Vertigo3d/E+ via Getty Images Nexstar Media stock ( NXST ) was up more than 5% Friday morning after an upgrade to Buy at Citi, which saw the stock come under pressure amid bumps in integrating the newly acquired Tegna. Nexstar closed its $6.2B acquisition of Tegna March 19, set to establish a new power in local TV station ownership. But the deal came under immediate legal pressure amid litigation ...
Vertigo3d/E+ via Getty Images Nexstar Media stock ( NXST ) was up more than 5% Friday morning after an upgrade to Buy at Citi, which saw the stock come under pressure amid bumps in integrating the newly acquired Tegna. Nexstar closed its $6.2B acquisition of Tegna March 19, set to establish a new power in local TV station ownership. But the deal came under immediate legal pressure amid litigation from DirecTV and eight state attorneys general, resulting in a temporary restraining order halting the companies' integration. Looking at the current risks and potential rewards, though, analyst Jason Bazinet saw significantly more upside potential than downside. "We sized three risks: (1) reduced synergies post potential station divestitures, (2) stations sales at a lower multiple relative to the Tegna purchase price, and (3) a potential recession (given the Middle East conflict)," Bazinet wrote. "From prevailing levels, we see $8 of potential downside and $73 of potential upside, a 9:1 risk-reward." The legal case could result in station divestitures, he noted, either in the eight states represented by the AGs or in all states where Nexstar has heavy share. And that introduces two risks: reduced synergies, and sales at a lower multiple than the Tegna purchase price. But "We believe Nexstar’s stock could reach $252 per share if Tegna proceeds unscathed," Bazinet wrote. The firm upgraded Nexstar but cut its target price to $220 (implying 17% upside) on the assumption that Nexstar sells stations covering 25M homes but that the U.S. doesn't enter a recession. More on Nexstar Media Nexstar Stuck In Limbo As Judge Halts Tegna Integration Nexstar Media's Aim For Scale Drives Instant Value, But Shares No Longer Cheap Nexstar Media Group, Inc. (NXST) Presents at Deutsche Bank 34th Annual Media, Internet & Telecom Conference Transcript US senators question FCC chief over fast-tracked Nexstar deal, Bloomberg reports Nexstar ordered by court to pause Tegna merger after DirecTV suit
Two men and two women, whose identities have not yet been released, died when they tried to board a water taxi off the coast of Saint Etienne au Mont, near Calais.
Two men and two women, whose identities have not yet been released, died when they tried to board a water taxi off the coast of Saint Etienne au Mont, near Calais.
The latest US restrictions on Chinese telecoms operators could ultimately force them out of the American market, analysts said, marking an escalation in Washington’s multi-year crackdown on Chinese technology. The US Federal Communications Commission (FCC) said on Thursday that it was considering broader measures to bar Chinese telecom carriers from operating data centres in its territory, further...
The latest US restrictions on Chinese telecoms operators could ultimately force them out of the American market, analysts said, marking an escalation in Washington’s multi-year crackdown on Chinese technology. The US Federal Communications Commission (FCC) said on Thursday that it was considering broader measures to bar Chinese telecom carriers from operating data centres in its territory, further restricting Chinese telecoms carriers’ access to US networks and infrastructure. China Mobile,...
TSLA's Germany registrations surge 315% in March to a record 9,252 units, driven by strong EV demand and a sharp rebound in Europe's largest auto market.
TSLA's Germany registrations surge 315% in March to a record 9,252 units, driven by strong EV demand and a sharp rebound in Europe's largest auto market.
The Beijing Stock Exchange. Photo: VCG The Beijing Stock Exchange is reinstating an offline inquiry-based pricing mechanism for initial public offerings after a three-year hiatus, starting with the planned listing of Kyky Technology Co. Ltd. The return to a more market-driven pricing approach is intended to attract higher-quality companies by allowing richer valuations than the exchange’s default ...
