Economic Indicators - The number of Americans filing for initial jobless claims fell by 5,000 to 227,000, compared to the expected 222,000 [2] - U.S. existing home sales decreased by 8.4% month-over-month to a 16-month low of 3.91 million, weaker than the expected 4.16 million [2] - The Consumer Price Index (CPI) rose 2.4% annually, a notable drop from the previous month, with a monthly increase of 0.2% [5] Stock Market Performance - Wall Street's major indices ended in the red, with significant declines in the Magnificent Seven stocks, including Apple (AAPL) down 5% and Tesla (TSLA) down over 2% [4] - Cisco Systems (CSCO) plunged over 12% after reporting weaker-than-expected FQ2 adjusted gross margin and issuing tepid FQ3 guidance [4] - Equinix (EQIX) surged over 10% after issuing strong FY26 guidance, marking it as the top percentage gainer on the S&P 500 [4] Corporate Earnings - Notable companies such as Moderna (MRNA) and Advance Auto Parts (AAP) are set to release their quarterly results [6] - Pinterest (PINS) plunged over 19% in pre-market trading after reporting weaker-than-expected Q4 revenue and issuing below-consensus Q1 revenue guidance [13] - Applied Materials (AMAT) surged over 11% in pre-market trading after posting stronger-than-expected FQ1 results and issuing strong FQ2 guidance [13] International Market Developments - The Euro Stoxx 50 Index is down 0.09% as investors digest fresh corporate earnings reports and await key U.S. inflation data [7] - Eurozone's GDP growth for the fourth quarter stood at 0.3%, in line with preliminary estimates [8] - Spain's annual inflation rate eased more than expected in January, with CPI falling 0.4% month-over-month and rising 2.3% year-over-year [8] Pre-Market Movements - U.S. steel stocks slid in pre-market trading after reports of President Trump's plans to roll back some tariffs on steel and aluminum products, with Steel Dynamics (STLD) down over 4% [12] - Most chip stocks are moving lower in pre-market trading, with Micron Technology (MU) and Intel (INTC) falling more than 1% [12]

Core Viewpoint - Stock splits do not alter a stock's intrinsic value but tend to increase investor interest, often leading to a rise in stock prices post-announcement [1][2]. Group 1: Booking Holdings - Booking Holdings is the most likely candidate for a stock split among high-priced stocks, having previously executed a reverse stock split 23 years ago [5]. - As a consumer-facing business, Booking Holdings appeals to individual investors, making a forward split attractive as it would lower share prices and increase share count, enhancing affordability [6]. - Current market data shows Booking Holdings trading at $5,098.04 with a market cap of $164 billion and a gross margin of 97% [7]. Group 2: NVR - NVR, trading at $7,762 per share, is unlikely to announce a stock split due to its asset-light business model and a history of avoiding stock dividends [8]. - NVR has consistently outperformed the market but has no plans for a stock split in the near future [8]. Group 3: Seaboard - Seaboard operates in diverse sectors including pork production, grain processing, and maritime shipping, but its volatile business model makes it a less likely candidate for a stock split [9]. - The company has experienced double-digit revenue growth in three of the last five years, but negative results in the other two years raise concerns about the timing of a potential split [10].

Group 1: New Food Guidelines Overview - The new food guidelines, referred to as the "new food pyramid," emphasize a shift towards unprocessed foods, prioritizing protein, dairy, fruits, and vegetables, while whole grains are placed at the bottom [2][3] - The guidelines advocate for the use of beef tallow in cooking and the elimination of food dyes, marking a significant departure from previous dietary recommendations [2][3] Group 2: Cost Implications - The estimated weekly food cost under the new guidelines is $175 per person, leading to an annual cost of $36,400 for a family of four, which could increase the share of food expenses in household budgets [4][5] Group 3: Companies to Watch - Beverage companies like PepsiCo and Coca-Cola may face scrutiny due to the new focus on reducing sugar-sweetened beverages [6] - Major food companies such as General Mills, Kraft Heinz, and Kellogg's may need to reformulate products and adjust marketing strategies in response to the guidelines [7] - Meat companies like Tyson Foods and Seaboard Corporation could benefit from the increased emphasis on high-protein foods [7] - Companies focused on fruits and vegetables, such as Fresh Del Monte Produce and Dole Plc, may see positive impacts from the new guidelines [8] - Restaurant companies like Steak 'n Shake and Texas Roadhouse could gain from the shift towards beef tallow and meat-centric offerings [8] - Health-focused food retailers like Sprouts Farmers Market, Chipotle Mexican Grill, and Whole Foods may experience increased attention and potential financial benefits [9]

