Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. OpenAI’s top safety leaders left the company this week after disagreement over whether to prioritise “shiny products” or safety reached “breaking point”, says one of the departing researchers. Jan Leike, who led OpenAI’s efforts to…
VIKTOR FEDORENKO/iStock via Getty Images Synopsis James Hardie Industries (NYSE:JHX) specializes in the production and sale of fiber cement and fiber gypsum building solutions. JHX’s last three years financial results have shown consistent net sales growth. In addition, it was able to maintain its margins throughout the same period by focusing on selling higher-margin products…
surasak petchang/iStock via Getty Images The following segment was excerpted from this fund letter. Over the past year, we have built a position in our first Canadian listed company. Blackline Safety is a provider of gas detection and safety monitoring systems to the energy, industrial, transportation, and consumer packaged goods verticals. Blackline is led by…
Olemedia Shares of UL Solutions Inc. (NYSE:ULS) have seen a very successful initial public offering, as shares are trading up 20% on their first day of trading, in what generally was a downbeat day for the market. I understand why investors are upbeat on the business, as the testing company has seen solid and reliable…
mysticenergy SandRidge Energy (NYSE:SD) is a small, independent, oil and natural gas company headquartered in Oklahoma. All of SandRidge’s properties and proved reserves are located in the “Mid-Continent” area, more specifically Oklahoma and Kansas. The thesis behind owning SandRidge is one of valuation and more recently, capital allocation. Even with its recent runup, SandRidge is…
Vertigo3d/iStock via Getty Images MacroGenics (NASDAQ:MGNX) is an important biotech to keep an eye on, because it has been able to make remarkable progress on advancing the use of its lead drug vobra duo [vobramitamab duocarmazine] in the ongoing phase 2 TAMARACK study for the treatment of patients with metastatic castration-resistant prostate cancer [mCRPC]. It…
photobyphm Verizon Communications Inc. (NYSE:VZ) is a free cash flow-strong Telco that supplies passive income investor with a well-covered 6% yield that can make a big difference for retirees that rely on growing dividend income from their passive income investments. Though some investors see Verizon Communications’ considerable balance sheet debt as a burden, I think…
Marut Khobtakhob Introduction Clearing and settlement must have a higher priority than transactions. To calm the securities markets, clearing and settlement must become the main event. T+1 leaves safety second to volume in the markets’ priorities. It spends more resources on a failed clearing system instead of changing the priority of clearing to assure market…
metamorworks The 1929 boom was, in fact, quite a narrow and selective one. It was a boom of the handful of stocks that figured in the daily calculation of the Dow Jones and New York Times indices, and that was why those well-publicized indexes were at record highs. It was also a boom of the…
Adam Smigielski Each month I feature several dividend paying stocks that I don’t think offer any margin of safety based on their business and current stock price. This theme irritates some dividend yield chasers, so I encourage you to vent in the comments. When investing, your goal ought to be to have a “margin of…
Alistair Berg/DigitalVision via Getty Images This article was coproduced with Leo Nelissen. As some of my longer-term followers may know, I have a background in supply chains. My Master’s degree had a focus on purchasing and supply chain management, which has guided me very well in my investing journey. I believe that buying companies that…
primeimages In December last year, I issued a relatively bearish article on Barings BDC (NYSE:BBDC) despite the fact that it carries quite many fundamentally sound characteristics. There were three distinct aspects that underpinned my conservative stance on Barings: Unfavourable leverage. In the past 5 quarters, BBDC experienced a constant uptick in the leverage profile, while…
Wolterk Synopsis Natural Grocers by Vitamin Cottage (NYSE:NGVC) is a retailer of natural and organic groceries and dietary supplements that aims to provide consumers with affordable, high-quality products. Although NGVC’s revenue growth has been accelerating over the last three years, it has not reached its 10-year median growth. On the flip side, margins have remained…
