Advertisements



Nuvoton intros battery monitoring ICs for next-gen vehicles

MCU specialist Nuvoton Technology has expanded its product portfolio to include battery monitoring ICs for next-generation vehicles, and is set to enter volume production of such chips in December 2021, according to industry sources......»»

Category: topSource: digitimesNov 25th, 2021

Garmin (GRMN) Boosts Fitness Segment With SHIMANO Di2 Update

Garmin (GRMN) introduces the SHIMANO Di2 update for Edge cycling computers to provide a better riding experience to cyclists. Garmin GRMN has been working to strengthen its fitness segment on the back of product launches and adding capabilities to existing offerings.The company recently introduced wireless communication enhancements between Edge cycling computers and SHIMANO Di2 electronic shifting systems.Cyclists can see front and rear gear data for gear systems of up to 12 speeds with the SHIMANO Di2 software update. They can also watch the battery life statusfor left and right shifters on Edge cycling computers.Cyclists can also enjoy an enhanced riding experience by optimizing gear on their cycles and controlling Edge computers with options supporting SHIMANO Di2 DUAL CONTROL LEVERS. This can be done when cyclists export ride data to third-party sites and, thereby, get an analysis of the gear shift data.With these capabilities, Garmin is expected to expand its reach to cyclists and riders, thereby, expanding its customer base.Garmin Ltd. Price and Consensus  Garmin Ltd. price-consensus-chart | Garmin Ltd. QuoteFitness Segment in FocusApart from the recent effort, GRMN has been taking strong measures to provide advanced solutions to cycling enthusiasts.Recently, it introduced the Dexcom Connect IQ apps to help people suffering from Type 1 and Type 2 diabetes. Moreover, customers can use the Dexcom G6 Continuous Glucose Monitor to check their glucose levels and trends on their Garmin smartwatch or cycling computer while working out.GRMN also launched the Surfline widget, which is compatible with Garmin smartwatches. The Surfline widget will help surfing enthusiasts check conditions related to the tide, wave height, wind and surf quality rating of nearest surfing locations.Additionally, the company launched a free software update to enhance the navigation capabilities of Edge 530, Edge 830, Edge 1030 and Edge 1030 Plus GPS cycling computers for providing a better experience to cyclists.All the initiatives are expected to contribute to GRMN’s fitness segment’s revenues. The segment generated $342.3 million in sales, accounting for 28.7% of third-quarter 2021 total net sales.Portfolio StrengthWith the latest effort, Garmin has added strength to its overall portfolio of offerings.Apart from the recent move, GRMN introduced a portable golf launch monitor, namely Approach R10, which is designed to help golfers make games better at home, indoors or at the driving range.The company unveiled a six-camera system called Garmin Surround View Camera System in a bid to expand the marine product portfolio.GRMN also launched an all-new 2021 dashcam series with voice controlling features, automatic video storage and Live View monitoring options for drivers to record any incident occurring in front of their vehicles.Further, Garmin introduced TXi- engine indication system support for twin-turboprop aircraft like Cessna 425, the King Air 90 series, and select Pratt & Whitney PT6A turboprop-powered Piper Cheyenne I and II.Zacks Rank & Stocks to ConsiderCurrently, Garmin carries a Zacks Rank #3 (Hold).Investors interested in the broader technology sector can consider better-ranked stocks like Advanced Micro Devices AMD, Mimecast Limited MIME and Arrow Electronics ARW. While Arrow currently sports a Zacks Rank #1 (Strong Buy), Advanced Micro Devices and Mimecast carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Advanced Micro Devices has gained 64.3% on a year-to-date basis. The long-term earnings growth rate for the AMD stock is currently projected at 46.2%.Mimecast has gained 37.8% on a year-to-date basis. The long-term earnings growth rate for the MIME stock is currently projected at 35%.Arrow Electronics has gained 26.2% on a year-to-date basis. The long-term earnings growth rate for the ARW stock is currently projected at 27.4%. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Garmin Ltd. (GRMN): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Mimecast Limited (MIME): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

Sensata (ST) Closes SmartWitness Buyout, Boosts Video Telematics

The buyout reinforces Sensata's (ST) position as a data insight provider across transportation and logistics end markets. Sensata Technologies Holding plc ST recently completed the acquisition of SmartWitness Holdings, Inc. to augment its video telematics portfolio. The transaction, which was inked last month for an undisclosed amount, is likely to unlock new business opportunities and generate a steady revenue stream for Sensata while reinforcing its Smart & Connected initiative.Since its inception in 2007, SmartWitness has been a leading provider of video telematics solutions for the automotive sector. Leveraging AI and ML techniques, it provides contextually aware data through multiple camera platforms, offering precise locations and monitoring of commercial vehicles and their surroundings for increased driver safety and vehicle retention. With a comprehensive portfolio of connected video telematics hardware, software, analytics, and support services, SmartWitness serves several market segments, including commercial trucks, federal and municipal fleets, schools and public transit networks, and military and first responder vehicles. The firm has reportedly shipped more than 250,000 connected devices to fleet customers since 2017, making its solutions among the most widely adopted ones within the industry.The buyout reinforces Sensata’s position as a data insight provider across transportation and logistics end markets. The acquisition brings complementary capabilities and boosts its strategy to expand beyond original equipment manufacturers and address the broader fleet ecosystem. The transaction will enable Sensata to offer an end-to-end portfolio to fleet operators without compromising on the profitability and productivity metrics through better utilization of the fleet assets.Sensata’s total addressable market for its Smart & Connected product offerings is expected to more than double to $15 billion by 2030. Known as the pioneer in mission-critical solutions, it has a diversified portfolio of personalized and unique sensor-rich applications from automotive braking systems to aircraft flight controls that are utilized ubiquitously. These sensors are specifically designed to address complex engineering and operating performance requirements that help customers solve significant challenges in the industrial, heavy vehicle, off-road, and aerospace industries.Sensata also has a rich portfolio of high-voltage protection and battery management systems. Its sensing solutions business has a strong product portfolio and greater scale to capitalize on attractive opportunities in the multi-billion global automotive sensor market. Moreover, the company believes that its evolving portfolio and accretive customer base, courtesy of its opportune acquisitions like that of SmartWitness, serve as the cornerstone for healthy long-term growth across a diverse set of markets.  In addition, the company offers a streamlined set of products, which helps in eliminating redundant costs and gives greater pricing flexibility. It invests in cutting-edge technology that enables hybrid and electric vehicles to be more efficient, cost effective, robust, and safe. Sensata is expanding its electrification ecosystem to facilitate the seamless transition to electric vehicles as it aims to be a leading provider of mission-critical sensor-rich hardware and software solutions.  The stock has gained 18.6% over the past year compared with the industry growth of 22.5%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.Image Source: Zacks Investment ResearchStocks to ConsiderThermon Group Holdings, Inc. THR, carrying a Zacks Rank #2 (Buy), is a better-ranked stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Thermon has gained 22.7% on average over the past year. Earnings estimates for the current fiscal for the stock have moved up 7.9% over the past year.Transcat, Inc. TRNS, carrying a Zacks Rank #2, is another solid pick for investors. It has a long-term earnings growth expectation of 8% and delivered an earnings surprise of 37.2%, on average, in the trailing four quarters.Earnings estimates for the current year for the stock have moved up 39.4% over the past year. Shares of Transcat have moved up a stellar 183.3% over the past year.Watts Water Technologies, Inc. WTS carries a Zacks Rank #2. The stock has a long-term earnings growth expectation of 8% and delivered an earnings surprise of 14.6%, on average, in the trailing four quarters.Earnings estimates for the current year for the stock have moved up 43.8% over the past year. Watts Water aims to continuously launch smart and connected products, which are likely to provide it with a competitive edge in the marketplace. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report Transcat, Inc. (TRNS): Free Stock Analysis Report Thermon Group Holdings, Inc. (THR): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 30th, 2021

Enphase Energy (ENPH) Acquires ClipperCreek, Stock Up 2.8%

Enphase Energy, Inc. (ENPH) stock jumps 2.8% on its ClipperCreek acquisition news. The acquisition provides an opportunity to the company to capitalize on growing EV market trends. Shares of Enphase Energy, Inc. ENPH jumped 2.8% on Nov 16 following the company’s announcement to acquire ClipperCreek, a provider of electric vehicle (“EV”) charging solutions. The acquisition is in sync with Enphase Energy’s strategy to expand in the booming clean energy space, thus capitalizing on the growing demand for EVs.The acquisition, which is subject to regulatory approval and customary closing conditions, is expected to reach completion by Dec 31, 2021. If approved, it will provide Enphase Energy an edge to penetrate the EV segment more effectively.Benefits from the AcquisitionFactors like intensified apprehensions about CO2 emission, various government policies supporting EV adoption and significant investments in the EV segment by auto manufacturers have collectively provided a platform for the global EV market to expand in the near future. This, in turn, has contributed to the growth of EV-charging facilities in many areas.With EV sales anticipated to witness an excess of 40% growth in the United States over the next five years, the latest buyout is expected to offer Enphase Energy a competitive edge in the booming EV market. The deal also provides Enphase’s global distributors and installers with EV-charging solutions that can be sold alongside solar and battery systems.Additionally, Enphase Energy is also looking into adding smart features such as cloud connectivity, integration into the Ensemble OS platform and bi-directional charging in the future. We believe such enhancements are likely to boost Enphase Energy’s top line.Growth Prospects of EVsPresident Biden has allotted $174 billion in government spending to EVs while the Senate infrastructure bill has allotted $7.5 billion for EV-charging stations. This provides ample growth opportunities for charging infrastructure and battery technology.This also highlights abundant growth opportunities for solar companies like Enphase, encouraging them to expand their realm in to the EV-charging space. Consequently, other solar companies are also investing aggressively in the EV arena.For instance, SolarEdge Technologies’ SEDG EV-charging single-phase inverter enables homeowners to charge their electric vehicles directly using solar energy, maximizing their solar usage and thus reducing their electricity bills. Its customers also gets the benefit to charge EVs up to 2.5 times faster than a standard EV charger through an innovative solar boost mode that utilizes grid and photovoltaic (PV) charging simultaneously.Also, SolarEdge Technologies’ EV-charging single-phase inverter supports full network connectivity and integrates seamlessly with the SolarEdge monitoring platform. Moreover, it provides an option to homeowners to track their charging status, control vehicle charging, and set charging schedules. The SEDG stock has gained 54.8% in the past year.Similarly, Sunnova Energy International’s NOVA ChargePoint Home Flex is a 240V, Level 2 EV charger, which is faster and smarter than standard wall-plug chargers and can charge any EV. It offers the flexibility to charge EV at home up to 9X faster than the standard wall plug in, delivering up to 50 amps of power.Additionally, Sunnova’s ChargePoint Home Flex comes with a mobile app that helps customers to schedule charging, find public chargers and stay notified about their vehicles’ charging status. The Sunnova stock has returned 24.4% in the past year.Likewise, SunPower SPWR recently joined hands with Wallbox, through which SunPower’s customers can opt to install a Wallbox home EV charger. Wallbox's Pulsar Plus chargers come with a standard J1772 EV plug and an app that will allow SunPower customers to schedule charging, besides enabling power sharing for two or more chargers with adjustable current output. This, in turn, makes them a fit for all EV models.SunPower has already begun installing EV chargers for new customers in Southern California this fall. The company expects to expand its offering to additional regions and states throughout 2021. The SunPower stock has provided returns of 24.4% to its investors’ in the past year.Price MovementIn the past year, the shares of Enphase Energy have gained 101.1% compared with the industry’s 17.6% growth.Image Source: Zacks Investment ResearchZacks RankEnphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SunPower Corporation (SPWR): Free Stock Analysis Report Enphase Energy, Inc. (ENPH): Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report Sunnova Energy International Inc. (NOVA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 17th, 2021