Core Insights - The article emphasizes that successful investing is not about finding a single magic formula but rather about stacking multiple durable advantages, specifically value, momentum, trend, and credit [2][12][29] Value - Value investing is highlighted as the foundation for reducing risk and creating future returns by purchasing assets below their worth, which builds a margin of safety [3][11] - Ternium (NYSE:TX) is presented as a strong example of value, trading at earnings and cash flow multiples below normalized cycle peaks, indicating skepticism despite improved industry discipline [17] - Friedman Industries (NASDAQ:FRD) is noted for trading at valuation levels that assume mediocre outcomes, despite improving fundamentals [22] Momentum - Momentum is described as a measure of market reward, where securities with strong relative performance tend to continue outperforming due to gradual information absorption [4][11] - ATRenew (NYSE:RERE) shows improved momentum as results stabilize, shifting investor perception from survival to normalization [20] - The momentum for Friedman Industries has confirmed the value case, with the stock breaking higher and establishing an uptrend [23] Trend - Trend serves as a primary risk management tool, helping to align investments with market conditions and reducing catastrophic drawdowns [6][12] - The article suggests that when trend is combined with value and momentum, results can become spectacular, as it enforces discipline in capital allocation [12][28] Credit - Credit is identified as a crucial yet often underappreciated cornerstone, acting as an early warning system for market stress and a measure of individual security survival [8][9] - Ternium's strong balance sheet, characterized by low leverage and ample liquidity, allows it to invest during downturns, providing a margin of safety [18] - Seaboard Corporation (AMEX:SEB) exemplifies exceptional credit strength, maintaining low leverage and diversified cash flows, making it resilient during financial stress [27] Conclusion - The combination of value, momentum, trend, and credit creates a systematic approach to investing, allowing for extraordinary results by stacking probabilities rather than relying on single insights [12][15][29]

Core Insights - Seaboard (SEB) is valued at $4.5 billion and operates in diversified sectors including pork and poultry production, ocean transportation, and various agricultural activities [1] - The stock has shown exceptional performance, gaining 80% over the past year and recently reaching an all-time high of $4,785 [4][3] - SEB has a 100% "Buy" technical opinion from Barchart and is rated "Above Average" by Value Line and "Buy" by CFRA, appealing to risk-tolerant investors [4] Financial Performance - SEB's stock gained 80.11% over the past year and 39.47% in the last month [5] - The stock recently traded at $4,665.50, with a 50-day moving average of $3,741.95 [5] - Seaboard has made 17 new highs recently, indicating strong upward momentum [5] Technical Indicators - SEB has a Weighted Alpha of +99.75 and a Relative Strength Index (RSI) of 83.53, suggesting strong technical momentum [5] - The Trend Seeker "Buy" signal has been intact since November 5, contributing to a 26.83% gain since that date [2][5] - A technical support level is identified around $4,600.25, providing a potential safety net for investors [5]

