January 25, 2017

Valens Equities Weekly Insights and Inflections for January 25, 2017


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

Markets expect RMD to drive historically high UAFRS-based ROA, but management’s concerns about their ability to execute current strategies and maintain overall profitability imply this is unwarranted

veii RMD 2017 01 25

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

Most Compelling ECF™ Inflections
CRUS, ADBE, JPM, MUST

Company Specific Highlights & Insights:
BLL, BWA, FLS, TSX:FTS, GNTX, IT, JBLU, STZ, VAR, WCN, ZAYO

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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