Archive for July, 2014

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Quick Thoughts: The Signal from the Rate-Markets on 2015 Margin-Lift for Large Banks is Deafening

With 6-month Libor (6ML) at just over 30 basis points, the deposit franchises of US Commercial banks are contributing next-to-nothing to net interest margins; specifically, we estimate deposit franchises contributed less than 10 basis points to aggregate net interest margins

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ADM and the M&A Carousel

This morning, ADM hopped on the M&A carousel and announced that it was acquiring WILD Flavors GmbH for approximately $3.0 billion.  WILD is a peer to companies such as International Flavors and Fragrances (IFF) and Givaudan, producing flavors and taste

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Quick Thoughts – Employment Trends

We don’t like reporting the news, but will happily follow on with a perspective that we think may be getting lost or ignored – in this case, the non-farm payroll numbers released this morning The headline number was unquestionably positive,

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The Bull Case for Specialty Drug Pricing

Average prices for traditional drugs (e.g. drugs for common chronic conditions, and for relatively non-serious acute conditions) grow rapidly because manufacturers steadily inflate existing drug prices over time. In contrast, average prices for specialty drugs (e.g. for less common debilitating

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Quick Thoughts – STZ Q1 Earnings

With the stock up solidly this morning we suspect that there won’t be any shortage of cheerleaders offering commentary on the company’s earnings release – the company reported Q1 EPS of $1.07 versus consensus of $0.93. We believe that certain

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Quick Thoughts – Construction Spending

Some interesting data on construction spending emerged from this morning’s release from the Census Bureau; We focus on private construction spending, rather than total (obviously, total less public = private) as private tends to be more volatile and more revealing

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