Category

Daily Briefs

Jul 26
0

Daily Brief Thailand: Delta Electronics Thai and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Quiddity Leaderboard SET50 Dec 23: DELTA Deletion Fears Unrealistic

Quiddity Leaderboard SET50 Dec 23: DELTA Deletion Fears Unrealistic

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential ADDs/DELs for Thailand’s SET50 index rebalance in December 2023.
  • Delta Electronics Thai (DELTA TB) – one of the largest SET 50 members – has been in the Market Surveillance Measure list a couple of times already this year.
  • Although this creates some doubts over the fate of DELTA’s SET50 membership, at present, I believe DELTA will escape deletion in December 2023. 

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Jul 26
0

Daily Brief Indonesia: Mitra Adiperkasa and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • ​​​LQ45 Index Rebalance: Two Changes in a Few Days

​​​LQ45 Index Rebalance: Two Changes in a Few Days

By Brian Freitas

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Jul 26
0

Daily Brief India: UPL Ltd, Titagarh Wagons, Muthoot Microfin and more

By | Daily Briefs, India

In today’s briefing:

  • India – Potential Float Changes & Impact
  • Titagarh Rail Systems Ltd- Forensic Analysis
  • Muthoot Microfin Pre-IPO Tearsheet

India – Potential Float Changes & Impact

By Brian Freitas

  • Over the last few weeks, companies in India have been disclosing their shareholding pattern as of end-June. There are a few companies with significant float changes from end-March and/or end-December.
  • The changes in free float could be reflected in domestic and global indices over the next couple of months resulting in action from passive trackers.
  • We see 6 stocks where there could be passive inflows and 2 stocks that could have passive outflows – but there are caveats.

Titagarh Rail Systems Ltd- Forensic Analysis

By Nitin Mangal

  • Titagarh Wagons (TWL IN) (now ‘Titagarh Rail Systems’) has seen an extraordinary momentum in its share price in last couple of years, especially after bagging crucial contracts for Indian Railways.
  • The company was limping until F22 due to its Italian subsidiary (TFA). However, the recapitalization of TFA (including change in accounting) in F23 should make the balance sheet look better.
  • Forensic analysis revealed several takeaways, ranging from write-offs and internal audit issues to heavy contingent liabilities.

Muthoot Microfin Pre-IPO Tearsheet

By Ethan Aw

  • Muthoot Microfin (1363943D IN) is looking to raise up to US$163m in its upcoming India IPO. The deal will be run by ICICI-Sec, Axis Capital, JM Financial and SBI Capital.  
  • Muthoot Microfin is a microfinance institution providing micro-loans to women customers with a focus on the rural regions of India. 
  • It is the fourth largest NBFC-MFI in India in terms of gross loan portfolio as of 9M23 (ending 31st Dec 2022). It is part of the Muthoot Group.

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Jul 26
0

Daily Brief Japan: NTT (Nippon Telegraph & Telephone), Shimano Inc, Terumo Corp, Lasertec Corp, Tokyo Stock Exchange Tokyo Price Index Topix, D.Western Therapeutics Institute Inc., Oisix ra daichi and more

By | Daily Briefs, Japan

In today’s briefing:

  • NTT (9432) – LDP Consideration of Full Sale Is Not Necessarily Overhang
  • Shimano (7309) | Profit Recovery Derailed
  • Terumo Corp (4543 JP): Strong C&V Business Momentum Continues; Profitability to Improve in FY24
  • Alphawave, TSMC and Lam Research Follow-up, DISCO and Lasertec
  • Why Do Only 13% of Companies Mention P/B in Mid-Term Management Plans While Half Had P/Bs Below 1x?
  • News Flash – D. Western Therapeutics Institute (4576 JP)
  • Oisix: Meal Kit Kaizen

NTT (9432) – LDP Consideration of Full Sale Is Not Necessarily Overhang

By Travis Lundy

  • Six weeks ago, LDP Policy Research Council chairman KAGIUDA led a discussion about full NTT privatisation to fund defence. Today he said serious deliberations begin in August. Shares fell today.
  • The LDP wants non-tax resources to increase defence/social spending. Selling would require a change in NTT Law, but the argument is that communications have changed/internationalised.
  • As discussed in NTT (9432 JP) – Would the Govt Sell All Its Shares? Why? How? How Long? Overhang?, there are questions on overhang. BUT… presumably there are mitigants. 