Iridium (IRDM) Ups the Ante With Iridium Certus 100 Service Launch

Iridium (IRDM) unveils Iridium Certus 100 "midband" service along with two partner products for land, air, sea, and industrial IoT applications. Iridium Communications Inc. IRDM recently hit a significant milestone in the field of satellite communications with the launch of the avant-garde Iridium Certus 100 "midband" service. The offering is commercially accessible for government customers, land mobile, and maritime. The company also unveiled the SkyLink by Blue Sky Network and LT-4100 by Lars Thrane products. These are some of the first few Iridium Connected midband partner products as part of this much-awaited move.Iridium Certus 100 has been specifically designed to offer reliable global connectivity for vessels, vehicles, and aircraft. Equipped with robust capabilities, the solution meets the size and performance requirements that make it ideal for mobile and portable operations such as real-time asset control and workforce communications. The newly launched products are weather-resilient and provide IP data speeds up to 88 Kbps for better connectivity.These products have been designed to address the growing market demand for new satellite communications solutions that are compact, battery or line-powered mobile equipment, capable of providing high-quality voice services and two-way IP data. SkyLink by Blue Sky Network is a dual-mode data management solution for IoT, land, sea, and air applications that delivers next-gen satellite connectivity, irrespective of the location.Iridium’s shares have returned 35.3% compared with the industry’s growth of 37.8% in the past year.Image Source: Zacks Investment ResearchWith an augmented coverage, SkyLink offers business efficiency. The adaptive solution is ideal for mid-sized vessels, government and military aviation, and remote monitoring stations. The LT-4100 by Lars Thrane is a maritime satellite communication product that leverages Iridium Certus 100 services. This single antenna cable solution involves hassle-free installation and can function even in rugged environments with temperatures ranging from -40 to +55°C.With an exceptional performance, it is mainly designed for professional mariners associated with workboats and deep-sea fishing. Iridium Certus 100 is also compatible with its partner-built data compression technologies. The innovative technology enables it to support low-resolution video transmission for monitoring applications. Apart from SkyLink and LT-4100, other products that will soon be commercially available in the market include RockREMOTE from Ground Control, McQ CONNECT, Flylogix UAV system, and the NAL Research Quicksilver (QS-100).Supported by an efficient operating model, Iridium expects to continue benefiting from a highly lucrative recurring service revenue base driven by subscriber growth and mobile penetration. This Zacks Rank #3 (Hold) company believes in the philosophy of delivering cost-effective and competitive broadband services through its Iridium Certus technology. Its commercial business is the main source of long-term growth as it serves a diversified customer base in various regions. Further, the company’s strong product portfolio is expected to boost the top line in the long run.Some better-ranked stocks in the broader industry are The Liberty SiriusXM Group LSXMK, Harmonic Inc. HLIT, and Arista Networks, Inc. ANET. While Liberty SiriusXM and Harmonic sport a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Liberty SiriusXM delivered a trailing four-quarter earnings surprise of 58.9%, on average. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter while none have lowered the same. The net effect has taken the Zacks Consensus Estimate for the current quarter from 16 cents per share to 62 cents in that period.Liberty SiriusXM reported strong third-quarter 2021 results wherein the bottom line beat the Zacks Consensus Estimate by 48 cents. Its quarterly revenues totaled $2.2 billion, which reflects a 9% increase from the prior-year period. For the current year, Liberty SiriusXM’s earnings have been revised upward from $1.05 to $1.97 in the past 60 days and for the next year, it has moved upward from $3.03 to $3.22. Its shares have surged 36.6% compared with the industry’s growth of 37.8% in the past year.Harmonic delivered a trailing four-quarter earnings surprise of 61.1%, on average. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter while none have lowered the same. The net effect has taken the Zacks Consensus Estimate for the current quarter from 13 cents per share to 14 cents in that period. It has a long-term earnings growth expectation of 15%.Harmonic reported impressive third-quarter 2021 results, wherein both the bottom line and the top line surpassed their respective Zacks Consensus Estimate. Its quarterly revenues totaled $126.3 million, which reflects a 33% increase from the prior-year period. Backed by continued execution of strategic growth initiatives, the company witnessed a healthy momentum in Cable Access and Video segments and a robust cash position with a solid backlog. Its shares have gained 71.7% compared with the industry’s growth of 28.1% in the past year.Arista Networks delivered a trailing four-quarter earnings surprise of 6%, on average. Over the last 60 days, eight analysts have increased the earnings estimates for the current quarter while none have lowered the same. The net effect has taken the Zacks Consensus Estimate for the current quarter from $2.78 per share to $2.95 in that period. It has a long-term earnings growth expectation of 16.7%.Arista Networks reported strong third-quarter 2021 results, wherein both the bottom and the top lines hit record highs and beat the respective Zacks Consensus Estimate, driven by solid demand trends. Adjusted earnings and revenues also improved significantly year over year. Quarterly total revenues jumped 23.7% year over year to $748.7 million and were well ahead of the company’s guidance of $725-$745 million. The rise was primarily led by solid customer additions and growth in the enterprise vertical. Its shares have rallied 95.5% compared with the industry’s growth of 28.1% in the past year. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Harmonic Inc. (HLIT): Free Stock Analysis Report Iridium Communications Inc (IRDM): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Liberty Media Corporation (LSXMK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 11th, 2021

Third Point 3Q21 Letter: Upstart And SentinelOne

Dan Loeb’s letter to Third Point investors for the third quarter ended July 2021, discussing the top winners in Q3; Upstart Holdings Inc (NASDAQ:UPST) and SentinelOne Inc (NYSE:S). Q3 2021 hedge fund letters, conferences and more Dear Investor: During the Third Quarter, Third Point returned +12.5% in the flagship Offshore Fund and +16.2% in the […] Dan Loeb’s letter to Third Point investors for the third quarter ended July 2021, discussing the top winners in Q3; Upstart Holdings Inc (NASDAQ:UPST) and SentinelOne Inc (NYSE:S). .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Dear Investor: During the Third Quarter, Third Point returned +12.5% in the flagship Offshore Fund and +16.2% in the Ultra Fund, bringing year to date returns to +29.5% and +36.5%, respectively. Assets under management at September 30, 2021 were approximately $19.3 billion, including $863 million in the Third Point Structured Credit Opportunities Fund.1 The top five winners for the quarter were Upstart Holdings Inc (NASDAQ:UPST), SentinelOne Inc (NYSE:S), Prudential Financial Inc (NYSE:PRU), Danaher Corporation (NYSE:DHR), and Avantor Inc (NYSE:AVTR). The top five losers for the quarter were Paysafe Ltd (NYSE:PSFE), SoFi Technologies Inc (NASDAQ:SOFI), DiDi Global Inc (NYSE:DIDI), Uber Technologies Inc (NYSE:UBER), and Burlington Stores Inc (NYSE:BURL). Our top winners on a percentage basis in Q3 were our two largest positions; Upstart, up 153%, and SentinelOne, up 26%, as public market investors rewarded both companies’ disruptive business models and high-growth trajectories. Upstart has started to upend the FICO-dependent, $84 billion unsecured personal loan market with its AI-driven underwriting approach and is ramping up its footprint in the $685 billion auto lending market. In its most recent earnings report, the company raised its full-year revenue estimates by 25%. We expect SentinelOne to grow rapidly and continue to gain market share over the next decade as flexible work patterns, cloud adoption, and IoT create more security vulnerabilities. This market is still dominated by legacy vendors whose solutions pale when compared to SentinelOne’s autonomous, machine-learning based security, which is taking share and helping the company grow annual recurring revenue by more than 100% year-over-year. 2021 has been a good year for our portfolio and markets. Risk assets have climbed a wall of worry as easy financial conditions and post-vaccine enthusiasm created a favorable market backdrop. Looking ahead to 2022, we remain constructive but increasingly cautious, as the tapering of fiscal and monetary stimulus should reduce support for asset prices. On the positive side, consumer balance sheets remain robust and inventories low, allowing for sell-in, and transitory supply shocks should resolve over the next few quarters. We expect uneven results in the near-term as companies contend with supply, labor, and logistical headwinds. The retail holiday season looks challenging, and notions of what constitutes pricing power at the micro level will show through results as we monitor the path of PPI versus CPI. We are looking for market shifts based on recent actions in China and watching how the path of interest rates and the dollar may impact financial conditions. We have increased the number of single name shorts in our portfolio and expect to take advantage of dislocations in quality and compounder equities. Q3 2021 hedge fund letters, conferences and more Return of “Event-Driven” Investing In our Second Quarter letter, we wrote that event-driven situations looked interesting again, and our portfolio now reflects this view. Four positions are worth highlighting: Vivendi Third Point made an investment in Q1 in shares of Vivendi SE (OTCMKTS:VIVHY), the European media conglomerate. We were attracted by the industry-leading position of its crown jewel asset, Universal Music Group, and the announced separation of that asset as a standalone entity. Our upside calculation was underpinned by a sum-of-the parts analysis and an understanding of the company’s disparate assets. Third Point’s involvement was rumored in the press but in deference to our engagement with the company during a delicate time this Spring, we chose to keep our conversations about tax structure and corporate governance surrounding the spin private. We were pleased that Vivendi’s controlling shareholder, Vincent Bolloré, chose to take meaningful steps forward on governance for the new UMG entity, including commitments for an independent board and the equal treatment of shareholders. We believe these steps eased investor concerns about UMG’s corporate governance that may otherwise have created an overhang in the stock, contributing to UMG’s successful listing in late September. Dell Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies Inc (NYSE:DELL) announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them. Entain MGM’s failed approach to acquire Entain PLC (LON:ENT) in January gave us the opportunity to study this iGaming leader ahead of the July expiry of the U.K.’s six month “cooling off” window. We gained an appreciation for the valuable BetMGM JV stake as well as Entain’s vertically integrated tech stack. The shares appeared to offer attractive value without pricing in the prospect for a bid; in short, we thought there was cheap optionality. Entain’s shares rose after DraftKings approached the company in September and remain above pre-offer levels, despite the recent withdrawal of interest, validating the company’s standalone value. It is uncommon to see one company receive two unique bids in the same calendar year, and we think this bodes favorably for Entain’s business and strategic value. Q3 2021 hedge fund letters, conferences and more Prudential PLC During the quarter, Prudential successfully completed its previously announced spin-off of Jackson National and raised additional equity in Asia for the remaining Pru-Asia business. We are pleased to see the value gap begin to close but see considerable additional appreciation potential as Asian-domiciled and other global investors begin to fully appreciate its significant discount to its peers, excellent franchise, and growth potential. New Position: Royal Dutch Shell Third Point initiated a position in Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) (“Shell”) during the second and third quarters. The past two years have been especially challenging for Shell shareholders due to a major dividend cut and well-publicized court case that ordered changes to Shell’s business model. Stepping back further, it has been a difficult two decades for shareholders, with annualized stock returns of just 3% and decreasing returns on invested capital. However, despite the current sour sentiment, we see opportunity for improvement across the board at Shell. Shell is one of the cheapest large cap stocks in the world, trading at under 4x next year’s EBITDA and ~8x earnings at “strip” prices. It also trades at a ~35% discount on most metrics to peers ExxonMobil and Chevron despite Shell’s higher quality and more sustainable business mix. Compared to its peers, Shell generates a much larger percentage of its cash flow and earnings from stable businesses that have a major role to play in the energy transition. For example, Shell is the largest global player in liquified natural gas (“LNG”), which is a critical transition fuel to move off carbon intensive coal-fired power generation. In 2022, we expect the company’s energy transition businesses (LNG, Renewables and Marketing) to generate EBITDA of over $25 billion with sustaining capex of only $5 billion. These businesses account for just over 40% of Shell’s EBITDA but would likely support Shell’s entire enterprise value if they were a standalone company. At the current share price, we believe investors are getting the remaining ~60% of EBITDA (upstream, refining and chemicals) for free. Q3 2021 hedge fund letters, conferences and more Management has been gradually divesting assets that are not aligned with a low-carbon future such as upstream and refining. This is perhaps most evident in Shell’s refining business where the company went from owning 54 refineries in 2004 to only five (by year-end.) This is a remarkable accomplishment. Shell’s massive dividend cut and other asset sales (e.g. Permian) have left it with an under-levered balance sheet with year-end 2021 net debt to EBITDA of well below 1x. This positions Shell to return capital earlier and more aggressively than peers. Given all these positive attributes, why can’t Shell attract investor interest? In our view, Shell has too many competing stakeholders pushing it in too many different directions, resulting in an incoherent, conflicting set of strategies attempting to appease multiple interests but satisfying none. Some shareholders want Shell to invest aggressively in renewable energy. Other shareholders want it to prioritize return of capital and enjoy the exposure to legacy oil and gas. Some investors think Shell should shrink to grow, while we suspect some within Shell seem sentimentally attached to its “super major” legacy. Some governments want Shell to decarbonize as rapidly as possible. Other governments want it to continue to invest in oil and gas to keep energy prices affordable for consumers. Europe paradoxically wants both! Shell’s board and management have responded to this with incrementalism and attempts to “do it all.” As the saying goes, you can’t be all things to all people. In trying to do so, Shell has ended up with unhappy shareholders who have been starved of returns and an unhappy society that wants to see Shell do more to decarbonize. Shell’s board can and must move faster. We believe all stakeholders would benefit from a plan to: Optimize Shell’s corporate structure to reduce cost of capital and allow it to more aggressively invest in decarbonization; Match its business units with unique shareholder constituencies who may be interested in different things (return of capital vs. growth; legacy energy vs. energy transition); Allow each of its business units to more nimbly and effectively react to market and environmental policy developments. Q3 2021 hedge fund letters, conferences and more This should involve the creation of multiple standalone companies. For example, a standalone legacy energy business (upstream, refining and chemicals) could slow capex beyond what it has already promised, sell assets, and prioritize return of cash to shareholders (which can be reallocated by the market into low-carbon areas of the economy). A standalone LNG/Renewables/Marketing business could combine modest cash returns with aggressive investment in renewables and other carbon reduction technologies (and this business would benefit from a much lower cost of capital). Pursuing a bold strategy like this would likely lead to an acceleration of CO2 reduction as well as significantly increased returns for shareholders, a win for all stakeholders. Many ESG investors employ a strategy of buying companies that already have a clean bill of health. A lesson from our prior engagements is that it is often most impactful to invest in companies where the opportunity for positive change is the greatest. While daunting, there is perhaps no bigger ESG opportunity than in “Big Oil”, and specifically, at Royal Dutch Shell. We are early in our engagement with the company but are confident that Shell’s board and management can formulate a plan to accelerate decarbonization while simultaneously improving returns for its long-suffering shareholders. UnitedHealth UnitedHealth Group Inc (NYSE:UNH) is one of the largest healthcare companies in the world and a market leader in both its insurance and healthcare services (Optum) businesses. We initiated our position during the 2020 Presidential election at a time of heightened political and regulatory uncertainty. We believe under its new CEO, Andrew Witty, UnitedHealth can not only preserve its market dominance and sustain industry-leading growth rates across most of its key segments but also enter new healthcare services markets. Witty is known as a mission-driven CEO who clearly articulates his view that providing high-quality, affordable health care services is a social good. He receives consistently high marks from former colleagues, and we believe that his leadership approach will ballast and even strengthen UNH’s already impressive management and employee ranks. The insurance and services businesses are synergistic and complementary, which entrenches United’s critical role in care financing, access, and management. This dynamic gives us confidence in the durability of United’s market leadership. United’s core capabilities across insurance underwriting, cost and clinical datasets, provider care management, and PBM assets – undergirded by an advanced IT infrastructure – bolster their competitive advantage in providing the most robust insurance benefits at the lowest cost. United is also an early adopter of the technology across a variety of care settings such as telemedicine, digital therapeutics, and continuous glucose monitoring technology for their diabetic type 2 population. This provides better tools and care to patients and gives United better visibility on patient health, which leads to better cost control via early intervention. Driven by UNH’s higher-growth businesses like Medicare Advantage (MA) and value-based care MA clinics, as well as strong visibility on growth acceleration post-Covid, we expect the company’s multiple to rise significantly as investors see a path to sustained mid-teens earnings growth. We believe the stock can double in the next three to four years as we see durability of EPS in the mid-teens supported by a high single digit FCF yield while trading in-line with the market. Q3 2021 hedge fund letters, conferences and more Private Investment: Rivian We first took notice of Rivian after its spectacular launch at the L.A. Auto Show in 2018 when it announced two beautifully designed electric off-road vehicles: the R1T truck and the R1S SUV. Rivian is the brainchild of RJ Scaringe, an engineer with a master’s and a doctorate from MIT. We had the opportunity to meet RJ in early 2020 and were deeply impressed by his charismatic vision and approach to designing a new type of automotive company. A car enthusiast with a passion to conserve the environment for future generations, RJ has built a company that is shifting consumer mindsets about what battery electric vehicles can be. The R1T, which officially launched in September 2021, has received rave reviews, with Motor Trend calling it the “future of the pickup truck.” The clean sheet, technology-focused vehicle eliminated long-accepted compromises and delivers an experience that harnesses humanity’s innate adventurous spirit in an environmentally friendly way. Recognizing that personal ownership of vehicles will give way to ride-sharing in the future, Rivian also has the ambition to be major solutions provider to centrally managed fleets. They prudently initiated a relationship with Amazon to develop a range of commercial delivery vans that leverages the same core electric skateboard platform as the R1S/R1T. Amazon has an initial 100,000 vehicle order with Rivian (the largest backlog/order for any electric vehicle company ever at the time) and is also a major investor in Rivian. As Amazon seeks to become a dominant player in logistics while being carbon neutral, we believe that Rivian will be their end-to-end fleet provider of choice. When we learned that Rivian was doing a fund-raising round in late 2020, we expressed our interest and secured a small investment. More importantly, we spent time with RJ and his team. When Rivian did a pre-IPO convert round in July 2021, we were able to participate in a more meaningful way. Rivian recently filed its S-1 and is on track to go public by year-end. Rivian stands out with a compelling brand, an excellent first vehicle, and a unique partnership with Amazon that allows them to scale quickly. They are taking full advantage of the direct-to-consumer model/digital ecosystem to attack the full lifetime revenue potential from vehicles rather than simply an upfront sale. After recently spending a full day with RJ and his team in Normal, Illinois and driving the R1T, we are confident that they are best in class in every way: vision, strategy, talent, execution, partnerships and amount/quality of capital raised so far. The R1T knocked it out of the park, and we are excited to invest with Rivian to support its mission to keep the world adventurous forever. Q3 2021 hedge fund letters, conferences and more Business Updates We recently welcomed three new investment professionals to the team. Their biographies are below: Robert Hou joined our team as Head of Insurance Solutions to develop investment strategies and manage portfolios for our insurance clients. Prior to joining Third Point, Mr. Hou was a portfolio manager at Blackstone in the Insurance Solutions business. His background includes FIG Investment Banking and Corporate Development at BlackRock, Deutsche Bank and Merrill Lynch. Mr. Hou graduated from Stanford University with a B.A. in Economics. Daniel Lee joined our Structured Credit group. Prior to joining Third Point, Mr. Lee was in-house counsel at Nomura Securities International, Inc. covering securitized products. Mr. Lee spent five years as a structured finance associate at Weil, Gotshal & Manges LLP and four years as an associate at Cadwalader, Wickersham & Taft LLP. Mr. Lee graduated with a J.D. from Washington & Lee School of Law and holds a B.A. from Binghamton University. Luana Majdalani joined our equity team as an analyst. Prior to joining Third Point, she worked at Blackstone in private equity. She started her career at Evercore Partners in its merger & acquisitions advisory group. Ms. Majdalani graduated with a Master in Financial Mathematics from Princeton University and holds a BSc in Economics from the University College London (UCL). Q3 2021 hedge fund letters, conferences and more Sincerely, Daniel S. Loeb Updated on Oct 27, 2021, 1:32 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 27th, 2021

