United States

• On 15 April, Hollysys Automation Technologies (HOLI US) issued a 6-K filing stating that Ascendent remains in the process of obtaining regulatory approvals. 
• The gross spread has widened to 8% as the closing date has slipped from the end of March guidance, and an updated timeline is lacking. 
• A delay in securing regulatory approvals is not uncommon. However, regulatory approvals should be forthcoming as the transaction involves Chinese entities (including a SASAC entity) acquiring a Chinese-focused company. 

• We’ve discussed for months that we’ll need to see SPX and NDX (QQQ) close below their 20-day MAs/21-dayEMAs for more than 2-3 consecutive days in order to get more cautious.
• Today (Tuesday) marks 3 consecutive days as the DXY climbs to test major $106 resistance, and amid 10- and 30-year Treasury yields breaking above long-term resistances. Caution is warranted.
• Still, in order for there to be a meaningful pullback, important 2-month supports that are currently being tested would need to break, including 4983-5050 on SPX and $425-$433 on QQQ.

• Prysmian SpA (PRY IM) agreed to acquire Encore Wire (WIRE US) for $290/share in cash, 29% premium to 90-day VWAP, implied EV of €4,264 million, 11x EV/NTM EBITDA and 16.9x Fwd P/E.
• Encore wire has traded at an average 6.4x EV/EBITDA and 10.6x P/E over the last 5 years. I set my TP at $290. Synergies could be valued at $51/share.
• The shares are trading slightly above the offer price. Gross spread is +0.2%. The volume traded since announcement has been very strong. There is room for some sweetening. Long.

• In the recent fourth quarter 2023 financial results, Columbia Sportswear highlighted some key achievements and challenges they faced throughout the year.
• This provides an informative insight into both the company’s strengths and weaknesses moving forward, forming a neutral foundation for an investment thesis and resulting summary analysis.
• A cornerstone of Columbia Sportwear’s strategy in 2023 was their inventory reduction plan.

• During Q3, DXC Technology was observed to have solid performance with the company’s organic revenue growth falling within the guidance range.
• The free cash flow saw an increase of 26% compared to the prior year, amounting to an impressive $585 million.
• However, the report points to declines in various areas such as organic revenue growth, a 4.5% year-over-year decrease, mainly due to the decline in resale revenues.

• Illumina reports a successful 2023 but is bracing for a challenging 2024 amid continued macroeconomic hurdles.
• The company delivered a higher-than-expected consolidated revenue of approximately $1.12 billion in the fourth quarter, marking an increase of 4% year over year.
• CEO Jacob Thaysen highlighted the latest product, NovaSeq X, as the most successful high-throughput product launch in the company’s history.

• Based on the fourth-quarter 2023 earnings, FMC Corporation’s performance suggests a mixed investment climate.
• Although the company’s plan largely revolves around elements they manage, such as NPI sales and restructuring initiatives, the transition of the crop chemicals market implies a challenging year ahead.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Conagra Brands maintained an overall positive tone regarding its performance and future prospects in its latest earnings.
• While there were signs of optimism and forward-looking strategies, there were also concerns about certain aspects of its operations and broader market conditions.
• The company was seen focusing heavily on volume as being crucial for growth.

• CarMax, a leading used car retailer in the United States, reported its Q3 fiscal year 2024 results indicating a continuation of a strategic plan that has led to sequential year-over-year improvements across key business areas for four consecutive quarters.
• Total sales for Q3 FY ’24 were $6.1 billion, down by 5% compared to the previous year due to lower retail and wholesale prices and lower retail volume, partially offset by higher wholesale volume.
• Retail unit sales declined by 2.9% while used unit comps were down by 4.1%.

• Constellation Brands reported strong Q3 results, driven by robust performance in their beer business, achieving over 8% depletion growth for its beer portfolio.
• This performance is a testament to continued strong consumer demand and contributed to the company’s 55th consecutive quarter of depletion growth and tenth leading share gains.
• The company also executed $215 million of share repurchases in Q3, maintaining its net leverage ratio at 3.2x, excluding Canopy equity and earnings.