Market Overview - Despite markets hovering near all-time highs, there is a shift from exuberance to cautious optimism, influenced by weak U.S. employment numbers and the potential economic impact of a federal government shutdown [1] - The market has not seen a 10% correction in over six months, leading investors to brace for a potential drawdown instead of a year-end rally [2] Value Stocks - Investors sitting on significant unrealized gains may consider reallocating to value stocks to minimize losses and generate income through dividends [2] - Five value stocks with a market cap of $3 billion or higher and a Benzinga Edge Value score of at least 90 are highlighted for portfolio protection in volatile environments [3] Sasol Ltd. - Sasol Ltd. has a Benzinga Edge Value Score of 99.66, with a market cap of $3.94 billion, trading at 10 times earnings, a P/B value of 0.4, and a P/S ratio of 0.27, indicating it is undervalued compared to U.S. and emerging market peers [4] - The stock has shown volatility but has evidence of upward momentum, with key technical levels to watch for a potential breakout [6] Gerdau SA - Gerdau has a Benzinga Edge Value Score of 97.67, with a market cap of $7 billion, trading at 8 times forward earnings, a P/B value of 0.70, and a P/S ratio of 0.37, along with a 3.27% dividend [7] - The stock has been trending higher since a Golden Cross in August, currently over 10% above its 50-day SMA, indicating bullish momentum [9] Ecopetrol SA - Ecopetrol has a Benzinga Edge Value Score of 97.47, with a market cap of $19 billion and annual sales exceeding $30 billion, showing a nearly 20% increase year-to-date [10] - The stock's fundamentals and technical trends are favorable, with a P/E ratio of 6.55 and a P/S ratio of 0.64, and bullish momentum is building [12] Seaboard Corp. - Seaboard has a Benzinga Edge Value Score of 94.03, with a market cap of $3.5 billion and annual sales over $9 billion, trading at 9 times earnings, a P/S ratio of 0.36, and a P/B ratio of 0.71 [13] - Recent signals indicate a revival in bullish momentum, with a significant rally taking the share price above the 50-day SMA [15] Fluor Corp. - Fluor has a Benzinga Edge Value Score of 91.46, with a market cap of $7 billion and annual sales exceeding $16 billion, trading at just 2 times earnings and a P/S ratio of 0.47 [16] - The stock has seen a 15% increase in the last three months, breaking above its 50- and 200-day SMAs, indicating a potential momentum reversal [18]

Core Insights - Palm Valley Capital Fund reported a 2.35% appreciation in Q3 2025, underperforming the S&P SmallCap 600's 9.11% gain and the Morningstar Small Cap Total Return Index's 7.99% rise [1] - The Fund's cash equivalents increased from 73.5% to 74.1% during the quarter, indicating a cautious investment strategy [1] - Small-cap stocks outperformed large caps due to expectations of Federal Reserve easing and reduced tariff concerns impacting corporate profits [1] Company Analysis: Seaboard Corporation (AMEX:SEB) - Seaboard Corporation's stock experienced a one-month return of -8.82% but gained 13.90% over the past 52 weeks, closing at $3,536.60 with a market capitalization of $3.392 billion on October 7, 2025 [2] - The Fund sold its investment in Seaboard Corporation during Q3 2025, having acquired it at a significant discount to tangible book value, which increased to nearly 50% in early 2025 [3] - Seaboard operates in cyclical industries, showing volatility in operating results, yet has consistently generated profits across various business cycles [3] - The company is actively modernizing and expanding its infrastructure, utilizing cash flows for aggressive investments [3] Investment Sentiment - Seaboard Corporation is not among the top 30 most popular stocks among hedge funds, with 19 hedge fund portfolios holding it at the end of Q2 2025, a slight decrease from 20 in the previous quarter [4] - While Seaboard is recognized for its potential, the analysis suggests that certain AI stocks may offer better upside potential with lower downside risk [4]

Group 1 - Major U.S. pork producers have agreed to pay nearly $200 million to settle allegations of a price-fixing scheme that inflated prices for consumers and grocery stores [3][4] - The lawsuit, initiated in 2018, claims that eight leading U.S. pork producers colluded to manipulate production levels and enhance profitability from 2009 to 2021, controlling over 80% of the pork market [3] - Tyson Foods' pork brands, which include Hillshire Farms and Wright Brand bacon, accounted for 11% of the company's $53 billion sales in fiscal year 2024 [4] Group 2 - Tyson Foods has agreed to pay $85 million, marking the largest settlement in a price-fixing case that has been ongoing for seven years, surpassing Smithfield Foods' previous $75 million settlement [7] - The lawsuit alleges that Tyson and other major producers used the Agri Stats platform to artificially raise pork prices by intentionally limiting supply [7] - Tyson has faced multiple allegations of price-fixing, including a $221 million settlement related to chicken prices in 2021 [5]