Sensata (ST) Pursues Inorganic Growth to Expand Portfolio

The buyouts will enable Sensata (ST) to gain additional mileage within the fast-growing end markets for clean energy solutions and offer a comprehensive bouquet of products to customers. In order to unlock new business opportunities and generate a steady revenue stream, Sensata Technologies Holding plc ST is actively pursuing an inorganic growth strategy. The buyouts will enable the company to gain additional mileage within the fast-growing end markets for clean energy solutions and offer a comprehensive bouquet of products for electrification and replacement of combustible applications. The acquisitions are also likely to help realize synergistic benefits in various industrial applications.The company recently inked an agreement to acquire Spear Power Systems. Based in Grandview, MO, Spear Power Systems has made a name for itself with market-leading lithium ion battery storage systems for land, sea, and air applications since its inception in 2013. These cell-agnostic storage solutions offered proprietary battery management and monitoring capabilities along with innovative features like reliability, high energy density, and modular architecture.The buyout of this lithium ion battery storage systems manufacturer will enable Sensata to expand on the market leverage gained through the earlier acquisition of Denmark-based startup Lithium Balance and widen its scope of work in the electrification and battery management systems market.Earlier this year, Sensata completed the acquisition of Xirgo Technologies Intermediate Holdings, LLC — a leading telematics and data insight provider — for $400 million. Since 2006, Xirgo has provided innovative wireless IoT communication devices for a wide range of applications across multiple markets. Its annual revenues are expected to exceed $100 million in 2021, with estimated revenue growth of more than 20% over the next several years.The buyout of Xirgo’s high-growth business significantly accelerates Sensata’s Smart & Connected initiative. It reinforces Sensata’s position as a data insight provider across transportation and logistics end markets. The acquisition brings complementary capabilities and boosts its strategy to expand beyond original equipment manufacturers and address the broader fleet ecosystem. Sensata’s total addressable market for its Smart & Connected product offerings is expected to more than double to $15 billion by 2030.Known as the pioneer in mission-critical solutions, Sensata has a diversified portfolio of personalized and unique sensor-rich applications from automotive braking systems to aircraft flight controls that are utilized ubiquitously. These sensors are specifically designed to address complex engineering and operating performance requirements that help customers solve significant challenges in industrial, heavy vehicle, off-road, and aerospace industries.Sensata also has a rich portfolio of high-voltage protection and battery management systems. The joint venture with Churod Electronics has further expanded its electrical protection capabilities for mass-market applications. Sensata’s sensing solutions business has a strong product portfolio and greater scale to capitalize on attractive opportunities in the multi-billion global automotive sensor market. Moreover, the company believes that its evolving portfolio and accretive customer base serve as the cornerstone for its long-term growth across a diverse set of markets.  Being a leading provider of mission-critical solutions, Sensata benefits from cost-effective operations. The company offers a streamlined set of products, which helps in eliminating redundant costs and gives greater pricing flexibility. It invests in cutting-edge technology that enables the hybrid and electric vehicles to be more efficient, cost effective, robust, and safe. The company is expanding its electrification ecosystem to facilitate the seamless transition to electric vehicles as it aims to be a leading provider of mission-critical sensor-rich hardware and software solutions.Such opportune acquisitions are likely to help Sensata better compete with other industry players such as Allied Motion Technologies, Inc. AMOT, Transcat, Inc. TRNS, and Watts Water Technologies, Inc. WTS. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report Watts Water Technologies, Inc. (WTS): Free Stock Analysis Report Transcat, Inc. (TRNS): Free Stock Analysis Report Allied Motion Technologies, Inc. (AMOT): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksOct 15th, 2021

Charging Up Your Portfolio with Electric Vehicles

Whether its the government, Wall Street investors or even traditional automakers; everybody is seeing tremendous potential in EVs. Ben Rains will show you how to capitalize on this burgeoning space, which grew over 160% worldwide in the first half of 2021. The U.S. Senate passed a $1 trillion bipartisan infrastructure bill in early August, with billions set to flow into various sectors, from more traditional areas such as roads to modern green energy initiatives. The clean energy efforts are part of a larger push within the U.S and other wealthy nations to speed up the transition away from fossil fuels throughout every corner of the economy.The green energy age isn’t complete without electric vehicles (EVs) dominating streets and highways, and the U.S. still has miles of road to travel in order to get there.Washington’s Focus on EVs The White House and Washington have put a spotlight on electric vehicles as part of a longer-term greener movement. President Biden signed an EV-focused executive order in August that hopes to spur rapid adoption. The non-binding goal aims to have all-electric, hydrogen-fuel cell, and plug-in hybrid vehicles make up 50% of U.S. sales by 2030.In order to reach this voluntary benchmark, automakers called for federal support for EV charging stations, various consumer tax incentives, and other pro-electric initiatives. Elsewhere, the Senate’s $1 trillion bill allots $7.5 billion for states and municipalities to build EV charging stations. The legislative effort also includes over $6 billion in grants for battery production, development, and recycling.The projected funding is less than President Biden called for in March when his administration set a goal of building 500,000 public chargers by 2030. There are currently roughly 48,000 public EV charging stations and over 120,000 charging ports in the U.S., according to U.S. Department of Energy data.These levels don’t come close to supporting rapid EV adoption. Federal, state, and local governments must work with automakers, charger technology companies, and various other stakeholders in order for EVs to start driving American automotive sales anytime soon.Despite all of the hype, the U.S. and the world has barely scratched the EV surface. The nascent nature provides plenty of profitable investment opportunities if you know where to look...Continued . . .------------------------------------------------------------------------------------------------------Zacks’ Top Infrastructure Picks (Grab These for Q4 and Beyond)Our research has identified 5 stocks that are set to surge due to the massive new infrastructure bill. This is the largest bill of its kind in decades, giving investors a chance at tremendous gains.Zacks’s just-updated special report, How to Profit from Trillions in Spending for Infrastructure, is designed to help you profit from the most promising “American Upgrade” stocks. Some infrastructure stocks have recently soared as much as +81%... +150%... even +248%.¹ The stocks in this report could be just as lucrative. Don't delay: this Special Report is only available until Sunday, September 26.See 5 Top Infrastructure Stocks Now >>------------------------------------------------------------------------------------------------------The Current EV Market Gasoline-powered vehicles remain by far the most popular means of transportation. Electric vehicles made up only 2% of U.S. sales last year and expanded to a little over 3% in recent months. Limited market share is part of the reason why Wall Street is excited even if the electric/hybrid space doesn’t get close to 50% market share by 2030.Tesla proved there’s demand for EVs in the U.S. and its success on the road and in the stock market forced every established auto company to go all-in on electric. Plus, plenty of newcomers, some of which are publicly traded, are ramping up production on sleek new EVs of all shapes and sizes. It will be difficult to recreate Tesla’s meteoric run, but a few standout startups are starting to make their case.Most major automakers plan to offer many of their current models as EVs within the next decade, while rolling out EV-only cars, SUVs, and trucks. Established auto titans, perhaps ambitiously, aim to generate upwards of 50% of global sales from EVs by 2030.One historic firm is revamping its entire business around EVs. The company said earlier this year it aims to have 40% of its global volume be all electric by 2030 and it expects to spend more than $30 billion on electrification during this stretch. The firm’s early efforts have already paid off in terms of actual sales and its surging stock price.Auto giants in both luxury and mass markets will start eating away at Tesla’s current dominance. There are plenty of reasons to believe this could happen somewhat quickly. A few select stocks will capture a budding corner of the EV market Tesla has little chance of controlling. The ability to meet the coming demand from commercial customers such as contractors, construction companies, police departments, and other government fleets is set to boost a few well-known companies in particular.Where’s the Money  New light-vehicle sales in the U.S. are set to climb around 13% to reach 16.3 million in 2021. EV sales are projected to blow away the broader industry-wide expansion. For instance, global EV sales already skyrocketed over 160% in the first half of 2021 against a pandemic-hit period.Tesla led the charge, accounting for about 14% of the global market during this stretch, but its share slipped compared to last year. A few global automakers are already in Elon Musk’s rearview mirror despite the huge head start, while smaller, highly affordable brands are dominating EV sales in China and other Asian nations.Along with investing in pure-play electric vehicle companies, Wall Street and the industry are pouring money into the technology side of the business. This is vital since EVs rely heavily on interconnected technology, remote software updates, high-tech touch screens, and much more. One firm in September poached a former Tesla executive from Apple—which has its own EV aspirations—because EVs are closer to supercomputers on wheels than traditional cars.EVs will also provide automakers with more consistent revenue streams, via remote monitoring, constant software updates, and other futuristic maintenance necessities. And it’s hardly just the automakers who stand to benefit. Smaller tech companies are already profiting from advanced radar navigation and more, and many are hot acquisition targets. Batteries and Chargers  EV motors are clearly essential cogs, but high-tech batteries are perhaps the most vital components. Continued progress on the energy storage and range fronts will help determine how quickly the market can grow.Wall Street is also laser-focused on lithium, with the commodity making a case to become a “new oil.” Lithium-ion batteries are already used in most portable consumer electronics such as smartphones, and nearly all electric vehicles run on rechargeable lithium-ion batteries.From startups to Tesla, companies are working on next-generation battery technologies, including solid-state batteries and new cell formats. Like many cutting-edge industries, there are likely game-changing batteries coming down the pike soon that few will have imagined possible.Alongside batteries, an EV-heavy future is only possible if consumers can drive anywhere they normally would or make that same big road trip, without needing to plan their route around chargers. EV chargers are often classified in three categories: Level 1, Level 2, and Level 3 or DC fast chargers. The first two are common for home-based charging, while the fittingly named Level 3 fast chargers require as much as $100,000 or more per station in upfront capital.There are over 100 EV charging companies in North America alone. Firms able to create faster chargers that mimic speeds closer to filling up a tank of gas will be surefire superstars, while companies able to roll out the most chargers, akin to gas stations, could become stable green energy players for decades.5 Stocks to Electrify Your Portfolio Electric vehicles and EV-related technologies are some of the most promising spaces investors can target for long-term gains. Consumers are demanding more electric options and manufacturers are rising to the occasion.And as discussed above, the government is driving hard toward a clean energy future. The infrastructure bill passed by the Senate last month could earmark billions of dollars to make EVs even more accessible – and you might be surprised at which stocks might benefit most.To help you make the most of this opportunity, Zacks has just updated our special report, How to Profit from Trillions in Spending for Infrastructure.The report reveals 5 stocks primed for big price moves, including an EV stock no one is thinking about. The company has a new CEO, a new focus on cutting edge tech and earnings that are projected to skyrocket 300%.I encourage you to check out the 5 stocks right away. The infrastructure bill could be a powerful catalyst, but these companies are strong enough to deliver significant gains on their own.Don’t delay. This Special Report is only available until Sunday, September 26.Click here to claim your copy of How to Profit from Trillions in Spending for Infrastructure >>Good Investing,Ben RainsStock Strategist¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 24th, 2021