• The weekend did not go as expected.
• The attack on Israel by Iran, which occurred overnight between Saturday and Sunday, had a noticeable impact on the crypto market.
• This led to Bitcoin and Ethereum dropping by 8% and 12% respectively by Sunday.

• Corn prices are presently being pressured by ample supplies owing to the record US harvest.
• Corn prices face an upside risk owing to elevated demand for ethanol and supply uncertainty from the South American harvest.
• Premium for long-dated corn futures over near-term futures is on the rise. A calendar spread can be used to express this view. 

• Emerson has undergone significant portfolio transformations, reducing from five business lines to two by 2021
• Incoming CEO Lal Karsanbhai announced strategic actions including selling InSinkErator and a majority stake in Climate Tech, while acquiring stakes in AspenTech and National Instruments
• These moves aimed to further position Emerson as a provider of commercial refrigeration systems, consumer controls, software for process industries, and digital test equipment.

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.

• Last week’s inflation data surprised market participants on the upside. CPI YoY: 3,2% vs. 3,1% estimate. Core CPI m/m: 0,4% vs 0,3% estimated
• Even larger was the upside surprise in the PPI data. Friends of the 70s double-dip inflation scenario will probably love this chart.
• Take a closer look at the 70s and how inflation recovered before it take of in the late 70s for another rip higher.

• We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop after meeting with management in their St.
• Louis headquarters.
• We believe there remain multiple near and longer term growth opportunities for the company, as they expand the product, places and prices they offer “Furry friends” and further leverage the trusted Build-a-Bear brand name.

• Douyu, a Chinese gaming livestreaming platform with Tencent as a major stakeholder, is facing challenges from competition and a stagnant market growth.
• The company has cut costs and is now operating at breakeven, with a significant amount of cash in US dollars available for distribution or capital allocation.
• Despite the risks associated with the stock and sector, Douyu presents a potentially attractive investment opportunity as its stock is trading at only 28% of its net cash value.

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• LSI Industries, Inc. (LYTS) provides corporate visual image solutions in various markets through its Lighting and Graphic segments
• The company focuses on maintaining a strong balance sheet and generating sustainable free cash flow to drive up share price
• Management’s dedication to shareholder value makes LSI Industries an attractive investment opportunity with a double-digit FCF yield

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.

• EIA raised its crude oil price forecast for 2024 and 2025, cites higher global oil consumption outlook and concerns over geopolitical tensions.
• The agency also increased global liquid fuels production outlook for 2024 compared to the previous month.
• Increased forecast on US retail gasoline prices relative to March STEO, expects lower gasoline inventories and higher net exports drive price rise.

• Builders FirstSource focuses on value-added and specialty products
• Maintains industry-leading gross margins of 35%
• Expands reach and solidifies position through strategic acquisitions and strong customer base

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.

• 2024 stands out as the landmark year for exchange-traded crypto products, especially those related to Bitcoin.
• After years of existing somewhat separately from traditional finance, the crypto market is finally being recognized as a legitimate part of the broader financial landscape.
• The United States set the stage in January by securing approval from the US Securities and Exchange Commission (SEC) for the first US-based Bitcoin spot ETFs. To any observer, it is unmistakably clear that the United States has triggered a wave of global approvals for exchange-traded crypto products.

• Market gaining confidence in DSGR’s management and growth strategy for potential multiple expansion
• Strong acquisition pipeline and track record of successful integrations positioning DSGR for long-term success
• DSGR offers an attractive investment opportunity with potential for significant upside due to recent developments and discounted valuation

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.

• 1Q24 production of 18,518 bbl/d was in line with our expectations.
• Production over the last 30 days was 20.5 mbbl/d with the recently drilled 17H well, now on pump, delivering 4,500 bbl/d.
• This bodes very well for 2Q24 production given that the 18H well is expected to commence production in May.

