Stock Thoughts
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
Taiwan Semiconductor Dominates Leading Edge
• Semiconductor market is expected to double in size by 2030. TSM (Taiwan Semiconductor Manufacturing) accounts for 26% of the world’s semiconductor output.
• Largest pure play fabricator, strength comes from long-term relationships.
• Scale and leading-edge technology as one of the only sub 7nm wafer technology manufacturers in the world.
• International expansion slotted in Japanese and American markets driven by a $100 billion CapEx (Capital Expenditure) expansion.
• Western governments want to distance domestic technology products from China and bring manufacturing back to their countries or local allies.
• The US CHIPS and Science Act provides roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States.
4.3% Yield and Strong Business Momentum Despite Market Headwinds for SAMG
• 4.3% forward yield, paying out $0.72 per year. Expecting EPS growth of around 12%.
• Expanding offerings to include OCIO (Outsourced Chief Investment Officer).
• Strong free cash conversion, converting 57% of EBITDA to free cash flow.
• Despite downturn in market, SAMG still has strong AUM growth of 28% since its inception in 2003.
SuperVision Provides Future Vision for Mobileye
• Strong growth in advanced driver assistance systems, despite making up under 1% of volume, SuperVision makes up 33% of revenue growth.
• $17 billion in contracted sales cumulatively through 2030, with an average system price of $105 expected compared to the current $56.2.
• Robust real-world implementation of SuperVision, with 96,000 units deployed in FY22. Expecting >100% growth in units shipped for FY23.
• Backed by strong consumer demand for more safety features and more fatigue-reducing driver features.
Video: Global Payments (GPN) Unloved and Undervalued. Strong Growth and Low Valuation. Best of Both Worlds
• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.
Video: Big 7.7% Dividend Yield for Undervalued Stellantis
• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.
Recent Sale: Further Financials Reevaluation Cost of Capital After SVB Collapse.
Recent Sale: Further Financials Reevaluation Cost of Capital After SVB Collapse. We sold two more financials and REITs last week as the collapse of Silicon Valley Bank spread to various other regional banks and Credit Suisse. Financials: Lincoln National (LNC). Has taken on fixed income losses with interest rate increases. Thus, the tangible book value has taken a…
3.25% Yield and Healthcare Repositioning for CVS Health
• 3.25% dividend yield, strong free cash generation.
• Oak Street acquisition projected to add $2 billion in EBITDA by 2026.
• Expects significant volume growth at pharmacies with the introduction of several biosimilar and generic drugs in FY23.
• Modest FY23 guidance targeting 7% EPS growth despite some sustained headwinds in retail.
EnerSys Growth Is Electrified By IRA
EnerSys (NYSE:ENS) is an industrial solutions firm focusing heavily on stored energy. ENS has 22% of global stored energy for industrial applications.
Recent Sale: Financials Reevaluation Cost of Capital After SVB Collapse.
Recent Sale: Financials Reevaluation Cost of Capital After SVB Collapse. We sold several financials and REITs last week as the collapse of Silicon Valley Bank was unfolding. Financials: US Bankcorp (USB), Citigroup (C). Both have taken on fixed income losses with interest rate increases. Thus, the tangible book value has taken a hit causing us to reconsider our valuation.…
Big 7.7% Dividend Yield for Undervalued Stellantis
• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.