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DuPont/Tronox – The Math Says Yes – The Rest Says No

There is recent speculation that DuPont may explore a reverse Morris Trust (RMT) option as a means of divesting its performance chemicals, with Tronox as the “acquirer”/partner.  It is understandable why there would be such speculation – Tronox is the

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Quick Thoughts: Tesla – Green Performance with No Compromises

–          Elon Musk expects TSLA to leapfrog the $2T auto industry by offering electric vehicles without performance compromises and radically revamped sales and customer service experiences. –          TSLA’s strategy – starting with the high performance segment, investing in a charging

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Apple vs. Banks in Mobile Payments

Based on its patent filings, we expect Apple to extend its Passbook app (currently reserved for gift cards) so that it is compliant with EMV contactless and tokenization standards. This means customers, via their banks, can enable iPhones for mobile

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Dow – Lots of Talk – But Good Topics

In our recent research comparing the opportunity at DOW versus LYB we talked about the number of levers that DOW has available – other than the US ethylene margin – to add to earnings and value.  Yesterday we saw another

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SSR Index of Current-Quarter Healthcare Demand Growth: Initial 2Q14 Estimates

We expect 7.1% (nominal) y/y growth in US health services demand during 2Q14, the product of 5.5% growth in demand intensity and 1.5% growth in price. Our estimate of demand intensity are sharply higher in 2Q14, and reflect an expectation

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May 21, 2014 – TMT: “Culture Eats Strategy for Breakfast!”

TMT: “Culture Eats Strategy for Breakfast!” Culture matters. It biases a company’s world-view, it shapes institutional skill sets, and dictates management decisions. When it is aligned with a company’s strategy and the opportunities created by the market, it is a

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Quick Thoughts – WFC Investor Day: Shift to Mobile Creates Advantage for Large Banks

Beyond financial housekeeping (increasing the target payout ratio to 55-70% from 50-65%), an expression of confidence in the economy, and an intriguing glimpse into how the configuration of a branch network (siting, density, and layout) impacts the relative share of

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Quick Thoughts – Retail

Retail earnings this morning are a bit dicey, with notable weakness from a number of different companies – SPLS, HD, TJX, URBN and DKS. We see these results as consistent with our commentary last week where we laid out (again?

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Quick Thoughts: AT&T makes its TV move

–          T’s DTV deal is old paradigm thinking in the long term, but adds near term upselling opportunities for existing subs, leverage w/ content nets, and an intriguing LatAm play. –          “Triple Play” may be played out – the DTV

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JPM: Earnings Power and Buyback Capacity Under-Estimated

With declining Treasury rates over the last few months and a first-quarter earnings miss, consensus 2015 EPS for JPM has fallen to just above $6.00 from $6.35 in March. This is overdone, and we expect the bank to beat comfortably

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