Let's start uh maybe with you Jose for kind of the setup as things are going for today. Big rate decision or indecision I guess whatever you want to call it but there's there are a lot of moving parts that the Fed and every central bank around the world has to but the Fed's probably the most important at this point. What exactly are they ruminating about and how exactly will they treat that Fed rate decision in the coming months knowing what they know with the war in Iran.>> Great to see you. Uh Dom. Well, ...

Stock Market Overview - US stocks opened lower due to higher-than-expected inflation data and rising oil prices, with the Dow Jones Industrial Average falling about 169 points, or 0.36% [1] - The S&P 500 and Nasdaq 100 also declined by 0.31% and roughly 0.26%, respectively [1] Inflation Data - The Producer Price Index (PPI) rose 0.7% in February, significantly above the expected 0.3% increase, with annual producer prices climbing 3.4%, exceeding forecasts of 2.9% [3] - This inflation surprise has raised concerns that interest rates may remain elevated for a longer period [2][3] Oil Prices and Geopolitical Tensions - Oil prices have continued to rise, with West Texas Intermediate crude increasing over 2% to around $97.68 per barrel and Brent crude advancing more than 4% to $108.3 per barrel [5] - The increase in oil prices is attributed to geopolitical tensions, including attacks on Iranian energy facilities and disruptions linked to the Strait of Hormuz [5][8] Federal Reserve Policy Outlook - Market expectations for a Federal Reserve rate cut have shifted, with traders now anticipating a cut of at least 25 basis points only by April 2027, compared to earlier expectations for a move as soon as December 2026 [4] - Investors are focused on the Federal Reserve's upcoming policy decision, with expectations that rates will remain unchanged [9] Corporate Movements - Micron Technology rose 0.29% ahead of its earnings release, while SanDisk gained 1.6% [10] - Drone software company Swarmer saw a significant increase of 40% following its Nasdaq debut [10] - Travel stocks such as Delta, American Airlines, and Carnival experienced declines, while Lululemon gained 2% despite issuing weaker-than-expected guidance [10] - Macy's stock rose 5.6% after indicating that tariff-related pressures could ease later in the year [10]

What does rare mean to you. For some people, it's a quality like uncommon or unique or scarce. For other people, there's a mathematical component like one in a 100red, one in a thousand, maybe even one in a million.When I was playing high school basketball in the late 80s, when big hair was still cool, our team underwent a particularly strenuous practice session. After the workout, my leg muscles quit on me and I just collapsed right to the floor. Initially, we attributed this to the nature of the workout w ...

Core Viewpoint - JPMorgan Chase & Co. is leading a $20 billion financing for Electronic Arts Inc., marking the largest debt sale for a leveraged buyout, despite initial market concerns due to geopolitical tensions [1][2]. Financing Details - The financing package is primarily aimed at supporting Electronic Arts' acquisition by a private equity consortium, which values the company at approximately $55 billion [3]. - The structure of the financing is still being finalized, with JPMorgan considering selling more junk bonds than initially planned, alongside leveraged loans [3][4]. - Secured bonds in the deal are expected to total around $6.5 billion, with yields projected in the low 7% range, compared to approximately 6.9% in the junk-bond market [5]. - An estimated $2.5 billion in unsecured debt is anticipated to be offered with yields in the mid-8% range, while loans may offer 3.5 to 3.75 percentage points over the benchmark [6]. Market Context - The debt sale is being closely monitored as it could influence over $100 billion in M&A financings expected in the near future [7]. - Credit spreads were at their tightest levels since 2021 when JPMorgan underwrote the debt package, and pricing protection measures are in place to mitigate risks [8]. - Approximately 14% of debt in the US leveraged loan market is linked to the software and technology sectors, which have faced recent challenges due to concerns over artificial intelligence [9]. Investor Sentiment - Despite some skepticism regarding new deals, investors remain eager to participate in new financing opportunities, as much of the primary market is focused on refinancing existing obligations [10]. - Institutional investors view participation in these benchmark-sized deals as essential to maintain index weight [11].

Humanity today believes that happiness can be engineered through science and technology. We cured diseases, connect across continents in seconds, and even speak of colonizing Mars. And yet, wars region.History shows us just how true this is. The 20th century was defined by two conflicts alone, the first and second world wars that resulted in an estimate 85 and 27 million deeds accounting for 3/4 of all war deeds since 1800s. And while the 21st century has seen fewer catastrophic interstate conflicts, the nu ...