Shimano (7309) | Profit Recovery Derailed

By Mark Chadwick

  • Shimano reported a 40% drop in operating profit for 2Q and revised down full year guidance
  • Bike sales continue to be weak (-19% YoY) in Q2 and 2H outlook is even worse
  • We expect the share price to sell-off following the guidance cut. The inventory overhang could take a while to resolve

Terumo Corp (4543 JP): Strong C&V Business Momentum Continues; Profitability to Improve in FY24

By Tina Banerjee

  • Terumo Corp (4543 JP) recorded highest ever revenue and operating profit in FY23, driven by continued strong growth in C&V business globally, particularly the largest U.S. market.
  • C&V business should continue to be the primary driver of Terumo’s growth in FY24 also. The company has guided for C&V revenue of ¥504B in FY24, up 5% YoY.
  • Terumo aims to grow profit by double-digit percentage in FY24 and improve profitability through expansion of high-margin products, more assertive pricing policies, and cost reduction measures centered on manufacturing cost.

Alphawave, TSMC and Lam Research Follow-up, DISCO and Lasertec

By Douglas O’Laughlin

  • Alphawave reported last week.

  • The results were not good; they were great.

  • I actually am excited to see Tony and the team execute like this. Bookings are growing, and while revenue has not come out yet, it seems very likely they will hit their 2023 revenue estimates.

Why Do Only 13% of Companies Mention P/B in Mid-Term Management Plans While Half Had P/Bs Below 1x?

By Aki Matsumoto

  • Considering that about half of the listed companies had P/Bs below 1x, the fact that 13% of the companies that published medium-term management plans mentioned P/Bs is too small.
  • More companies should mention ROE in mid-term business plans, but the reason they don’t is because they recognize that the company isn’t generating return that exceeds its cost of capital.
  • While P/B is rising due to rising stock prices, foreign ownership is increasing. In exchange, managers must realize that they need to develop measures for sustainable expansion of corporate value.

News Flash – D. Western Therapeutics Institute (4576 JP)

By Sessa Investment Research

  • DWTI announced that it has updated its development pipeline on DW-1002 licensee Dutch Ophthalmic Research Center (DORC) announcing its decision to develop MEMBRANEBLUE-DUAL® in the US for the indication of ILM and ERM membrane staining during vitreoretinal surgery.
  • Since the DW-1002 single-agent formulation TissueBlueTM was launched in the US in 2020, it has been used in over 100,000 surgeries and is preferred by over 40% of U.S. retinal surgeons.
  • Combination ophthalmic surgical aid MEMBRANE BLUE-DUAL® (DW-1002 Brilliant Blue G + Trypan Blue) has been used in over 500,000 surgeries in Europe since its launch in 2010. 

Oisix: Meal Kit Kaizen

By Michael Causton

  • Oisix Ra Daichi is by far Japan’s largest online food retailer, driven by the popularity of its fresh food and meal kit subscription services.
  • Despite some backend problems last year, the company expects its system of continual improvement and expansion of new lines of meal kits to bring strong growth in the medium term.
  • The development of the online food market should help boost the company’s prospects. Operating margins have worsened considerably but the company hopes to match the previous peak this year.

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Jul 26
0

Daily Brief China: L’Occitane, Lianlian DigiTech, Black Sesame Technologies, CanSino Biologics , Robosense Technology, Sino-Ocean Group and more

By | China, Daily Briefs

In today’s briefing:

  • L’Occitane (973 HK): Controlling Shareholder Mulling a Bid?
  • LianLian DigiTech IPO: The Bull Case
  • Black Sesame Pre-IPO – The Negatives – Losses Remain Wide and Suffers from a Concentration Risk
  • CanSino Biologics (6185.HK/​688185.CH) – The Story Has Changed
  • Robosense Technology Pre-IPO – The Negatives – Not a Whole Lot of Earnings
  • Morning Views Asia: China Vanke , Greenland Holdings Corp, Sino-Ocean Service

L’Occitane (973 HK): Controlling Shareholder Mulling a Bid?