Biden Infrastructure Bill Includes Passive Monitoring Vehicle "Kill Switch" Mandates For Automakers

Biden Infrastructure Bill Includes Passive Monitoring Vehicle "Kill Switch" Mandates For Automakers As if the Biden administration wasn't doing enough to infringe on your civil liberties with lockdowns and vaccine mandates, media reports over the last several days are suggesting that Biden's new infrastructure bill will also include a mandate for auto manufacturers to install "kill switches" into vehicles. Former Rep. Bob Barr, writing for The Daily Caller, calls the measure "disturbingly short on details", but for the fact that the proposed device must “passively monitor the performance of a driver of a motor vehicle to accurately identify whether that driver may be impaired.” Which, of course, is code for some kind of device that is constantly on and monitoring your vehicle - and will likely have the power to shut down your vehicle anytime it wants.  "This is a privacy disaster in the making, and the fact that the provision made it through the Congress reveals — yet again — how little its members care about the privacy of their constituents," The Daily Caller writes.  It appears that in President Biden's future, not only will you not be in charge of your own personal health decisions, but you also won't be in charge of whether or not you can fire up your car, which you bought with your hard-earned money, to drive it somewhere, when you deem fit.  That decision will now "rest in the hands of an algorithm", the report says. Similar monitoring and control devices have faced constitutional opposition, the report notes, "notably with the 5th Amendment’s right to not self-incriminate, and the 6th Amendment’s right to face one’s accuser." Barr concludes: "Unless this regulatory mandate is not quickly removed or defanged by way of an appropriations rider preventing its implementation, the freedom of the open road that individual car ownership brought to the American Dream, will be but another vague memory of an era no longer to be enjoyed by future generations." Tyler Durden Sat, 12/04/2021 - 21:00.....»»

Category: blogSource: zerohedge11 hr. 53 min. ago

The auto industry is begging the US government to make it easier to import critical parts from China

Tesla and dozens of auto industry suppliers are urging the US government to drop tariffs on Chinese items, including battery-making materials. Tesla says it can't get a critical battery material anywhere but China and is pressing the US to waive tariffs.David Butow/Getty Images Auto suppliers and manufacturers are asking the US to drop tariffs on a range of Chinese goods.  Tesla and SK Innovation say they can't get graphite for electric-car batteries anywhere else.  President Trump slapped huge duties on hundreds of billions worth of Chinese imports in 2018.  Auto suppliers and manufacturers, including Tesla, are urging the US government to waive tariffs on a range of critical components from China, especially those for electric-car batteries. The pleas come in a hectic period for global supply chains. A record number of container ships are stuck off the California coast, and all manner of household and industrial items are in short supply. In the automotive world, supply chain snarls and shortages — particularly involving computer chips — have forced carmakers to cut production drastically, sending new-car prices sky high. In October, the US Trade Representative began accepting public comments from companies seeking tariff exclusions on certain Chinese imports that were hit with extra duties during President Trump's trade war with the country in 2018. It previously granted 2,200 exclusions, but most of those expired in 2020. USTR said it would consider waiving tariffs that impact products that can only be bought from China or will "result in severe economic harm to the commenter or other US interests." The public comment period ended Wednesday.Tesla, for one, argued in three comments to USTR on Wednesday that it can't get the artificial or natural graphite it needs for battery packs anywhere outside of China, CNBC first reported."Tesla has concluded that no company in the United States is currently capable of producing artificial graphite to the required specifications and capacity needed for Tesla's production," the electric-car maker said. Several times over the last year, Tesla CEO Elon Musk and other company executives have explained how shortages of parts and ports have impacted Tesla's manufacturing. The company has raised the prices of its cars by thousands of dollars over the last year, and the wait time for certain models has dragged out to more than a year. SK Innovation, the South Korean battery manufacturer that supplies cells to Ford and Volkswagen, made a similar entreaty. The company recently announced a joint venture with Ford, BlueOvalSK, for three plants that would supply the automaker with batteries for its growing lineup of electric vehicles. Dozens of other automotive suppliers, large and small, are asking for respite from tariffs on all the myriad switches, sensors, motors, and other parts that go into a vehicle. Manufacturing juggernaut Magna and its subsidiaries want exclusions for electric motors that make car seats adjustable, circuit boards used in advanced safety systems, and steel shafts used in automatic transmissions. Bosch wants the same for wheel-speed sensors used in its anti-lock braking systems. SMR Automotive Systems, which supplies rear-view and side-view mirrors to automakers, is asking for a waiver for a certain type of mirror. "All rearview mirror glass vendors for auto manufacturers are located outside the United States," the company said. Some industry watchers argue that the supply chain crisis is already getting better. However, some analysts say the shortage of computer chips and its impact on the price of new cars could last for years. Tariff relief for the auto industry could help to relieve some of that upward pressure on pricing.Read the original article on Business Insider.....»»

Category: dealsSource: nytDec 3rd, 2021

General Motors (GM) Lifts Profit Projections, Stock Rallies

General Motors (GM) raises its full-year 2021 EBIT projection to $14 billion from the previous guided range of $11.5-13.5 billion. Shares rise 5% following the revised forecast. Shares of General Motors GM rose 5.1% yesterday as the U.S. auto giant raised its full-year 2021 EBIT forecast. It now envisions the pretax profit to total $14 billion, higher than the previous guided range of $11.5-13.5 billion. High demand for vehicles amid preference for personal mobility along with robust consumer spending is expected to aid General Motors’ results. Rising prices of new vehicles amid tight inventories due to global chip crunch will likely buoy profits.While the revised profit forecasts have lifted investors’ confidence in the stock, the near-term headwinds surrounding the firm are far from over. General Motors’ CFO Paul Jacobson notified that the company continues to reel under the shortage of semiconductor supply and low production and is not likely to operate at a full run rate by the end of next year. It expects the chip crisis to continue at least till the first half of 2022 and cautioned that the vehicle production and inventories won't get back to normal until late 2022.Jacobson also acknowledged the rising commodity costs that GM is grappling with. High commodity costs, including platinum group metals and steel prices, are likely to play a spoilsport. In fact, General Motors notified on its last earnings call that it expects second-half 2021 commodity costs to be $1.5-$2 billion higher than the first half of the year. Further, it anticipates commodity costs in the fourth quarter to increase from the third quarter. High product launch costs and R&D expenses related to electrification, battery technology and software solutions are anticipated to weigh on the firm’s cash flows. Amid such near-term hiccups, General Motors currently carries a Zacks Rank #3 (Hold).If you wish to invest in the auto space, you can consider adding Tesla TSLA, Harley-Davidson HOG and Goodyear Tire GT to your portfolio, each of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Tesla: Tesla is riding on the rising deliveries of Models 3 and Y. With China being the biggest EV market, Tesla’s ambitious production plans in the country bode well. The company’s energy generation and storage revenues are also boosting earnings. The electric vehicle king has an expected earnings growth rate of 167% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 6 cents over the last 30 days. Tesla beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once.Harley Davidson: In sync with the long-term growth objectives to optimize product portfolio and expand customer base, Harley-Davidson is focusing on motorcycle models and technologies that better align with market trends. The firm's turnaround plan, dubbed as ‘Rewire’, and the five-year strategic plan ‘Hardwire’ boosts optimism.The iconic motorcycle maker has an expected earnings growth rate of an astounding 36,100% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 2 cents over the last seven days. Harley-Davidson beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing it once.Goodyear: Goodyear’s acquisition of Cooper Tire, which closed in June, has strengthened the firm's leadership position in the global tire industry. Frequent rollouts of innovative products and services, electrification efforts and restructuring initiatives are also set to drive the firm’s prospects.Goodyear has an expected earnings growth rate of 196.86% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 42 cents over the last 30 days. GT beat the Zacks Consensus Estimate for earnings in the last four quarters. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HarleyDavidson, Inc. (HOG): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

LFP accounts for increasingly higher portion of China battery production

Total adoption of LFP batteries in electric vehicles (EV) could overtake ternary ones in China in 2021, with the former now less than 1pp behind the latter in market share, according to industry sources......»»

Category: topSource: digitimesDec 2nd, 2021

GM to build a factory with POSCO Chemical to process materials for EV batteries, creating "hundreds of jobs"

Shares of General Motors Co. jumped 4.4% in morning trading Wednesday, after the auto maker said it will create "hundreds of jobs" as it plans to build a factory in North American with South Korea-based POSCO Chemical Co. Ltd. to process battery materials for GM's Ultium electric vehicle platform. GM said it was forming a joint venture with POSCO Chemical to build the factory, which is expected to open in 2024 at a location to be announced later, and to process Cathode Active Material (CAM), which is a battery material that represents about 40% of the cost of an EV battery cell. "Our work with POSCO Chemical is a key part of our strategy to rapidly scale U.S. EV production and drive innovation in battery performance, quality and cost," said Doug Parks, GM executive vice president of global product development, purchasing and supply chain. The new facility will supply Ultium cells facilities being built in Lordstown, Ohio and Spring Hill, Tenn., as part of GM's plan to invest $35 billion in electric and autonomous vehicles to 2025. GM's stock has soared 23.0% over the past three months, while the S&P 500 has gained 2.5%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatchDec 1st, 2021

