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

#1 HAIL NO: According to local media outlets, what started as tiny water droplets within a thunderstorm and powerful updrafts ended with damage to thousands of acres of solar panels southwest of Houston, Texas. When nature plays hardball, large utility-grade solar farms have two options when it comes to the risk of baseball-sized hail. Insure for the damage at an increasingly high cost or build solar farms with hardware and software from a company called NEXTracker, which performs an automatic stow feature to avoid property loss in the first place.

#2 DATA TURBULENCE: The Department of Transportation announced Thursday that it will review how the top 10 U.S. Airlines collect, handle, and use their passengers’ personal information, including whether it is being shared with third parties. A spokesperson for trade group Airlines for America told The Hill that the airlines have “robust policies, programs, and cybersecurity infrastructure to protect consumers’ privacy” and “U.S. airlines take customers’ personal information security very seriously.”

#3 BAD BOTS: Digital advertising fraud is a deceptive practice that misleads advertisers into believing that online ad placement is on a genuine website when, in reality, it is a fabricated activity that enriches bad actors. The use of bots mimics actual user engagement by generating fake impressions, clicks, or conversion data. By artificially inflating these metrics, scammers can deceive advertisers and ad networks into paying for non-existent or ineffective ad placements. Ad fraud detection companies exist to analyze millions of transactions a second to safeguard a client’s ad campaigns. The cost of this fraud is substantial at $84 billion in 2023; by 2028, it is projected to escalate to $172 billion.

#4 TAKING THEIR GAME UP: The in-person sports entertainment experience has escalated with giant high-tech LED video screens and luxury arenas, culminating with the $5.50 Billion SoFi Stadium in Los Angeles. Arenas are keeping up with technological advances and competing with 85-inch high-def home T.V.s that offer a great home couch experience. Now, a blend of software, payment technology, and loyalty programs is taking the fan experience to the next level. Cashless payment for concessions leads to shorter lines or none with digital ordering and delivery to the seat. Other perks include all-on-one phone apps with features like early entry, access to VIP areas, mascot visits, raffles, parking, exclusive offers, and season ticket management. This is quite an advancement from not many years ago when a cell phone signal was impossible to get at a game.

#5 A NEW YORK MINUTE: A driver who runs a red light hoping to save a minute off their journey endangers the life and safety of pedestrians, cyclists, and other motorists in the intersection who have the legal right of way. According to a NYC Department of Transportation Report, running a red light is one of the most dangerous and inexcusable driving behaviors. The red-light camera program, operated by Verra Mobility, acts as a deterrent, and since 1994, violations issued at camera locations have declined by 73%, and there was a 65% reduction in deadly right-angle (T-bone) crashes at intersections with red light cameras. Based on these results, a bill has been submitted to the New York State Senate to expand the program from 150 intersections to 1,325.

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