• WIA Gold is an ASX-listed gold exploration junior with a JORC compliant Resource of 1.3m ozs at its Kokoseb project in Namibia
• WIA controls tenements adjacent to Osino Resources’ Eureka project and is in close proximity to Osino’s merger with Dundee Precious Metals (DPM)
• The company recently raised A$11m to accelerate exploration at its projects in Namibia and Cote d’Ivoire, with plans for production at Kokoseb in less than 4 years, potentially resulting in a quick return on investment for WIA shareholders through collaboration with DPM.

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.

• Copper supply facing headwinds with a shortage of copper ore which has led to spiraling copper refining margins.
• Copper futures trading sharply higher than cash prices and term structure for copper futures has steepened. 
• Gold to copper ratio can be used to express a bullish view on copper prices with relatively lower risk compared to a straightforward long copper position. 

• The bullish outlook we initiated in early November 2023 remains intact. The SPX and QQQ still refuse to close below their 20-day MAs/21-day EMAs for more than 2-3 consecutive days.
• Even if/when they do, important supports are close by, including 4983-5050 on the S&P 500 and $425-$433 on QQQ (gap supports from 2/22/24). Anything above 4800 SPX is a buy.
• We continue to get an ever-increasing number of global indexes/Sectors with long-term breakouts, the latest being the MSCI Emerging Market and Frontier indexes. Clearly risk-on behavior.

• The first quarter is seasonally the softest for selling wireless routers. The expectations for NTGR are for the firm to generate positive free cash flow while revenue declines sequentially. 
• We are anticipating NTGR’s cash per share to reach approximately $12 for the March quarter and maintain a forecast of $14 per share by the end of 2024
• The price competition at the lower end remains unchanged and dependent on NTGR clearing out inventory ahead of the peak selling period in the second half of the year

• ZEEKR (ZK US), a premium Chinese BEV manufacturer and a subsidiary of Geely Auto (175 HK), has restarted its IPO process to raise US$500 million by listing on the NYSE.
• We previously discussed the IPO in ZEEKR IPO: The Bull Case and ZEEKR IPO: The Bear Case. 
• The latest SEC filings reinforce the bear case due to weak industry sentiment, rapidly slowing growth, ongoing operating losses and volatile FCF. 

• Masimo Corporation had a mixed Q4 and fiscal year 2023 earnings call, reporting both positive results and some challenges.
• The company generated over $2 billion in consolidated revenues, with healthcare revenues reaching $1.28 billion.
• In addition, Masimo saw strong growth in its hearables business and reported a record number of contract wins.

• Alpha Metallurgical Resources, a supplier of metallurgical products for the steel industry, closed its fourth quarter with adjusted EBITDA of $266 million and achieved over $1 billion in adjusted EBITDA for the year.
• This is the second consecutive year in which the company attained such a milestone despite facing considerable challenges during the year.
• Alpha highlighted the robustness of its management approach which included proactive identification of issues and proactive response plans that ensured minimal impact on performance.

• Approval of bitcoin ETFs by the SEC causing volatility in MSTR shares and bitcoin prices
• Opportunity for a trade pairing short sale of MSTR shares with purchase of bitcoin ETF
• Fluctuating premium of MSTR’s enterprise value over SOTP value, expected to dissipate with approval of bitcoin ETFs

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.

• Encompass Health’s earnings for the fourth quarter of 2023 revealed yet another strong showing for the company, capping off a robust year of performance.
• On the positive side, a significant growth in both volume and revenue was reported for the year.
• The company recorded a 10.4% increase in revenue, driven by an 8.7% spike in total discharges, indicating its value proposition indeed resonates with referral sources, payers, and the patients it serves.