Bonhoeffer 3Q21 Commentary: Case Study – Millicom

Bonhoeffer Capital Management commentary for the third quarter ended September 2021, providing a case study for Millicom International Cellular SA (NASDAQ:TIGO). Q3 2021 hedge fund letters, conferences and more Dear Partner, The Bonhoeffer Fund returned -2.8% net of fees in the third quarter of 2021. In the same time period, the MSCI World ex-US, a […] Bonhoeffer Capital Management commentary for the third quarter ended September 2021, providing a case study for Millicom International Cellular SA (NASDAQ:TIGO). if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Dear Partner, The Bonhoeffer Fund returned -2.8% net of fees in the third quarter of 2021. In the same time period, the MSCI World ex-US, a broad-based index returned -0.7% and the DFA International Small Cap Value Fund, our closest benchmark, returned -2.5%. Year to date, the Bonhoeffer Fund has returned 22.9% net of fees. As of September 30, 2021, our securities have an average earnings/free cash flow yield of 14.3% and an average EV/EBITDA of 4.7. The DFA International Small Cap Value Fund had an average earnings yield of 11.1%. These multiples are lower than last quarter primarily due to increasing earnings and declining share prices. The difference between the portfolio’s market valuation and my estimate of intrinsic value is greater than 100%. I remain confident that the gap will close over time and the portfolio quality will continue to increase as we increase allocations to faster-growing firms. Bonhoeffer Fund Portfolio Overview Our investment universe has been extended beyond value-oriented special situations to include growthoriented firms using a value framework, including companies that generate growth through consolidation. There have been modest changes within the portfolio in the last quarter in line with our low historical turnover rates. We have sold Cambria Automotive which is in the process of being acquired and used the proceeds to increase our holdings in Asbury Automotive, Countryside Properties, and Millicom. As of September 30, 2021, our largest country exposures include: South Korea, United States, United Kingdom, Italy, South Africa, and Philippines. The largest industry exposures include: distribution, telecom/media, real estate/infrastructure, and consumer products. We added to some smaller positions within the portfolio and are investigating additional consolidation plays with modest valuations in industries that have nice returns on invested capital such as fiber rollouts, convenience stores, and IT services. Compound Mispricings (37% of Portfolio; Quarterly Average Performance -8%) Our Korean preferred stocks, the nonvoting share of Telecom Italia, Wilh. Wilhelmsen, and some HoldCos all feature characteristics of compound mispricings. The thesis for the closing of the voting, nonvoting, and holding company valuation gap includes evidence of better governance and liquidity. We are also looking for corporate actions such as spinoffs, sales, or holding company transactions and overall growth. Throughout the year, Net1 UEPS has been accumulating cash from the sale of its non-core assets including a Korean transaction processing network and its stake in a crypto bank. This cash, in addition to issuing some debt, was used to purchase Connect, a merchant transaction processor catering to small and medium businesses. This acquisition will complement its consumer fintech EasyPay transaction and ATM network and expand Net1 UEPS’s total addressable market to include small and midsized businesses and lead to profitability. The Korean preferred discounts in our portfolio are still large (25% to 73%). The trends of better governance and liquidity have reduced the discount in names like Samsung Electronics, and more preferred names trade at a premium to common shares. We continue to like the prospects for LG Corp preferred post LX Holdings spinoff from both a business and discount perspective. The current discount to NAV is 74% for the LG Corp preferred. In addition, this discount is based upon a base value of LG Corp with reasonable implied EV/EBITDA multiples of LG Corp subsidiaries of 4.7x for LG Electronics, 13.6x for LG Chemical (including LG’s EV battery division), and 16.7x for LG Household & Health Care. Public LBOs (37% of Portfolio; Quarterly Average Performance -1%) Our broadcast TV franchises, leasing, building products distributors, and roll-on/roll-off (RORO) shipping fall into this category. One trend I’ve noted in these firms is growth creation through acquisitions which provide synergies and operational leverage associated with vertical and horizontal consolidation and the subsequent repurchasing of shares with debt. The increased cash flow is used to pay the debt and the process is repeated. Millicom, this quarter’s case study, is a public LBO that has financed many of its investment opportunities with debt. The recently announced buyout of its Guatemalan JV partner illustrates this. The debt, when used in situations like this, has been paid down over time as Millicom generates a lot of free cash flow and can increase returns like leveraged rollups, as described below. Distribution Theme (41% of Portfolio; Quarterly Performance +3%) Our holdings in car and branded capital equipment dealerships, convenience stores, building product distributors, and capital equipment leasing firms all fall into the distribution theme. One of the main KPIs for dealerships and shopping is velocity or inventory turns. We own some of the highest-velocity dealerships in markets around the world. There have been challenges in some markets hit by COVID, like South Africa and Latin America; but there should be recovery now that vaccines have been approved and distributed. GS Retail, the second largest convenience store operator in Korea (with 14,600 convenience stores and 320 grocery stores), is the security we received for the buyout of GS Home Shopping. We have applied our growth methodology described in the last quarterly report. The following is a summary: The convenience store business is growing and consolidating worldwide. As a result of the acquisition, management is planning on using the younger customer data from GS Retail, the older customer data from GS Home Shopping, and the GS distribution network (42 logistics centers supporting convenience, grocery, and home shopping customers) to provide older and younger customers their products instore (convenience store) or next-day home delivery across Korea. Management expects 10% growth overall, composed of underlying convenience store growth of 4-5% and 5% from cross selling and digital commerce from the merger. Given the fixed costs in the convenience store network and distribution infrastructure, management expects cost synergies to generate net income margins of 5.0%. If these revenue and growth rates are realized, then a P/E closer to comparable convenience stores BGF Retail (Korea), Seven & I, and Alimentation Couche-Tard of 15-20x is not unreasonable. This range has significant upside from current P/E multiple of 5.9x and five-year forward P/E of 4.3x. Telecom/Transaction Processing Theme (36% of Portfolio; Quarterly Performance -2%) The increasing use of transaction processing in our firms’ markets and the rollout of 5G will provide growth opportunities. Given that most of these firms are holding companies and have multiple components of value (including real estate), the timeline for realization may be longer than for other firms. Telecom Italia continues to work with the Italian government and Fiber Corp to merge their telecommunications infrastructures together. Vivendi has called an emergency board meeting to ensure Telecom Italia will retain control of the combined telecommunication infrastructure after the merger. We view this action as a positive despite the decline in Telecom Italia’s share price. The updated sum-ofthe- parts analysis (as detailed in previous letters) implies an upside of 80–100%. In my opinion, much of the recent decline is due to concerns that Telecom Italia will give up control of the combined telecommunications infrastructure. Consumer Product Theme (10% of Portfolio; Quarterly Performance -7%) Our consumer product, tire, and beverage firms comprise this category. The defensive nature of these firms has led to lower-than-average performance due to the stronger performance from more recoverycorrelated names. One theme we have been examining is the increase in sales of adult products (tobacco, alcohol, and lottery) in convenience stores as other stores are removing these products from their product offerings. GS Retail is taking advantage of this trend in Korea. Real Estate/Construction Theme (23% of Portfolio; Quarterly Performance -3%) In my opinion, the pricing of our real estate holdings has been impacted by both a recession and the communist takeover in Hong Kong. The current cement and construction holdings (in US/Europe via BFS and Countryside and in Korea via Asia Cement) should do well as the world recovers from COVID shutdowns and governments start infrastructure programs. Asia Standard also declined during the quarter due to the concern over the decline in its Chinese real estate developer bond holdings. Asia Standard holds a large number of Chinese real estate developer bonds, including those of Evergrande and Kaisa. The Evergrande bonds have declined to about 20% of face value as of September 30 (they were at 40% of face value on July 31, 2021, the last market-to-market valuation date for Asia Standard’s bond portfolio) while the Kaisa bonds have declined to 85% of face value. I ran a stress test assuming a 25% decline in the bond portfolio from July 31, 2021. This is 2x the 13% decline in the portfolio from Evergrande and Kaisa bond prices between July 31, 2021, to September 30, 2021. The resulting NAV/share is $8.09 versus the $10.09 NAV as of July 31, 2021. The September 30 stock price of $0.85 is at a 91% discount to the stressed NAV and 92% to the July 31, 2021, NAV. Consolidation Frameworks In our Q1 letter, we described how we are examining growth opportunities associated with consolidation in fragmented industries. Growth from consolidation can be a resilient form of growth as it is dependent upon the availability of target firms and associated cost and revenue synergies versus overall market growth. When consolidation growth is combined with modest industry growth, some exciting growth can be realized. If the firms also exhibit operational leverage from economies of scale/scope, then the combined effect can be significant growth in earnings or free cash flows. The advantage of this type of growth is that it is realized over time and not recognized by the market in advance. This can be seen in the price charts of many of these firms moving from the lower left to the upper right over time as the growth is realized. Fragmented markets can have long runways associated with consolidation and economies of scale and scope which can lead to cash flow growth in excess of the market growth for many years. We try to identify these markets and firms that can ride the consolation wave over a long timeframe. Some of these firms have valuations reflecting some of the future growth and some have little to no premium reflecting future growth from consolidation. Currently, the internet (an innovation) is providing more consolidation via additional fragmentation of retail demand from offline, online, and omni-channel selling channels. An example is traditional auto dealers using an omni-channel sales approach and Carvana who is exclusively online. Bonhoeffer is looking for businesses that are adopting the innovation (internet distribution) which will enhance growth going forward but where it is not recognized by the market yet, as evidenced by the current stock price. Some analysts have developed useful frameworks to evaluate consolidation or serial acquirer situations. Scott Capital has developed a useful framework1 for categorizing consolidators, shown below: Scott has categorized these types of firms depending upon the level of target integration. Most of the firms we have been examining recently have been rollups (firms in the same industry) with scale-driven synergies and operational leverage. We also hold one platform (Wilh. Wilhelmsen) and one holding company (LG Corp). Another way to look at these firms is cross-sectionally based on total addressable market (TAM) size and integration of operations, as described by Canuck Analysts Substack2 below: Using this framework for our current areas of interest (rollups), I have been monitoring acquisition multiples in the car dealers (Asbury Automotive), local TV and radio firms (Gray Television), building supply distribution (Builders First Source), Latin American telecommunications (Millicom), cement firms (Asia Cement), equipment leasing firms (Ashtead), and network processing (Net 1 UEPS). In each of these segments, multiples have been modest. None of these firms have done international “diworsifying” deals to date and some have recently divested unrelated firms (Net 1 UEPS, Daelim Industrial and LG Corp). In each of these markets, the market share of the top firms is less than 10% except for GS Retail, where itself and FRB have a dominant share of 31% each, and Millicom, where it has a leading or number two position in eight of its nine markets where it competes. The small market shares provide a large runway for consolidation in its existing industry for years to come. Also, none have made international expansion into new markets outside their existing footprints. A return benchmark developed by the Canuck Analysts Substack3 is shown below: This framework, used in combination with calculating return on incremental capital, can illustrate where the invested capital returns can be modest. As an example, we will look at Asbury Automotive. Asbury’s returns on invested capital averaged 13%, and the return on equity averages 31% over the past 10 years plus an organic growth rate of 2 to 3% per year based upon US auto sales and maintenance service costs. This results in an ROIC plus ½ of annual organic growth of about 15%. The size of Asbury’s acquisitions has been about $1.4 billion over the past five years. Below is Asbury’s return on incremental invested capital over the past 10 years which has averaged in the upper teens during that period. For other serial acquirers like Ashtead, the organic growth rate is 6% and its ROICs over the past 10 years is 14% resulting in an ROIC plus ½ of annual organic growth of about 17%. The size of Ashtead’s acquisitions has been about $2.0 billion over the past five years. Conclusion As always, if you would like to discuss any of the philosophies or investments in deeper detail, then please do not hesitate to reach out. Until next quarter, thank you for your confidence in our work and have a safe and warm year-end holiday season. Warm Regards, Keith D. Smith, CFA Case Study: Millicom International Cellular SA (TIGO) Millicom International Cellular SA (NASDAQ:TIGO) provides mobile and broadband telecommunications services to consumers and businesses in Central America (Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, and Panama) and South America (Columbia, Bolivia, and Paraguay). TIGO provides legacy voice, wireless and data services, and fiber-based services to firms and individuals. Currently, TIGO has 43.1 million wireless subscribers, including 20.3 million 4G subscribers and 4.9 million home customers, including 8.4 million revenue generating units (RGUs) and 4.1 million broadband subscribers. In addition, TIGO’s network includes 5,400 points of presence and 300,000 business customers. TIGO is the number one or two broadband and wireless provider in eight of the nine markets in which TIGO competes. Recently, TIGO announced the purchase of its joint venture (JV) partner’s share of its JV in Guatemala for $2.2 billion. This transaction will be financed by debt and a shareholder friendly common stock rights offering. TIGO provides mobile money/banking services for five million customers in six countries. TIGO also has 10,000 towers and 13 data centers which can be sold and leased backed. TIGO is in the process of separating its towers and data centers (like Telefónica and América Móvil) and its mobile money/banking service to facilitate sales or investments by third parties. In 2017, TIGO sold 3,410 towers in Columbia, El Salvador, and Paraguay for $417 million or $122,287 per tower. Historically, TIGO operated in both Africa and Latin America. Over the past five years, TIGO has divested its African telecommunications assets and purchased additional assets in Latin America. TIGO’s network passes over 12.2 million homes (24% penetration of total homes) and covers 80% of mobile phones. The firm is in the midst of rolling out fiber to homes to provide broadband connectivity to Latin American customers. This rollout is being funded by cash flow from operations. The firm has been described as building a Charter Communications under a wireless Verizon umbrella. This is similar to our Consolidated Communications play with the additional benefit of having a wireless network and a mobile money business. In most countries in which TIGO operates, they have joint ventures or minority interest local partners. TIGO currently has an average high-speed internet (HSI) penetration rate (a take rate of HSI for homes passed) of about 39% across the countries it serves. This has increased by 1.4% since year-end 2020. To put this in context, most cable broadband penetrations are in the 50% plus range. In seven of the nine countries they serve, TIGO is the number one or two competitor in wireless and broadband in two-player markets (Guatemala, Honduras, El Salvador, Costa Rica, Panama, Bolivia, and Paraguay) and number three in two markets (Nicaragua and Costa Rica). The Q3 2021 mobile average revenue per RGU was $6.40 per month, and the broadband revenue per RGU was $28.10 per month. The largest shares of proportional EBITDA are from Guatemala (38%), Bolivia (11%), Paraguay (11%), Panama (10%), and Columbia (9%). In terms of regions, 70% of EBITDA is from Central America and 30% from South America. TIGO has developed a customer-focused culture at the corporate and country level using NPS as a metric which is collected and used as a management incentive to increase customer satisfaction. In addition, the countries that TIGO serves have stable currencies versus the US dollar. Since 2000, the EBITDA weighted average currency movements have been only 0.7% per year. Another positive trend is the movement of suppliers to US-based firms moving from China to a closer location with political and currency stability—Central America. If we look at the index of economic freedom for the Central American countries in which TIGO primarily operates, they have a moderately free ranking. For the subcategories most of interest to suppliers (tax burden and trade and business freedom), they all are ranked free or mostly free (highest ratings). Millicom and Fiber-optic Rollout The Latin American telecommunications services market is a local, fragmented market. Consolidation has occurred over the past 10 years amongst these local players, and the next generation of technology (fiber-optic connections) is being rolled out. Fiber-optic rollouts are generating organic growth and economies of scale with high incremental user profitability. Millicom has created economies of scale depending upon the geography of the acquired telecommunications firm. There is also the vertical integration across telecommunications services (like wireless, voice, data, cable, and hosting) in a given geography which can create additional economies of scale. With these rollouts, telecommunications companies compete with the local cable companies—and in some cases wireless providers—to provide HSI and other services to customers in their local footprints. Historically, telecommunications and cable firms have had poor customer service, as evidenced by low net promoter scores (NPSs). Keith Rabois, a founder of PayPal, has tweeted, “Formula for startup success: Find large highly fragmented industry w low NPS; vertically integrate a solution to simplify value product.” Part of simplifying the solution is providing multiple services and good customer service. The telecommunication services market fits this description. The new fiber rollouts are analogous to organic startups and thus can also be successful in the vertical integration into these markets. Business and Service Analysis One way to look at telecom business is to divide it into slowly growing (wireless) and quickly growing segments (HSI). The slower-growing wireless business is mature and is growing about 2% per year. The HSI business is growing at an 8% annual rate driven by fiber rollouts in TIGO’s countries. Millicom’s overall mix of wireless and HSI revenue is 33% HSI and 67% wireless, with 67% recurring subscription revenue (HSI and post-paid wireless) but varies by country. The current revenue growth rate is 4.3% and will increase to 5%, by the end of 10 years and the HSI/wireless mix approach 50%/50%. If we look at unit economics of the fiber rollout, it is also quite favorable. According to management, the estimated cost to pass each new customer is about $150; and the cost to connect a customer is $100. This is similar to the cost reported by Oi, a telecommunications firm rolling out a fiber-optic network in Brazil. If you have a final penetration rate of 45% using the current HSI monthly charge of $28/month, and a steady-state EBITDA margin of 45% (which management believes are both achievable at scale; the current margin is 40%), then the payback time is between six and seven years, and the unlevered IRR is 26% and a levered return of 52%. See Exhibit A for details. Latin America Broadband Telecommunications Market The broadband telecom business in Latin America is a fragmented market on an international basis and a concentrated market on a country-by-country basis. The market is a local market, so the smaller country markets only have a few competitors. This leads to less price competition for TIGO than in larger, more urban markets where there are more competitors. Gig speed internet and wireless are core infrastructure services that will be required in the internet service economy. Currently, broadband usage is growing at a 30-40%/year rate and is expected to increase going forward, as more bandwidthintensive applications are developed and rolled out over time. Since most of TIGO’s competition is from cable companies and incumbent telecom firms (that have low NPSs), TIGO has an opportunity to provide improved customer service versus the cable companies. This highlights the importance of the decentralized management system, incentivized and shareholding country managers, and including NPSs in management’s incentive compensation at the corporate and country levels. Of the other publicly traded Latin American telecommunications firms, TIGO has the largest potential to increase HSI organic revenue growth (by 8%) via a fiber rollout in its incumbent territories. This can be seen in the projections based upon the currently planned and financed fiber rollout shown in Exhibit B. The tilt toward the faster-growing Central American countries (which should get some opportunities to replace China as exporters to the US) versus the slower-growing South American countries will also add a nice tailwind. The countries TIGO services had an average real GDP growth rate of 3.2% per year over the past five years versus the overall 0.7% GDP growth rate for all of Latin America. Downside Protection TIGO has been reducing debt over the past few years with a current proportional debt/EBITDA of 2.7x and a goal of 2.0x. TIGO has a bond rating of Ba2 and yields 3.5% for five- to 10-year bonds. TIGO is in a defensive business—telecommunications services—which has a large amount of recurring revenue. HSI data revenues are increasing, while wireless revenues are increasing at a slower rate. See below for projections and Exhibit B for more detailed projections. Below is the proportional historical and projected revenue, EBITDA, and FCF since 2016 when the Guatemalan and Honduran JVs were deconsolidated. Management and Incentives One of the risks in emerging-markets investing is management, as they may have different incentives than those to which Western investors are accustomed. In this case, you have a management team based in the US (Miami) that has been historically influenced by the firm’s domicile, Sweden. TIGO is led by a former Liberty Latin America executive, Mauricio Ramos. He brings the Liberty Media playbook (a successful leveraged rollup strategy of cable-related properties and associated shareholder friendly corporate actions) to the markets that TIGO serves. TIGO is listed in Sweden and the United States and brings the corporate governance practices, capital allocation, and shareholder renumeration approaches to its operations throughout Latin America. In many countries, TIGO has local JV partners which provide TIGO with access to the local connections. TIGO has management incentives, including TIGO stock (with minimum levels for country managers) at both the corporate and country levels. The capital allocation is also done at both the corporate and country levels. This country-level capital allocation, incentives, and stock ownership is unusual for a Latin American company. The major categories of capital allocation for TIGO are: 1) purchasing minority interests from partners, 2) investing in the HSI broadband rollout described above, 3) selective acquisitions, 4) repurchasing shares, or 5) distributing dividends. Categories 1, 2, 3 and 4 have the most well-defined and highest returns and have been used by management in the past. In 2020, the CEO’s management compensation was 20% base salary and 80% incentive-based bonus, of which short-term incentive (STI) is 50% equity based (TIGO shares) and 50% cash based and long-term incentive (LTI) is 100% equity based (TIGO shares). The 2020 STI compensation was based on service revenue growth, EBITDA growth, operational cash flow growth, NPS, and other operational goals. The 2020 LTI compensation is based upon service and EBITDA growth and relative total shareholder return versus peers. The 2020 equity-based shares were issued at $38.09 per share, and the 2019 shares were issued at $42.70 per share. Overall, 700,000 shares were granted in 2020 (about 0.7% of shares outstanding per year). The management team owns 0.7% of TIGO common stock. TIGO has stock ownership guidelines of 5x the salary for the CEO, 3x for other senior managers, and 1x for country managers. Valuation The valuation of TIGO is an interesting exercise because its expected growth rate is accelerated by the fiber rollout and share buybacks described above. The implied growth using the Graham Formula, adjusted to today’s interest rates ((8.5 + 2g)*(4.4/AAA bond rate)) and the current P/E, is -1.8%, clearly implying that the market expects TIGO’s cash flows to continue to decline. Some benchmarks for growth are the projected sales growth rates of 4.5% per year (based upon the fiber rollout), an EBITDA growth rate of 6% per year, and an adjusted free cash flow growth of 12%. The question is whether this growth rate is sustainable over the next seven years. Given the key penetration, margin, investment, and timing assumptions in the projection model, I believe it is. TIGO is the only Latin American publicly traded telecom firm that has a rollout of this magnitude (adding 18% to revenue) scheduled over the next five to seven years. One firm that also has a Latin American footprint is Liberty Latin America (LILA). LILA has grown revenues and EBITDA at about 8% per year since 2015. The EBITDA margin is similar to TIGO, but historically the conversion to FCF from EBITDA was 50% less than TIGO—25% for TIGO and closer to 12% for LILA. The current FCF multiple of LILA is about 16x. If that multiple is applied to TIGO’s FCF, it yields a value of $74 per share, which I believe is a reasonable 12-month target. If, over the five to seven years, a 12% FCF growth is attained, then the earnings will be $8.19. Applying a 23.8x multiple to these earnings (implying a 4% growth rate over the subsequent seven years) means a value of $195 per share is obtained. Another way to look at valuation is on an enterprise basis. If we value TIGO on a forward EBITDA basis of 9x EBITDA (the current multiple of cable overbuilder WOW!), then the resulting value is $200 per share. If we consider both benchmarks, then a $200 price target is not unreasonable. See Exhibit B for details. This results in a five-year IRR of about 42%. In addition to the core assets, TIGO has about 10,000 towers (with an additional 2,000 under construction), 13 data centers, and a mobile banking division. According to management, these non-core assets are being prepared for either sale-leasebacks or investments by third parties. The estimated value of the towers and data centers is about $2 billion—$1.1 billion for the towers and $900 million for the data centers. The tower valuation of $1.4 billion is based upon an estimated value per tower of $120k based upon tower transaction values (TIGO’s historic transactions averaged $122k/tower and a 2021 Telxius transaction was $110k/tower, 9,300 Latin American towers for €900 million) and Telesites’s current valuation of $252k/tower times 12,000 towers. The data center valuation of $750 million is based upon an estimated value per data center of $58k which is based upon Latin American data center transactions (Anxel data centers were purchase by Equinix for $58k/center, three data centers for $175 million, and Telefónica data centers were purchased by Asterion for $58k/data center, nine data centers for €550 million) times 13 data center. Adding together the towers and data centers, the total valuation of these assets is $2.1 billion. The mobile banking division (TIGO Money) can be valued using a range of values based upon the value of African mobile banking firms and Latin American neobank firms. The mobile banking business had 5 million customers and 48 million transactions in 2020. If we use African mobile banking transactions (20 million Airtel customers were purchased for $2.6 billion and 46 million MTN customers were purchased for $5.0 billion), the average value per user is $121. If we use $121/customer times 5 million transactions, it implies a $600 million value for TIGO Money. If we use recent Latin American neobank transactions (40 million Nubank (Brazil) customers were purchased for a $30 billion valuation and 3.5 million Ualá (Argentina) customers were purchased for a $2.45 billion valuation), the average value per user is $750. If we use the midpoint of the African mobile banking and Latin American neobanks of $435, we get $435 times 5 million customers, and the resulting value is $2.2 billion. This is additional value of $2.7 to $4.2 billion ($27 to $42 per share) in addition to the core business value estimated above. So, for example, if you assume a 12% FCF growth rate and the value of non-core assets, you get a total value of $255 to $270 per share. Comparables Given the fiber rollout and the size of TIGO, the comparable firms include US and Italian small-cap telecommunications firms. One of the larger issues in Latin American firms versus developed markets is currency risk, however; as described above, TIGO’s currency risk is similar to developed markets’ risk. The following are the comparable firms in the US and Italian telecommunications markets. The smaller Italian telecom firms have smaller floats than the US firms and are majority controlled (70%+) by the original owners. There have been some private equity acquisitions in the US rural local exchange carriers (RLEC) space, namely Cincinnati Bell and Alaska Communications. These firms have a similar dynamic associated with their respective fiber rollouts, and private equity firms have invested in these firms for similar reasons that make CNSL attractive. Cincinnati Bell has been purchased by the private equity firm Macquarie Infrastructure Partners, which outbid an original offer from Brookfield Asset Management. Alaska Communications is also in the process of being purchased by ATN International and Freedom 3 Capital. The EV/EBITDA paid by these buyers was 6.5 to 6.9x EBITDA for assets with lower margins than the current price of TIGO (4.6x EBITDA). Benchmarking In comparison to other US and Italian firms, TIGO has above-average (but good) FCF ROE and a high EBITDA margin. With TIGO’s fiber rollout and customer take-up, the fixed asset turns and ROEs should increase. With these favorable operational metrics, TIGO has one of the lowest current and 2021 P/FCF ratios of either group. Risks The primary risks to achieving a target valuation of $72 per share for TIGO include: a lower-than-expected broadband penetration of fiber rollout communities; and a quicker-than-expected decline in the legacy telecom lines. Potential Upside/Catalysts The primary upsides/catalysts include: faster-than-expected penetration of uptake of broadband services; operational leverage due to economies of scale; and re-rating to reflect higher growth. Timeline/Investment Horizon The short-term target is $72, which is more than double today’s price. I think the investment thesis can play out over the next three to five years. By that time, TIGO’s net income and earnings should have appreciated by 75%, and the fair multiple could triple with a 4% increased growth rate. If that is the case, then TIGO will attain a 6.7x return to $235 over five years or 46% annualized. This is similar to a “Davis double,” where both underlying earnings increase along with the fair value multiple. Updated on Dec 1, 2021, 1:24 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkDec 1st, 2021

