JHVEPhoto Jefferies Financial Group (NYSE:JEF) is a bank focused on investment banking and capital markets, which does not have any particular competitive advantage in the industry. This makes its business very exposed to market cycles, leading to volatile financial figures. Not surprisingly, its valuation is usually at a discount to peers and currently its shares…
tum3123 Emerging market economic growth was sustained at a solid rate at the start of the second quarter of 2024, according to PMI survey data with well-balanced improvements recorded across both the manufacturing and service sectors. Forward-looking indicators continued to point to further near-term expansions, with new business inflows notably rising at the fastest pace…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Disney shares tumbled 9.5 per cent on Tuesday even as it reported the first profit in its core streaming business since it leapt into a battle with Netflix five years ago. The Disney+ and Hulu…
Stay informed with free updates Simply sign up to the Cryptocurrencies myFT Digest — delivered directly to your inbox. Robinhood has warned of an impending lawsuit from the Securities and Exchange Commission over its cryptocurrency business, in a sign that a US regulatory crackdown on digital assets continues. The retail brokerage said in a filing…
pawopa3336/iStock via Getty Images Mammoth Energy Services (NASDAQ:TUSK) is dealing with challenging near-term business conditions. Mammoth’s Q1 2024 results involved negative $6 million in adjusted EBITDA (after excluding interest from its Puerto Rico Electric Power Authority [PREPA] accounts receivable). Although I was expecting 2024 to be relatively weak for Mammoth (with adjusted EBITDA around $5…
Luis Alvarez/DigitalVision via Getty Images I am updating my previous analysis on NovoCure Limited (NASDAQ:NVCR) in light of Q1 2024 earnings which were released pre-market on Thursday, May 2nd. I previously rated NovoCure a buy for the following reasons: Core business was very healthy with growing revenue and a 75% gross margin. NovoCure was pursuing…
Brookfield Business Partners L.P. (NYSE:BBU) Q1 2024 Earnings Conference Call May 3, 2024 10:00 AM ET Company Participants Alan Fleming – Head, IRAnuj Ranjan – CEOAdrian Letts – Managing PartnerJaspreet Dehl – CFO Conference Call Participants Gary Ho – Desjardins Capital MarketsDevin Dodge – BMO Capital MarketsGeoffrey Kwan – RBC Capital MarketsNik Priebe – CIBC…
Jessie Casson/DigitalVision via Getty Images Samsara (NYSE:IOT) is a company developing IoT (Internet of Things) systems that help extract and gather operational data into its cloud platform to derive insights and streamline operations. IOT was founded in 2015, and initially, it started out as a company delivering connected fleet solutions, such as vehicle telematics and…
bluecinema/E+ via Getty Images Elevator Pitch I have a Buy rating for Sonic Automotive (NYSE:SAH) stock. I previously wrote about the company’s near-term prospects and capital allocation in my Nov. 14, 2023 update. This article evaluates the growth runway for SAH’s pre-owned vehicle business (EchoPark) and the expectations for its future share buybacks. My decision…
Robert Buchel/iStock Editorial via Getty Images Since October 2023, I have a strong buy rating on Bombardier stock and that rating has performed well with the stock appreciating 51.6% compared to the S&P 500 returning 24%. In February 2024, Bombardier stock tumbled as its free cash flow guidance for 2024 came in below expectations. However,…
Yuri_Arcurs/E+ via Getty Images On Monday, Broadband services platform provider Calix, Inc. or “Calix” (NYSE:CALX) reported Q1/2024 results in line with the guidance provided by management in the Q4/2023 stockholder letter: Regulatory Filings While revenues and profitability were down both sequentially and year-over-year, gross margins reached new all-time highs. In addition, the company continued to…
pidjoe RWE Ag (OTC:RWNEF) (RWEOY) is a German energy company among the leading electricity producers in Europe, with a total installed capacity of 44.4 GW. It is engaged in electricity generation through both conventional (27.8GW) and renewable (16.7GW) sources. The $4.1B acquisition of Con Edison Clean Energy Businesses (CEB) Unit, owner of 3.1 GW of…