• The Ensign Group offers a variety of services, including skilled nursing, rehabilitative care services, home health care, hospice care, and physical, occupational and speech therapies, among others.
• In their most recent earnings presentation, the company reported impressive clinical and financial results backed by the commitment and efforts of its employees.
• Ensign reported a same-store occupancy of 79.9%, a 240 basis point increase over the last year, and also noticed improvements in their occupancy on a sequential basis of 40 basis points over the third quarter.

• Throughout 2023, Exelixis Inc, showed a strong overall performance with increased demand and revenue growth in its cabozantinib franchise, globally.
• As per their recent conference call, they revealed that the franchise’s net product revenues rose by 14% YoY in Q4 2023.
• The 2023 full-year revenue also grew by 16% YoY. Moreover, the global cabozantinib franchise net product revenues produced by Exelixis, and its partners reached approximately $2.3 billion in 2023.

• Author has a negative outlook on self-storage REITs, particularly EXR
• Valuations are high despite challenging outlook and higher interest rates
• Predicts industry’s long-term prospects are unfavorable due to institutionalization and increased competition

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.

• Inspire Medical Systems, a manufacturer of devices for treating obstructive sleep apnea, recently reported their fourth quarter and full year 2023 financial results.
• The company delivered strong results, noting this was their first quarter with operating income and that they had completed the year on a high note.
• The company reported revenue of $192.5 million for the fourth quarter, a 40% increase from Q4 2020, and net income of $14.8 million, compared to $3.2 million in the prior year.

• Intra-Cellular Therapies, during their fourth quarter and full-year 2023 earnings, expressed a positive outlook based on strong and consistent growth throughout the past year.
• Key achievements included establishing CAPLYTA as a significant treatment option for a broad patient population with bipolar depression and schizophrenia, and advancing several of their pipeline programs.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Maxlinear has probably been among this semiconductor cycle’s worst companies, if not the worst.
• I think that it might be time to give them a fresh look.
• Maxlinear was founded in 2003 in Carlsbad, California, by eight engineers. Today, Kishore Seendripu (CEO/Chairmen) and Curtis Ling (CTO) are still founders and work at the company. Maxlinear is a fabless company focused on mixed-signal products in the semiconductor industry.

• Greetings from a sunny Copenhagen, where it feels like summer is just around the corner, and the warm weather seems to be spreading to the crypto market as well.
• Bitcoin has risen by approximately 4.5%, reaching $72,250, and Ethereum has seen an increase of nearly 4%, up to $3,620 during the same timeframe.
• We would like to reiterate our optimistic outlook from last week, as highlighted in both Crypto Crisp and Crypto Moves #22.

• Flowers Foods continued to show resilience in a challenging consumer environment in the fourth quarter and full year of 2023.
• The company’s brands gained unit and dollar share for the first time since Q1 2022.
• Dave’s Killer Bread was particularly noteworthy, reaching $1 billion in retail sales and growing unit volume by 10%.

• Freshpet Inc. delivered robust performance for the fiscal year 2023 and the fourth quarter, notching a significant growth in net sales and improving profitability.
• The management believes the pet food company reached an inflection point in its journey towards becoming a profitable business in the fresh/frozen segment of the pet food market.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Top Commodity Trader is Long Cocoa Pierre Andurand’s hedge fund bet on higher cocoa prices ahead of a massive surge last month, according to a Bloomberg article.
• Andurand said his firm expects cocoa-beans production globally to be down at least 18% on an annual basis, compared to most analysts’ expectations of 10-11%.
• “This means that we will finish the year with the lowest stocks-to-grinding ratio ever, and potentially run out of inventories late in the year,” he added.

• This is our first report on Roivant.
• The company’s Q3 2023 earnings were decent and the neutral positives can be highlighted from the continuous growth of VTAMA, ROIV’s best-selling branded topical in psoriasis, recording over 300,000 prescriptions and revenues of $20.7 million.
• Additionally, the pipeline for Roivant has compelling developments, with brepocitinib showing promising potential in orphan rheumatology.