By Arun George

  • L’Occitane (973 HK) is drawing takeover interest from Reinold Geiger, the Chairman and the largest shareholder, according to Bloomberg. Mr Geiger has been exploring financing options for the potential deal.
  • The presence of a significant disinterested shareholder, Acatis KVG, necessitates an attractive takeover premium. Acatis KVG trimmed its stake in July 2021 at HK$30.01 per share.
  • L’Occitane released a solid 1QFY2024 update today with constant currency growth of 24.5% YoY. Irrespective of a bid materialising, the valuation is undemanding compared to peer multiples. 

LianLian DigiTech IPO: The Bull Case

By Arun George

  • Lianlian DigiTech (2104619D CH), a digital payment services provider in China, has filed for an HKEx IPO to raise US$500 million, according to press reports.   
  • Lianlian ranked first among the independent digital payment solution providers in China in terms of TPV in 2022, with a market share of 9.1%, according to Frost & Sullivan.   
  • The key elements of the bull case rest on rising market share, doubling of active customers, resilient core business growth and rapidly growing additional revenue streams.

Black Sesame Pre-IPO – The Negatives – Losses Remain Wide and Suffers from a Concentration Risk

By Clarence Chu

  • Black Sesame Technologies (BLACKSES HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
  • Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
  • In this note, we will talk about the not so positive aspects of the deal.

CanSino Biologics (6185.HK/​688185.CH) – The Story Has Changed

By Xinyao (Criss) Wang

  • Based on the current situation, sales of MCV4 in 2023 could still be unsatisfactory. We think MCV4 is hard to become the second growth curve of CanSino in post-COVID era.
  • Whether CanSino’s zoster vaccine is able to become Best-In-Class would largely determine whether this product would truly become the next blockbuster vaccine to turn the situation around for CanSino. 
  • CanSino’s commercialized products cannot contribute large-scale revenue in time to prevent continuous deterioration of performance. Results in 2023 could be lower than expected, and investors are losing confidence in CanSino.

Robosense Technology Pre-IPO – The Negatives – Not a Whole Lot of Earnings

By Sumeet Singh

  • Robosense Technology (ROBO HK) (RT) is looking to raise around US$400m (estimated) in its upcoming Hong Kong IPO. 
  • As of Mar 23, it had earned design wins for mass production of LiDAR for 52 vehicles with 21OEMs and Tier 1 suppliers, ranking No. 1 globally, according to CIC.
  • In this note, we talk about the not-so-positive aspects of the deal.

Morning Views Asia: China Vanke , Greenland Holdings Corp, Sino-Ocean Service

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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Jul 26
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan| US Consumer Confidence; China Resolve Fuels Stocks; NUGGET:IT Talent Issue – A Priority and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan| US Consumer Confidence; China Resolve Fuels Stocks; NUGGET:IT Talent Issue – A Priority
  • ANZ/Suncorp – Another ACCC Deal Delay, Increasingly Seems Like It Will Not Get Approval
  • Credit Watch: The credit contraction has arrived… 5 charts from the ECB credit survey
  • [Blue Lotus Japanese E-Commerce Sector Update]: Facing the Competition from Chinese ECommerce STAT
  • Brazilian Value: The Trade of the Decade
  • Australian Banks – High Frequency Data Suggests Major Deterioration Not Yet Visible In Interims
  • China TMT Update-NIO/BEKE/LEGN-NIO to Offer Single-Motor Model;Political Bureau Shifted Tone

Ohayo Japan| US Consumer Confidence; China Resolve Fuels Stocks; NUGGET:IT Talent Issue – A Priority

By Mark Chadwick

  • OVERSEAS. US Stocks continue relentless run; Consumer Confidence hits 2 year high; New Resolve from China to help the economy; Alphabet reports strong earnings; MSFT AI biz growing
  • JAPAN. NKY Futures -0.3% Discount to Cash; USDJPY 140.9; Earnings in full swing:  Otsuka HD beats; Shimano Misses;   Broker Changes: Nintendo cut to Sell at UBS
  • NUGGET. Globally competitive wages – An National Security Issue. More evidence emerges: Now out of Vietnam