Daimler (DDAIF) and Stellantis (STLA) Boost EV Battery Game

Daimler (DDAIF) and Stellantis (STLA) rev up their EV game plan with the decision to make a strategic investment in solid-state battery maker Factorial Energy. Daimler DDAIF and Stellantis STLA recently entered into a strategic agreement with solid-state battery maker Factorial Energy.Per the agreement, the automakers will make a strategic investment in Factorial to commercialize the latter’s battery technology. The financial details of the deal are still under wraps.Amid the heightening climate change concerns, investors are intrigued by automakers that provide green transportation solutions. A shift toward an electric future has made it necessary for auto players to reorient their business model and accelerate the e-mobility game. Thus, automakers are spending billions on developing solid-state batteries, the next generation of technology that warrants expedited charging, better energy storage and enhanced efficiency, thus making electric cars attractive and viable for as many people as possible.Daimler and Stellantis are both committed to providing sustainable means of transportation. Recently, Daimler, the parent brand of Mercedes-Benz, pledged to phase out fossil fuel vehicles by 2035 in key markets and by 2040 globally. The German luxury carmaker also plans to invest more than 40 billion euros ($47 billion) in its quest to electrify its vehicle lineup by the end of the decade. DDAIF also intends to build eight factories to mass-produce batteries, a key component of electric vehicles (EVs).Meanwhile, Stellantis has also vowed to invest more than 30 billion euros ($35.54 billion) by 2025 in software development and electrification of its vehicle lineup, aiming to be 30% more efficient than the industry concerning its total capex and R&D expenses. The commitment marks a historic step for STLA to bring together and electrify 14 brands under one roof. Further, Stellantis aspires to transit more than 70% of its vehicle sales in Europe and more than 40% of vehicle sales in the United States to low emission vehicles (LEVs) by 2030. In fact, the auto biggie recently inked a five-year deal with lithium developer Vulcan Energy Resources to supply battery-grade lithium hydroxide in Europe.The latest deal with Factorial demonstrates the efforts of Daimler and Stellantis to achieve their carbon-neutrality goals in a sustainable manner. The deal will help the automakers boost their battery capabilities and thus ensure an accelerated transition to EVs. The solid-state battery technology promises longer ranges, reduced costs and safer EVs for customers. In fact, reportedly, solid-state batteries, manufactured in mass, can be made at 40% of the cost of current lithium-ion batteries. Thus, this state-of-the-art technology will enable the production of affordable electric cars with better range and quicker charging times —two of the biggest hurdles to mass EV adoption.This September, Daimler also acquired a 33% equity stake in battery cell manufacturer Automotive Cells Company (ACC) – a joint venture set up by Stellantis and TotalEnergies. This made Daimler an equal shareholder alongside Stellantis and TotalEnergies.Daimler currently carries a Zacks Rank of 3 (Hold) while Stellantis sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.EV Push by Other Key AutomakersFord F is also committed toward its goal of providing carbon-free transportation in the upcoming years and is boosting its electrification efforts to attain this target. The automaker has always been at the forefront of the automotive revolution and is focused on its vision of an all-electric future, including fifth-generation lithium-ion batteries and preparing for the transition to solid-state batteries.Ford has committed to invest more than $30 billion by 2025 for the electrification of its commercial and retail fleet by capitalizing on its strength, starting with the EV versions of the company’s most popular models. F recently announced its plans of investing $11.4 billion for building two new environmental-friendly and technologically-advanced campuses in Tennessee and Kentucky that will produce next-generation electric F-Series trucks and batteries to power the future electric Ford and Lincoln vehicles.General Motors’ GM big push toward EVs is also commendable. The automaker has committed to invest $35 billion in EVs and autonomous vehicles by the end of 2025, marking a 75% jump from its initial $20-billion plan. At the heart of this strategy lies the automaker’s Ultium battery platform, which will power everything from mass market to high-performance vehicles. The company is also moving ahead with constructing two U.S-based Ultium battery cell plants along with the battery cell plants currently under construction in Tennessee and Ohio.In October, General Motors announced plans to invest in the next-generation battery facility – Wallace Battery Cell Innovation Center – that will significantly expand GM's battery technology operations and boost the development of longer range and more affordable EV batteries. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Daimler AG (DDAIF): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Stellantis N.V. (STLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 1st, 2021