• Natera, Inc.’s latest quarterly earnings reveal positive growth prospects and the firm’s commitment to maintaining momentum in their healthcare ventures.
• The company saw a rise in revenue, reaching $311 million for Q4, a substantial growth of 43% over the same period in 2022.
• Furthermore, its full-year revenues were reported at $1.08 billion, up by more than 30% compared to the previous year.

• WD-40 Company had a decent result for the first quarter of the fiscal year 2024.
• Notably, the company achieved robust revenue growth with net sales reaching $140.4 million, signifying a 12% increase from the corresponding period of the previous fiscal year.
• This growth also aligns with the company’s FY’24 guidance and long-term growth predictions, a sign of the company’s resilience and adaptability in a highly competitive marketplace.

• Lancaster Colony Corporation has reported record financial results for their fiscal second quarter ending December 31, 2023.
• Consolidated net sales saw an increase of 1.8% to $485.9 million, gross profit went up by 19% to $121.5 million, and operating income increased 28.1% to $65.8 million.
• The retail segment contributed to a net sale growth of 2%, driven by volume gains for their successful licensing program, increased demand for products like New York Bakery frozen garlic bread and Reames frozen egg noodles, and the continued strong performance of their carryover pricing strategy.

• Industry needs batteries and batteries need metals. As numerous studies have concluded, even with slightly slower than previously anticipated growth in EV adoption and renewable energy (wind and solar) buildout, demand for metals going into lithium batteries is expected to exceed current estimates for said metals’ production as early as 2026-28.
• The implied need to find and develop sufficient new resources of these metals to satisfy the expected demand has become a major focus for battery and auto OEMs, as well as governments set on the path to electrification of their economies.
• More plentiful, less harmful. Many industry and investment banks’ reports also conclude that traditional terrestrial resources in the development or even exploration phase currently are not sufficient to meet the expected demand, suggesting other unconventional resources require commercial development.

• Crypto market is driven by narrative in the short term, and capital favors new narratives. Ethereum restaking is the brand new narrative and biggest investment opportunity in this cycle.
• Restaking and Liquid Restaking will bring upward pressure to ETH, and tokens of Liquid Restaking protocols will benefit from the growing restaking market.
• DeFi use cases related to Liquid Restaked Tokens introduce increased financial leverage to the Ethereum DeFi ecosystem, which also entails heightened risks.

• We explore Klarna’s and Stripe’s IPO prospects and valuations based on recent share transactions; Nuvei and Cielo are close to being taken private, with Worldpay now controlled by private equity
• Nuvei and Worldpay both grew by acquisition but failed to deliver on the market’s expected returns, in our view, ending up under PE ownership; is Nexi a potential PE target?
• We retain Visa as a core holding and also keep PagSeguro and PayPal as buys, replacing Cielo with new peer group addition Shift4; we keep our sell rating on Affirm

• This last week was packed with deals, amendments, and merger breakups.
• A SPAC is set to merge with an electric utility firm, and a blank-cheque firm is taking a critical metals supply chain-focused firm.
• Also, Sam Altman’s SPAC surges as it nears a deal, and a SPAC terminates a merger with a hydrogen energy firm. Read on to find out the latest about all things SPACs. 

• Sealed Air (SEE) is a disaster in motion: its entire business is facing extinction as customers move away from the thin-film plastics the company makes.
• Sealed Air’s e-Commerce business has collapsed as Amazon has moved away from the single-use plastics, formerly ever present in its packaging. 
• California just passed two recycling and labeling bills that we think will make Sealed Air’s products unlikely to be used in the State and possibly in the US as a whole.

• Bread Financial (formerly Alliance Data) has experienced a drop in stock price since 2015 but has improved its balance sheet.
• The future earnings outlook is uncertain due to pending regulations, but the company is expected to generate a high return on equity.
• Bread Financial issues private label and co-brand credit cards with major partners, making it a potentially valuable investment opportunity at its current 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.