ANZ/Suncorp – Another ACCC Deal Delay, Increasingly Seems Like It Will Not Get Approval

By Daniel Tabbush

  • ACCC issued a new letter asking ANZ for 2 more weeks, for its decision to takeover Suncorp
  • ACCC appears to be taking seriously the Stark Report which is very much against takeover
  • Specifically, the ACCC indicates it needs more time to review ANZ’s rebuttal to the report 

Credit Watch: The credit contraction has arrived… 5 charts from the ECB credit survey

By Andreas Steno

  • Here is a list of our top charts from the Q3 ECB Credit Survey.
  • Just a few charts with a few words attached to them.
  • The credit contraction is already a reality in Europe, but there are also signs of green shoots in the survey.

[Blue Lotus Japanese E-Commerce Sector Update]: Facing the Competition from Chinese ECommerce STAT

By Shawn Yang

  • We anticipate that the major swing factor of global e-commerce platform is the global expansion of Chinese e-commerce companies, including Shein, Temu, AliExpress, and TikTok Shop (or ‘STAT’).
  • The Japanese market is a good example. We upgraded Mercari to BUY because we believe that its second-hand eCommerce model addresses the issue of product supply.
  • We downgraded Z-Holdings to SELL as its B2C model lacks an advantage in product supply and has already lost market share.

Brazilian Value: The Trade of the Decade

By Superfluous Value

  • Value investing is often described as running towards the fire or seeking out disaster.
  • Often, outstanding returns can be had as the market reverts from total capitulation, to merely bad.
  • In the case of Brazil today, an investor is paying capitulation pricing for prospects that are already better than merely bad.

Australian Banks – High Frequency Data Suggests Major Deterioration Not Yet Visible In Interims

By Daniel Tabbush

  • Bankruptcy data through May suggests that credit metrics are worsening dramatically
  • Australia’s banks report on an interim basis, providing only trading updates quarterly
  • There are very specific concerns with worsening credit metrics for Suncorp and ANZ

China TMT Update-NIO/BEKE/LEGN-NIO to Offer Single-Motor Model;Political Bureau Shifted Tone

By Shawn Yang

  • NIO: NIO to offer single-motor model in sub-brand codenamed Alps (+)
  • BEKE: Political Bureau of the Central Committee shifted tone on real estate regulation（+）
  • LEGN: Janssen reported CARVYKTI sales US$117mn, lower than our expectation (-)

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Jul 26
0

Daily Brief Credit: Morning Views Asia: China Vanke and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: China Vanke , Greenland Holdings Corp, Sino-Ocean Service

Morning Views Asia: China Vanke , Greenland Holdings Corp, Sino-Ocean Service

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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Jul 26
0

Daily Brief ESG: Why Do Only 13% of Companies Mention P/B in Mid-Term Management Plans While Half Had P/Bs Below 1x? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Why Do Only 13% of Companies Mention P/B in Mid-Term Management Plans While Half Had P/Bs Below 1x?
  • Hidrovias – ESG Report – Lucror Analytics
  • Mooney (Formerly Sisalpay) – ESG Report – Lucror Analytics
  • Nemak – ESG Report – Lucror Analytics

Why Do Only 13% of Companies Mention P/B in Mid-Term Management Plans While Half Had P/Bs Below 1x?

By Aki Matsumoto

  • Considering that about half of the listed companies had P/Bs below 1x, the fact that 13% of the companies that published medium-term management plans mentioned P/Bs is too small.
  • More companies should mention ROE in mid-term business plans, but the reason they don’t is because they recognize that the company isn’t generating return that exceeds its cost of capital.
  • While P/B is rising due to rising stock prices, foreign ownership is increasing. In exchange, managers must realize that they need to develop measures for sustainable expansion of corporate value.

