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Transcript

The Pulse of Profits: Energy, Healthcare, and EVs (e2426)

Unpacking oil price dynamics, healthcare sector advancements, and the multifaceted valuation of Tesla in a changing automotive landscape

The Cashflow Memo

6 24 24 20 Ppgs
583KB ∙ PDF file
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Shownotes

00:00:00 - Introduction

00:00:55 - Oil and Gas Market Update

  • OPEC+ meeting impact on oil prices: WTI dropped from $80 to $74, now back to $80

  • Geopolitical risk premium due to Gaza conflict and potential Israel-Hezbollah tensions

  • Natural gas prices remain low despite heat wave

  • Gas production running at 100 bcf/day, down from 104 bcf/day in November

  • New pipeline from West Texas to Gulf Coast opening in August

05:38 - US Government Finances

  • Neither presidential candidate likely to address need for increased taxes or reduced spending

  • Social Security and Medicare trust funds projected to run low in 4-5 years

  • Breakdown of federal revenue sources: individual income tax, corporate tax, payroll taxes

  • Challenges in raising additional revenue or cutting major spending categories

09:12 - Healthcare Sector Update

  • Vertex Pharmaceuticals' promising phase 1/2 results for type 1 diabetes treatment

  • 11 of 12 patients insulin-independent at 90 days, 3 patients still independent at 1 year

  • Eli Lilly seeking FDA approval for GLP-1 drug to treat sleep apnea

  • GLP-1 drugs on FDA shortage list, allowing compounding pharmacies to produce versions

  • Hims & Hers Health to offer compounded semaglutide, stock rallied on news

15:39 - Vertex Pharmaceuticals Deep Dive

  • Strategy of targeting undertreated diseases with smaller patient populations

  • Continuous improvement in cystic fibrosis treatments

  • Pipeline includes treatments for kidney disease, pain, and type 1 diabetes

  • Non-opioid pain medication in phase 3 trials with potential for nerve pain treatment

  • Acquisition strategy combining technologies (e.g. stem cells and encapsulation for diabetes)

21:15 - Tesla and EV Market Analysis

  • Breaking down Tesla's valuation between automotive business and other ventures

  • Morgan Stanley price target of $310/share, only $105 attributed to automotive

  • Other potential value drivers: full self-driving/robotaxi service, humanoid robots

  • Challenges in EV market: higher interest rates, increased competition

  • Comparison to Apple's ecosystem and customer loyalty

  • Chinese competition in low-cost EV production

29:21 - Wrap-up and Next Week's Preview

VRTX 0.00%↑ TSLA 0.00%↑ LLY 0.00%↑ BNTX 0.00%↑ HIMS 0.00%↑ WMT 0.00%↑ TGT 0.00%↑ LOW 0.00%↑ HD 0.00%↑ KMX 0.00%↑ CHPT 0.00%↑ EQT 0.00%↑


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