Five interesting things that Hodges Capital research analysts discovered this week...

#1 HIGH ROLLERS AT AN ALL-TIME HIGH: According to the Las Vegas Gaming Board, gaming revenue reached a record in 2022, increasing year-over-year by 10.5% to approximately $14.5 billion in gross revenue.

#2 COST OF WINNING AN ELECTION: According to the research group, OpenSecrets, total political spending during the 2020 presidential and congressional elections was $14.4 billion, up significantly from the $6.5 billion spent in 2016 and $6.3 billion in 2012. During the 2020 election, the average winner in the House spent $2.35MM, while the average Senate winner spent $27MM. If you are wondering who made the largest political contributions, it would be the hedge fund manager, George Soros, at $128MM in 2022. Interestingly, Sam Bankman-Fried of the now-defunct cryptocurrency exchange was the 6th largest donor in 2022 at $40MM.

#3 LOOK BOTH WAYS: Over the last 25 years, the deaths of drivers and passengers have declined by 10% and 42%, respectively. Car safety advancements and seatbelt law enforcement primarily drive the improvement. By contrast, motorcyclist deaths rose by 140%, pedestrian deaths by 19%, and cyclist deaths by 17%. According to an analysis by The New York Times and Hedgeye Risk Management, the United States recorded one of the largest increases in road deaths in 2020. The United States has more traffic deaths per capita than any other OECD nation, but it also has more miles driven per capita. When adjusting for miles driven, the U.S. traffic fatalities are more in line with the rest of the other nations.

#4 EDUCATORS NEEDED: According to an article in Chalkbeat, Teach For America expects its smallest crop of first-year teachers in at least 15 years. Teacher recruitment and preparation programs report consistent declines across the country driven by a competitive job market, low relative compensation, and increased rules and testing requirements. A study conducted by Brown University’s Annenberg Institute indicated that the current state of the teaching profession is at or near its lowest levels in 50 years.  

#5 MULTIYEAR UPCYCLE: “The outlook beyond 2023 is also exceptionally bright, given my belief that we are still in the early stages of a multiyear energy upcycle. This conviction is anchored by supplying constraints from a decade of global underinvestment, ongoing sanctions on Russian production, a generational low in OPEC spare capacity, fiscal discipline among U.S. producers, and the inevitable rise in demand for our products as global economies normalize and grow post-COVID” – Richard Muncrief, CEO of Devon Energy.

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