Hidrovias – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We assess Hidrovias’ ESG as “Adequate”, in line with its “Adequate” Social and Governance scores. The company has a “Strong” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • Headquartered in Sao Paulo, Hidrovias Do Brasil SA is South America’s largest independent provider of integrated inland waterway logistics transport services. Its operations include shipping, trans-shipment, storage and port services for dry-bulk cargo (including agricultural commodities, iron ore and bauxite) in the Paraguay-Parana and Trombetas-Tapajos-Amazon river systems.

Mooney (Formerly Sisalpay) – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We assess Mooney’s ESG as “Adequate”, in line with the company’s “Adequate” Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • Formed by the merger of Sisal and Banca5’s payments businesses, SisalPay (since renamed Mooney) is the leading player in the Italian proximity payments market.

Nemak – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We view Nemak’s ESG as “Adequate”, in line with the Environmental and Social scores. The company has “Strong” Governance. Controversies are “Immaterial” and Disclosure is “Strong”.
  • Based in Mexico, Nemak is a global Tier 1 supplier to automotive OEMs. It specialises in aluminium components for powertrain, body and structure applications, as well as electric vehicle components.

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Jul 26
0

Daily Brief ECM: Seeking Clues for a Preemptive Position in the Korean Local Block Deal Market in H2 and more

By | Daily Briefs, ECM

In today’s briefing:

  • Seeking Clues for a Preemptive Position in the Korean Local Block Deal Market in H2
  • LianLian DigiTech IPO: The Bull Case
  • Black Sesame Pre-IPO – The Negatives – Losses Remain Wide and Suffers from a Concentration Risk
  • Robosense Technology Pre-IPO – The Negatives – Not a Whole Lot of Earnings
  • Muthoot Microfin Pre-IPO Tearsheet

Seeking Clues for a Preemptive Position in the Korean Local Block Deal Market in H2

By Sanghyun Park

  • As the possibility of implementing the pre-disclosure rule in the second half of this year arises, the local block deal market is expected to become more active. 
  • Specifically, there are observable movements among Kosdaq mid-sized companies that are particularly sensitive to deal execution risk. This suggests that LHJ’s KIS may further solidify its dominance.
  • Significant increases in trading volume through KB Securities could serve as potential clues indicating the imminence of block deals in companies where the likelihood of such deals is high.

LianLian DigiTech IPO: The Bull Case

By Arun George

  • Lianlian DigiTech (2104619D CH), a digital payment services provider in China, has filed for an HKEx IPO to raise US$500 million, according to press reports.   
  • Lianlian ranked first among the independent digital payment solution providers in China in terms of TPV in 2022, with a market share of 9.1%, according to Frost & Sullivan.   
  • The key elements of the bull case rest on rising market share, doubling of active customers, resilient core business growth and rapidly growing additional revenue streams.

Black Sesame Pre-IPO – The Negatives – Losses Remain Wide and Suffers from a Concentration Risk

By Clarence Chu

  • Black Sesame Technologies (BLACKSES HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
  • Black Sesame International Holdings (BSIH) is an automotive-grade computing SoC and SoC-based intelligent vehicle solution provider.
  • In this note, we will talk about the not so positive aspects of the deal.

Robosense Technology Pre-IPO – The Negatives – Not a Whole Lot of Earnings

By Sumeet Singh

  • Robosense Technology (ROBO HK) (RT) is looking to raise around US$400m (estimated) in its upcoming Hong Kong IPO. 
  • As of Mar 23, it had earned design wins for mass production of LiDAR for 52 vehicles with 21OEMs and Tier 1 suppliers, ranking No. 1 globally, according to CIC.
  • In this note, we talk about the not-so-positive aspects of the deal.

Muthoot Microfin Pre-IPO Tearsheet

By Ethan Aw

  • Muthoot Microfin (1363943D IN) is looking to raise up to US$163m in its upcoming India IPO. The deal will be run by ICICI-Sec, Axis Capital, JM Financial and SBI Capital.  
  • Muthoot Microfin is a microfinance institution providing micro-loans to women customers with a focus on the rural regions of India. 
  • It is the fourth largest NBFC-MFI in India in terms of gross loan portfolio as of 9M23 (ending 31st Dec 2022). It is part of the Muthoot Group.