• Tredegar Corporation has been selling off businesses, annuitizing pension plans, and seeing key executives retire in recent years
• With only two remaining businesses, the company is estimated to be worth $11-13 after accounting for debt, before tax implications
• These actions indicate a significant shift in Tredegar’s strategy and possible future liquidation piece by piece

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.

• Rubrik, a leading VC-backed security software company, filed for a long-awaited IPO in the United States, with Goldman Sachs, Citigroup, Barclays and Wells Fargo leading the offering. 
• The technology company is focused on data protection and helps organizations to protect their data and recover it in case of cyberattacks.
• Rubrik was founded by Bipul Sinha, Arvind Nithrakashyap, Arvind Jain and Soham Mazumdar, and backed by VC investors, including Lightspeed Venture Partners, Greylock Partners and Khosla Ventures.

• Acadia Healthcare delivered a robust financial performance for 2023, marked by a 12.2% annual revenue growth, 13.1% adjusted EBITDA growth, and 14.3% adjusted EPS growth compared to 2022.
• In the fourth quarter, its same-facility revenue rose by 10.3% on the back of rate improvements and patient day growth.
• Acadia also saw consistent improvement in its labor trends throughout 2023.

• The Boston Beer Company’s Fourth Quarter 2023 Earnings revealed an operational performance meeting the midpoint of their forecast, with depletions down by 6% for the year and gross margins achieving an improvement of 120 basis points.
• However, net loss for the quarter indicated challenges, standing at $18.1 million, or $1.49 per diluted share.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Tenet Healthcare’s Q4 2023 earnings indicated a strong performance, with net operating revenues of $20.5 billion, and consolidated adjusted EBITDA of $3.54 billion, which translates into an attractive 17.2% adjusted EBITDA margin.
• The company has demonstrated its ability to maintain profitability while focusing on quality and innovation.
• Yet, some challenges were also mentioned during the earnings call.

• Chemed Corporation reported their fourth quarter 2023 earnings with continued improvement in their VITAS operational metrics, including a 7% increase in admissions over the prior year period and an average daily census of 1,918.
• This is an 11% increase in comparison to the prior year and suggests that a hiring and retention program initiated in 2022 to remedy any potential worker turnover and expand clinical workforce capacity has been successful in maintaining VITAS’ operational performance.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Examining the fourth quarter 2023 earnings for Dentsply Sirona reveals an investment thesis that emphasizes the company’s successful strategies, robust performance and rigorous financial discipline, alongside ambitious future business growth targets and consistent value creation for its stakeholders.
• Starting with the positives, Dentsply Sirona achieved over 2% organic sales growth for 2023, outperforming projections via growth in three of its four business segments.
• Notably, its orthodontic business experienced double-digit growth with both Byte and SureSmile.

• In Q4 2023, Elanco Animal Health reported a 5% constant currency revenue growth, driven by innovations, the strength of the farm animal business, improved conditions in the European Pet Health retail market, and increased pricing.
• The strong performance in 2023 indicates that the company’s innovation, portfolio, and productivity strategy are working, leading to confidence in the potential success of future investments.
• Going into 2024, the company aims to focus on three priorities: sustained revenue growth, innovation, and improved cash conversion.

• Globus Medical, a leading musculoskeletal solutions provider, has reported record revenues of $1.569 billion for the full year 2023, marking a growth of 53% compared to the previous year.
• The strong performance includes four months of sales after its merger with NuVasive.
• This remarkable growth maintained the company’s industry-leading profitability, generating a record non-GAAP EPS of $2.32 and an adjusted EBITDA of 30%.

• Globus Medical, a leading musculoskeletal solutions provider, has reported record revenues of $1.569 billion for the full year 2023, marking a growth of 53% compared to the previous year.
• The strong performance includes four months of sales after its merger with NuVasive.
• This remarkable growth maintained the company’s industry-leading profitability, generating a record non-GAAP EPS of $2.32 and an adjusted EBITDA of 30%.

