Daily Briefs

• In a particularly altruistic move, live-streaming game platform play Douyu International Holdings (DOYU US)  announced a special cash dividend of US$9.76/share, vs. a last price of US$12.59.
• The cash outlay is roughly US$308mn, and Douyu had cash (as at 1Q24) of US$936.6mn. And no debt.  Founder/chairman/CEO Shaojie Chen (17.2% shareholder) will pocket a tidy ~US$53mn.
• An outlier; or should we expect more of the same for other cash-rich US-listed China plays?

• Index Committee’s discretion decreases the predictability of index changes. Even when a company passes all eligibility criteria and thresholds, it might still not be selected.
• Understanding triggers for index changes, types of additions/deletions and selection patterns, narrows down the pool of candidates and increases conviction of forecasts.
• Dell Technologies (DELL US) is currently the main candidate to be added by transition to the S&P 500 in September 2024 Quarterly Rebalance.

• Alpha Metallurgical Resources recently disclosed its financial results for the first quarter of 2024, presenting mixed outcomes amidst challenging market conditions.
• The company announced an adjusted EBITDA of $190 million, a decline from the $266 million recorded in the previous quarter, citing the softening metallurgical coal market which deteriorated further after the quarter ended, setting a challenging environment for the upcoming quarter.
• Despite these complex market dynamics, Alpha Metallurgical Resources remains committed to maintaining operational excellence and cost-efficient practices.

• Strong candidate for shorting in the short-run, potential to miss revenue consensus by 4-5ppt in Q1 2024
• Recommendation to short LULU US when share price is above USD410, price target of USD300 before next earnings date in May 2024
• Lululemon is a leading brand in women’s indoor training and yoga, overvalued and likely to see a decline in share price

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.

• US crude oil inventory declined by 12.2 million barrels as of the week ending on 28/Jun, the biggest drawdown since July 2023.
• Henry Hub prices continued to decline from last week due to increased production and cooler weather forecasts.
• Saudi Aramco awarded over USD 25 billion in contracts for gas expansion. Goldman Sachs lowered its target price on Saudi Aramco but maintained its “Neutral” rating.

• On March 7 of this year, we dedicated an entire edition of Crypto Moves to discussing our belief that this crypto bull market is the least speculative one yet.
• This edition, Crypto Moves #18, was aptly named: “The Least Speculative Bull Market,” and included the following summary:“The crypto market is getting less speculative by the minute.
• There is no need to chase the next big thing by risking funds on obscure altcoins or memecoins.

• Exelixis reported its first quarter 2024 financial results, underlining continued progress in its business across several fronts.
• The company, known for its cabozantinib franchise, saw a modest growth in revenues, driven by sustained demand and expansion in the U.S. and global markets.
• Additionally, Exelixis advanced in its pipeline development and corporate developments, maintaining a robust focus on enhancing standard of cancer care and providing value to shareholders.

• CVRx (CVRX US)’s Barostim, is the only neuromodulation device designed to treat heart failure and resistant hypertension. We see CVRX as a buyout target. 
• Growth will be driven by growing elderly population, and rising rates of diabetes and hypertension putting more people in cardiac decline.
• Trials suggest that Barostim is a cost-effective treatment, quality of life improving therapy when compared with traditional optimal medical management in patients with resistant hypertension.

• Inspired Medical Systems First Quarter 2024 performance showcases a robust growth trajectory alongside strategic market advancements and impending innovations.
• The company reported a notable increase in revenue, which reached $164 million, marking a 28% year-over-year growth.
• This uplift was primarily driven by enhanced penetration in existing markets and expansion into new territories, both domestically and internationally.

• Intra-Cellular Therapies announced a robust performance in the first quarter of 2024, demonstrating notable advances in both the commercial and clinical realms.
• The company reported a significant rise in total revenues, reaching $144.9 million with CAPLYTA net sales alone accounting for $144.8 million, reflecting a 53% growth year-over-year.
• This growth trajectory reaffirms the drug’s strong market acceptance and penetration within its approved indications for bipolar depression and schizophrenia.