The Beijing Stock Exchange. Photo: VCG The Beijing Stock Exchange is reinstating an offline inquiry-based pricing mechanism for initial public offerings after a three-year hiatus, starting with the planned listing of Kyky Technology Co. Ltd. The return to a more market-driven pricing approach is intended to attract higher-quality companies by allowing richer valuations than the exchange’s default direct-pricing model, which has helped fuel a speculative surge this year, with newly listed shares rising more than 150% on average.
Sign up now! Sign up now! Sign up now? Sign up now! Discipline has long been one of the cornerstones of a successful dressing room in England. If John Eustace’s Birmingham City players did not wish the training ground reception staff “good morning” they were issued with a £250 penalty. Steven Gerrard implemented a variety of fines when manager of Aston Villa for players leaving flip-flops in the s...
Sign up now! Sign up now! Sign up now? Sign up now! Discipline has long been one of the cornerstones of a successful dressing room in England. If John Eustace’s Birmingham City players did not wish the training ground reception staff “good morning” they were issued with a £250 penalty. Steven Gerrard implemented a variety of fines when manager of Aston Villa for players leaving flip-flops in the shower (£50), forgetting to bring a cake for a birthday (£50, Yaya Touré: look away now), leaving plates and cups on the dining table (£100 an item). When Frank Lampard replaced Maurizio Sarri in 2019-20, Lampard immediately introduced a series of internal disciplinary fines for first-team players. Late for training? That’s £20,000, guv. Failure to report knack or illness before a day off? That’s 10 large. Phone rings during a team meeting? One thousand English pounds, thank you very much. Sheffield FC invented football ( yesterday’s Quote of the Day )? A certain person on the other side of the Atlantic would no doubt dispute that” – Robert Pearce. This is an extract from our daily football email … Football Daily. To get the full version, just visit this page and follow the instructions . Continue reading...
mkarco/iStock via Getty Images This is my first coverage of AXT, Inc. ( AXTI ). In this article, I want to analyze how AXT is benefiting from the growth of AI data centers and also the hype surrounding it. I will talk about rising demand for its indium phosphide substrates, the latest earnings report, and lastly the valuation. While bulls argue that indium phosphide is a critical material, I tend ...
mkarco/iStock via Getty Images This is my first coverage of AXT, Inc. ( AXTI ). In this article, I want to analyze how AXT is benefiting from the growth of AI data centers and also the hype surrounding it. I will talk about rising demand for its indium phosphide substrates, the latest earnings report, and lastly the valuation. While bulls argue that indium phosphide is a critical material, I tend to agree, but I strongly disagree with the current valuation, as the stock rose over 3,000% from its 52-week lows over the last year, according to my calculations. I believe this to be excessive and the result of hype, and therefore I am rating it as a "Sell." The Demand For High-Speed Data Transfer To understand the hype surrounding AXT, we first need to analyze their business to figure out what they do and how defensible their moat is. So, data is transmitted as light (photons) through fiber optic cables. This light is created by the indium phosphide diodes, using electrical current from silicon chips to create photons that transmit data through the fiber optic cables. Indium phosphide is much more efficient compared to older materials like gallium arsenide. For further detail, I recommend reading this article. In a high-tech AI chip requiring fast data transmission speeds, this is essential, creating high demand for AXT's product—indium phosphide. As hyperscalers build new data centers, the demand for indium phosphide should also rise. As I discussed in previous articles about the crypto miners pivoting to HPC, this trend is really strong, and data center vacancy rates are at record lows. Hyperscalers also plan to invest more than half a trillion dollars into AI development in 2026. These macro trends indeed suggest the demand for indium phosphide will rise. But the real question is if AXT can grow into its current valuation before supply eventually catches up with demand and indium phosphide slowly gets commoditized. I will try to provide my estimates in the valuation s...
Shutthiphong Chandaeng/iStock via Getty Images By James Knightley, Chief International Economist, US Gasoline prompts an inflation jump, but core pressures were softer than feared US headline CPI showed prices rising 0.9% month-on-month in March, as expected by the market, with a 21.2% MoM jump in gasoline prices contributing the bulk of upside impetus. Airline fares rose 2.7% MoM and apparel pric...
