FA Alpha Weekly Digest - 06 05 2023

Wall Street’s stock picks can’t be trusted and the advertising bias of the mainstream financial media makes their news only sensationalist-driven. Gain an edge by knowing the trends that matter and some of the mispriced names in the market.

We bring you the FA Alpha Weekly Digest, a roundup of FA Alpha’s unique and unparalleled equity, credit, and macroeconomic insights over the past week.

In today’s digest, we’ll take a look at Global Payments (GPN), LSB Industries (LXU), The Manitowoc Company (MTW), and Icahn Enterprises (IEP).

The payments king is dead, long live the new king!

The COVID-19 pandemic accelerated the shift to a cashless society, with the rise in alternative payment options and bank accounts. Global Payments (GPN), a provider of in-demand payment technologies and software solutions, is a clear winner in this space. However, the market fails to recognize the surge in digital payments and the opportunities it brings. With its strong performance and potential, Global Payments is in good position to thrive in the evolving payments industry.

This chemical company is the next victim of rating agencies

LSB Industries (LXU), a diversified chemicals manufacturer, is unfairly perceived as having high credit risk due to the perceived cyclicality of commodity-based businesses. However, a closer look at LSB Industries revealed strong profitability and resilience, particularly in the last two years. Additionally, the company has positioned itself well to take advantage of market opportunities and benefit from the ongoing supply chain supercycle. Using Uniform Accounting, we can clear up biases and determine LSB Industries' true creditworthiness.

You can’t have a supply chain supercycle without cranes

As the U.S. addresses its underinvestment in infrastructure, which encompasses various aspects such as roads, bridges, and factories, the demand for cranes is expected to rise. This presents a significant opportunity for the Manitowoc Company (MTW), a leading player in the crane market. Despite its recent lackluster performance, Manitowoc has historically shown solid results during periods of increased infrastructure spending. With the Supply Chain Super Cycle underway, there is potential for the company's profitability to rise.

The infamous corporate raider’s market cap halved because of a short report

A controversial report published in May by Hindenburg Research accused Icahn Enterprises of inflating asset values and operating like a Ponzi scheme. This resulted in a? 20% decline of Icahn Enterprises’ stock. Using Uniform Accounting, let’s examine Icahn Enterprises’ portfolio to see its true performance.

We hope you find this week’s FA Alpha Daily articles insightful.

See you next week as we talk about another set of interesting names.

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