Ambastha Financial LLC

By Kuldip K. Ambastha

YETI Holdings, Inc. (YETI), an outdoor products company, had its stock price shoot up by +31.6% per share on Thursday, November 10, 2022, followed by another +10.0% per share on Friday, November 11, 2022. The company announced strong performance results in 3Q2022, and this information drove the increase in the stock price. Due to excellent net sales and despite net profits being affected by cost inflation, revenues and earnings in 3Q2022 both beat their respective consensus estimates. While concerns about consumer spending have been on the minds of investors in 2022, still YETI has been able to perform well in part because of its growing international (non-U.S.) operation. That all said, corporate management still sounded notes of caution linked to uncertainties (related to consumer spending, cost inflation, and supply chain management) heading into the 4Q2022 winter holiday quarter.

Keywords – YETI Holdings, Inc., YETI Holdings, YETI, outdoor, products, performance, sales, profits, revenues, earnings, cost, inflation, consensus, estimates, consumer, spending, international, non-U.S., supply chain management, 3Q2022, 4Q2022.

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

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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By Kuldip K. Ambastha

On the trading day of Tuesday, November 1, 2022, Johnson & Johnson (JNJ), a major pharmaceutical and medical product provider, announced plans to acquire Abiomed, Inc. (ABMD), a medical device maker. Due to this development, for that day the stock price of Abiomed rose sharply by +49.9% per share, while the stock price of Johnson & Johnson declined by -0.5% per share. Johnson & Johnson will acquire Abiomed for $380 per share in cash, putting an end to Abiomed’s highly volatile tenure as a public company. As Abiomed’s aggregate market value increased over time, investor skepticism around future growth prospects for the company’s offerings also increased. In contrast, Johnson & Johnson by making this acquisition is placing a bet that Abiomed’s medical device products have strong growth prospects which can enhance Johnson & Johnson as a company.

Keywords – Abiomed, Inc., Abiomed, ABMD, Johnson & Johnson, JNJ, pharmaceutical, medical, acquisition, acquire, growth, skepticism.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in ABMD. The principals of Ambastha Financial LLC have no positions in JNJ, while the clients of Ambastha Financial LLC have long equity positions in JNJ.

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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By Kuldip K. Ambastha

On Thursday, October 27, 2022, the stock of Credit Suisse Group AG (CS), a prominent Swiss financial institution with operations around the world, had a steep price drop of -20.0% per share for the trading day. Credit Suisse Group in the recent past has had troubles linked to the scandals around Greensill Capital and Archegos Capital Management, and has the potential to become a “meme stock” if the stock price continues to decline. In 3Q2022, Credit Suisse Group reported a quarterly pre-tax loss, and also announced a strategic overhaul restructuring plan which will change the institution significantly going forward.

This highly complicated, long-term plan includes resurrecting a Credit Suisse First Boston (aka: CS First Boston, aka: CSFB) investment banking unit to be led by star dealmaker Michael Klein with the hopes of an eventual initial public offering (IPO), laying off many current employees, changing senior management professionals, focusing more on wealth management, and raising additional capital, among other action items. The central bank [Swiss National Bank (SNB)] of Switzerland (aka: the Swiss Confederation) is supportive of the plan, while Credit Suisse Group’s Swiss regulator [Swiss Financial Market Supervisory Authority (FINMA)] seems guarded. Many details still need to be fleshed out further, and accordingly Wall Street equity research analysts and Credit Suisse Group shareholders are currently mixed in their viewpoints on the plan based on the limited details now available.

Keywords – Credit Suisse Group AG, Credit Suisse Group, Credit Suisse, CS, Credit Suisse First Boston, CS First Boston, CSFB, Michael Klein, Greensill Capital, Archegos Capital Management, financial institution, Switzerland, Swiss Confederation, Swiss, Swiss National Bank, SNB, Swiss Financial Market Supervisory Authority, FINMA, 3Q2022, overhaul, restructuring, meme stock.

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

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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By Kuldip K. Ambastha

On Thursday, October 21, 2022, the stock price of The Allstate Corporation (ALL), an insurance provider operating in the USA plus Canada, dropped by -12.9% per share, with a mix of various factors leading to the stock of The Allstate Corporation having troubles on this trading day. On a high level, participants in the stock market have become increasingly bearish over the course of 2022, with Allstate immune in the past but more likely to be affected going forward due to the factors noted below. Increased premiums on insurance policies are not offsetting increased payouts due to Hurricane Ian and other occurrences. Furthermore, Allstate’s pool of funds used to fund coverage payouts has not grown significantly in 2022, while Allstate is unable to aggressively increase premiums (to account for higher inflation) without potentially losing customers. In summary, such negative factors are weighing heavily on the stock price of Allstate.

Keywords – The Allstate Corporation, Allstate Corporation, Allstate, ALL, insurance, insurer, USA, Canada, premium, payout, policy, funds, coverage, inflation, customers, Hurricane Ian, bearish, negative, sentiment.

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

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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By Kuldip K. Ambastha

The stock of BeiGene, Ltd. (BGNE), a commercial stage biopharmaceutical company focused on cancer treatment drugs, saw a +20.5% increase in price per share on Wednesday, October 12, 2022. Brukinsa (zanubrutinib) in its Phase 3 trial data showed highly positive results in people with chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL), in an independent review. The drug was well-tolerated in patients, and showed superior progression-free survival (PFS) in individuals compared to rival drugs already available to patients. The European Medicines Agency’s Committee for Medicinal Products for Human Use (EMA’s CHMP) has issued a positive opinion on Brukinsa. If the relevant regulatory agencies eventually issue final approvals for the use of Brukinsa in people around the world, BeiGene may have a bright future.

Keywords – BeiGene, Ltd., BeiGene, BGNE, Brukinsa, zanubrutinib, biopharmaceutical, cancer, treatment, drug, Phase 3, trial, chronic lymphocytic leukemia, CLL, small lymphocytic lymphoma, SLL, progression-free survival, PFS, European Medicines Agency, EMA, Committee for Medicinal Products for Human Use, CHMP, regulation, approval.

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

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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By Kuldip K. Ambastha

The stock price of Twitter, Inc. (TWTR), a microblogging and social networking technology (tech) platform, had a +22.2% per share increase on Tuesday, October 4, 2022, while the other four trading days showed negative daily returns. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of November 29-December 3, 2021; By Kuldip K. Ambastha.”) Though the outcome is still uncertain due to funding, litigation, and other open issues, Elon Musk may proceed with his offer to purchase Twitter and convert it into a privately held company. Shares of Twitter were bid up because of this development, with investors seemingly eager to see what plans Musk may have in store for Twitter. Many commentators currently view Twitter as digital town square for the public, and one highly circulated rumor sees Musk restructuring Twitter into an everything app called X.

Keywords – Twitter, Inc., Twitter, TWTR, X, technology, tech, microblogging, social networking, platform, Elon Musk, funding, litigation, public, private, digital town square, everything app.

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

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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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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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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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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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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