Core Insights - The current market environment is characterized by increasing risks in US and European credit, prompting some investors to consider buying protection against potential market downturns while hedges remain relatively inexpensive [1] Group 1: Market Conditions - Barclays strategists have recommended purchasing credit default swap protection on the US high-yield index, suggesting a combination of trades known as a payer swap to finance the trade [2] - The cost of protection on US high-grade corporate bonds has increased by nearly 0.03 percentage points (3 basis points) this week, indicating a shift towards derivatives for credit risk protection despite a narrowing of cash bond spreads by 1 basis point [3] Group 2: Geopolitical and Economic Factors - The ongoing conflict in Iran, particularly involving the US and Israel, is contributing to rising oil prices, which could lead to higher inflation and subsequently lift yields in global bond markets [4] - Any indication of increased inflation may prompt the Federal Reserve to slow its easing pace, with potential implications for credit markets if interest rates are raised [5] Group 3: Employment and Industry Impact - The US job market has seen an unexpected reduction of 92,000 jobs in February, affecting various industries and raising concerns about future consumer spending growth [6] - The rise of artificial intelligence may lead to layoffs, potentially impacting entire sectors and causing investors to withdraw from certain private credit investments [6]

Core Insights - Artificial intelligence (AI) presents both opportunities and risks for businesses, particularly in terms of data security as organizations deploy AI agents to enhance productivity [1] - Zscaler's zero-trust cybersecurity architecture is well-positioned to secure corporate networks and AI activities, presenting a significant financial opportunity as AI adoption increases [2] Company Performance - Zscaler's stock is currently trading 60% below its record high from 2021, but analysts largely recommend it as a buy, with a consensus price target indicating substantial upside potential [3][14] - The company reported a record revenue of $1.6 billion for the first half of fiscal year 2026, reflecting a year-over-year increase of 25.7%, and slightly raised its full-year revenue forecast to $3.32 billion [10] - Zscaler has approximately 9,400 customers, with 550 adopting the Zero Trust Everywhere philosophy, marking a 323% increase from the previous year, indicating growing customer engagement with its product suite [11] Financial Metrics - Zscaler's gross margin stands at 76.28%, and while it reported a GAAP loss of $45.9 million in the first half of fiscal 2026, it achieved an adjusted profit of $328.1 million, up 30.5% year-over-year [12][8] - The stock trades at a price-to-sales (P/S) ratio of 7.9, significantly lower than its peers, suggesting potential for valuation improvement as the company continues to grow faster than competitors [14][16] Analyst Sentiment - Among 50 analysts covering Zscaler, 37 have a buy rating, with a consensus price target of $237.30, suggesting a potential 57% increase in stock price over the next 12 months [13][14] - The highest target of $335 implies a potential upside of 122%, indicating strong bullish sentiment among analysts [14]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $8.4 million, down from $10.8 million in Q4 2024, primarily due to a decline in license revenue, partially offset by an increase in milestone revenue [24] - For the full year 2025, revenue was $18.7 million compared to $26.4 million in 2024, attributed to declines in both license and milestone revenue [28] - The net loss for Q4 2025 was $14.2 million or $0.11 per share, compared to a net loss of $13.1 million or $0.12 per share in the prior year [26] - The full year net loss was $64.8 million or $0.57 per share, compared to a net loss of $62 million or $0.61 per share in 2024 [30] Business Line Data and Key Metrics Changes - The company had 107 partners running 407 active programs by year-end 2025, reflecting growth in both partner count and program activity [4][7] - There were 84 program additions in 2025, significantly higher than previous years, with a net increase of 44 programs during the year [9] - Over 98% of active programs have contracted future economics to the company, with total contracted milestone payments exceeding $3 billion [10] Market Data and Key Metrics Changes - The majority of partners are based in the U.S., with others primarily in Europe and Asia, indicating a diversified partner base [8] - Eight of the ten largest pharmaceutical companies are active partners, showcasing the strength of the company's partner relationships [8] Company Strategy and Development Direction - The company introduced OmniUltra, a transgenic chicken platform for ultra-long CDRH3s, which is expected to drive growth and attract new partners [5][20] - The xPloration platform, launched in mid-2025, is positioned for significant growth and aims to enhance partner engagement through high-throughput screening capabilities [6][22] - The company is focused on transitioning revenue from milestone-driven to more royalty-driven streams, with an average royalty rate of 3.4% across its portfolio [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong partner engagement and the potential for multiple new clinical program entries in 2026 [19][55] - The company anticipates achieving cash flow positivity as it continues to control operating costs while expanding its partner and program portfolio [32] Other Important Information - The company ended 2025 with $54 million in cash equivalents and short-term investments, with expectations to end 2026 with a cash balance of $30 million to $35 million [30] - The company implemented workforce reductions of 22 employees in 2025, contributing to lower operating expenses [29] Q&A Session Summary Question: Impact of market conditions on new program growth - Management noted strong momentum in program additions in 2025 and expressed optimism for continued growth in 2026, driven by new technologies [34][36] Question: Revenue expectations from xPloration - Management indicated that xPloration is expected to contribute significantly to revenue in 2026, with strong interest from high-tier partners [38][40] Question: Cash flow neutrality and investment strategy - Management emphasized the importance of maintaining cash flow neutrality while also investing in technologies that meet industry needs [43][47] Question: Deployment of xPloration systems - Two xPloration instruments were deployed by the end of 2025, with expectations for growth in 2026 [52] Question: Initial response to OmniUltra - The launch of OmniUltra has been well-received, with strong engagement from partners and an increase in partner programs [62][64] Question: Milestones for OmniUltra in 2026 - The focus for 2026 will be on adding partners and programs leveraging OmniUltra technology [74] Question: Royalty structures for active programs - The majority of active programs have flat royalties, with some having tiered structures [78][81]

