Daily Brief United States: Intel Corp, CoreWeave, Gold, Watsco Inc, Micron Technology, Chevron Corp, Exxon Mobil, Corn Active Contract, Lifeway Foods, Lands’ End Inc and more

• Whether Intel can achieve Process or Foundry leadership in a credible timeframe is something Mr. Tan has relatively little control over in the short term.
• His most pressing challenge will be to address the corporate culture of entitlement that’s rife throughout the company, starting with the BoD
• Measure his success by the number of high profile resignations we see in the coming months. Those who created Intel’s problems cannot be the ones to fix them. 

• CoreWeave (CRWV US) officially set terms for an IPO on Thursday morning coming in with a valuation and cash raise that was much lower than previously reported. 
• Furthermore, the underwriters placed a wider-than-normal spread on the range, $47-$55. This insinuates a negotiation process between the buy-side.
• The valuation coming in lower than anticipated will allow investors to put money to work at a more attractive risk-reward profile. 

• Surging demand for gold is leading to unexpected consequences in Ghana
• The gold industry is impacting cocoa production and causing environmental destruction
• Some individuals are turning to illegal gold mining out of necessity due to economic pressures

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• Watsco is North America’s largest distributor of HVAC equipment, serving as a crucial link between manufacturers and contractors.
• They offer a wide range of equipment and parts, technical expertise, and value-added services to their contractor customers.
• Watsco’s transformation from manufacturer to distributor in 1989 led to significant growth, with consistent annualized shareholder returns over the years.

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

• Micron’s strong HBM and Data Center growth has nearly offset low revenues in the remainder of the company’s business.
• This HBM growth depends heavily upon continued strength in hyperscale data center AI CapEx
• Micron outlined means to maintain stability in its industry, but China semiconductor goals are in conflict with these measures

• Chevron’s 2024 revenue rose 0.9% YoY, beating estimates by 4.7%, but EPS fell 23.5%, missing estimates by 1.2%. The downstream segment reported its first loss since 2020.
• Chevron’s Q4 production fell 1.2% YoY but 2024 output hit a record, with global and U.S. production up 7% and 19% YoY, driven by growth in the Permian.
• Chevron raised its quarterly dividend by 5% to USD 1.71/share and reaffirmed plans to generate USD 10 billion in free cash flow over two years.

• Exxon Mobil’s Q4 revenue fell by 0.8% YoY and net profit decreased by 25.8%. Revenue missed estimates by 3.4% but EPS exceeded expectations by 7.6%.
• Upstream production rose 0.4% QoQ and 20.3% YoY to 4.6 mboepd, driven by record output in Guyana and the Permian, while crude price realizations declined sequentially and annually.
• Low Permian production costs and high-margin Guyana projects sustained profitability despite weaker oil prices and declining refining margins.

• Corn rose 37% from its multi-year low in August until mid-Feb. Strong export demand for U.S. corn and adverse weather in South America supported a longer-term recovery.
• US Corn exports for the current MY have exceeded both the 5-year average & previous year. Export momentum has continued even as the dollar has strengthened sharply since October.
• 2024 drought in Brazil was the worst since 1950. No direct impact on crops but transportation was significantly disrupted. Key waterways/ports used for shipping were affected causing delays.

• Danone offered to buy Lifeway at $25/share in September 2024, raised to $27/share in November 2024.
• Lifeway’s board rejected Danone’s offers, claiming $27/share undervalues the company; CEO Julie Smolyansky increased her compensation.
• Edward and Ludmila Smolyansky, with Danone, control 50% of Lifeway, aiming to replace the board and negotiate a sale.

• We are reiterating our Buy rating and $20 price target for Lands’ End after the company reported slightly below consensus 4Q revenue and EBITDA and provided initial FY25 guidance which bracketed the Street, as the shift to higher levels of licensed product sales and lower discounting, strong results from digital marketplaces, international growth and B2B expansion poise Lands’ End to continue to drive higher overall margins and increasingly position the company as a leading lifestyle resource.
• With FY25 positioned, with new licensed products coming online, as another year of metamorphosis at the company, we remain excited over the continued upgrades and higher returns, and reiterate our Buy rating and $20 price target for LE.