SSR LLC ANNOUNCEMENT: HUGH WYNNE AND ERIC SELMON JOIN TO LEAD UTILITIES AND RENEWABLE ENERGY RESEARCH.
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SSR LLC

SSR is a differentiated investment research platform built to provide our clients with actionable investment ideas derived from anomalies identified while researching and analyzing a broad range of interrelated industries. Learn More…

Healthcare

Hospitals are a full 1 s.d. below their usual relationship to the broader SP500 on price to FY+2 EPS. And, such low relative multiples have historically signaled subsequent outperformance. Fundamentally however, Hospitals’ relative performance tracks the rate of acceleration or deceleration in revenues – so we view low multiples as a secondary consideration, and the question of whether revenues are accelerating or decelerating as the primary question…Read more

Tech / Media / Telecom

The TMT sector is in the midst of a comprehensive once-in-a-generation paradigm shift driven by the contemporaneous maturation of several key innovations that offer consumers and businesses new and significantly better ways to use information.  In this, we expect the few platforms that control user experiences (AAPL, GOOG, MSFT, maybe AMZN) will capture a disproportionate share of value… Read more

Industrials / Materials

The PX discussion clearly caused significant disagreement at Linde and the fall out at the senior management level is significant. We believe that this opens Linde up for an acquisition, by either PX or APD. See prior research. It is our view that the negotiations with PX most likely broke down because PX made a strong case as to why its management should lead the company, but they were trying to get control without a control premium, through a merger of equals…Read more

Utilities/Renewable Energy

Financials Picture Web Size

Based on utilities’ announced capex plans, we forecast growth in aggregate electric rate base of ~6% p.a. over 2016-2020, in line with the 6% growth realized over the last five years. Among those companies whose earnings derive predominantly from regulated electric utilities, however, there are several where we expect a significant acceleration or deceleration of rate base growth over 2015-2018. Four stocks that apparently fail to fully price in this expected acceleration in rate base growth are AEE, ED, EIX and PCG… Read more