Russian Forces Are Growing...In Russia! Pentagon Awkwardly Downplays Ukraine Invasion Hype

Russian Forces Are Growing...In Russia! Pentagon Awkwardly Downplays Ukraine Invasion Hype Ukrainian Foreign Minister Dmytro Kuleba on Tuesday urged Western allies in NATO to act fast to "deter" Russian aggression aimed at the country's east, claiming that a Russian military assault could come "in the blink of an eye". "What we are seeing is very serious. Russia has deployed a large military force in regions close to Ukraine's state border," he told reporters after weeks of widespread Western media assertions that at least 90,000 Russian troops are mustering near the border. "If Russia decides to undertake a military operation, things will happen in literally the blink of an eye," the foreign minister added. Kuleba's numbers were even higher than common Western press estimates: "Moscow has massed 115,000 troops around Ukraine, on the Crimean peninsula," he was cited as saying. He also alleged tanks, military vehicles, and electronic warfare systems were also being positioned.  File image: Moskva News Agency.ru But the consistent response from the Kremlin has been to point out it's free to move its forces anywhere it wants within Russia's own sovereign borders. Ironically enough no officials in the US or anywhere else have actually disputed the reality that there's not been any attempt to breach Ukraine's borders. Pentagon spokesman John Kirby seemed to acknowledged this in statements the same day. He said the Pentagon is monitoring Russian troop movements... within Russia. Kirby described Russian forces as— ..."a continuing concern" and pledged US support for Ukrainian forces, though he downplayed expectations of a direct US military intervention. "We continue to see movement, we continue to see additions" to their forces near the Ukrainian border, said Kirby. "We're watching it very closely," he told reporters, adding: "We don't envision any US military intervention in this conflict." To be sure, if US intelligence actually believed Putin is preparing an "imminent" invasion (as an initial Bloomberg report and some US officials earlier this month claimed), Kirby would now be threatening US military intervention to prevent such an offensive.  But instead Kirby is obviously downplaying the "invasion" scenario, and is reduced to admitting the Pentagon is merely "watching" the "movement" of Russian troops within Russia's own territory. He with a serious tone told the press pool that Russian troops are growing...in Russia. Image: AP This is tantamount to if China or Russia called a press conference, only to inform reporters that American troop movements are being monitored within the United States and in the vicinity of US bases on US soil. Moscow days ago slammed what it's classified as an ongoing 'disinformation campaign' coming from Ukraine and Washington, meant to increase the Western pressure on Russia and provide leverage. Last week Russian Foreign Ministry spokeswoman Maria Zakharova issued a searing response to what's perhaps in reality a 'non-crisis'. She said, "The hot heads in the Kiev regime, apparently with a feeling of complete impunity, are in favor of a military solution to this internal Ukrainian crisis." The Kremlin is now turning the accusation right back, asserting it's Ukraine that's pushing for fresh confrontation in Donbass, while attempting to hype tensions to the point that Kiev's Western backers get drawn in.  Tyler Durden Tue, 11/30/2021 - 23:25.....»»

Category: blogSource: zerohedgeDec 1st, 2021

Billions More Flowing into EVs

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nissan announces nearly $18 billion of EV investment … eyes on the EV “tipping point” … it’s hard to be too bullish about this battery metals trade   Another day, another story of billions of dollars flowing into electric vehicles and batteries. Yesterday, Nissan announced plans to spend $17.6 billion over the next five years.... The post Billions More Flowing into EVs appeared first on InvestorPlace......»»

Category: topSource: investorplaceNov 30th, 2021

Covid Woes And Supply Chain Issues Among The Drivers In FTSE Reshuffle

The FTSE All Share Index Quarterly Review is based on closing prices today and is due to be announced on Wednesday 1 December, with the changes effective after the close on Friday 17 December. Q3 2021 hedge fund letters, conferences and more A sparky performance by Electrocomponents pushes it into a prime position to move into […] The FTSE All Share Index Quarterly Review is based on closing prices today and is due to be announced on Wednesday 1 December, with the changes effective after the close on Friday 17 December. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more A sparky performance by Electrocomponents pushes it into a prime position to move into the FTSE 100. Dechra pharma, another FTSE 100 contender has clawed opportunity from the soaring popularity for pets. Cyber Security firm DarkTrace set to slip out of the FTSE 100 following a share slide as the lock-in IPO period ended. Johnson Matthey’s position in the FTSE 100 looks shaky after it abandoned its battery plans. Supply chain issues plague electrical retailer AO World as it looks set to slide from FTSE 250. Petershill Partners eyes up a FTSE 250 position and fresh acquisitions of private equity assets. Fresh Covid woes hit The Restaurant Group as it looks set to slide out of the FTSE 250. Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown summarises the runners and riders: Electrocomponents – Contender To Enter The FTSE 100 "The sparky performance by Electrocomponents plc (LON:ECM), with adjusted pre-tax profits up 91% for the first half of the year, has led to a surge in its share price, pushing it into a prime position to move into FTSE 100 territory. The vast range of industrial and electronics products held by the distributor is partly behind its success, as well as its smooth online operations fulfilling the lucrative business-to-business segment. It’s not been immune from higher transport and labour costs, and global supply chain issues, but it appears to have deftly managed its inventory and kept margins intact. Although there are likely to be further cost pressures ahead, Electrocomponents appears in a robust position, particularly given that demand for electrical parts shows little sign of waning." Dechra Pharma - Contender To Enter The FTSE 100 "Dechra Pharmaceuticals plc (LON:DPH) has clawed opportunity from the soaring popularity for pets during the pandemic. Its share price has bounded upwards and it is a prime contender to take a walk into the FTSE 100. With so many more people working from home, it’s been an ideal opportunity to settle in a new furry friend and Dechra is in the business of keeping them healthy throughout their lifetimes. Demand for the pharmaceutical company’s veterinary products has been strong, with full year results showing pre-tax profits almost doubling. There is a risk that with incomes facing a squeeze from rising inflation, spending per head could decline, so there could be headwinds to navigate. But other results from pet orientated companies indicate that demand for pets doesn’t seem to be falling away, which bodes well for future revenues streams." Darktrace – Likely To Be Demoted From The FTSE 100 "Cyber security firm Darktrace PLC (LON:DARK) made a stealthy entry into the top-flight at the last reshuffle, but it’s a leading contender to leave the blue chip index given that shares have fallen by 52% since reaching a record high in September. This appears to be down to the end of the lock-up period following its IPO, with big chunks of new shares flooding the market prompting the falls. Darktrace is not alone in being a former IPO darling, now experiencing the pain of a rapid deceleration in its share price. Its successful launch in the spring was seen as a coup for the London market, and if it exits the top-flight it will leave a big tech gap in the FTSE 100. However, given ongoing growth reported by the company and some pretty upbeat trading updates, it may not stay outside the top-flight for long.  There is growing demand for sophisticated technology to counter the growing armies of cyber criminals and Darktrace uses AI to scan regular business operations and detect tiny irregularities, providing an early warning system of cyber-attacks. The ongoing shift to digital is likely to keep opening up new opportunities and markets for Darktrace as firms scale up their operations to meet demand, whilst trying to ensure their systems stay secure." Johnson Matthey – Likely To Be Demoted From The FTSE 100 "Investors are clearly worried about Johnson Matthey PLC (LON:JMAT)’s strategy for the future and amid this uncertainty, the company risks sliding out of the FTSE 100. The engineering company’s decision to abandon plans to become a battery supplier by selling off its eLNO business saw shares slide, because this appeared to be JMAT’s answer to the shift towards electric vehicles and away from combustion engines, for which it makes catalytic converters. Management says it will focus on other potential growth avenues, but ultimately the group will be starting from scratch as it looks for new opportunities alongside the new greener auto industry. Although catalytic converters won’t be rendered obsolete immediately, the clock is ticking and as the transition to electric vehicles speeds up, Johnson Matthey will need to quickly find a new sense of direction." AO World – Likely To Be Demoted From The FTSE 250 "Online electrical retailer AO World PLC (LON:AO) was well set up to capitalise on the accelerated shift to e-commerce during the first stages of the pandemic, with profits soaring as demand for white goods and IT equipment bounded higher. But the company has come down to earth with a bump, falling to a £10 million half year loss, sending shares plummeting, and this dramatic reversal of fortunes is likely to see it kicked out of the FTSE 250. Its rapid growth seems to have been part of the problem, given that it hasn’t had as much time to build up deep relationships with suppliers, so when the supply crunch hit for electrical goods, it was lower down on the list of priorities. Higher labour and transport costs exacerbated by the shortage of drivers have also dented margins, given that it’s so reliant on its delivery network to make sales and provide after care. A quick turnaround is unlikely given that the company has warned that the crucial Christmas trading period will be tough, with supply chain issues lingering, so AO World may find it hard to climb back up the ladder into FTSE 250 territory for some time." The Restaurant Group – Likely To Be Demoted From The FTSE 250 "As fears about the Omicron variant swirl, there are fresh concerns that restrictions could be tightened on hospitality firms and The Restaurant Group PLC (LON:RTN) hasn’t escaped this fresh round of volatility. Although shares are up marginally today, they have fallen by 35% over the past month as investors worry that despite a big round of cost cutting and the slimming down of its restaurant footprint, a big bounce back in fortunes remains elusive.  Although its star brand Wagamama is dishing out fast food as fast as it can make it to crowds queuing outside restaurants or ordering in from home, its airport concessions arm has struggled with a 53% fall in like-for-like sales at the last quarterly reading, as tourism has been slow to recover. Like many other firms in the sector the company is also facing the challenges of higher costs and wage pressures, amid a shortage of staff and those problems look set to linger." Provident Financial - Contender For The FTSE 250 "Provident Financial plc (LON:PFG), the sub-prime firm known for specialising in credit cards, online loans and consumer car finance is likely to gain a foothold in the FTSE 250 after its valuation recovered as it’s pivoted the business. The company called time on its doorstep lending business earlier this year as part of its attempt to climb out of a financial black hole, after being forced to pay compensation for mis-selling its products. Shifting its business model away from riskier high interest loans towards a mid-cost credit model is now more of a focus for the company and it’s a direction of travel investors have embraced. Although the shine has come off the share price in recent days, which may be partly due to fears that if the new variant leads to another downturn, the potential for bad loans could increase, shares are still up by 41% over the past six months." Petershill Partners – Contender For The FTSE 250 "Petershill Partners PLC (LON:PHLL) only started trading on the London Stock Exchange in September but already it’s a leading contender to step into the FTSE 250. Petershill owns minority stakes in a range of alternative asset managers such as venture capital firms and private equity companies, many of which had been managed by Goldman Sachs for a decade or more.  Assets under management at the investment firm increased by 8% in the third quarter, and it has its eye on fresh prizes with new acquisitions being sized up. Petershill has capitalised on the hunger for private equity investments in an era of ultra-low rates, enabling firms to borrow cheaply to finance takeovers.  With an increase in interest rates looming there is a risk that appetite for such assets may wane, and that might partly account for a slight nudging downwards in the share price over the past month." About Hargreaves Lansdown Over 1.67 million clients trust us with £138.0 billion (as at 30 September 2021), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month. Updated on Nov 30, 2021, 12:19 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkNov 30th, 2021

Review: I drove the $65,000 Genesis GV70 SUV on pavement and off-road — and it was incredible all around

