Daily Brief Equity Bottom-Up: Microsoft’s OpenAI Conundrum and more

• In Q126, Microsoft recorded $4.1 billion in net losses from investments in OpenAI, up from $688 million in the year ago quarter.
• The newly updated partnership between Microsoft and OpenAI has many clauses contingent on when (not if) AGI gets declared. Since AGI has no actual definition, an expert panel will decide. 
• Sam Altman dreams of an OpenAI IPO so that detractors can be lured into shorting the stock and getting burned in the process. Revenue growth is a touchy subject, apparently

• Context: The Bluescope Steel (BSL AU) vs. Sims Metal (SGM AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Bluescope (BSL AU) and short Sims (SGM AU) targets a 6% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Info -Tech is led by Mr. Ricky Lim, Founder and Chairman, who started the company in 2007 with Mr. Babu Dilip, Co -founder and Chief Executive Officer.
• The business remains founder -led, with senior management comprising long -serving functional heads across product, technology, and sales.
• Ownership is concentrated among the founder and key management, aligning incentives with long – term growth and profitability.

• The company’s founder Mr. Lam Kong serves as Chairman, Chief Executive and President.
• The other key management personnel are Ms. Chen Yanling who is the Executive Director and CFO.
• The company’s six -member board comprises two executives, one non -executive, and three independent non -executive directors. Committees cover Audit, Remuneration, Nomination, and ESG, with INEDs forming the majority on committees.

• Expand Energy’s latest quarterly results highlight both positive strides and challenges within the company’s operations and strategic outlook.
• The company has pursued capital efficiency, managing to reduce costs significantly while increasing production, particularly in the Haynesville region.
• Expand Energy has demonstrated an impressive cost reduction in well expenses by over 25% and outperformed peers with year-to-date costs 30% lower, thanks to optimized development and completion designs.

• Xylem Inc., a leading global water technology company, reported solid results in the third quarter of 2025.
• The company demonstrated strong financial performance with notable growth across its segments and has adjusted its full-year outlook upwards due to ongoing robust demand and efficient execution of its strategic initiatives.
• Positively, Xylem registered an increase in revenue across all its segments, with a marked double-digit growth in both Measurement and Control Solutions (MCS) and Water Solutions and Services (WSS).

• Zebra Technologies reported its third-quarter 2025 results, surpassing its initial outlook.
• The company posted $1.3 billion in sales, representing a year-on-year increase of 5%.
• Adjusted EBITDA margin improved slightly by 20 basis points to 21.6%, and non-GAAP diluted EPS rose by 11% to $3.88.

Key points (machine generated)

• European Residential REIT is nearing the end of its public tenure, focusing on Dutch apartment buildings and controlled by Canadian Apartment Properties REIT.
• The REIT is expected to provide strong risk-adjusted returns as it approaches liquidation, with recent activities indicating this trajectory.
• In May 2024, ERE announced plans to boost capital generation, and by July 2024, it completed asset sales of EUR 116 million, achieving prices at or above IFRS values.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Dominant Player in a High-Growth Market: Cisarua Mountain Dairy (CMRY) is a leading producer of premium dairy and consumer food products in Indonesia, a market poised for significant growth driven by a rising middle class, increasing health consciousness, and urbanization. The company holds a dominant market share, particularly in the yogurt category.
• Robust Financial Performance and Strong Growth Track Record: CMRY has demonstrated an exceptional growth trajectory, with a 3-year revenue CAGR of 30.13% and a net income CAGR of 24.35%. This is underpinned by successful product innovation and expansion of its distribution network, leading to consistent margin expansion and strong free cash flow generation.
• Strategic Focus on Innovation and Distribution Expansion: The company’s strategy centers on continuous product innovation in both its dairy (Cimory brand) and consumer foods (Kanzler brand) segments, coupled with an aggressive expansion of its distribution channels, including modern trade, general trade, and its unique direct-to-consumer ‘Miss Cimory’ network. This dual focus is expected to sustain its growth momentum and market leadership.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Good 3Q25, good 4Q guidance, optimism that the Server CPU market is growing faster, new GPU MI400 (2H26) will re-accelerate growth. Plus some price increase or higher ASP. Not controversial.
• More controversial is Consensus expecting OP margin to jump from 24% (2025) to 31% (2027). There will be leverage as Data Center AI revenues grow – but it looks optimistic.
• Valuations are elevated (41x 2026 EPS) for good reasons 1) Server share gains 2) rapid AI growth 3) higher ASP. After a vertical rally, the share price needs some room.