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US Banking: Mobile Banking Will Increase Scale Economies

Despite a strong rally off October 2011 lows, large-bank valuations remain attractive with WFC, JPM, and BAC trading at price-to-book multiples of 60%, 40% and 30% relative to the S&P500 – at or below the low-end of pre-crisis ranges. Valuations

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Quick Thoughts: Discover Checking Account Offers Durbin-Advantaged Rewards

DFS beat on EPS ($1.31 vs. $1.25 consensus) and continued to outpace the industry in loan growth (5% year-on-year in card and student, and 26% and 27% in private-student and personal lending respectively); with double-digit account growth in card, we

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PFE/AZN: R&D Productivity in the Context of a Theoretical Merger

The data in this note are extracted from: “Biopharmaceuticals R&D Productivity: Metrics, Benchmarks, and Rankings for the 22 Largest (by R&D spending) US-Listed Firms”, available at www.hiddenpipeline.com Increasing firm size = declining R&D productivity, both across (larger firms produce less

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Corn Planting Progress Remains Sluggish

As of Sunday, 6% of the U.S. corn crop had been planted versus a five year average of 14% – a slow start to be sure.  Significant progress was made across more Southern locations (Louisiana was virtually completed, for example)

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Quick Thoughts – Another Challenging Quarter for MCD

We suspect that expectations were modest for MCD’s Q1 results given the weather in the U.S., recent trends ex-weather and the company’s cautious commentary on margins contained in its last sales release.  We believe that the stock’s recent move higher

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Quick Thoughts: Netflix Fiddles while Traditional TV Begins to Burn

–          NFLX beat on EPS ($0.86 vs. $0.81 consensus) and new subs (4M net adds vs. 3.85M guidance), as its original content strategy is beating on-line and traditional rivals alike. –          With the rapid expansion NFLX subs and streaming hours,

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DuPont – Sifting Through The Noise We Saw What We Wanted to See

Our positive stance on DuPont has been driven by two factors; valuation, and the belief that there is a real growth story in the core business.  Valuation support remains but it is much less of a factor today than it

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SSR Index of Current-Quarter Healthcare Demand Growth: Final 1Q14 Estimates

We expect 3.5% (nominal) y/y growth in US health services demand during 1Q14, the product of 2.5% growth in demand intensity and 1.0% growth in price. Intensity growth reflects a 20bp improvement over actual 4Q13 growth of 2.3%, and a

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Quick Thoughts – CMG Q1 EPS

There is very little not to like in CMG’s earnings release this morning (unless you care about margins or EPS results) – but we recognize that it is a growth stock and that top line growth is pretty much all

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Quick Thoughts – PM Q1 EPS

This morning, PM reported Q1 ’14 EPS of $1.19 per share, besting consensus estimates by $0.03 – we would characterize the quality as somewhat mixed (certainly not as strong as Q4 ‘13), but our view on PM is unchanged given

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