Daily Briefs

• A new all-time high for Bitcoin is within reach, which aligns with the strength we anticipated in last week’s Crypto Crisp.
• As we have repeatedly emphasized, this quarter is primed for significant price growth due to a convergence of favorable factors.
• These include increased U.S. Dollar liquidity, strong seasonal trends, Chinese economic stimulus, and the post-fourth Bitcoin halving phase, which has historically led to substantial returns.

• A lot has happened since we published our Disney thesis back in February.
• On the corporate front, Disney emerged victorious from its proxy battle with Nelson Peltz and managed to patch things up with Florida Governor Ron DeSantis.
• In media, Disney posted its first streaming profit—ahead of schedule—and secured the NBA’s coveted “A Package,” though it came with a hefty price tag.

• Considering constructive market dynamics and the recent $SPX breakout above 5783 following several months of consolidation, we upgraded our outlook to bullish as of our 10/15/24 U.S. Macro Vision report
• Since late-July, we have been neutral on the SPX, preferring to buy near 5100-5200 support and sell near 5670-5783 resistance until there is a break in either direction.
• The verdict of the market is the only one that matters, and the breakout above 5783 is the market’s way of saying the path of least resistance is higher.

• Nextracker’s first-quarter earnings for the fiscal year 2025 have offered a mixed yet promising insight into the company’s financial and operational trajectory.
• The company reported a significant 50% year-on-year growth in revenue and recorded its highest-ever adjusted EBITDA.
• These figures underscore Nextracker’s strong performance, particularly in a financial landscape characterized by a keen focus on renewable energy solutions.

• Netflix’s third-quarter performance for 2024 highlights several key developments that provide a nuanced view of its position in the competitive streaming market.
• On the financial front, Netflix delivered strong results, surpassing expectations on both earnings per share ($5.40 vs. $5.12 expected) and revenue ($9.83 billion vs. $9.77 billion expected), reflecting a 15% year-on-year growth.
• The company added 5.1 million new subscribers, slightly above Wall Street expectations, bringing its total membership to 282.7 million.

• We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear after visiting stores in Connecticut and Long Island.
• As expected, the decision to start the key Halloween period early was a material success, with multiple rollouts and newness and inventory flows ensuring key sales and the ability to satisfy shoppers for the season later.
• Further, driving key newness in Sanrio, and favorites such as Nightmare Before Xmas, and the launch of Bluey and Bingo assured a strong season.

• Mammoth Energy has reached a settlement agreement with PREPA, allowing them to focus on their core business operations
• The settlement will provide Mammoth with approximately $188 million in total settlement proceeds, improving their financial flexibility and supporting growth initiatives
• This agreement will help boost Mammoth’s financial position and could lead to future growth opportunities for the company

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.

• In a move that has caught the attention of the investment community, activist investor Jana Partners is reportedly pushing for a sale of Lamb Weston (NYSE: LW), a prominent player in the frozen potato product market.
• This development comes on the back of Lamb Weston’s recent earnings report, which delivered solid sales figures but highlighted challenges in global restaurant traffic and manufacturing costs.
• The company’s resilience, despite a difficult operating environment, has placed it in a unique position, making it an attractive acquisition target for both strategic buyers and private equity firms.

• Notably, NZ-1 is the first large-scale alcohol-to-jet (ATJ) project to receive a DOE loan commitment. NZ-1 is a 60 million gallon per year sustainable aviation fuel (SAF) project.
• The NZ-1 project aims to produce SAF with potential for net-zero or even negative carbon intensify (CI) impact on airlines through a highly electrified and optimized production process, onsite wind power, climate-smart agricultural practices from regional corn growers, and potential carbon capture and sequestration.
• According to Gevo, NZ-1 will have the lowest production cost particularly when measured as the cost of carbon abatement. 

• First Advantage is the industry leader in background screening, identity, and verification solutions
• They acquired Sterling Check for ~$2.2B and are bullish on the combined entity
• Despite initial concerns about leverage, FA expects significant cash flow and synergies to exceed expectations, forecasting mid-teens FCF per share growth and potential for further upside

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.