2024 Forecast (Final): Flipping the COIN
Super Micro Computer (SMCI): Investigation Clears Fraud Claims, But Is the Stock Still a Risk?
Tech Supply Chain Tracker (06-Dec-2024): Unisoc gets $448M to enhance 5G chip development.
Waystar IPO Lock-Up: CPPIB and EQT Recorded Large Gains Since IPO and $2.7B Deal With Bain Capital
Intel CFO @ UBS Global Technology Conference “Core Strategy Remains Intact”
Microchip Hits Pause on CHIPS Act Funds & Faces Big Challenges: A Red Flag For Investors?
Greenidge Generation Holdings, Inc. – First Large-Scale Data Center Sale and Partnership Announced

HKBN (1310 HK): Just How Likely Is An I Squared Offer?

Two hours before China Mobile’s pre-conditional voluntary Offer announcement on the 2 December, HKBN Ltd (1310 HK) flagged a possible separate Offer from I Squared Asia-backed HGC Global Communication (HGC).
No price was mentioned, although HKBN and I Squared “are in discussions on the terms of the proposal (including the price).” The media is reporting a HK$5-HK$6/share price range.
Apart from anti-competition concerns via a HKBN/HGC tie-in; would HGC even get approval from the powers that be to proceed with a merger?

LG CNS IPO Details Out: My Read on This IPO

By Sanghyun Park

The KRW 5T-6T valuation and 13x-16x PER look solid compared to local peers like SDS and Hyundai AutoEver, with CNS possibly getting a premium due to its smaller captive stake.
Instos probably won’t push hard for lock-ups but will aggressively target pricing to secure larger allotments, knowing the company is likely to stick with a market-friendly price.
On a separate note, I wouldn’t expect much of a NAV discount reduction for LG Corp, as LG CNS’s stake isn’t significant enough to move the needle.

LG CNS IPO Preview

By Douglas Kim

The long awaited IPO of LG CNS is finally getting ready to be completed in February 2025. The IPO price range is 53,700 won to 61,900 won.
Expected market cap is between 5.2 trillion won to 6.0 trillion won. At the high end of the IPO price range, the total IPO offering would involve 1.2 trillion won.
The bankers used three companies including Samsung Sds, Hyundai Autoever, and NTT Data Corp as comps. This is expected to be one of the largest IPOs in Korea in 2025

S&P500 December 2024 Forecast (Final): Flipping the COIN

By Dimitris Ioannidis

Coinbase Global (COIN US) can be the unexpected addition by transition because of a high liquidity score and a close distance below the estimated transition threshold.
Lennox International (LII US) is the main candidate for addition by migration due to having the highest average mcap score and passing eligibility metrics.
Illumina Inc (ILMN US) has a muted conviction for addition because of ineligible earnings and a recent deletion from the index.

Super Micro Computer (SMCI): Investigation Clears Fraud Claims, But Is the Stock Still a Risk?

Super Micro Computer (SMCI) has been in the spotlight recently, with its stock experiencing wild swings amid developments that have left investors divided.
On one hand, a special committee investigation concluded there was no evidence of fraud or misconduct, a finding that alleviated fears sparked by Ernst & Young’s resignation as its auditor.
This positive news was coupled with robust growth in AI-driven revenues, innovative liquid-cooled server solutions, and ambitious manufacturing expansion plans.

Tech Supply Chain Tracker (06-Dec-2024): Unisoc gets $448M to enhance 5G chip development.

By Tech Supply Chain Tracker

Unisoc secures US$448M in funding to improve development of 5G chips, highlighting the growing importance of 5G technology in the tech industry.
India aims to attract more electric vehicle manufacturers by expanding incentives, signaling a push towards sustainable transportation solutions.
Nvidia collaborates with Thailand on AI despite challenges in the data center ecosystem, showing commitment to advancing AI technology globally.

Waystar IPO Lock-Up: CPPIB and EQT Recorded Large Gains Since IPO and $2.7B Deal With Bain Capital

By Andrei Zakharov

Waystar Holding, American provider of mission-critical cloud software to healthcare organizations, completed its IPO in June and raised ~$968M to repay outstanding indebtedness.
Waystar Holding shares have outperformed the Nasdaq Composite Index (+31.5%) in 2024 with shares up ~44% year-to-date. IPO investors are also up ~44%.
I expect downward pressure on the stock as IPO lock-up period ends on December 6th, 2024, and all ~176M Waystar Holding shares will be eligible for trading.

Intel CFO @ UBS Global Technology Conference “Core Strategy Remains Intact”

By William Keating

Earlier this week, at the UBS Global Technology Conference, Intel CFO and co-interim CEO David Zinsner declared that the company’s “core strategy remains intact”
Recently onboarded GM of IFS Dr. Naga Chandrasekaran, explained that while 18A remains on track, there are still “many milestones” to be met before it ramps in H225
He also admitted that 18A is more geared towards HPC, is skewed in favour of Intel Products and that 14A will likely be more suitable for the broader semiconductor ecosystem

Microchip Hits Pause on CHIPS Act Funds & Faces Big Challenges: A Red Flag For Investors?