In today’s briefing:
- Graftech: Operational Issues Plague Thesis
- FTT/FTX- Another Inflection Point in the Crypto Market Waiting to Happen?
- Copper Long Needs USD to Break Lower
- GMX – A DeFi Real Yield Protocol
- UI: On Pace for Record Revenue
- Apple Inc.: Latest Updates
- FTT Liquidity Faces Key Test
- Mastercard Inc.: The Crypto Source Program & Other Drivers
- SAP SE ADR: Initiation of Coverage – Financial Forecasts
- T-Mobile: Industry Specific Smart Solutions & Other Drivers
Graftech: Operational Issues Plague Thesis
- GrafTech International Ltd (EAF US) thesis has taken a turn for the worse with the suspension of the operations in Mexico (impact 50% of production in Q4 2022/H1 2023).
- The negotiations of LTA pricing ( based on spot pricing ) in the near term also prove to be a headwind, with spot prices 40% below the contract.
- At 7.3x PE FY23 (earnings down 60% YoY), the stock price reflects these challenges. The recovery for the company to normalized cash flow levels will take much longer.
FTT/FTX- Another Inflection Point in the Crypto Market Waiting to Happen?
- On Nov 3, it was leaked that Alameda seemed to have a weaker than expected balance sheet with $7.6 bn of loans and a relatively illiquid portfolio of assets.
- Alameda, a large proprietary crypto trading firm, did not officially comment but its CEO Caroline stated on Twitter that most of the loans were repaid.
- The potential linkages between Alameda and FTX, a large crytpo exchange, both controlled by Sam Bankman-Fried, are of utmost concern and has riled the crytpo market.
Copper Long Needs USD to Break Lower
- Copper’s bull wedge b -wave breakout stands out (high conviction set up) but needs a weaker USD for follow through. China is the wildcard but seems a bit early still.
- Gold trendline and price pivot at 1,700 the key level to clear or will retest the 1,620 triple lows.
- DXY to rally off of 110 support within the triangle range and will see metals pullback. Bigger picture needs a break below 109.50 (bearish) to overlay with metals.
GMX – A DeFi Real Yield Protocol
- GMX is a decentralized spot and perpetual exchange on the Ethereum Layer 2 scaling solution Arbitrum.
- This protocol is absolutely a shining star in today’s market. Token price, TVL, and transaction volume are all in an upward trend.
- It is also labeled as one of the best “Real Yield” opportunities for Liquidity Providers.
UI: On Pace for Record Revenue
- UI continued to report growth in its enterprise segment with total revenue rising to a new record.
- Ubiquiti has been operating through a difficult supply chain environment where particular chipsets have been nearly impossible to purchase beyond allocation from the producer.
- Ubiquiti has expanded its enterprise product portfolio to include more options where Ubiquiti is generating recurring revenue
Apple Inc.: Latest Updates
- Apple has been correcting along with broader markets and the company’s performance has also been hit by the Covid-19 outbreak in the Foxconn unit in China that produces iPhones.
- The company’s results were fairly good and it surpassed Wall Street expectations in terms of revenues as well as earnings with a good performance from iPhone, accessories, home, and wearables.
- Apple continues to grow its platform quite well in emerging markets with quite strong growth in Latin America, Southeast Asia, and India.
FTT Liquidity Faces Key Test
- Price Movements: For the first time since April, Lido staked ether (stETH) now trades at parity with ETH.
- Market Liquidity: Coinbase reported lower than expected earnings due to a continued rout in trade volume.
- Derivatives: ETH perpetual futures volume is now higher than BTC volumes as traders pounce at renewed volatility.
Mastercard Inc.: The Crypto Source Program & Other Drivers
- With the backdrop of cross-border travel continuing to improve and consumer expenditure remaining resilient, Mastercard delivered strong earnings and revenue growth in its latest result.
- Mastercard has expanded with gaming payouts, thus launching its Gaming Fast payout program.
- For addressing domestic, cross-border, and account-to-account payments, it has signed an agreement with leading worldwide B2B solutions and networks, Pagero.
SAP SE ADR: Initiation of Coverage – Financial Forecasts
- This is our first report on SAP, the global ERP, market leader.
- SAP’s performance in the North American and Latin American markets is particularly robust.
- The ERP transfer to the cloud is being led by SAP, which created the technology decades ago.
T-Mobile: Industry Specific Smart Solutions & Other Drivers
- T-Mobile delivered a mixed set of results this quarter with revenues falling short of Wall Street expectations.
- However, it did deliver an earnings beat as the management continued to capitalize on its network leadership position.
- With the launch of Network pass and Easy Switch, T-Mobile is making it risk-free and simple to experience its network, also switch to T-Mobile.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