Jerome Maurice By Peter C. Earle In February 2023, the AIER Business Conditions Monthly demonstrated divergent signals yet again. The Leading Indicator rose from 67 to 75 with the Roughly Coincident Indicator spending a fourth month at the 75 level. The Lagging Indicator, which dropped to 0 in December 2023 before rebounding to 50 in…
Alexandr Lebedko Introduction and thesis WD-40 Company (NASDAQ:WDFC) is a global consumer products company known for its iconic WD-40 Multi-Use Product, as well as a range of household maintenance and cleaning products. The company was founded in 1953 and is headquartered in San Diego, California. WD-40 is a fantastic business that is managed impeccably. Its…
Fahroni H&E Equipment Services (NASDAQ:HEES) has seen shares come to live as the company has embarked on an active M&A strategy, adding to the organic growth ambitions of the company. This creates strong growth, and while leverage and valuation are in check, there are some question marks as well, making me interested in the business,…
Sunshine Seeds Note: I previously covered Impala Platinum (OTCQX:IMPUY) in November 2023. I discussed the company’s strengths: excellent capital structure, quality assets, and cheap valuation. At the time of publishing, it was too early to buy. Over the last few months, the narrative about PGMs has been shifting. Automotive companies are backing down from BEV…
Jose Luis Pelaez Inc/DigitalVision via Getty Images Paymentus (NYSE:PAY) is a company providing bill payment technology and solutions for over 2,200 billers in North America. PAY generates most of its revenues from transaction fees, and therefore benefits from the fact that it focuses on non-discretionary target verticals, such as utilities, financial services, or healthcare. Despite…
simpson33/iStock via Getty Images Investment Thesis Electronic Arts (NASDAQ:EA) is an iconic video game developer and publisher that produces some of the largest franchises in the industry, including Madden, SPORTS FC, and Battlefield. The firm is expert at monetising their titles and remains at the forefront of creative innovation within the field. EA has developed…
FabrikaCr/iStock via Getty Images At what point should a company simply wind up operations and liquidate? There comes a time when certain companies seemingly no longer have a realistic path to generating shareholder value. In such cases, the best course of affairs may simply be to close the operating business and return the remaining cash…
sommart Axos Financial, Inc. (NYSE:AX), founded in 1999 and headquartered in Las Vegas, Nevada, is a diversified financial services company that provides consumer and commercial banking products nationwide. From the fast growth of the business to the promising outlook and strong solvency/liquidity profile, there is a lot to like here. But the current price is…
Robert Way Two types of growth investors There are two types of growth investors in my experience. First, growth investors who believe P/E does not matter for growth stocks. Second, investors who believe a good growth stock, even a behemoth like Microsoft Corporation (NASDAQ:MSFT) with a $3+ trillion market cap, can perpetually grow at a…
Ingenious Buddy Commerce Bancshares (NASDAQ:CBSH), founded in 1966 and headquartered in Kansas City, Missouri, provides retail, asset management, mortgage banking, investment, corporate, and trust products and services to individuals and businesses. Although this is one of those businesses that enjoy slow but steady growth with conservative capital management and plenty of liquidity, the price doesn’t…
jetcityimage/iStock Editorial via Getty Images Shares of GE Vernova LLC (NYSE:GEV) have stated trading around the $145 mark upon the spinoff from GE (GE), which itself now largely comprises aerospace activities. This deal is the latest spinoff, after GE Healthcare (GEHC) was spun off from the once almighty conglomerate, which has now been cut in…
Peggy Cheung Datadog (NASDAQ:DDOG) reported their 4Q23 earnings results, where both top and bottom line beat expectations. I also found management commentary and tone positive, while the company continued to execute well on the R&D front with many new features and capabilities launched in the year, along with strong execution on the sales and marketing…
den-belitsky Introduction and thesis Travelzoo (NASDAQ:TZOO) is a global media commerce company that provides insider deals and experiences for members through its website, email newsletters, social media channels, and mobile apps. The company offers discounted deals on travel, entertainment, dining, and other lifestyle activities, partnering with thousands of travel and entertainment companies worldwide. We are…