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Jul 26
0

Daily Brief Energy/Materials: UPL Ltd, Kum Yang, POSCO Holdings, Talon Energy , W&T Offshore, Trigon Metals , Crude Oil and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • India – Potential Float Changes & Impact
  • Seeking Clues for a Preemptive Position in the Korean Local Block Deal Market in H2
  • KRX Latest Press Release: CFD Inspection Results & Immediate Impacts to Monitor
  • Strike Energy Yanks Its NBIO For Talon
  • W&T Offshore, Inc. – Adjusting Realized 2Q23 Commodity Price Estimates
  • TM: Positive Kombat Mine Update & Previous Drill Results
  • The Energy Cable #30 – Progress for The Bulls

India – Potential Float Changes & Impact

By Brian Freitas

  • Over the last few weeks, companies in India have been disclosing their shareholding pattern as of end-June. There are a few companies with significant float changes from end-March and/or end-December.
  • The changes in free float could be reflected in domestic and global indices over the next couple of months resulting in action from passive trackers.
  • We see 6 stocks where there could be passive inflows and 2 stocks that could have passive outflows – but there are caveats.

Seeking Clues for a Preemptive Position in the Korean Local Block Deal Market in H2

By Sanghyun Park

  • As the possibility of implementing the pre-disclosure rule in the second half of this year arises, the local block deal market is expected to become more active. 
  • Specifically, there are observable movements among Kosdaq mid-sized companies that are particularly sensitive to deal execution risk. This suggests that LHJ’s KIS may further solidify its dominance.
  • Significant increases in trading volume through KB Securities could serve as potential clues indicating the imminence of block deals in companies where the likelihood of such deals is high.

KRX Latest Press Release: CFD Inspection Results & Immediate Impacts to Monitor

By Sanghyun Park

  • KRX stated in this press release that they have identified the suspected stocks involved in illegal trading and have reported them to the financial authorities (Korea FSC and Korea FSS).
  • The primary concern in the short term seems to revolve around whether the battery stocks are among the ones suspected of illegal trading, as reported to the financial authorities.
  • We must remain vigilant and ready for the potential recurrence of CFD-related price plunges, as seen in the recent two instances, affecting specific stocks in the short term.

Strike Energy Yanks Its NBIO For Talon

By David Blennerhassett

  • O&G junior Talon Energy (TPD AU) announced it had received a non-binding Offer from Strike Energy (STX AU). 
  • The all-scrip bid – by way of a Scheme – entailed an implied A$0.20/share in Strike shares plus Talon shareholders retaining their holding in Talon’s Mongolia gas project.
  • After Talon said it intended to undertake a process of evaluation of the Proposal before offering due diligence, Strike promptly withdrew its bid.

W&T Offshore, Inc. – Adjusting Realized 2Q23 Commodity Price Estimates

By Water Tower Research

  • We are updating our 2Q23 commodity prices and realizations.

  • Our NYMEX reference prices averaged $73.78/barrel of oil and $2.32/MMBtu for natural gas.

  • Our previous estimates were $75/bbl and $2.50/Mcf.

TM: Positive Kombat Mine Update & Previous Drill Results

By Atrium Research

  • Trigon announced that the Kombat Mine mill will produce its first concentrate in the coming week, with sales planned for end of August.
  • This morning, Trigon Metals Inc. (TM:TSXV), provided a progress update on mining operations at the Kombat Mine in Namibia.
  • The Company provided a detailed update on the open pit mining operations as well as all the work being done to achieve their goal of starting the underground mining operations in April 2024.

The Energy Cable #30 – Progress for The Bulls

By Ulrik Simmelholt

  • Stars are aligning and both Steno Research and 3Fourteen research are now energy bullish.
  • Last week at Steno Research we looked at the potential for a bounce in Manufacturing PMI numbers and we thought it would be natural to look at both hard and soft data through the lens of one of the most important signals in the energy markets, namely the flip from contango to backwardation.
  • In general it can be said that the flip brings more volatility to soft data than hard data. Given PMIs general tendency to converge with hard data and its current levels (Almost GFC bearishness) we feel like there are plenty of reasons for betting on higher Manufacturing PMI numbers.  

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