What Caught Our Attention in the Investment World? – Week of September 26-30, 2022

By Kuldip K. Ambastha

On Thursday, September 29, 2022, the stock price of CarMax, Inc. (KMX), a used vehicle retailer, dropped by -24.6% per share. The American company’s latest quarterly performance results disappointed Wall Street, especially from the perspective of earnings per share (EPS). The current landscape of high inflation, higher interest rates (making for more expensive vehicle loans alongside stricter credit underwriting standards), and low consumer confidence has lessened the demand for used vehicles. Both individuals and wholesaling companies, the two key customer segments of CarMax, have lowered their used vehicle purchasing activities. Since the used vehicle market is often a leading indicator for where the new vehicle market is heading, in the near future we all may see less demand for new vehicles as well.

Keywords – CarMax, Inc., CarMax, KMX, used, new, vehicle, retailer, retail, earnings per share, EPS, Wall Street, inflation, interest rates, confidence, demand, purchasing, individual, wholesale, customer, consumer, client.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in KMX.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of September 19-23, 2022

By Kuldip K. Ambastha

The stock price of Sotera Health Company (SHC), an integrated global health solutions company, had a loss of -33.3% per share on Monday, September 19, 2022. On the subsequent trading days of the week, three negative daily returns and one positive daily return were seen. Litigation was the primary cause of the four negative daily returns seen during the trading week, since a lawsuit resulted in the amount of $363 million being awarded to a plaintiff on the matter of ethylene oxide (EO) exposure leading to cancer. With this legal ruling having been made against Sotera and two other companies due to EO exposure from a factory in Illinois, several other lawsuits could also be resolved such that Sotera is found liable for significant monetary damages. Various investors and Wall Street equity research analysts have now turned negative on the stock of Sotera.

Keywords – Sotera Health Company, Sotera Health, Sotera, global health, litigation, legal, lawsuit, law, damages, ethylene oxide, EO, cancer, Wall Street, equity research, negative.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in SHC.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of September 12-16, 2022

By Kuldip K. Ambastha

On Thursday, September 15, 2022, the stock of Spectrum Brands Holdings, Inc. (SPB), a branded consumer products company, fell in price by -16.2% per share. Within Spectrum Brands Holdings, there is a residential door hardware division offering the Baldwin and Kwikset brands. A rival company had expressed interest in acquiring this division, but the U.S. Department of Justice (DOJ) has initiated a lawsuit to block an acquisition. The DOJ maintains that a completed acquisition would lead to higher prices for customers along with reduced innovation for homeowners looking into smart lock or premium mechanical door hardware. Further legal activity is likely to occur since Spectrum Brands Holdings and the acquiring company both oppose the DOJ’s lawsuit.

Keywords – Spectrum Brands Holdings, Inc., Spectrum Brands Holdings, Spectrum Brands, Spectrum, SPB, Department of Justice, DOJ, branded consumer products, price, innovation, residential door hardware, smart lock, Baldwin, Kwikset, litigation, lawsuit.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in SPB.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of September 6-9, 2022

By Kuldip K. Ambastha

The stock of Regeneron Pharmaceuticals, Inc. (REGN), a biotechnology company with a portfolio of medicines for individuals with serious diseases, increased in price by +18.8% per share on the trading day of Thursday, September 8, 2022. Eylea (aka: aflibercept), an anti-blindness eye medication, was the cause of this price run-up, because of positive results seen in two late-stage trials. The latest data from the trials supports the safe use of Eylea in potentially higher dosages (such as 8 mg) with longer dosing intervals (such as 16 weeks). Various Wall Street equity research analysts have upgraded the stock and / or raised the price target on the stock due to the strongly positive observed data. Eylea has been a strong revenue generator for Regeneron thus far and likely may continue to be a strong revenue generator in the future.

Keywords – Regeneron Pharmaceuticals, Inc., Regeneron Pharmaceuticals, Regeneron, biotechnology, biotech, medicine, medication, Eylea, aflibercept, late-stage, trial, anti-blindness, eye, Wall Street, equity research, upgrade, price, revenue.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in REGN.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of August 29-September 2, 2022

By Kuldip K. Ambastha

On Thursday, September 1, 2022, the stock of Okta, Inc. (OKTA), a technology company providing cloud-based identity management support for businesses, fell in price by -33.7% per share for the trading day. While 2Q2022 results surpassed Wall Street expectations, areas of concern on a going forward basis drove this sharp decline in the share price and many equity research analysts have downgraded the stock. Specifically, Auth0 (acquired in 2021) has not been successfully integrated into Okta at this time, and sales professionals affiliated with Auth0 have been leaving Okta at an elevated rate. Okta leadership may need to consider changes in sales compensation structures and in corporate strategies to improve profitability in the future. Tough decisions could lie ahead, especially as more and more technology companies are initiating workforce reduction plans given the current economic landscape.

