Daily Brief United States: Microstrategy Inc Cl A, Smithfield Foods, Halliburton Co, JPMorgan Chase & Co, Natural Gas, Crude Oil, Citigroup Inc, Odyssey Therapeutics, Omnicom Group, Quanta Services and more

• Microstrategy Inc Cl A (MSTR US) has a market cap of US$97.7bn, an eye-watering 115% premium to its bitcoin holding of US$45.4bn. Before taking into account debt.
• Investors are effectively dolling out $2+ for a $1 investment. And that investment is fuelled by new equity (shares are up 743% yoy) and debt. Perpetual preferred shares are next.
• Sceptics are not in short supply. But neither are backers, such as Capital (7%), Vanguard (6.9%), Susquehanna, Norges and other, arguably, sophisticated players. Right now, the backers are winning.

• Spin-Off of WH Group’s could raise up to $939 million if priced at the high-end of the range
• The IPO is set to price on Monday January 27th for a Tuesday, January 28th debut
• Flash numbers revealed sales for the three months ended December 29, 2024 will range from $3,873 million to $3,953 million (prev. year $3,998 million)

• Halliburton will report its Q4 earnings on 22/Jan, with revenue and EPS projected to fall sequentially and annually. For fiscal 2024, revenue and net profit are expected to drop.
• Halliburton’s OI PCR at 1.21, signalling bearish sentiment, with a 67% IV percentile indicating moderately high volatility.
• For the 24/Jan expiry, Halliburton’s OI shows calls concentrated at strikes 28.5, 29, and 30. Puts dominate at 26, 27, and 27.5. Put OI is higher at key levels.

• JPMorgan Chase & Co.’s latest financial results reveal a robust performance for the fourth quarter of 2024.
• The firm reported net income of $14 billion with earnings per share (EPS) of $4.81 on revenue of $43.7 billion, reflecting a year-on-year revenue increase of 10%.
• The return on tangible common equity (ROTCE) was a solid 21%.

• For the week ending 17/Jan, U.S. natural gas prices declined 1% amid volatility driven by shifting weather forecasts, increasing LNG exports, and falling inventories.
• Henry Hub Put/Call volume ratio fell to 1.18 from 1.29 (10/Jan) the previous week as call volumes dropped by 5.1% WoW, while put volumes declined by 13.5%. 
• Henry Hub OI PCR stayed put at 0.92 from last week. Call OI inched up by 6.9% WoW, while put OI increased by 7.4%.

• WTI futures rose 1.7% for the week ending 17/Jan, driven by healthy U.S. economic data, falling crude inventories, and supply concerns.
• WTI options Put/Call volume ratio surged to 1.28 from 0.83 (10/Jan) last week, as call volume fell by 70.7% WoW while put volume decreased by 54.7%.  
• WTI OI PCR rose to 1.00 from 0.94 last week. Call OI fell by 11.7% WoW, while put OI declined by 6.4%.

• Citigroup has released its fourth quarter earnings for 2024, showcasing a notable rise in net income by almost 40% to $12.7 billion for the full year, indicating positive momentum across key business segments.
• This performance was coupled with a revenue increase of 5% excluding divestitures, supported by a 17% uptick in fee revenue, and an efficiency ratio improvement by 340 basis points, which highlights the company’s operational improvements.
• However, certain macroeconomic challenges remain persistent, such as China’s slower-than-anticipated growth and Europe’s underperformance.

• Biotech seeking to transform the standard of care for patients suffering from autoimmune and inflammatory diseases filed its IPO on January 18th
• Lead program, OD-07656, is currently in a Phase 2a monotherapy trial for ulcerative colitis
• Potential IPO for Odyssey Therapeutics would be the first half of February

• The merger between Omnicom Group (OMC US) and Interpublic Group Of Companies (IPG US) aims to create a marketing powerhouse with $25.6 billion in revenue and $750 million in annual synergies.
• Deal spread narrowed due to Omnicom’s price drop, signalling market caution over post-merger performance.
• The merger’s close, expected in 2025, will impact major US indices on an intra-quarter basis.

Key points

• Quanta Services has addressed issues and made investments in its electric power infrastructure solutions segment
• Surge in demand due to regulatory shifts and one-off projects has benefitted Quanta Services, but demand is expected to decrease in 2024
• Limited total addressable market and unsustainable peak expectations make Quanta Services a compelling short opportunity

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.