In today’s briefing:
- Crypto Lending Series (#2) Clearpool – A Bright Spot Emerging from the Rubble
- Another Bear Market Rally Begins; Indexes and Sectors With Bullish 2+ Month Inflections
- IRDM: Orbiting Subscriber Growth
- IBM Corporation: Acquisition-Led Growth In The Cloud Market & Other Drivers
- Incyte Corp: Acquisition of Villaris Therapeutics & Other Drivers
- Lam Research: Major Drivers
- Netflix Inc: Subscriber Growth
- Kinder Morgan: Recent Acquisitions & Other Drivers
- Domino’s Pizza: Major Drivers
- Enterprise Product Partners: New Projects To Fuel Organic Growth
Crypto Lending Series (#2) Clearpool – A Bright Spot Emerging from the Rubble
- As the crypto lending market recovers from the shock of large defaults in the sector, the markets are now focused on institutional lending where capital efficiency and liquidity are key.
- Overcollateralized lending has been stagnant although holding ground, but its low utilization, low interest rates and wide bid ask are not appealing to most lenders and borrowers.
- The market preference is switching to non-collateralized lending where a mix of Cefi and Defi characteristics may evolve to provide the winning combination.
Another Bear Market Rally Begins; Indexes and Sectors With Bullish 2+ Month Inflections
- The bear market rally we have been discussing since our Sept. 27 Compass report has begun.
- Over half of the Sectors and all the major indexes (S&P 500, Nasdaq 100, DJIA, and S&P 600 Small Caps) display bullish 2+ month inflections.
- As referenced last week, we expect the aforementioned indexes to rally to their 200-day MAs; longer-term, this is still a bear market until they can break above their 200-day MAs.
IRDM: Orbiting Subscriber Growth
- IRDM put the emphasis on its quarterly report versus commentary on smartphones and drones using satellite connectivity. The third quarter results continued to show the ongoing growth in IOT subscribers
- IRDM’s service revenue has been trending higher with added maritime and IOT subscribers
- During the third quarter, IRDM added 7 thousand voice subscribers and 89 thousand IOT subscribers. The rate of voice customer additions can be lumpy depending on seasonality
IBM Corporation: Acquisition-Led Growth In The Cloud Market & Other Drivers
- IBM delivered an all-around beat with over $14 billion in revenue and tremendous growth throughout the portfolio resulting in a sharp recovery in its stock price.
- Technology continues to be a key source of competitive advantage, and there is still a healthy market for hybrid cloud and AI solutions.
- Consistent double-digit revenue growth at IBM Consulting, satisfying client demand for digital transformations.
Incyte Corp: Acquisition of Villaris Therapeutics & Other Drivers
- Incyte has started appreciating with its financial results being just around the corner.
- In the last quarter, the company’s revenues rose 29% and it managed an all-around beat.
- With an increase in new patient starts across all 3 indications, Jakafi’s net revenues increased 13% to $598 million.
Lam Research: Major Drivers
- Like most of its semiconductor peers, Lam has witnessed a strong correction after its earlier highs.
- It demonstrated its sustained strength in execution by surpassing the $5 billion revenue for the first time.
- It is ramping up output levels and has increased revenue by almost 10% compared to the previous quarter.
Netflix Inc: Subscriber Growth
- Netflix shareholders finally got some good news this quarter as the leading streaming entertainment company in the world finally posted some subscriber growth.
- Netflix successfully added a further 2.41 million net subscribers and now has 223.09 million paid subscribers globally.
- The management forecast indicates that it is expected to add more 4.5 million subscribers in the ongoing quarter.
Kinder Morgan: Recent Acquisitions & Other Drivers
- Kinder Morgan delivered astonishing results.
- Due to high summer power demand, which resulted in an additional 880 million dekatherms of gas traveling to power plants per day, deliveries to power plants were strong in the quarter, increasing by roughly 11%.
- In addition, Kinder Morgan acquired North American Natural Resources and its sister companies, North American Biofuels and North American-Central, for $135 million during the quarter.
Domino’s Pizza: Major Drivers
- Domino’s Pizza delivered a disappointing result barely managing to meet analyst expectations with respect to its revenues and missing out on earnings.
- The company, along with its franchisees, opened more than 200 net new stores with net new store additions in 44 markets.
- We provide the stock of Domino’s Pizza with a ‘Hold’ rating and a revision in the target price.
Enterprise Product Partners: New Projects To Fuel Organic Growth
- Enterprise Products Partners’ results are approaching and the company had delivered an all-around beat in the last quarter.
- Its strong financial performance was primarily driven by higher margins in the octane enhancement business of the company, contributions from Midland Basin assets that it acquired recently, and higher natural gas dispensation margins.
- Enterprise Products Partners has recently announced an expansion of footprints of three organic growth projects for supporting the ongoing production development in the basin.
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