Shutthiphong Chandaeng/iStock via Getty Images By James Knightley, Chief International Economist, US Gasoline prompts an inflation jump, but core pressures were softer than feared US headline CPI showed prices rising 0.9% month-on-month in March, as expected by the market, with a 21.2% MoM jump in gasoline prices contributing the bulk of upside impetus. Airline fares rose 2.7% MoM and apparel prices rose 1%. However, excluding food and energy, inflation was softer than feared, rising only 0.2% MoM/2.6% YoY versus expectations of a 0.3%/2.7% outcome. This was thanks largely to a 0.4% drop in used car prices, a 0.2% decline in medical care, and a 0.4% decline in "other goods & services". Housing costs, the single biggest component by weight, rose 0.3%. The economy has handled tariffs well, with limited goods price inflation. Core goods prices (ex-food and energy) remain benign, rising just 1.2% year-on-year. Instead, the tariff cost is largely being borne by the US corporate sector – next week’s import prices will show another monthly rise, indicating foreign producers are not “paying” the tariffs. “Transitory” inflation far more likely this time While the rise in energy costs will push the annual inflation rate even higher over the next few months, we don’t expect a repeat of 2021/22 when the Fed called inflation pressures “transitory” only to then hike rates 525bp as inflation got within touching distance of 10%. The supply shock this time around is arguably far smaller, focused in the US’ case on gasoline and other fuel costs rather than all goods AND energy in the wake of pandemic-dislocated global supply chains. More importantly, there isn’t the demand impetus this time around to generate broad and persistent inflation. 2022 saw 4.5mn jobs added, wage growth touching 6%, significant pent-up demand, record savings levels, and stimulus checks. This time we have a much cooler jobs market with wage growth closer to 3%, weaker confidence and flat-lining real household...
Hispanolistic/E+ via Getty Images Intro Continued shifts in consumer eating habits continue to pressure the processed food industry and sector stocks. Both Hormel Foods Corporation ( HRL ) and Conagra Brands, Inc. ( CAG ) have seen their shares sold off alongside a wider industry drawdown as a result. Optimists hoping for a quick industry turnaround are bound to be disappointed—the light at the en...
Hispanolistic/E+ via Getty Images Intro Continued shifts in consumer eating habits continue to pressure the processed food industry and sector stocks. Both Hormel Foods Corporation ( HRL ) and Conagra Brands, Inc. ( CAG ) have seen their shares sold off alongside a wider industry drawdown as a result. Optimists hoping for a quick industry turnaround are bound to be disappointed—the light at the end of the tunnel is just not there. Weight-loss drugs have become even more accessible now that Eli Lilly ( LLY ) and Novo Nordisk ( NVO ) have reached agreements with the U.S. administration to make these drugs even more affordable by slashing prices. With their new pill formulations also just recently launched with a bang , the environment for food producers that fail to rapidly adapt to the changing marketplace could get even tougher. From Purdue University : The concept of healthy eating is not new, but with the introduction of drugs such as GLP-1s, the effects of lifestyle and diet changes are reaching a new level. Moreover, the rate at which these changes are occurring, driven by the effectiveness of these drugs, is unprecedented. Conagra and Hormel are Better Positioned The oversimplified playbook for success—which I believe is still highly effective—for packaged-food players might be this: smaller portions, less processing, healthier choices, more protein-rich offerings, and fewer carbs. I have previously rated both Conagra and Hormel as Buys, arguing that their portfolios are well-balanced for today's marketplace needs. Having completed this analysis, I stand by that thesis. In my view, both management teams have grasped the changing environment well, aligning their strategies with real-world consumption trends. Moreover, both companies were relatively well-positioned even before the secular shift in food habits became clear. Hormel is a leader in turkey products, while Conagra excels in chicken-based and frozen vegetables offerings. Having categories that actually ...