Equity Highlights November 2024

Welcome to Broyhill's Equity Highlights, where we share a few quick takes on recent news across the portfolio every month.  

We aim to make these highlights easy to read and easy to repeat. Feel free to share our work! 

PMI Debuts Iqos in Austin, Texas. Welcome to Austin, IQOS! Philip Morris's pilot launch of IQOS began at the beginning of October, and the company has since invited Austin residents to learn about the product at pop-up events throughout the city. In the last two months, its marketing on the product's private Facebook page has evolved in style and language in response to the pilot market's feedback. We are glad to see Philip Morris take a measured approach to this important launch.

Bill Ackman to push UMG to relist in the US. As a Universal Music Group board member and the company's second-largest shareholder through Pershing Square, Bill Ackman tweeted that he will require UMG to delist from the Euronext Exchange and relist in the US. UMG quickly responded that Ackman does not have the right to require them to relist but that they will consider his request in earnest. Relisting is a major catalyst for the stock as its eligibility for indices like the S&P 500 would unlock immediate value.

Nintendo announces Switch successor will be backwards compatible. In Nintendo's journey to free itself from the console cycle, the company announced that the successor to the Switch console will be able to play older games. This comes after Nintendo lowered hardware and software unit sales guidance for the full year. Despite the guide down, the Switch is still expected to achieve the strongest eighth cycle year in the company's history by a long shot.

Evolution Group Announces Partnership Extension with FanDuel Casino. Evolution's partnership agreement with FanDuel, one of the largest online casino operators, is US-wide.We believe this means that should a new state legalize, Evolution should maintain its best in class economics and dominant market share across the US.

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