Keywords – Okta, Inc., Okta, OKTA, Auth0, technology, tech, cloud, identity management support, Wall Street, equity research, downgrade, sales, strategies, workforce reduction, economy.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in OKTA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of August 22-26, 2022

By Kuldip K. Ambastha

The stock price of Burlington Stores, Inc. (BURL), an American off-price (discount) department store retailer once known as Burlington Coat Factory, fell by -10.2% per share on the trading day of Thursday, August 25, 2022. 2Q2022 corporate performance results were quite satisfactory, in general. However, 3Q2022 and 2022 corporate performance guidance disappointed Wall Street. Burlington Stores leaders mentioned lower earnings per share (EPS) expectations for 3Q2022 and fiscal year 2022, compared with the Wall Street consensus estimates in place prior to this new information being disclosed. An inventory overhang plus a weakened consumer buying capacity are key concerns for Burlington.

Keywords – Burlington Stores, Inc., Burlington Stores, Burlington, Burlington Coat Factory, BURL, off-price, discount, department store, retailer, retail, 2Q2022, 2022, fiscal year, performance, earnings per share, EPS, Wall Street, consensus estimates, inventory overhang, consumer, American, USA.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in BURL.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of August 15-19, 2022

By Kuldip K. Ambastha

On the trading day of Friday, August 19, 2022, the stock price of Foot Locker, Inc. (FL), a multi-channel athletic shoe and apparel retailer, rose by +20.0% per share. For 2Q2022, the company reported a $0.99 earnings per share (EPS) figure, which surpassed expectations. That said, the company also disclosed a $2.07 billion total sales figure, a decline from the prior quarter which now leads company management to expect a decline in total sales for the year of 2022. Aside from performance figures, the biggest Foot Locker news driving the stock price increase was on the Chief Executive Officer (CEO) transition front. Dick Johnson will be retiring effective Thursday, September 1, 2022, and will be succeeded by the well-respected and highly experienced Mary Dillon who Wall Street is expecting will initiate bold, new strategies at Foot Locker.

Keywords – Foot Locker, Inc., Foot Locker, FL, multi-channel, athletic, shoe, apparel, retailer, retail, earnings per share, EPS, sales, strategies, 2Q2022, 2022, Chief Executive Officer, CEO, Dick Johnson, Mary Dillon, Wall Street.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in FL.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of August 8-12, 2022

By Kuldip K. Ambastha

The stock of VIZIO Holding Corp. (VZIO), a company involved in designing and manufacturing consumer electronics, had a +18.1% per share rise in price on Thursday, August 11, 2022. For 2Q2022, the company’s sales did not match or exceed Wall Street equity research analyst expectations. However, the company also delivered a profit, linked mostly to cost-cutting measures. VIZIO’s Platform+ offering seems to have a bright future, and the company has been added to the Russell 3000 Index. VIZIO’s 2Q2022 earnings per share figure was $0.01.

Keywords – VIZIO Holding Corp., VIZIO Holding, VIZIO, VZIO, Platform+, Russell 3000 Index, designing, manufacturing, consumer electronics, sales, profits, costs, earnings per share, EPS, Wall Street, equity research, analyst expectations.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in VZIO.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of August 1-5, 2022

By Kuldip K. Ambastha

On Wednesday, August 3, 2022, the stock price of SoFi Technologies, Inc. (SOFI), an American online personal finance company, rose by a sharp +28.4% per share for the trading day. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of October 11-15, 2021; By Kuldip K. Ambastha.”) Net revenues were impressive for the latest quarter, and SoFi obtained over 450,000 new members on its fintech platform. Member deposits stand at $2.7 billion, and these dollars serve as a stable source of funding for SoFi’s loan business unit. Because of these developments, SoFi leadership sees a much improved full-year earnings outlook in the near future.

Keywords – SoFi Technologies, Inc., SoFi Technologies, SoFi, SOFI, World Wide Web, WWW, Internet, online, personal, finance, technology, tech, fintech, loans, revenues, earnings, members, deposits.

Disclosure – The principals of Ambastha Financial LLC have a long equity and a short option position in SOFI. The clients of Ambastha Financial LLC have no positions in SOFI.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of July 25-29, 2022

By Kuldip K. Ambastha

On Wednesday, July 27, 2022, the stock of global pharmaceutical company Teva Pharmaceutical Industries Limited (TEVA) rose in price by +28.4% per share. Teva is the world’s largest generic medicine producer, and has been struggling for the last five years because of weakness in the American generic medicine sector plus intense competition against its Copaxone multiple sclerosis drug offering. However, the stock on Wednesday benefited from the conclusion of many years of negotiation related to opioid lawsuits. A proposed $4.35 billion settlement for the relevant American lawsuits was received warmly, but still needs to be finalized and approved before taking effect. If the proposal ends up being successfully implemented in full, it will clear the way for Teva to have stronger revenue growth with less legal uncertainty in the future.

Keywords – Teva Pharmaceutical Industries Limited, Teva Pharmaceutical Industries, Teva Pharmaceutical, Teva, TEVA, pharmaceutical, medicine, generic, multiple sclerosis, Copaxone, opioids, settlement, revenues, law.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in TEVA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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