Core Insights - The Producer Price Index (PPI) for final demand increased by 0.5% in January, with a 12-month rise of 2.9%, indicating rising cost pressures in logistics and distribution channels [3][16] - Service margins are rising, particularly in trade, where margins increased by 2.5%, suggesting that distribution layers are absorbing markups despite softening goods inputs [3][16] Supply Chain Risks - Middle-market firms are experiencing pricing volatility amid policy uncertainty, with nearly 30% of CFOs in goods-producing sectors citing high uncertainty [4] - Firms with a higher percentage of overseas suppliers (40% or more) report 33% high uncertainty, compared to 18% for those with only domestic suppliers [5] Cash Flow Management - 85% of U.S. middle-market firms utilize working capital solutions, with index scores rising to an average of 55 in 2025-26, up from 52 the previous year, reflecting improved cash flow visibility [10][11] - Early invoice payments increased to 41% in Canada, up from 34%, indicating a trend towards securing favorable terms and reinforcing supplier relationships [11] Technology Adoption - Adoption of artificial intelligence for working capital efficiency reached 42% across North America, helping firms model demand swings and synchronize payables with receivables [12] - The use of commercial and virtual cards among middle-market firms in Canada rose to 17% in 2025, up from 7% in 2024, streamlining workflows and reducing operational burdens [13][14] Consumer Behavior - As supply chains tighten and prices rise, consumer behavior adjusts, with 45% of millennials using credit card installment plans in the prior three months [15] - Households are smoothing cash flow in response to pricing variability, highlighting the impact of upstream cost volatility on consumer spending [16]

Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw VITAS' net revenue at $418.8 million, a 1.9% increase compared to the prior year, driven by a 1.3% increase in days of care and a 2.2% increase in Medicare reimbursement rates [14] - Roto-Rooter revenue declined by 3.7% in the fourth quarter of 2025 compared to the same period in 2024, with branch residential revenue decreasing by 3.1% [9][16] - Adjusted EBITDA for VITAS was $91.6 million, a decline of 1.7% year-over-year, while Roto-Rooter's adjusted EBITDA totaled $47.5 million, a decrease of 21.1% compared to the prior year [15][21] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,419 in the fourth quarter, reflecting a 6% improvement from the same period in 2024, with hospital-based admissions making up 44.8% of total admissions [4][5] - Roto-Rooter branch commercial revenue increased by 1.6%, while residential revenue declined by 3.1%, with water restoration revenue declining by 10.3% [9][16][19] - The average revenue per patient day for VITAS was $288.01, an increase of 86 basis points from the prior year [15] Market Data and Key Metrics Changes - The average daily census for VITAS was 22,462 patients, an increase of 1.3%, with hospital-directed admissions increasing by 9.9% [26] - The company received a certificate of need to operate in Manatee County, Florida, which represents a significant growth opportunity [8][28] Company Strategy and Development Direction - VITAS is focusing on balancing its admission patterns to improve revenue growth and EBITDA margins, particularly by increasing long-stay patient admissions [8][27] - Roto-Rooter is expanding its commercial business by hiring commercial business managers, which has shown positive preliminary results [9][19] - The company plans to centralize billing and collections for water restoration to improve efficiency and reduce write-offs [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the Florida Medicare cap issue is behind them and anticipates a transition year for both VITAS and Roto-Rooter in 2026 [11][12] - The company expects VITAS revenue to grow by 5.5%-6.5% in 2026, while Roto-Rooter is forecasted to achieve revenue growth of 3%-3.5% [22][23] - Management acknowledged the challenges faced by Roto-Rooter due to increased marketing costs and write-offs but remains optimistic about future growth opportunities [12][41] Other Important Information - The company repurchased 400,000 shares of Chemed stock at an average price of $436.39, funded by free cash flow from both subsidiaries [21] - The estimated earnings per diluted share for 2026 is projected to be in the range of $23.25-$24.25, compared to $21.55 for 2025 [24] Q&A Session Summary Question: Confidence in Roto-Rooter revenue growth in 2026 - Management highlighted improvements in paid leads and a transition from free leads to paid leads as key factors for expected revenue growth [32][34] Question: VITAS revenue and EBITDA progression - Management indicated that the focus on short-stay admissions has impacted revenue growth, but a return to a normalized growth rate is expected as patient mix is adjusted [50][51] Question: Structural changes in Roto-Rooter and the plumbing industry - Management acknowledged challenges from private equity and changes in lead generation but expressed confidence in Roto-Rooter's ability to adapt and grow [53][56]