December 28, 2016

Valens Equities Weekly Insights and Inflections for December 28, 2016


Each week the Valens Securities team highlights our most interesting insights from across our tools and our analysis, including individual company industry and macro insights

Market expectations for TSN to maintain historically high UAFRS-based ROA are too aggressive, as management is losing confidence in the firm’s outlook

veii-2016-12-28

Market Insights
Most Compelling Long Ideas
FB, CTXS, MYL, LRCX, PANW

Most Compelling ECF™ Inflections
CRUS, ABC, JPM, MU, MA

Company Specific Highlights & Insights:
AXL, BLDR, CERN, DISC.A, DLPH, EIX, MMP, NBL, S, SRE

Aggregate ECF™ Trend Analysis:

Management confidence levels continue to be volatile, ranging between 24 month highs and 24 month lows in the past 6 months. In April, Management Confidence spiked higher, but the metric subsequently rolled over in recent months, falling to the low end of its range. This signaling that growth remains elusive, as management teams continue to not be confident enough to invest in their businesses.


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