• Ionis Pharmaceuticals Inc. had a remarkable year in 2023, with significant advancements in their RNA targeting platform and a steady stream of upcoming independent medicines delivering directly to patients.
• The company’s forward-looking stratagem involves expanding their technology and broadening its applicability to cater to patients’ needs.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Intel launched a new segment reporting structure under which its newly created Foundry P&L allegedly racked up operating losses of ~$17 billion over the past three years
• The Foundry P&L is not expected to reach breakeven until the ’27/’28 timeframe
• Intel’s share price is down >10% in the two days since the new financial model was launched. 

• Johnson & Johnson (JNJ US) entered into a definitive agreement to acquire Shockwave Medical Inc (SWAV US) for $335/share in cash or an enterprise value of $13.1B.
• Offer price represents 4.7% premium over yesterday’s closing price or around 19% premium over the undisturbed price. The deal is expected to close by mid-2024.
• With no product overlap and competition concern, the deal is expected to get regulatory approval. With reasonable deal valuation, shareholders approval is also expected.

• OPEC+ decides to keep output targets intact till June. Iraq and Kazakhstan vow to compensate for overproduction.
• OPEC+ pressed its members to improve compliance with production quotas in Q22024.
• Expansion in US crude stockpiles slightly dampens the bull run of oil prices. While gasoline and distillate drawdowns come in better-than-expectations.

• Kura Sushi US Weighting as of writing: 4% 5th April 2024 – Q2 FY24 Results On April 4th, Kura Sushi US reported earnings for the second quarter of FY24.
• Nothing major to report and similar themes to previous quarters so will keep this one short. The market valuation is astronomically stupid.
• Average unit volumes at Kura are $4.28 million and have improved significantly; up 22% since 2019.

• Gibraltar Industries’ Q4 2023 financial results presented a robust year-end performance.
• The company’s leadership positions were expanded, the quality of earnings improved, and strong cash flows were generated.
• Both Residential and Infrastructure perform strongly, and although the Renewable segment faced industry headwinds, it demonstrated excellent margin expansion.

• BellRing Brands Inc. has reported the results from their first quarter ending fiscal year 2024.
• These results have come out better than the management’s expectations, with net sales increasing by 19% in comparison to the previous year.
• The company’s adjusted EBITDA also showed considerable growth, rising by 18%.

• The third quarter 2024 financial results for Lionsgate reveal positive trends contributing to the company’s growth and strategic developments.
• In this update, there are strong indicators of continued growth owing to an impressive performance across the business segments.
• Conversely, there are risks due to the competitive landscape and the strong reliance on hit content titles.

• Reynolds Consumer Products managed to maintain strong growth in Q4 2023, raising its share in some of its largest categories, including household foil and waste bags, achieving record profits, and boosting its cash flow.
• This was driven by double-digit profit growth across its various businesses.
• The operational stability of its Reynolds Cooking business has been restored and it has returned to historical earnings.

• Alternus Clean Energy and Acadia Energy have announced a joint venture to co-develop 200 MW of Sustainability Hub™ microgrid projects in New York State.
• Acadia has a pipeline of 1.5-2.0 GW of renewable energy projects in New York, with an average size of 20-50 MW per project.
• The partnership aims to develop and operate a portfolio of scalable microgrid projects over the next two to three years, which are expected to begin achieving commercial operations within two years.

• USA’s Strategic Petroleum Reserves (SPR) is currently at its lowest in 40 years. Should this be a source of concern? Perhaps not.
• USA is the world’s largest producer of crude oil. From being vulnerable to imported oil, US has become self-reliant.
• SPR expressed differently now, stands at 188 days of net imports compared to less than 100 days as was seen in the 1980s, 1990s, and early 2000s.

