Failed Breakouts, Banks Crumbling -- Get Defensive Despite a dramatic one-day reaction to Powell's speech on Wednesday (+3.15% on SPX), the S&P 500 finished the week with just a 1.1% gain. Moreover, not much has changed in terms of the charts as we look through all stocks in the Russell 3000 (something we do each week). In fact, there was some deterioration within banks (KRE, KBE), a trend that continued yesterday. Additionally, the S&P 500 has been unable to sustain a breakout above its 200-da...
Short Shots is a collection of technically vulnerable charts culled from the Negative Inflecting and Toppy columns within our Weekly Compass report or from various technical screening processes. The charts contained in this report have developed concerning technical patterns that suggest further price deterioration is likely. For these reasons Short Shots can also be a great source of ideas for investors interested in short-selling candidates.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Reason For Caution Various market dynamics have deteriorated recently which leads us to a more neutral outlook for the weeks ahead. For now we do not expect to see a significant correction, however we have reason to believe that this current consolidation period could go on longer than initially expected. Below we explain updates to our outlook. · Deteriorating Market Dynamics: US Dollar & EM Equities. The 92 level has been our key line in the sand on the US dollar (DXY); we have sugge...
Short Shots is a collection of technically vulnerable charts culled from the Negative Inflecting and Toppy columns within our Weekly Compass report or from various technical screening processes. The charts contained in this report have developed concerning technical patterns that suggest further price deterioration is likely. For these reasons Short Shots can also be a great source of ideas for investors interested in short-selling candidates.
While narrow-moat United Breweries' volume trajectory remained solid in the first quarter, exogenous factors (namely currency headwinds) continued to hamper its profitability. Consolidated volume growth of 6.6% was largely offset by a 5.2% decrease in pricing, primarily due to the depreciation of the Argentine peso (management estimates a nearly 97% devaluation relative to the Chilean peso), which compressed the revenue received from its international business (25% of sales). This was compounded...
While narrow-moat United Breweries' volume trajectory remained solid in the first quarter, exogenous factors (namely currency headwinds) continued to hamper its profitability. Consolidated volume growth of 6.6% was largely offset by a 5.2% decrease in pricing, primarily due to the depreciation of the Argentine peso (management estimates a nearly 97% devaluation relative to the Chilean peso), which compressed the revenue received from its international business (25% of sales). This was compounded...
We think United Breweries’, or CCU's, position as the leading beer producer in Chile--where it generates more than 70% of its revenue and has 40%-plus volume share of the beverage category--and its vast national distribution network have conferred it with the brand-driven assets needed to secure a durable competitive edge. In Chile, the firm owns the best-selling beer brand, Cristal, and holds the exclusive right to produce and distribute a variety of licensed brands throughout the country, in...
We aren't anticipating substantial changes to our $25 per ADR fair value estimate for narrow-moat United Breweries after evaluating its fourth-quarter results. On a full-year basis, sales grew 5% (comparable to our estimate) and adjusted operating margin expanded 110 basis points to 14.9% (versus our expectation that it would stay flat). This improvement in profitability was largely driven by the firm's ongoing cost savings initiatives as well as improved scale and better leveraged logistics exp...
We aren't anticipating substantial changes to our $25 per ADR fair value estimate for narrow-moat United Breweries after evaluating its fourth-quarter results. On a full-year basis, sales grew 5% (comparable to our estimate) and adjusted operating margin expanded 110 basis points to 14.9% (versus our expectation that it would stay flat). This improvement in profitability was largely driven by the firm's ongoing cost savings initiatives as well as improved scale and better leveraged logistics exp...
We aren't anticipating substantial changes to our $25 per ADR fair value estimate for narrow-moat United Breweries after evaluating its fourth-quarter results. On a full-year basis, sales grew 5% (comparable to our estimate) and adjusted operating margin expanded 110 basis points to 14.9% (versus our expectation that it would stay flat). This improvement in profitability was largely driven by the firm's ongoing cost savings initiatives as well as improved scale and better leveraged logistics exp...
We think United Breweries’, or CCU's, position as the leading beer producer in Chile--where it generates more than 70% of its revenue and has 40%-plus volume share of the beverage category--and its vast national distribution network have conferred it with the brand-driven assets needed to secure a durable competitive edge. In Chile, the firm owns the best-selling beer brand, Cristal, and holds the exclusive right to produce and distribute a variety of licensed brands throughout the country, in...
United Breweries' (CCU) underlying performance remained solid in the third quarter, as strong volume performance (up nearly 11%) was obscured by unfavorable macroeconomic conditions (namely, hyperinflationary accounting in Argentina and the depreciation of the Argentine Peso), leading net sales to decline by 1.6%. However, the firm's ongoing efforts to extract costs from its manufacturing processes helped offset these pressures, allowing operating margin to expand 70 basis points to around 12%. ...
United Breweries' (CCU) underlying performance remained solid in the third quarter, as strong volume performance (up nearly 11%) was obscured by unfavorable macroeconomic conditions (namely, hyperinflationary accounting in Argentina and the depreciation of the Argentine Peso), leading net sales to decline by 1.6%. However, the firm's ongoing efforts to extract costs from its manufacturing processes helped offset these pressures, allowing operating margin to expand 70 basis points to around 12%. ...
United Breweries' (CCU) underlying performance remained solid in the third quarter, as strong volume performance (up nearly 11%) was obscured by unfavorable macroeconomic conditions (namely, hyperinflationary accounting in Argentina and the depreciation of the Argentine Peso), leading net sales to decline by 1.6%. However, the firm's ongoing efforts to extract costs from its manufacturing processes helped offset these pressures, allowing operating margin to expand 70 basis points to around 12%. ...
We aren't anticipating material changes to our $25 fair value estimate for United Breweries, outside of exchange rate adjustments, after reviewing the firm's second-quarter results. We're also holding steady on our longer-term outlook, which calls for 6% revenue growth and mid-teens operating margin on average over our forecast. Year to date, net sales growth approximated 6% (in line with our outlook) and EBITDA margin (excluding the effect of a one-time cash payment received from Anheuser-Busch...
We aren't anticipating material changes to our $25 fair value estimate for United Breweries, outside of exchange rate adjustments, after reviewing the firm's second-quarter results. We're also holding steady on our longer-term outlook, which calls for 6% revenue growth and mid-teens operating margin on average over our forecast. Year to date, net sales growth approximated 6% (in line with our outlook) and EBITDA margin (excluding the effect of a one-time cash payment received from Anheuser-Busch...
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