J. Michael Jones Summary Since our initial report on Alpine Income Property Trust, Inc. (NYSE:PINE), the shares have been largely rangebound. The market reacted favorably to a [strong] Q4 ’23 earnings report, but promptly retraced back down to the ~$16/share level. This report provides our thoughts on the quarter, revised valuation, and outlook for the…
tonefotografia/iStock via Getty Images Synopsis For every American homeowner, much effort and expertise in home servicing is needed in maintaining their living space, especially to avoid costly breakdowns of their essential appliances and home systems. With over 50 years of experience in home repair and maintenance and over 75 million service requests, Frontdoor (NASDAQ:FTDR) is…
Mario Tama/Getty Images News Boeing (NYSE:BA) stock looks to be in a difficult situation still post-pandemic, but future outlooks are generally positive, with strong EPS growth on the horizon. Nonetheless, recent safety concerns regarding its airplanes create market share risks and a potential effect on short-term revenue. Safety Concerns Boeing has been facing significant challenges…
Paralaxis/iStock via Getty Images BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (NYSE:LND) is a land developer and farmer in Brazil, Paraguay, and Bolivia. The company currently owns about 215 thousand hectares, mostly in Brazil’s center and northeast. The company has been paying dividends and offers a discount to net asset value of about 45% at…
In response to the breach, SEC Chair Gary Gensler swiftly clarified that the commission had not approved the listing and trading of spot Bitcoin ETFs. In a surprising turn of events, the safety team at X disclosed that the recent compromise on the US Securities and Exchange Commission’s (SEC) official account @SECGov was due to…
Phynart Studio/E+ via Getty Images MSA Is On A Slow Growth Path I have discussed MSA Safety Incorporated (NYSE:MSA) in the past, and you can read the latest article here. Over the years, it has expanded into new geographies and complementary technologies. After Q3, the company focuses on gas detection products and firefighter safety equipment….
Nikada Fidus Investment (NASDAQ:FDUS) is a BDC, which, as most BDCs, provides customized debt and equity financing solutions mostly to lower mid-cap businesses. The investment objective is also the same as across the BDC space – i.e., key focus on high yielding current income streams with a secondary objective to preserve and steadily grow the…
Fischerrx6 Introduction As we head into the last trading days of 2023, I wanted to cover a stock I haven’t discussed before on Seeking Alpha. That company is Merck & Co. (NYSE:MRK), a drug manufacturer with a market cap of more than $270 billion. The reason why I never covered MRK is because I thought…
spxChrome Company Description Legacy Housing Corporation (NASDAQ:LEGH) – Consumer Durables – Homebuilding Founded in 2005, Legacy Housing Corporation (“the company”) is one of the leading manufacturers of prefabricated homes primarily operating in the southern United States. It offers a vertically integrated solution, from manufacturing to distribution (i.e., through 156 independent and 13 company-owned stores) and…
helen89 The Q3 earnings season for the restaurant industry saw mixed results overall, with weak quarters from several casual dining brands like Applebee’s (DIN), Cracker Barrel (CBRL), and Bloomin’ Brands (BLMN), offset by strong quarters from Restaurant Brands International (QSR), Chipotle (CMG), and Wingstop (WING). Fortunately, BJ’s Restaurants (NASDAQ:BJRI) was one of the better-performing names…
beekeepx/iStock via Getty Images Investment Thesis Simpson Manufacturing Co., Inc. (NYSE:SSD) is a fundamentally sound company. Over the past 12 years, it has been able to improve its returns. Apart from growing revenue, there were improving operating efficiencies. The company achieved growth mainly through acquisitions. I would expect this strategy to continue. The company is…
Cristian Martin Vista Energy (NYSE:VIST) is one of the largest producers and the largest exporter of shale oil in Argentina’s Vaca Muerta basin. I wrote about the company in October 2021 (the second article on the company in Seeking Alpha, when the stock traded at $6.5 compared to $30 today) and in January 2023, both…
M. Suhail The Q3 Earnings Season for the restaurant industry is finally over and the results were mixed overall, with weaker reports out of names like Dine Brands (DIN) and Cracker Barrel (CBRL) offset by continued sales momentum for industry leaders like Restaurant Brands International (QSR) and Chipotle (CMG). Fortunately, share-price performance following the reports…
