Flash | 13 Nov 2025 08:45:59 ET │ 11 pages HDL saw LSD YoY growth of table-turn in Oct (vs largely flat in 3Q). Given seasonably cold weather in Nov-Dec (which is a peak season for hot pot) and a low comp base in 4Q, mgt sees "less pressure" on table-turn in 4Q25E. Considering a late CNY in 26E and therefore YoY longer CNY holiday period in 26E (which is positive for hot pot biz), mgt anticipates "positive momentum" of table-turn in 1Q26E. Per mgt, its GPM sequentially improved in 3Q25 vs 1H25 and its YoY O ...

Core Viewpoint - Franklin Wireless Corp. has demonstrated significant operational recovery and growth in fiscal 2025, with a notable increase in revenue and a reduction in net loss, indicating positive investor sentiment and confidence in the company's strategic initiatives [1][2][8]. Revenue & Earnings Performances - For the fiscal year ending June 30, 2025, Franklin Wireless reported net sales of $46.09 million, a 49.7% increase from $30.80 million in fiscal 2024 [2]. - The company recorded a net loss of $243,101, significantly narrower than the $3.96 million loss in the previous year, with basic and diluted loss per share improving from 34 cents to 2 cents [2]. Gross Profit and Margins - Gross profit increased to $7.92 million from $3.51 million, with gross margin improving from 11.4% to 17.2%, attributed to better cost control and an improved product mix [3]. Key Business Metrics - Cash and cash equivalents rose to $14.74 million from $12.27 million, while total assets increased to $51.33 million from $46.72 million, reflecting higher inventory and receivables [4]. - Total liabilities increased to $13.44 million from $10.34 million, primarily due to accrued officer bonuses [4]. Inventory and Shareholders' Equity - Inventories increased to $2.36 million from $1.43 million, indicating preparation for higher sales volumes in fiscal 2026 [5]. - Shareholders' equity rose to $37.89 million, supported by non-controlling interests from the Sigbeat joint venture [5]. Management Commentary - Management highlighted operational improvements, including successful supplier restructuring and the positive impact of new product introductions in wireless connectivity [6]. - The Sigbeat joint venture aims to enhance global reach in telecommunications modules and hardware solutions [6]. Legal and Settlement Matters - The resolution of multiple legal matters positively influenced fiscal 2025 performance, with a $2.4 million class-action settlement paid in May 2024, leading to reduced future litigation exposure [9]. Cost Management - Cost of goods sold increased to $38.17 million from $27.29 million, but was offset by sales growth, while research and development expenses decreased to $1.47 million from $3.40 million, indicating tighter cost control [10]. Future Outlook - Management expressed optimism for continued growth driven by a strengthened supply chain, recent product developments, and the ramp-up of the Sigbeat venture [11]. - The company aims to improve profitability through operational efficiencies and a focus on higher-margin products, supported by a stable cash position and low leverage [11]. Other Developments - In fiscal 2025, Franklin Wireless repurchased stock options from CEO OC Kim for $746,067, and formed the Sigbeat joint venture with a $3 million contribution [12]. - The company maintained compliance with the Sarbanes-Oxley Act, confirming effective internal control over financial reporting as of June 30, 2025 [13].

Core Insights - Boeing Co. is experiencing an operational recovery driven by increased aircraft deliveries, particularly in the 737 MAX and 787 programs, indicating a potential rebound in cash flow and financial performance [1] - Bank of America Securities analyst Ronald J. Epstein maintains a Buy rating on Boeing with a price target of $270, citing stable deliveries and cash flow recovery as key catalysts for improved results [1][4] Delivery Performance - The 737 MAX program is projected to deliver approximately 118 units in the third quarter, surpassing the second quarter's 104 and last year's 92 [2] - The 787 program is expected to deliver nine units in September, leading to a quarterly total of 26, an increase from 24 in the second quarter and 14 a year ago [3] Production and Financial Outlook - Current production is capped at rate-38, with a potential increase to rate-42 dependent on FAA approval later in the fourth quarter [4] - Epstein's price forecast of $270 is based on a normalized free cash flow of $11 per share, applying a premium to the S&P 500 [4] Market Dynamics - The resilient demand for commercial jets and potential for improved margins in the 737 and 787 programs justify a market premium [5] - Near-term challenges include execution difficulties, labor constraints, currency fluctuations, and reputational risks [5] Strategic Developments - VietJet Air is set to receive its first 737 MAX aircraft after a long wait, marking a significant milestone for the airline [6] - Boeing has expanded its defense portfolio by securing a contract with Singapore for four P-8A maritime patrol aircraft [7]

Core Insights - Michael Burry has liquidated nearly his entire portfolio, retaining only Estée Lauder Companies Inc. stock, which has shown significant gains following the news of Leonard Lauder's death [1][5] - Estée Lauder shares closed at $74.59, reflecting a daily increase of 10.82% [1] - Insider confidence is indicated by the purchase of over 133,000 shares in February, and a surge in call options volume by over 70% on Monday [3] Company Performance - Burry holds 200,000 shares of Estée Lauder, purchased at an average price of $66.00, representing 100% of his disclosed portfolio, with a current value of approximately $13.2 million [4] - The stock remains below its 52-week high of $113.30 but has rebounded from a low of $48.12, suggesting potential for operational recovery and brand repositioning [5] Market Sentiment - The recent stock movement indicates a positive sentiment among traders, with expectations of continued momentum in the short term [3] - Burry's concentrated investment suggests he anticipates significant upside potential in the consumer staples and luxury sectors [5]

Core Insights - Prudential Financial, Inc. (NYSE: PRU) has shown strong operational recovery, leading to a maintained "Buy" rating since June 2023, with updates in November 2023 [1] Group 1 - The firm demonstrated significant operational recovery over the nine months leading up to the latest analysis [1] - The investment analysis is provided by a chief investment analyst at a family office, indicating a broad expertise in navigating diverse asset classes [1] - The investing group, Beyond the Wall Investing, offers insights similar to those prioritized by institutional market participants [1]

Core Insights - Smith & Nephew plc is undergoing a transformation under the new leadership of CEO Deepak Nath, who was appointed in April 2022, aiming to address previous operational underperformance [1] Company Overview - The company is focusing on identifying high-quality investment opportunities and addressing mispricing in the market [1]