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

#1 OFFICE SPACE: NYC has 70.3 million square feet of available office space, the highest in history, according to real-estate firm Savills.

#2 FIREWORKS: Fireworks sales for professional shows fell to $93MM in 2020, a 75% decrease from the year before, then boomed to $261MM in 2021 and to more than $400MM last year. In 2023, that figure is set to explode by another $100MM, according to the American Pyrotechnics Association.

#3 MORTGAGE-TREASURY SPREAD: As of 6/27, the 10-year US Treasury was trading at 3.77%, and 30-year conforming mortgage rates were 6.92% for a spread of 315bp. According to Wedbush, the current spread compares to the historical average of 140bp, which has been above 300bp since the end of March 2023. If that spread narrows, the resulting decline in mortgage rates could be a catalyst for new home demand and builder stock prices.

#4 CUSTOMER SERVICE? According to a survey by Interactions, consumers are frustrated with long hold times, being transferred, and automated systems that do not understand them. Instead, 28% of those surveyed would burn themselves with hot coffee, 35% would assemble IKEA furniture, and 38% would rather have a cavity filled.

#5 GOAT: Joey Chestnut recently ate 62 hotdogs to claim his 16th Nathan’s Famous International Hot Dog Eating Contest title. Mr. Chestnut holds the world record for most hot dogs eaten at 73. That is consumption of over 12,000 calories in less than 10 minutes when he set the record in 2013.

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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.

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