Friday Fast Five - 4/22/2022
by Hodges Investment Team, on Apr 22, 2022 8:00:00 AM
Five interesting things that Hodges Capital research analysts discovered this week...
#1 THE BIG SCREEN: Although movie theaters have historically proven recession-resistant, box office sales have not fully recovered from the pandemic shutdowns. The rolling 52-week average box office sales are estimated at roughly half the levels experienced before the COVID-19 pandemic.
#2 RUSSIAN DEBT: Russia has until Wednesday, 5/04/2022, to pay $2.2 billion of foreign debt that was initially due to be paid to an American bank on 4/04/2022. If Russia cannot repay the debt in US dollars as required, the default on the foreign debt would be Russia's first since 1917 or 105 years ago (source: AP).
#3 USED AUTO DEMAND: A proprietary survey of domestic auto dealerships completed by J.P. Morgan/Chase revealed that unfavorable macro factors have weighed on consumer demand. Half of the respondents in the survey noted that they had not seen the typical lift in demand for used vehicles this year.
#4 PEDAL TO THE METAL: As the electric vehicle (EV) transition increases demand for battery technology, the United States has put plans to boost its production of crucial battery metals. Under the Defense Production Act, lithium, nickel, and cobalt have been added to the list of items considered critical for the country's national defense.
#5 LARRY SUMMERS, FORMER TREASURY SECRETARY: "If you look at history, there has never been a moment when inflation was above 4%, and unemployment was below 5% when we did not have a recession within the next two years."
Subscribe to the Hodges Friday Fast Five to receive the latest Fast Five via email every Friday.
Hodges Private Client is a program offered through Hodges Capital Management, Inc. (“HCM”). HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.
This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.
All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.