Cooper Neill/Getty Images Sport Amazon.com, Inc. (NASDAQ:AMZN) seemingly does not get as much attention as other mega-cap tech names recently, due to avoiding the extremes on both fundamental performance and valuation. AMZN is not the cheapest mega-cap name, especially based on near-term financial metrics, and is seeing more moderate top-line growth courtesy of its large…
SweetBunFactory Introduction ABB (OTCPK:ABBNY) has had a strong share price return of 20% CAGR over the past 5 years. A continuation of this performance is unlikely to be sustainable, in my opinion. The share price has potentially reached the top without further P/E expansion. Using a discounted cash flow valuation, I believe ABB shares are…
Tony Anderson/DigitalVision via Getty Images Introduction and thesis Helen of Troy Limited (NASDAQ:HELE) is a global consumer products company headquartered in Hamilton, Bermuda. The company operates through three main segments: Housewares, Health & Home, and Beauty. Helen of Troy designs, develops, and markets a diverse portfolio of consumer products under various brand names, serving both…
wavemovies Introduction & Investment Thesis I initiated a Buy rating on Wix (NASDAQ:WIX) on February 16. My bull thesis was predicated on my belief that the company continues to drive strategic growth in its Partners business by launching Wix Studio, as well as rapidly innovating on its AI product offerings while expanding profitability. Since then,…
Justin Sullivan/Getty Images News As the market has embraced the risk-on trade in recent months and the odds of a recession in 2024 seem to have disappeared, consumer staples have become the second-worst performing sector after utilities. Seeking Alpha On top of the broader market pressure on low-risk areas of the equity market, Diageo plc…
kontrast-fotodesign After writing about Clean Energy Fuels (NASDAQ:CLNE) and Montauk Renewables (NASDAQ:MNTK), today’s article focuses on OPAL Fuels (NASDAQ:OPAL), a U.S. company that operates vertically in the RNG market having both of the above companies as its main competitors. In recent years OPAL has made an intensive investment campaign to increase its RNG production, including…
FinkAvenue On Thursday March 13rd, Microsoft Corporation (NASDAQ:MSFT) announced that its Copilot for Security tool will become widely available to customers starting April 1, featuring new enhancements. The Copilot for Security enables cybersecurity experts to leverage generative artificial intelligence for various tasks, including incident summaries, vulnerability assessments, and data sharing. In that context, Microsoft highlighted…
Capuski/E+ via Getty Images I discovered this stock around the time of Charlie Munger’s passing and it reminded me of one of his investment philosophies. He is said to have famously remarked, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” But as I…
jetcityimage The following segment was excerpted from this fund letter. We recently initiated a position in Ashtead Group. The company is domiciled in the UK, but the business is essentially North American. The United States and Canada account for all but a tiny sliver of earnings, and the American CEO and his key lieutenants are…
mapo Akatsuki Inc. (OTCPK:AKAFF) (3932:TYO) has performed well since we established out position starting around last June. The situation has been that major catalysts have increased visibility of the stock, and the younger management and their major investment plans that will put their unproductive cash to productive uses are credible. The headwind since the jump…
Michael Warren/E+ via Getty Images Introduction and thesis Johnson Outdoors (NASDAQ:JOUT) is a leading global manufacturer and marketer of outdoor recreational products. Johnson Outdoors operates through multiple brands, offering a diverse range of outdoor gear and equipment for various recreational activities such as fishing, camping, diving, and water sports. JOUT Whilst our rating of JOUT…
Dimensions/E+ via Getty Images Zumiez (NASDAQ:ZUMZ) is an apparel retailer focused on skater-style clothing and skate-hard goods. The company’s operations are mostly US-based, but it has sibling store concepts and brands in Europe (Germany, Austria) and Australia. I believe the company has quality aspects: a long-tenured, competent management team, customer focus, brand value, an engaging…
