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 ...
Ratchat/iStock via Getty Images Investment Thesis Tennant Company ( TNC ) is a Buy with a price target of $80, representing 20% upside. While a failed ERP rollout in Q4 2025 slashed shares by 23%, the company’s status as a Dividend King remains secure, backed by a 157% core free cash flow conversion (ex-ERP costs). The current 13.4x forward earnings multiple creates a rare entry point into a high-...
Ratchat/iStock via Getty Images Investment Thesis Tennant Company ( TNC ) is a Buy with a price target of $80, representing 20% upside. While a failed ERP rollout in Q4 2025 slashed shares by 23%, the company’s status as a Dividend King remains secure, backed by a 157% core free cash flow conversion (ex-ERP costs). The current 13.4x forward earnings multiple creates a rare entry point into a high-moat industrial leader that is successfully pivoting into a high-growth robotics player. Read The Transcript, Not The Headlines For income investors, the question is simple: is the 54-year dividend streak actually at risk after the ERP implementation disaster? For readers new to TNC: Tennant is a 155-year-old industrial cleaning equipment maker. It builds the floor scrubbers, sweepers, and autonomous cleaning robots. Tennant holds roughly 20% of the North American floor care market. Reading the Q4 2025 earnings transcript will give you some insights: CEO Dave Huml opened the call by saying results were materially impacted by the North America go-live of the new ERP system during the first week of November. The implementation led to a complete standstill of orders and shipments due to ERP implementation issues. On the call, the CEO spent the bulk of his prepared remarks diagnosing the failure in detail. It is great to see when a CEO is owning the mistakes made by the company/management rather than making excuses. That kind of transparency sparks confidence management is capable of fixing the issues. The Numbers Behind the Disaster The Q4 2025 results below show the ERP impact on both the top and bottom lines. Source: TNC Q4 2025 Earnings Release It's safe to say the market didn't take the news well. However, we find comfort in the cash flow generation, also highlighted by the CFO in the earnings call: Despite these factors, we delivered $43.3 million in free cash flow, including the $59.1 million investment in the ERP project. Excluding these ERP-related cash flows, our perf...
The war in Iran is prompting states across the country to consider temporarily cutting fuel taxes, a relief measure that could cost them millions of dollars. As war in the Middle East pushes up energy prices, some government officials are advocating for gas tax holidays to try to help consumers struggling with average costs of $4 a gallon , up roughly 30% from a year ago. Even with the US and Iran...
The war in Iran is prompting states across the country to consider temporarily cutting fuel taxes, a relief measure that could cost them millions of dollars. As war in the Middle East pushes up energy prices, some government officials are advocating for gas tax holidays to try to help consumers struggling with average costs of $4 a gallon , up roughly 30% from a year ago. Even with the US and Iran reaching a fragile ceasefire , drivers are likely to face elevated gas prices for the near future. Just this week, Indiana announced a gas tax holiday, with Governor Mike Braun suspending the 7% tax on fuel for 30 days, costing $50 million a month. Both Georgia and Utah have already approved such holidays, while lawmakers in states including New York , Alabama and South Carolina have called for similar measures. The suspension of gas taxes in Georgia through mid-May is expected to cost just under $400 million, the state’s house speaker Jon Burns said in a statement . For Utah, which proposed the holiday amid affordability concerns even before the Iran war, its law discounting the gas tax from July 1 through the end of the year will cost the state about $12 million, according to the legislation. This loss of state tax revenue comes at an inopportune time. The expiration of pandemic aid, slower revenue growth and a reduction in federal funding have all pressured state budgets in recent years, forcing many to find ways to lower spending. Plus, the impact of these measures may be limited, with some studies showing that part of the benefit is absorbed into the supply chain. For Georgia’s holiday, the bottom 60% of families will collect just 22% of the cuts, the Institute on Taxation and Economic Policy ’s research director Carl Davis said in a report . Davis calls these measures “token relief,” in which state lawmakers feel pressured to take action to help consumers, even if it’s largely ineffective. “It’s not like sales tax that you see on a receipt,” Davis said. “You’re count...
JHVEPhoto/iStock Editorial via Getty Images Stryker ( SYK ) has announced that the company remains confident in meeting its 2026 financial guidance despite a material impact on its operations and a potential hit to its Q1 financials due to the recent cybersecurity incident. In a statement on Thursday, U.S. MedTech disclosed that its global manufacturing network is fully operational, and it has res...
JHVEPhoto/iStock Editorial via Getty Images Stryker ( SYK ) has announced that the company remains confident in meeting its 2026 financial guidance despite a material impact on its operations and a potential hit to its Q1 financials due to the recent cybersecurity incident. In a statement on Thursday, U.S. MedTech disclosed that its global manufacturing network is fully operational, and it has restored its business functions, including ordering and distribution systems, following the event. Shares of Stryker ( SYK ) fell last month after a pro-Palestinian hacking group carried out the cyberattack, disrupting its information systems and business applications based on Microsoft’s ( MSFT ) Windows operating systems. “The company has determined that the incident had a material impact on its operations, with resulting impact to the company’s financial results for the first quarter of 2026,” SYK said, adding that its investigation into the incident is ongoing. However, “the incident has not had, and is not reasonably likely to have, a material impact on the company’s 2026 full-year guidance,” according to Stryker ( SYK ). More on Stryker Stryker: Struck By Cyber Concerns Stryker Corporation (SYK) Q4 2025 Earnings Call Transcript Most and least shorted mid-to mega-cap healthcare stocks in March Stryker rebounds as most manufacturing activity restored after cyberattack Seeking Alpha’s Quant Rating on Stryker