• Nvidia CEO Jensen Huang has repeatedly emphasized that the data center is the new unit of compute.
• While this concept seemed straightforward at first, the deeper implications became clearer after Nvidia’s presentations at GTC and OFC 2024.
• I only recently grasped exactly what is happening, and a simple reframing of the underlying principles that drove Moore’s Law makes the entire picture clearer.

• Chinese authorities are to limit steel production while pushing forward industrywide structural adjustments as steel mills suffer from growing losses amid sluggish demand.
• Several ministries led by the National Development and Reform Commission (NDRC) Wednesday said regulators will continue efforts to control crude steel production this year, focusing on energy conservation and carbon reduction.
• The authorities will foster industry strengths and weed out weak players to promote the structural adjustment and optimization of the steel industry.

• In the third quarter of 2023, PGT Innovations displayed a strong financial performance despite operating in an unpredictable market environment.
• The company’s balanced exposure to new construction and repair and remodeling channels has enabled them to deliver consistent record sales and impressive profits over the year.
• By combining a continued focus on operational efficiency and productivity, PGT Innovations managed to achieve a total revenue of $400 million and an adjusted EBITDA of $78 million in the third quarter.

• IAS 2023 fourth quarter and full year results depict a robust performance that exceeded expectations, noting an increase of 14% in quarter four revenue to reach $134.3 million and a year growth of 16% to reach $474.4 million.
• This growth marks a path for IAS’s strong commitment toward advancing the industry with its AI-driven measurement systems and optimization solutions.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Papa John’s International, Inc. reported another year of record global system-wide sales for the fourth consecutive year of positive North America comps in 2023.
• The company’s success is attributed to the dedication and focus of its team, franchisees, and the restructuring efforts, especially the foundation improvements to restaurant operations, menu amelioration with novel products, the digital advancements of their operations platforms, and the expansion of the restaurant footprint.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Post Holdings began fiscal 2024 with a strong first quarter, with manufacturing performance, pricing and cost management aiding in growth momentum.
• Diverse channel, product, and price point offerings have allowed the company to weather various volume fluctuations.
• Although volume decreases were observed in branded retail businesses, Foodservice remained strong with shifts toward value offerings and positive momentum in their Refrigerated Retail business.

• The Pilgrim’s Pride Corporation has encountered several ups and downs in the fiscal year 2023.
• The company possessed an impressive net revenue of $4.5 billion in Q4 2023, with an adjusted EBITDA of $310 million and an adjusted EBITDA margin of 6.8%.
• Their revenue for the fiscal year was $17.4 billion, marking an EBITDA of $1 billion and margins of 6%.

• Acquisitions are expected to remain a centerpiece of management’s three-pronged strategy to increase scale in the asset base, reduce outstanding debt, and ultimately position the company to return cash to shareholders.
• The Stronghold acquisition in 3Q22, followed by the Founders acquisition in 3Q23, added operational scale and inventory depth on the southern portion of the Central Basin Platform (CBP).
• Together with Ring’s Northwest Shelf (NWS) assets, the inventory provides a diverse set of horizontal and vertical development opportunities.

SIGA Technologies announced a strategic step in fortifying its distribution partner, Meridian, allowing greater control over planning and executing its international development efforts, a key growth pillar. The amended terms allow the company to actively manage future promotion activities outside the US (effective 1 June 2024). While Meridian will continue to administer existing international contracts, we expect the renegotiated terms to benefit the bottom line in the medium term as SIGA gains traction internationally. In a separate development, and one that could have a positive read-across for SIGA’s TPOXX, Bavarian Nordic, a key vaccine peer, has commenced the commercial launch of its mpox vaccine Jynneos in the US, which has only been available through the strategic national stockpile to date. We view this as a positive milestone for this therapeutic group and SIGA as TPOXX is the only approved anti-viral treatment for a range of orthopox viruses (including mpox) in Europe and is currently undergoing clinical trials in the US for expansion into mpox (presently approved for smallpox).