The Long Investor
$DAL HSBC PT of $72.80
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$DAL HSBC PT of $72.80
DELTA AIRLINES $DAL initiated at 'Buy' with $72.80 price-target at HSBC:
"We initiate on Delta Air Lines with a Buy rating and a target price of USD72.80. This is our preferred play among the US airlines under our coverage. We like its strong network mix and competitive positioning at all of its key hubs, which offers a rich mix of traffic, evident from management commentary, but also from the rising revenue from premium cabins, which has risen to 43% in 2023, from only 18% in 2015.
The company maintains a focus on the premium segment, which should result in healthy operating margins for the company. Moreover, Delta is the only player with non-unionized labor. Yet, Delta pays its employees very well and shares profit, which helps management to maintain good employee relationships and significantly lowers the risk of strikes. On the financial KPIs, the company has a strong balance sheet, with net debt/EBITDA of only 2.7x, a strong FCF yield (we forecast a post capex FCF yield of 11.4% per annum over the next four years) and healthy profit margins." tweet
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Brandon Beylo
RT @minenergybiz: The case for #tin - major demand tailwinds. The tin theme is absolutely undervalued in the commodity complex and gets little media attention. Good overview from Brandon @marketplunger1
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RT @minenergybiz: The case for #tin - major demand tailwinds. The tin theme is absolutely undervalued in the commodity complex and gets little media attention. Good overview from Brandon @marketplunger1
Tin is benefiting from three major demand tailwinds:
• Solar
• AI/data centers
• EVs and Electrification
Yet these drivers only account for ~30% of total demand.
What happens to demand/price when they reach 50%?
New mine supply can't come online fast enough.
#Tin tweet
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Brandon Beylo
RT @Rory_Johnston: Treatment Charges (TC) are the most compelling datapoint re: copper bull market (to counteract weird copper contango)
If refiners weren't themselves concerned about future cathode why would they be voluntarily losing money by continuing to fight for & refine concentrates?
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RT @Rory_Johnston: Treatment Charges (TC) are the most compelling datapoint re: copper bull market (to counteract weird copper contango)
If refiners weren't themselves concerned about future cathode why would they be voluntarily losing money by continuing to fight for & refine concentrates?
Looks like copper TC rates just went negative 👀
Absolutely wild.
#copper
H/t @GoldForecast https://t.co/3dFx52QFhH tweet
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Brandon Beylo
Copper is up 24% since this tweet.
Still expecting a significant pullback here soon.
But we're only $0.20/lb from my preliminary $5/lb target.
#copper https://t.co/89mVY4A1tB
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Copper is up 24% since this tweet.
Still expecting a significant pullback here soon.
But we're only $0.20/lb from my preliminary $5/lb target.
#copper https://t.co/89mVY4A1tB
See you guys at $5/lb copper.
#Copper tweet
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Hidden Value Gems
“London-listed groups have received more than $78bn worth of bids this year.”
@FT https://t.co/ixqffgoG4e
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“London-listed groups have received more than $78bn worth of bids this year.”
@FT https://t.co/ixqffgoG4e
Why it is worth looking at 🇬🇧 stock market:
✅ there were 12 bids in Q1 alone
✅ record number of companies launched buybacks in the past 12 months
✅ a combination of buyback and dividends leads to 5.5% yield for UK vs 4.5% for Europe and 3.5% for US
✅ of £1.9B allocated to equities in April, £1.25B went into North America. Record pessimism sets expectations low
✅ Sell-side coverage has dropped to record low, more market inefficiencies tweet