Jay Kyle

Sharing Business Snippets plus a sprinkle of Sports and Horror

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[Jay Kyle @JayIKyle]

JPM Rob O'Dwyer - My 2c on Financials

"On the one hand, the market is worried about the implementation of AI and how that can disrupt a bunch of business/info services stocks with potential downside. European stocks such as WLK NA, REL LN, EXPN LN and LSEG LN are all under pressure today on the back of a release of 11 Claude Plugins which – allegedly – can automate contract review, NDA triage, compliance workflows, legal briefings and templated responses."

[Jay Kyle @JayIKyle]

JPM TMT (Schilsky) $APP Yet Another Short Report Published (Are We Really Doing This Again?): Good news for you real APP shareholders out there – you get to buy APP today at a moderate discount after CapitalWatch published an APP short report boldly titled The Southeast Asian Money Laundering Syndicate’s NASDAQ “Laundromat”. Honestly, it’s dumb.

[Jay Kyle @JayIKyle]

Northland (1/14) - $ISSC's strength in highly customized retrofit solutions continues to gain momentum across aircraft fleet operators, particularly where safety upgrades and budget sensitivity make off the shelf solutions less viable. ISSC's Liberty Flight Deck (LFD) is a perfect example of this, as it is modular and customizable in nature, which stands in stark contrast to off the shelf solutions from larger peers like $HON

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MS (1/14) - Nexon (3659) disclosed yesterday that it has sold 12.4M copies of ARC Raiders and that concurrent users reached 960K in January. 10M plus copies for Q4 is significantly ahead of the 5-6M units we had been assuming. At ASP of US$40 per package, ARC Raiders alone would account for ¥60B in revenue for the quarter.

[Jay Kyle @JayIKyle]

JPM (1/15) - $MSGE ...investors increasingly pricing in optionality around the Penn Station transformation. A selection for Master developer is scheduled for May 2026, and the event is likely to coincide with disclosure of a construction plan, including any use of property or air rights owned by MSGE.

[Jay Kyle @JayIKyle]

RBC (1/15) - Bombardier $BDRBF announced a $100M investment in a new 126,000-square-foot manufacturing facility in Dorval, Quebec, set to open by late 2027 to meet growing demand for business aircraft. This capacity expansion should help Bombardier capture a larger share of this undersupplied market while maintaining its competitive moat in the premium business aviation segment. We last covered this stock on November 11th in our morning Conversations podcast

[Jay Kyle @JayIKyle]

JPM Special Sits - $PEN was obviously rumored yesterday on Betaville and has been thought of as a takeout target for the longest time, however most people thought it would be $ABT / $JNJ buying PEN. There is an opportunity in the peripheral overlap for value creation - $BSX was arguably one of the first to actually be in the Peripheral Thrombectomy space, but missed the innovation driven growth we’ve seen in recent years.

Historically BSX has not really done these very large deals - they typically do smaller tuck in deals to add to their existing portfolio synergies so we think the question that people will really have is are they doing this to plug a hole in their biz with all the recent HFs shorting on the notion that Farapulse/ EP is slowing. We think this is what they will need to address on the call. Seeing some HF demand outright in BSX to start.

[Jay Kyle @JayIKyle]

Evercore ISI - Channel Checks 14-Jan-26: Whiffs of the "Golden Screw"

Companies Gaining Momentum...

$TXN was top of the list with customers because of their visibility and commitment to customers, and its ability to support companies who were impacted by Nexperia’s supply constraints. Similar to TXN, $ON assisted Nexperia’s customers by supplying pin-compatible solutions and was viewed as the company that most benefitted from Nexperia’s geopolitical challenges.

[Jay Kyle @JayIKyle]

JPM's Schilsky (TMT) - Escape Tsunami for Brainrots! hit a peak player count of 1.57m last night. Where will it go over the weekend? That’s the true bar for a viral $RBLX hit.

[Jay Kyle @JayIKyle]

Wolfe - Sometimes you walk away from the table when you are on a heater, other times you double down. $SPHR remains demonstrably cheap, and we view Vegas LT growth and 3rd party venue expansion as both highly likely and not fully priced in. PT $124.

[Jay Kyle @JayIKyle]

JPMorgan - Is AI Causing a Firewall Memory Problem?

Prices for DDR4, commonly used in firewalls, have skyrocketed and are forecast to continue their upward trajectory in 2026...an initial review of hardware exposure and memory composition across the security vendor landscape suggests incremental margin pressure could be meaningful, with $FTNT appearing as the most exposed within our coverage universe.

[Jay Kyle @JayIKyle]

Tools and diagnostics lean better for sale today, we are seeing some trims in $ILMN and $TXG but $BRKR US Equity still remains the biggest source of questions - they didn't update on A&G and we don't think Frank sounded as bullish as people would have hoped. The theme of the week in tools has been that the crowded trades have not worked as evident by BRKR which we think people got long into the conference, $DHR + $RGEN and even $RVTY squeezing.

[Jay Kyle @JayIKyle]

JPM Afternoon Briefing | Jackie Bukzin (Healthcare)

$XBI US Equity finally in the green today as we continue to see strong follow through especially in some of the clinical names. $ERAS US Equity is our best two way situation today, as the $RVMD hype continues.

[Jay Kyle @JayIKyle]

$ISRG US Equity recovering a bit from initially being down over 6% but med tech still largely leans better for sale. We have seen some demand come back to $ABT US Equity but it certainly remains a funding short for HFs and we are also better for sale in $MDT US Equity and $GEHC US Equity today.

[Jay Kyle @JayIKyle]

JPM Afternoon Briefing | Brian Heavey (TMT) $IGV $SMH

1) Starting to see stickier money move their feet on the sell side in software now (where as yesterday flows were fairly quiet). Legacy software supply tickets are beginning to accelerate as well as security names. 2) Where as the past few days have been characterized as Semis > Software, the weakness today is much more broadbased with some evidence of de-grossing across the TMT complex (wireless and services o/p).

[Jay Kyle @JayIKyle]

In Med tech we have been better buyers of $EW US Equity - continue to see LO demand here over the last 2 weeks while it seems HFs have flipped short. The fade In tools and diagnostics just feels to be a function of crowding and a sell the news event as the updates were still largely positive from the group - $RVTY, $ILMN, $CRL

[Jay Kyle @JayIKyle]

JPM Afternoon Briefing

Jackie Bukzin - HC Flows

Healthcare across the floor leans 2x1 better to buy. While yesterday we saw more supply and shorts engage in the smid cap names across all of healthcare, today the main theme has been the demand in biotech. Despite the pretty terrible px action in biotech yday feedback from those on the ground seemed to be more optimistic than underperformance would suggest.

[Jay Kyle @JayIKyle]

Today we are seeing money be put to work in biotech - $ROIV US Equity still remains one of the best buy calls and additionally seeing demand in $IMVT US Equity and continue to be better buyers of $NUVL US Equity. Pharma remains better for sale as we continue to see shorts press in $PFE US Equity and some trimming in $MRK US Equity while we are better to buy in $BMY US Equity seeing primarily HF covering.