In today’s briefing:
- Two Bits of Non-Bullish Toshiba News
- Lasertec (6920 JP): Accumulate for the Long Term
- ACCO: Adjusting for Macroenvironment
- The Commodity Report #71
Two Bits of Non-Bullish Toshiba News
- On Friday, Toshiba investors got two bits of news which have been taken as non-bullish.
- Affiliate and former subsidiary Kioxia (6600 JP) announced it would cut wafer input volume by 30% starting in October, and Toshiba’s announcement on the Privatisation process status implied some delay.
- Today the shares are getting hit vs Peers. It’s still a problem of lots of moving parts.
Lasertec (6920 JP): Accumulate for the Long Term
- The shares are down 58% from their January high. Our 3-year forecast brings valuations down to levels not seen since FY Jun-18.
- The great surge in orders is coming to an end, but EUV lithography and SiC power devices should keep demand for Lasertec’s mask inspection systems at high levels.
- The severity of the emerging semiconductor down-cycle and global recession remain to be seen, but the company’s long-term potential warrants another look.
ACCO: Adjusting for Macroenvironment
- The business climate has not improved for Acco Brands (ACCO) in Europe since the Company reported second quarter results, and thus could result in lower than expected third quarter numbers
- The macroenvironment has been volatile in a quarter dependent on back-to-school sales and more people working from their offices.
- We are updating our earnings model for the rest of the year. Our third quarter sales estimate is now $517.1 million
The Commodity Report #71
- We expect the oil crisis to worsen once economic activity resumes again. Till then some months will probably pass.
- Nevertheless, the industry hasn’t increased production significantly enough, and the SPR release by the Biden administration veiled the actual grim picture in the oil market.
- Those stories from Bloomberg show how relaxed the sentiment seems to be again. I have the feeling that this sentiment won’t age well at all.
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