The Genesis GV70 is a new compact SUV from Hyundai's luxury brand, Genesis, and it won't just wow onlookers — it'll wow you, the driver, too. The 2022 Genesis GV70.Doug Berger for NWAPA The GV70 is a new compact SUV from Hyundai's luxury brand, Genesis. It starts at $41,000. With options, our tester reached $65,045. We drove it on-road and off.  The GV70 was impressive all around — it handled everything with ease and was comfortable to drive. There's a good reason why the 2022 Genesis GV70 has won so many awards, and this September, the title of Northwest Outdoor Activity Vehicle of the Year was added to its accolades. The 2022 GV70 also won best activity vehicle among compact and midsize luxury entrants at the same event — pretty impressive for an all-new SUV in the class.The award comes from a group of automotive journalists who test drove 19 vehicles on a mini go-kart track and on an off-road course at Mudfest, an event thrown by the Northwest Automotive Press Association at the Ridge Motorsports Park in Shelton, Washington. Members have been testing SUVs and crossovers since the mid-1990s, and this year, I was one of them.Genesis is Hyundai's relatively new luxury brand, and it does a good job of standing out. The 2022 GV70 sparks joy upon first sight, featuring Genesis' signature crest grille and a slick LED quad-headlight look. It's a new entry in the luxury compact-SUV class, and sits alongside the midsized GV80 in Genesis' SUV lineup.(With automakers like Genesis, higher numbers often mean bigger cars — thus, the GV70 is smaller than the GV80.)The 2022 Genesis GV70.Doug Berger for NWAPADrivers of the GV70 have two trims to choose from:Genesis GV70 2.5T ($41,000, 22/28 mpg city/highway): The standard GV70 comes with all-wheel drive and a standard turbocharged 2.5-liter, four-cylinder engine paired with an eight-speed automatic transmission. Although a long list of tech features come standard, drivers can still upgrade certain features by adding features packages.Genesis GV70 3.5T ($52,600, 21 mpg combined): The GV70 3.5T has a 375-horsepower twin-turbo V6 engine. Drivers can still add the Sport Advanced package ($5,000) or the Sport Prestige package ($9,900) to access more options, which include Nappa leather as well as more tech and safety features.At Mudfest, I drove a $65,045 GV70 3.5T Sport Prestige model (with a burgundy matte paint job for an extra $1,500), which runs on the 375-horsepower V6. With this engine, the GV70 can earn about 19 mpg in the city and 25 mpg on the highway, or 21 mpg combined, according to the EPA.The 2022 Genesis GV70.Doug Berger for NWAPAThe 3.5T Sport Prestige model features Nappa leather upholstery, a heated steering wheel, Lexicon speakers, extra safety features, and an electronic limited-slip differential, as well as a 14.5-inch HD screen with navigation, surround-view and blind spot monitoring — and my personal favorite, a convenient head-up display that shows your mpg focused at infinity in the driver's view through the windshield.On the first day of the on-pavement go-kart test drive, the Genesis GV70 was my top pick among the compact and midsize luxury utility vehicles.The 2022 Genesis GV70.Doug Berger for NWAPADriving the GV70 on the pavement mini go-kart track, I had an extraordinary experience — especially with the convenient paddle shifters. The ride and handling was pleasant and the brakes were decent, helping me navigate around the tight pavement track with ease. The GV70 treated me with a courteous responsiveness in its agile steering around tight corners, careful but not harsh braking, and peppy acceleration. The GV70 sits low compared to others in the class, not needing a stair-step to reach the driver's seat. The hood also offers reasonable visibility from the driver's seat, unlike other SUVs and trucks. In the back, the roof dips stylishly into a hatchback-style trunk, almost like a coupe. A panoramic roof and 21-inch sport alloy wheels — which have crest features matching the grille — add to the appeal.The 2022 Genesis GV70.Doug Berger for NWAPAIn a mock-autocross event, the GV70 navigated around all cones with dexterity. The GV70's suspension is controlled electronically, and the Genesis has the ability to direct as much or as little power needed to each individual wheel. However, the drive-mode select feature offers custom mode settings, allowing motorists to customize — and save — preferential settings for the engine, transmission, steering, suspension, and all-wheel-drive system settings.On the second day, this Genesis really shone on the off-roading course.The 2022 Genesis GV70.Doug Berger for NWAPAOff-pavement, the GV70 handles with grace, and the capability is very reasonable. I was comfortable, safe, grounded, and in control over a dirt hill, around a steep corner, and over an obstacle of logs in the sturdy GV70.Drivers of the GV70 are going to find the cabin pleasant and enjoyable, as well as the driving experience — the driver's seat has a 16-way power adjustment and a four-way power lumbar adjustment with an ergonomic motion seat, and an integrated memory seat with smart posture care so you can position yourself perfectly over the pedals. The front seats are both heated and ventilated, and a wireless device charge and fingerprint recognition, as well as Apple CarPlay and Android Auto, make the cabin experience luxuriously enjoyable.The 2022 Genesis GV70.Doug Berger for NWAPAThe commodious, tech-packed cabin successfully hushes road sounds, and the well-made materials are impressively high-quality, ultimately giving a roomy, opulent, and modern interior vibe.Overall while driving the 2022 Genesis GV70, I had a comfortable driving experience in one of the nicest interiors in the class. The 2022 GV70 impressed on the pavement go-kart track, handling with a pleasant ease, and even provided a grounded, safe, insulated feel while navigating the off-roading course.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 30th, 2021

EV Space is All Charged-Up With IPO News: ETFs to Play

Wall Street is abuzz with the electric vehicle IPOs. Phoenix Motors filed for an initial public offering in the United States on Monday after Rivian made a blockbuster market debut in early November. Wall Street is abuzz with the tale of two electric vehicle (EV) stocks — Rivian RIVN and Tesla TSLA. Tesla’s success is known to all. And Rivian Automotive, the electric-vehicle company backed by Amazon.com Inc. (AMZN) (which has 20% stake in the automaker) and Ford Motor, went public on Nov 10, 2021, through a high-profile IPO. As many as 153 million shares were sold at an initial offering price of $78.00, valuing the company at $66.5 billion. Shares of RIVN had an awesome spike on the market debut.Phoenix Motors filed for an initial public offering in the United States on Monday, becoming the latest EV maker looking to cash in on a growing investor appetite for eco-friendly automobiles, per Reuters. Phoenix Motors unveiled its finances for the first time in its filing, revealing a decline in revenues and wider losses for the nine months ended September 2021. Phoenix, founded in 2003, launched its first electric drivetrain in 2009 and sold its first commercial EV shuttle bus in 2014.This puts the spotlight onSimplify Volt Robocar Disruption And Tech ETF VCAR,Global X Autonomous & Electric Vehicles ETF DRIV and iShares Self-Driving EV And Tech ETF IDRV. The global strive for electrification is causing a three-year wave of initial public offerings in the electric vehicle space that could raise about $100 billion until the end of 2023, according to Bank of America Corp, as quoted on Bloomberg.Growing investments in the sector, ranging from batteries to charging cars, will see companies spinning off units as well as go public, said Patrick Steinemann, co-head of Global Mobility Group Investment Banking at Bank of America, the Bloomberg article noted. One of the largest IPOs to hit next year will be the spinoff of LG Chem Ltd.’s battery unit LG Energy Solution in South Korea, which could raise about $10 billion. It’s one of the world’s biggest battery makers after China’s Contemporary Amperex Technology Co., the Bloomberg article pointed out.The top 10 battery makers are expected to nearly triple their manufacturing capacity by 2022 to meet the upcoming surge in demand, according to BloombergNEF. Against this backdrop, below we highlight a few EV ETFs that are good bets currently.EV ETFs in FocusSimplify Volt Robocar Disruption And Tech ETF (VCAR)Simplify Volt Robocar Disruption and Tech ETF is active and does not track a benchmark. The fund VCAR looks to concentrate on those few disruptive companies poised to dominate autonomous driving and enhance the concentrated exposures with options. The ETF VCAR charges 95 bps in fees.Global X Autonomous & Electric Vehicles ETF (DRIV)The Global X Autonomous & Electric Vehicles ETF seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Autonomous & Electric Vehicles Index. The index tracks the price movements in shares of companies that are active in the electric vehicles and autonomous driving segments. The fund DRIV charges 68 bps in fees.iShares Self-Driving EV And Tech ETF (IDRV)The iShares Self-Driving EV and Tech ETF seeks to track the investment results of the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index. The index comprises developed and emerging market companies that may benefit from growth and innovation in and around electric vehicles, battery technologies and autonomous driving technologies. The ETF IDRV charges 47 bps in fees. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports Tesla, Inc. (TSLA): Free Stock Analysis Report iShares SelfDriving EV and Tech ETF (IDRV): ETF Research Reports Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports Rivian Automotive, Inc. (RIVN): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

Electric Dreams of NSANY, TM & HMC in the Spotlight

As Japan readies for an electrified future, the nation's automotive heavyweights are getting serious about transitioning to all-electric transportation. Japan-based automakers were the ones to popularize electric and hybrid vehicles. Toyota’s TM Prius launched in 1997 was followed by Honda’s HMC Insight in 1999. Nissan NSANY raised the electrification game with Nissan Leaf in 2010, the first fully-electric car designed for the mass market. However, once viewed as electric vehicle (EV) visionaries, Japan-based automakers gradually lost their dominance in the EV industry, with carmakers in the United States, Europe and China sprinting past their Japanese counterparts.Battery-powered vehicle sales in Japan have been trailing behind, with the nation’s EV market share sitting below 0.6% in 2020, per Statista data. While the country is spearheading the gasoline-electric hybrids, it has a lot of catching up to do when it comes to fully electric vehicles.With all major nations racing toward an all-electric future, the Land of the Rising Sun is gradually accelerating its EV strategy. The country targets to phase out petrol and diesel cars by mid-2030s. As Japan readies for an electrified future, the nation’s automotive heavyweights are seemingly shedding their inhibitions and getting serious to transition to all-electric transportation. Let’s take a closer look at how Japan’s Big 3 auto giants— Toyota, Honda and Nissan—are positioned in the EV space. While Toyota and Nissan carry a Zacks Rank #3 (Hold), Honda is #5 Ranked (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Nissan Ambition 2030 VisionJust yesterday, NSANY unveiled Nissan Ambition 2030, the firm’s long-term vision for driving the new age of electrification, and empowering mobility and beyond. To this end, the company plans to invest around $17.6 billion over the next five years to accelerate the electrification of its product lineup. It intends to launch 23 new electrified models by the decade-end, 15 of which would be fully electric. The auto giant is aiming at a 50% electrification mix for its Nissan and Infiniti brands by 2030. Nissan expects EVs to account for nearly 70% of its U.S. sales by 2040.On the battery front, the auto biggie plans to introduce its proprietary all-solid-state batteries (ASSB) by fiscal 2028, with a pilot plant in Yokohama to be readied as early as fiscal 2024. ASSB is expected to bring down the price of battery packs to $75 per kWh by 2028 and eventually to $65 per kWh to achieve cost parity between EV and gasoline cars.Nissan also showed off a few EV concept cars, the most striking being a small pickup truck called Surf-Out, besides a boxy crossover ”Hang-Out,” a compact SUV ”Chill-Out” and a convertible sports car “Max-Out”.Currently, NSANY has just one EV offering on market — Nissan Leaf hatchback. The upcoming electric offering Nissan Ariya will go on sale next year with the base price of $47,125.Toyota’s Big Bet on Battery TechIn September, TM earmarked more than $13.5 billion for investment in battery development and production through 2030, which includes a $3.4 billion outlay in battery technology in the United States.The project is expected to help Toyota advance its climate goals to achieve carbon neutrality in a sustainable manner and usher in an era of more affordable EVs for U.S. consumers.The automaker plans to build about 70 hybrid or electric models by 2025, of which 15 will be fully electric. It targets to sell 8 million partially or fully electrified vehicles by 2030, of which about 2 million will be battery-powered cars and fuel-cell vehicles, while the other 6 million will be gasoline-electric hybrids or plug-in hybrids.To cater to the surging demand for clean energy vehicles in the United States, Toyota envisions EVs to account for nearly 70% of its U.S. sales by 2030, up from almost 25% currently. The company expects it will sell as many as 1.8 million electrified vehicles in the United States by 2030, including the zero-emission models.The auto giant intends to slash the cost of its batteries by 30-50%. It plans to optimize the power consumption of these batteries by 30%, starting with its first all-electric SUV— Toyota bZ4X—unveiled last month, where “bZ” stands for “beyond zero,” highlighting Toyota’s goal to become carbon neutral by 2050. Honda’s Massive R&D Outlay for ElectrificationIn a bid to keep up with the global EV race, Honda announced in April its plans to invest $46 billion in research and development initiatives, including electrification, over the next six years. It targets EVs to account for 40% of its sales in North America and China by the decade end, which would further increase to 80% by 2035. For Japan, the company aims EVs to constitute 20% of sales by 2020 and 80% by 2035.  In North America, Honda will collaborate with General Motors to develop two large-sized EV models. The Honda Prologue SUV will be the first volume BEV for North America. The company will unveil an all-electric Acura SUV in 2024. Based on Honda’s strategic partnership with General Motors, both Honda Prologue SUV and Acura SUV will utilize the latter’s Ultium-branded EV architecture and battery system.Last month, Honda laid out its bold EV targets for China, where the company plans to sell only electrified vehicles in China beginning 2030. In 2022, the firm will launch a new electric vehicle brand in China called e:N Series. Under this brand, Honda will roll out 10 new EVs in five years in collaboration with its partners, GAC and Dongfeng Motor. The first set of e:N Series models, e:NS1and e:NP1, will hit the roads in spring 2022. New EV production plants are set to be established at both GAC Honda and Dongfeng Honda, with the commencement of production expected in 2024. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021