JHVEPhoto Verisk Analytics (NASDAQ:VRSK) unveiled their Q4 results on February 21st, demonstrating consistent organic growth. I presented my ‘Hold’ thesis in my previous coverage, emphasizing their rich stock valuation and steady business growth. I reiterate my ‘Hold’ rating with a fair value of $210 per share. Premium Rate Increase, AI, Data Analytics Drive Growth In…
Barrett Business Services, Inc. (NASDAQ:BBSI) Q4 2023 Earnings Call Transcript February 28, 2024 5:00 PM ET Company Participants Gary Kramer – President and CEO Anthony Harris – CFO Conference Call Participants Lee Jagoda – CJS Securities Jeff Martin – ROTH Capital Partners Vincent Colicchio – Barrington Research Marc Riddick – Sidoti & Company Operator Good…
Luis Alvarez Investment thesis After a protracted decline since 2021, we believe Match Group’s (NASDAQ:MTCH) shares have come into buy territory. The company dominates the market of online dating platforms, which allows it to steadily increase prices for paid features, and its updated 2024 strategy could create additional momentum to revitalize financial results and stock…
winhorse/iStock Unreleased via Getty Images The unit of Chinese conglomerate Fosun reported its revenue rose just 1% last year as the global luxury goods market stalled. Luxury fashion brand operator Lanvin Group Holdings Ltd. (NYSE:LANV) recorded just 1% revenue growth last year to 426 euros ($462 million), according to preliminary results it released on Wednesday,…
Maliflower73/iStock via Getty Images Value Investing Is At Its Core The Marriage Of A Contrarian Streak And A Calculator. – Seth Klarman I had recalled a quote about the market that I couldn’t quite place that said something to the effect of “Everyone has a calculator” suggesting being able to do basic math isn’t much…
Douglas Sacha/Moment via Getty Images Is ALSN still a Buy? Allison Transmission Inc, (NYSE:ALSN) reported earnings last week on 2/13/2024 and blew expectations out of the water. EPS Normalized Actual came in at $2.04, beating expectations by $0.54. EPS GAAP Actual came in at $1.91, beating by $0.46. ALSN also celebrated a Revenue surprise of…
champpixs In the context of valuing companies, and sharing those valuations, I do get suggestions from readers on companies that I should value next. While I don’t have the time or the bandwidth to value all of the suggested companies, a reader from Iceland, a couple of weeks ago, made a suggestion on a company…
mailfor/iStock via Getty Images Proto Labs (NYSE:PRLB) is a US-based company that offers on-demand manufacturing solutions, one of the most innovative subcategories of additive manufacturing. If interested in the industry, here are my previous articles on Materialise NV (MTLS), 3D Systems Corporation (DDD), and The 3D Printing ETF (PRNT). I believe that PRLB is currently…
Halfpoint Images/Moment via Getty Images The second-largest seller of fast-charging stations for electric vehicles in Europe hopes to refresh its coffers through a U.S. listing Little-known fast-charging station maker XCHG Ltd. (XCH) is aiming to juice up its coffers with a Nasdaq IPO that looks quite modest, at least based on the company’s expected market…
shutterjack/RooM via Getty Images Investment Rundown The Gorman-Rupp Company (NYSE:GRC) has been on a steady uptrend for the past months, and since my last coverage, the stock is up 10.91%. One of the major improvements year over year from the recent report by the company was its ability to price its products even higher and…
FG Trade/E+ via Getty Images I rate Amadeus It Group (OTCPK:AMADF)(OTCPK:AMADY) as a buy given its high-quality business model and its reasonable current stock price. I wrote about Amadeus in November 2022, when the stock was trading at 52 euros per share, establishing a bullish case as a long-term holding. In that article, I explained…
cemagraphics In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital. Since…
georgeclerk Written by Nick Ackerman. BlackRock, Inc. (NYSE:BLK) posted its latest quarterly results along with its full-year results as well. The company was able to exceed the bottom line estimates but came in line with the top line expectations. The company has a history of beating results, with 15 of the last 16 quarterly reports…