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Levi Strauss 12-05 03:37 GMT  
(Report with Analyst's Data Sheet) 
Apparel maker and retailer Levi Strauss & Co. (LEVI)'s stock price is fluctuating partly because of tariff talk and also news on holiday retail sales. From a...
Holiday Chatter by Kim Noland
Grupo Bimbo SAB de CV 12-05 03:27 GMT  
(Report with Analyst's Data Sheet) 
The latest 3Q19 results published by Grupo Bimbo SAB de CV (BIMBOA) were solid, exceeded the expectations of investors and confirmed our positive...
Growth Is Good by Cedric Rimaud, CFA
Intel 12-05 03:13 GMT  
(Report with Analyst's Data Sheet) 
Last week both Dell and HP Inc. indicated that their recent results were affected negatively by a shortage of CPUs from Intel. The problem is likely to persist into...
The Party Needs More Chips by Dave Novosel, CFA
Cleveland-Cliffs Inc. 12-04 14:07 GMT
(Comment)
Yesterday, Cleveland-Cliffs (CLF) announced it was acquiring AK Steel (AKS) in an...
Acquisition by Evan Mann, CFA
Yesterday, Cleveland-Cliffs (CLF) announced it was acquiring AK Steel (AKS) in an all-stock transaction valued at $3.0 billion (including the assumption of AKS debt), representing an acquisition multiple of 5.6x LTM adjusted EBITDA. CLF noted it had $2 billion of committed financing in place. Upon completion of the transaction (expected to close in the first half of 2020), CLF shareholders will own 68% of the combined company while AKS shareholders will own 32%. Strategically, the combination will create a vertically integrated producer of iron ore and steel products with greater scale and diversification. CLF should benefit from a ready market for its pellet production, especially its new hot briquetted iron facility, with potential for growth into merchant pig iron manufacturing at AKS's facility in Ashland, Kentucky. The transaction is expected to generate $120 million of annual cost synergies within the first 12 months from consolidating corporate functions, reducing duplicative overhead costs, procurement and energy cost savings, and operational and supply chain efficiencies. On an LTM pro forma basis, the combined company generated revenue of $8.2 billion, adjusted EBITDA of $1.3 billion, and had total debt to adjusted EBITDA of 3.5x (based on the press release). We will dig into this transaction further and provide more details soon.
Denbury Resources 12-04 03:53 GMT  
(Report with Analyst's Data Sheet) 
Despite third quarter curtailments from planned maintenance (Rockies CO2 source plant) and unexpected weather downtime from Tropical Storm Imelda,...
Impatiently Waiting  by Evan Mann, CFA
Deere 12-04 03:45 GMT  
(Report with Analyst's Data Sheet) 
Deere reported weak fiscal fourth quarter results and delivered a discouraging fiscal 2020 outlook last week. Farmers remain cautious regarding major equipment...
Impaired by Carol Levenson, CFA
Kernel Holding S.A. 12-04 03:39 GMT  
(Report with Analyst's Data Sheet) 
Kernel Holding S.A. (KERPW) released its results for Q1 2019/20. Results were mixed as EBITDA increased but net debt soared due to an increase in...
Balancing Act by Alexandre Dray
HP Inc. 12-03 13:09 GMT
(Comment)
In our report on Xerox this morning, we indicated that Xerox is desperate for a merger, whereas HP Inc...
Earnings by Dave Novosel, CFA
In our report on Xerox this morning, we indicated that Xerox is desperate for a merger, whereas HP Inc. is not. HPQ released its fiscal fourth quarter (ended October 31st) results last week, and although the company is not thriving, it is more than surviving. Revenue rose 0.3%, as a 3.6% rise in the PC segment offset a 6.0% decline in the Printing unit. Adjusting for the currency impact, total revenue increased 2%. For the full year, PC revenue was up 2.7%, while Printing revenue fell 3.6%. HPQ continues to take market share in the PC business, adding 1.2 points in calendar Q3 according to management. Growth in Q4 was driven by workstations (up more than 12%) and desktops (up almost 5%). An 8% increase in unit shipments was partially offset by pricing declines. PC margins increased by a hefty 150 basis points, reflecting favorable commodity costs. Printing margins fell 50 bps due to a lower mix of supplies revenue. Total operating margins were down because of the extensive restructuring charges. If they had held constant, overall margins would have been up significantly. The most defining characteristic of the HPQ credit profile is its outstanding free cash flow. FCF totaled more than $3 billion in fiscal 2019. $1.4 billion was used to reduce debt. As the result, leverage dropped to 1.1x. FCF is likely to fall this year, mainly because of the substantial restructuring charges, but should still exceed $2 billion. HPQ had more than $4.5 billion in cash at the end of the year.
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Dec 3, 2019 | Fortune
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Nov 6, 2019 | Bloomberg
DN on Frontier Fuels Speculation on Its Fate by Draining Credit Line -Q- "When you compare that figure to other types of bankruptcy situations over the past year, that's actually pretty good,"
Nov 5, 2019 | WSJ Pro
KN on Tempur Sealy: The Big Bounce
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