Daily Brief United States: Crude Oil, Jack Henry & Associates, HMH Holding, Copper Property CTL Pass Through Trust, Qualcomm Inc, Shell , Olin Corp, Allakos Inc, TuHURA Biosciences and more

• Trump declares a national energy emergency and calls for increased oil production
• The US shale revolution led to a surge in oil and gas production
• Despite Trump’s push for more drilling, the oil industry is hesitant due to current market conditions and oversupply of oil

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

• India is becoming a key player in global oil demand growth, with forecasts predicting substantial expansion in the coming years
• The global oil industry is shifting its focus from China to India as the main driver of demand growth
• Challenges for India in meeting oil demand include weather effects, economic activity rhythms, currency strength, and inflation impacts on affordability

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

• Jack Henry is a best in class operator within the vertical market software space
• They sell operating system software for small and mid-sized banks
• Jack Henry focuses on organic growth and their core product

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

• Drilling equipment and service provider updated the terms for its IPO in late January. 
• They had total revenue of $577.2 million and $614.8 million and net income of $10.2 million and $44.9 million in the first three quarters of 2023 and 2024, respectively.
• The Houston based company would be following three previous energy IPOs: Flowco Holdings (FLOC US) , Venture Global LNG (VG US) and Infinity Natural Resources (INR US)

• CPPTL, a real estate trust, is liquidating 121 JC Penney-leased properties, potentially offering 28%-45% upside by 2025.
• Major shareholders, primarily former JC Penney creditors, own 70% of CPPTL shares, indicating potential eagerness to exit.
• CPPTL properties are marketed with Newmark; initial offers expected by February 26, targeting 7%-8% cap rates.

• Pretty good Dec-24 quarter (1Q25), ~10% above expectations. Decent Mar-25 (2Q25) guidance, ~5% above expectations. The stock is down after hours, because?
• FY25, I estimate Mobile revenues up ~10% YoY, Auto ~30%, IoT ~20%. QCOM said that Licensing revenues will be flat. Total revenue growth ~12% YoY, I expect similar for FY26.
• Conclusion: nothing exciting, management reiterates big non-mobile revenue targets by 2029 (US$22bn) but downside from Apple Modem ending in 2027. In the meantime the stock is properly valued.

• Shell’s Q4 revenue fell by 15.8% YoY and its adjusted earnings dropped by 49.9%. However, its revenue beat analyst estimates by 8% but missed EPS projections by 10.8%.  
• Shell raised its dividend by 4% and announced a USD 3.5 billion share buyback for the current quarter, marking 13 consecutive quarters of at least USD 3 billion in repurchases.
• Shell achieved USD 3.1 billion in cost reductions by end-2024, surpassing its USD 2–3 billion target a year ahead of schedule. Net debt fell by 10.9% YoY in Q4.

• Olin Corporation’s latest financial results present a mixed picture, reflecting both strategic advancements and ongoing challenges.
• The fourth quarter saw positive developments, such as a sequential 9% sales increase in Chlor Alkali Products and Vinyls (CAPV), facilitated by volume recovery post-Hurricane Beryl and improved pricing.
• Additionally, cost reductions are underway, with plans to achieve $250 million in savings by 2028, including $20 to $30 million aimed for in 2025.

• Kevin Tang holds a 10% stake in Allakos, valuing its cash balance and nearly $1 billion in federal NOLs.
• Allakos estimates $35-$40 million cash by June 2025, with restructuring costs of $34-$38 million.
• Potential reverse merger could value Allakos at $0.45-$0.5/share, considering NOLs and cash after expenses.

• TuHURA is a clinical-stage, oncology-focused biotechnology company ad-vancing innate immune agonists, checkpoint inhibitors & antibody-drug conjugates (ADCs).
• It offers the IFx platform technology featuring the IFx-2.0 tumoral injection delivery approach for Merkel cell carcinoma (MCC) & the IFx-3.0 intravenous delivery approach for lymphoma.
• IFx encodes a bacterial protein to be expressed in cancer cells, activating the innate immune system and subsequent cascade that may eliminate the tumor.