Report by 280First

Since there are always reasons when companies change the wording in their financial filings, being alerted to these changes allows investors to realise potential risk factors and opportunities before they are reflected in the market, ideal for idea generation and portfolio monitoring. Recent alerts include: 1) Johnson Controls - colour on impairment: projections lower than prior forecast. 2) Rambus - customers fail to place orders. 3) Sysco - changing expectation on industry volume growth. 4) Transocean - may seek covenant relief. 5) Wolfspeed - EV products demand moderating? Supply no longer tight?

Report by 280First

By utilising AI, NLP, data analytics and qualitative analyst oversight, 280First can glean material and actionable insights on companies which will be missed by most institutional investors. Recent highlights include: 1) Lockheed Martin - changing expectations for future aircraft delivery; LMT’s 2023 10K no longer references its previously expected 156 per year delivery rate. 2) Adobe - brighter capital resources outlook. Acquisitions planned? 3) Alphabet - higher expectations for operating margin trend. 4) Comcast - concerns on multichannel video provider agreements. 5) Mondelez - losing shelf space due to disputes. Delay / unable to raise prices. 6) Sysco - dialling back growth expectations.

Consumer Staples

Report by Behind the Numbers

Behind the Numbers added SYY to its Top Sell list (11th June) arguing the recovery seemed more than priced in, Covid-related market share gains would quickly be lost and there was little room left to grow by acquisition. In addition, SYY has a history of reporting results with unusual items that allow it to top estimates. The last quarter was no exception. BTN identified over 7 cps in unusual benefits without which the company would have reported a miss. The stock is down 9% since addition but they see a strong possibility for disappointment in upcoming quarters.