Home |  Products |  Bios |  News |  Contact Us |  FAQ
  Independent Research on Corporate Bonds Since 1994 Preferences|Login


Minerva S.A. 06-24 10:53 GMT  
(Report with Analyst's Data Sheet) 
A high inflation environment appears to suit Minerva S.A. (BEEFBZ), the leading beef exporter in South America, relatively well, as the demand for its beef...
Cost Inflation Ahead by Cedric Rimaud, CFA
Rite Aid 06-24 10:52 GMT  
(Report with Analyst's Data Sheet) 
Rite Aid (RAD) reported a mixed first fiscal quarter (ended May 28) as revenue and adjusted EBITDA were disappointing but management improved revenue guidance...
Rite Sizing by Kim Noland
Prologis 06-24 10:34 GMT  
(Report with Analyst's Data Sheet) 
Prologis (PLD),the largest REIT specializing in industrial properties, said this month it will acquire Duke Realty, the second largest industrial REIT, in an...
Amazon Cloud by Kathleen Shanley, CFA
Transocean 06-23 11:31 GMT  
(Report with Analyst's Data Sheet) 
Transocean's (RIG) first quarter results were in line with company expectations as average day rates were down year over year and sequentially due to day rate...
Optimistic Outlook by Evan Mann, CFA
Mondelez International Inc 06-23 11:24 GMT  
(Report with Analyst's Data Sheet) 
Mondelez announced that it will acquire Clif Bar & Company, the maker of Clif and Luna energy bars. The deal will expand the company's...
Deal Happy by Dave Novosel, CFA
Celulosa Arauco y Constitucion SA 06-23 11:19 GMT  
(Report with Analyst's Data Sheet) 
Celulosa Arauco y Constitucion S.A. (Arauco, CELARA) signed an agreement with the government of Mato Grosso do Sul, in Brazil to...
Full On by Alexandre Dray
Merck 06-23 11:13 GMT  
(Report with Analyst's Data Sheet) 
Recent management turmoil at biotech firm Seagen could give Merck the opportunity to make the big business development move it has been hinting at for a while. The...
Opportunity Knocks by Carol Levenson, CFA
Kohl's 06-07 00:30 GMT
(Comment)
As reported in the financial press, Kohl's issued a terse, six sentence announcement this evening saying...
Takeover Battle by Carol Levenson, CFA
As reported in the financial press, Kohl's issued a terse, six sentence announcement this evening saying that it has entered exclusive negotiations for three weeks with Franchise Group (FRG) in relation to FRG's proposal to acquire Kohl's for $60/share. The three weeks will be for finalizing due diligence and financing arrangements (one would think this would already have occurred). Kohl's mentioned receiving "final proposals" plural, but gave no details about them. It won't comment until an agreement with FRG is reached or talks are terminated. The transaction requires approvals from both boards. We've seen thousands of acquisition announcements over the years, and this is probably the least enthusiastic one we've ever read. The price equates to a 42% premium to today's close, but is well below the high over the past year of $64 and the rumored rejected bids before the company's lousy first quarter was announced. The enterprise value is a mere 5x trailing EBITDA. Franchise Group is already a single 'B' credit, with far higher leverage than Kohl's, and this is before spending some $8 billion in borrowed cash to purchase Kohl's. Moreover, it's difficult to see how Kohl's fits in with FRG's company's asset-light, franchising model, which mainly includes home furnishings, vitamin, and pet supplies chains and franchises. How is this going to improve the way Kohl's is run? Kohl's was on our recent Bottom Ten. If FRG prevails, the credit outcome is likely to be severely negative, but most bonds should be protected by change of control puts, depending upon the acquisition structure.
Hewlett Packard Enterprise 06-02 14:15 GMT
(Comment)
It was a disappointing fiscal second quarter (ended April 30th) for Hewlett...
Earnings by Dave Novosel, CFA
It was a disappointing fiscal second quarter (ended April 30th) for Hewlett Packard Enterprise, as revenue rose by a mere 0.2%. Meanwhile, after a stretch of four consecutive quarters of margin expansion, margins declined 80 basis points in Q2. Gross margins decreased 170 basis points due mainly to $105 million of Russia related charges. Combined with the impact of the lockdowns in China, revenue was depressed by $250 million in Q2. The company expects to take further charges in Q3, although they are not likely to be material. Compute was the best performing segment, with a 260 bp improvement in margins, attributable to strategic price hikes. Storage revenue fell 3.4% and margins plunged more than 400 bps due to higher supply chain costs and an unfavorable shift in mix. Intelligent Edge revenue rose 8.5% primarily because of strong Aruba Services revenue. However, margins dropped almost 300 bps. High Performance Computing & Artificial Intelligence revenue was up 4%, but this unit posted a loss because of supply constraints and delayed customer acceptances. Given the 20%-plus increase in orders in Q2, the backlog is at record levels, but management indicated it is probably not at a peak. Nevertheless, guidance for full year revenue growth of 3% to 4% was affirmed. Free cash flow was negative in Q2, reflecting an extensive use of working capital, particularly with respect to strategic inventory actions. However, management expects working capital to be a tailwind in the second half, enabling HPE to generate excellent FCF. HPE used cash on hand to reduce debt by nearly $400 million while spending $58 million on share repurchases.
Credit Suisse 06-17 
An Independent Viewpoint
Rigorous Analysis
Coverage of Key Securities
Every report is one page, and concludes with an actionable investment recommendation.
Jul 12, 2020 | Philadelphia Inquirer
CL on Walgreens third quarter losses
Jun 30, 2020 | Barron's
EM on Chesapeake Energy Declared Bankruptcy. Other Oil-and-Gas Stocks Could be in Danger Too.
Jun 25, 2020 | WSJ Pro
KN on Mohegan Sun: Refi Risk
Jun 22, 2020 | Cincinnati Business Courier
CL on Kroger analyst explains why shares fell after big earnings
Jun 16, 2020 | WSJ Pro
EM on Lear Hits Speed Bump from Covid-19
Copyright © 2022. Gimme Credit LLC. All Rights Reserved.