Utilities Sector

• The WTR Sustainable Index was up 1.7% W/W versus the S&P 500 Index (up 1.7%), the Russell 2000 Index (up 1.4%) and the Nasdaq Index (up 1.6%).
• Energy Technology (13.7% of the index) was up 1.9%, while Industrial Climate and Ag Technology (47.6% of the index) was up 2.6%, ClimateTech Mining was up 1.4%, and Advanced Transportation Solutions (20.9% of the index) was up 1.6%.
• Top 10 Performers: WML, WWR, LTBR, SMR, MGPHF, BE, PSIX, GTEC, LOOP, WPRT

• AH Premia are lower over the last few weeks of holiday and this past week of heavy SOUTHBOUND buying on telcos, banks, brokers, insurers, tech, and airlines.
• The average AH Premium across all pairs is now the lowest it has been in five years.
• INFO TECH and FINANCIALS saw significant H outperformance vs As this week. Most others (other than perhaps MATERIALS) were limited in their volatility. No bias by premium tranche seen.  

• In today’s Morning Views publication we comment on developments of the following high yield issuers: China Water Affairs, Health and Happiness (H&H), Anton Oilfield, Lippo Karawaci
• In the US, the December Conference Board leading index inched down by 0.1% (-0.1% e / 0.4% revised p) in December to 101.6. The decrease was due to “low consumer confidence about future business conditions, still relatively weak manufacturing orders, an increase in initial claims for unemployment and a decline in building permits”, according to Justyna Zabinska-La Monica, Senior Manager for Business Cycle Indicators at The Conference Board.
• US President Donald Trump is considering imposing a 10% tariff on imports of Chinese goods as soon as February 1st, apparently due to fentanyl being trafficked into the US via Mexico and Canada, using chemicals from China.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Greenko Energy, New World Development, Softbank Group
• In the US, treasuries climbed slightly yesterday, amid a lack of macro news and as President Donald Trump held back from implementing tariffs on his first day in office. The UST curve bull flattened, with the yield on the 1Y UST declining 1 bp to 4.28%, while the 10Y fell 5 bps to 4.58%. Similarly, equities rose on the back of optimism that Mr Trump’s policies will boost US corporations.
• This came after he unveiled a new investment push for artificial intelligence led by Softbank Group, Open AI and Oracle Corp (see comment below). The S&P 500 climbed 0.9% to 6,049, while the Nasdaq was up 0.6% at 19,757.

• The WTR Sustainable Index was up 3.2% W/W versus the S&P 500 Index (up 2.9%), the Russell 2000 Index (up 4.0%) and the Nasdaq Index (up 2.8%).
• Energy Technology (13.7% of the index) was up 0.9%, while Industrial Climate and Ag Technology (47.2% of the index) was up 4.5%, ClimateTech Mining was up 2.2%, and Advanced Transportation Solutions (21.3% of index) was up 2.7%.
• Top 10 Performers: AZRE, DCFC, FGPHF, IDEX, TMC, IONR, GWTI, LITM, CLIR, EOSE

• Constellation Brands’ third-quarter fiscal 2025 results reveal a mixed performance across its segments, with resilience shown in its beer business but significant challenges faced in the wine and spirits sector.
• The company’s strategic investments in marketing and distribution for its beer brands have driven an uptick in consumer demand.
• However, macroeconomic factors continue to challenge overall sales growth, prompting a recalibration of financial guidance.

• In the US, the December CPI edged higher to 2.9% y-o-y (2.9% e / 2.7% p) and 0.4% m-o-m (0.4% e / 0.3% p), the fastest monthly pace since March 2024.
• That said, core CPI (excluding food and energy) eased marginally to 3.2% y-o-y (3.3% e / 3.3% p) and 0.2% m-o-m (0.3% e / 0.3% p).
• Core CPI eased on a m-o-m basis for the first time in six months, after standing at 0.3% for four consecutive months.

• Dala Energi is facing a bid from Nordion Energi for a complex transaction, offering significant upside potential
• Dala Energi has seen a 94% increase in share price year-to-date, with at least a 23% potential upside remaining
• The transaction is expected to be completed by summer 2025, providing an annualized return above 23% based on conservative assumptions

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.

• On the All Thoughts podcast, Tracy Alloway and Joe discuss Tracy’s new solar panel and energy challenges during a snowstorm.
• Duke Energy’s Senior VP of Pricing and Customer Solutions discusses the complexities of energy pricing, renewable energy, and the future of the grid.

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

• Brookfield acquired a 53.12% stake in Neoen for €39.85/share, triggering a mandatory tender offer for remaining shares and bonds, aiming for a squeeze-out and delisting Neoen.
• Regulatory approvals were secured from the EU, France, the US, and Australia, addressing antitrust, foreign investment laws, and energy security concerns.
• My PT remains €39.85, in line with the price offered by Brookfield and its partners, which I believe is fair. Completion is expected in Q1 2025. Gross spread is 0.33%.Tender.

• Bragg Gaming Group is an illiquid small-cap company undergoing a strategic review, with potential upside of over 40% if a deal is reached
• The stock price currently reflects low odds of a transaction, but resolution is expected by the end of the year
• Despite being covered in a comprehensive write-up four years ago, recent events have led to a collapse in the stock price, creating a favorable setup for investors in the online casino, sports betting, and lottery industry

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.