P_Wei Introduction Let’s start this article a bit differently. Below, you’re looking at six charts from the Harvard Mathematics Department. All of them are different varieties of exponential functions. Harvard Mathematics Department In finance, it’s all about exponential growth. After all, that’s how we all want to accumulate wealth: exponentially. 5% compounding interest on a…
Poca Wander Stock Executive Summary I recently written an article on Mercury General (MCY), a publicly listed insurance company that had to trim its dividend in 2022 to uphold financial solvency, consequently losing its dividend aristocrat status. Several months ago, I conducted a comparison between Safety Insurance (NASDAQ:SAFT) Group and Mercury, deeming the former as…
jetcityimage Just over a year ago, I wrote on Jack in the Box (NASDAQ:JACK), noting that while the stock was becoming more reasonably valued, it was still hard to justify paying up for the stock at $75.00 given the difficult macro environment. Since then, we’ve seen JACK underperform the S&P 500 (SPY) by over 3000…
andresr/E+ via Getty Images Vertiv Holdings (NYSE:VRT) has been one of the hottest industrial stocks of 2023, with its share price up over 210% year-to-date. The data center infrastructure provider is benefiting from strong secular tailwinds, as demand for data center capacity continues to grow at a healthy clip. However, after the huge run-up in…
The discussions during the summit will address the unpredictable nature of AI progress and the critical importance of maintaining human control over its development. The UK is gearing up to host the world’s inaugural international summit on artificial intelligence (AI), focusing on the existing threats associated with this rapidly advancing technology. The two-day event will…
hapabapa Just over 12 months ago, I wrote on Dutch Bros (NYSE:BROS) shortly after its IPO, noting that there was no way to justify chasing the stock above $52.00. This is because the stock was trading at over 55x two-year EBITDA, a figure that dwarfed the valuations of even some of the most successful restaurant…
The lawmakers explained that companies that fail to comply with the Online Safety Bill could face penalties of up to £18 million ($22.3 million) or 10% of their annual global turnover, providing a strong incentive for adherence to these safety standards. The UK’s Parliament has approved the long-awaited Online Safety Bill, marking a significant milestone…
Scott Olson Overview My recommendation for adidas (OTCQX:ADDYY) is a hold rating as I remain cautious on ADDYY ability to execute its strategies and the ongoing growth in key markets. So far, execution has been fine as ADDYY shows robust top line sales growth and gross margin, and is actively reducing its large inventory size…
gilaxia Summary Following my coverage of Gartner Inc. (NYSE:IT), I recommended a hold rating as the valuation was too high at 33x forward PE. This post is to provide an update on my thoughts on the business and stock. While the upside is quite attractive even at this valuation (32x forward PE), I am reiterating…
Justin Sullivan Investment Thesis I believe United Parcel Service, Inc. (NYSE:UPS) stock is currently a hold. While the company has a strong business model and has made strategic investments in technology to improve efficiency, the short-term financial outlook is challenging due to macroeconomic factors like economic slowdown, high labor costs, and rising fuel prices. In…
bfk92/iStock via Getty Images While screening for companies that have declined a lot over the past year, I came across Vicarious Surgical (NYSE:RBOT). Vicarious is a surgical robotics company looking to develop and commercialize a next generation surgical robot that has human-like dexterity. Although RBOT’s marketing pitch sounds promising, I am concerned that the company…
ferrantraite Investment Thesis TopBuild Corp. (NYSE:BLD) has 2 business segments – Installation and Distribution. Both serve the construction sector. BLD was listed in 2015 and over the past 8 years, its revenue growth rate is about 3 times the growth rate of the US total construction spending. Part of the high growth was due to…
AlenaMozhjer Investment thesis From 2005 to 2022, there was a 0.71 correlation between the homes delivered by M/I Homes, Inc. (MHO) (M/I) and Housing Starts. Housing Starts are cyclical making M/I a cyclical company. M/I revenue grew at 8 % CAGR during the last peak-to-peak Housing Starts cycle. About 1/3 of this was driven by…