In today’s briefing:
- Intel Vs. TSMC/UMC Long/Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation
- Ashok Leyland (AL IN) | Some Pricing Discipline, Inventory Levels Remain High
- Meta Health: Forging a Digital Future for Healthcare
- Liquidity Risk Short Candidates: Blink Charging, Natera, Axonics, Enviva
- Seegene (096530 KS): Recovery of Non-COVID Sales to Drive Future Growth
- What Are the Prospects for a Meta Rebound?
- GTX: The Macro Adjustment
- SS&C Technologies Holdings Inc.: Initiation of Coverage – Competitive Positioning
Intel Vs. TSMC/UMC Long/Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation
- TSMC says limited impact from U.S. China restrictions — We crosscheck the comments.
- TSMC guidance was strong and gives hope for 1H23 industry improvement. Looks cheap on a cycle-adjusted PE.
- Intel has outperformed TSMC shares despite the recent TSMC rebound.
Ashok Leyland (AL IN) | Some Pricing Discipline, Inventory Levels Remain High
- Ashok Leyland (AL IN) ‘s expectation of a more rational pricing environment may not materialise. While there has been a moderation in discounts, it may not last long.
- Wholesales have been high in anticipation of a good festive season, however, the gap between Wholesale and Retail is showing signs of widening.
- Macros are not conducive. Sept PMI hit a 3M low, and August IIP at an 18M low can build a case for cooling volumes ahead.
Meta Health: Forging a Digital Future for Healthcare
- Meta Health: Forging a Digital Future for Healthcare As a result, my leadership style is one of servant leadership,” said the Chairman and Chief Executive Officer of SGX-listed Meta Health Ltd.
- With more than two decades of professional experience in the pharmaceutical and consumer health industries, Ng is well-positioned to oversee Meta Health’s pivot to the digital healthcare space.
Liquidity Risk Short Candidates: Blink Charging, Natera, Axonics, Enviva
- Liquidity shorts can be great short candidates. The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements.
- Liquidity shorts have built-in catalysts, have moderate to higher betas, and can have strong down moves if a crisis develops. They can go bankrupt, pushing the stock price near zero.
- Today we are flagging Blink Charging., Natera, Axonics, and Enviva.
Seegene (096530 KS): Recovery of Non-COVID Sales to Drive Future Growth
- Seegene Inc (096530 KS) reported a 30% y/y growth in revenue from non-COVID products to KRW69.5 billion in H1 2022. Q2 non-COVID product revenue was up 21% compared to Q1.
- The company expects strong demand for respiratory virus testing in fall and winter as the flu season starts in its key markets of Europe and North America.
- Seegene stock is trading near its lows, mainly due to muted financial performance. Seegene can be a value pick and long-term play on the non-COVID product recovery.
What Are the Prospects for a Meta Rebound?
- Meta now trades at 14x P/E and 6x fwd EV/EBITDA…valuation inline with Paramount and Warner Brothers Discovery. This is nuts!
- While the drumbeat of competitive concerns and self inflicted wounds has piled up in the past month, even core Facebook is not in a death spiral of engagement.
- META is investing in new ad tech and ad formats, and has the ability to cut significant opex from its budget that could yield 10-20% upside to current 2023 consensus.
GTX: The Macro Adjustment
- Continued improvement in automobile inventory levels should benefit Garrett Motion (GTX)
- GTX has experienced a decline in turbochargers sold over the past year due to supply chain issues causing carmakers to have lumpy ordering rates.
- Ahead of the second quarter results, we had highlighted the foreign exchange headwind the weaker Euro could play. The Euro continued to depreciate versus the US Dollar in the third quarter
SS&C Technologies Holdings Inc.: Initiation of Coverage – Competitive Positioning
- This is our first report on SS&C Technologies, a well-known software solutions provider to the financial and healthcare industries.
- Even while new fund launches and inflows influenced the Alternatives industry, it nevertheless developed well.
- We initiate coverage on the stock of SS&C Technologies with a ‘Buy’ rating.
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