Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Equity Bottom-Up

Over the past two weeks, there have been two significant negative catalytic events (SEC moved forward on the road to a potential US delisting and missed margin calls by Archegos Capital Management created a forced seller) which has placed significant pressure on the Baidu share price, listed in the US <a href="https://www.smartkarma.com/entities/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a> and Hong Kong <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a>.  
In this insight, I analyse the impact of recent share price movements on Baidu’s valuation and what that implies for the Core Search and Non-marketing Core operations.

Over the past two weeks, there have been two significant negative catalytic events (SEC moved forward on the road to a potential US delisting and missed margin calls by Archegos Capital Management created a forced seller) which has placed significant pressure on the Baidu share price, listed in the US Baidu (BIDU US) and Hong Kong Baidu (9888 HK).  
In this insight, I analyse the impact of recent share price movements on Baidu’s valuation and what that implies for the Core Search and Non-marketing Core operations. 

Baidu: Attractive Short Term Entry Point Following SEC Statement and Block Sales

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel's</a> newly appointed CEO Pat Gelsinger this week unveiled his plans to address the issues that have plagued the company for the better part of a decade. Dubbed "IDM 2.0", the plan comprises three key elements. Firstly, a reaffirmation of Intel's commitment to their existing, internal manufacturing operations. Secondly, an increased reliance on leading edge, external foundry capacity. Thirdly, the decision to re-enter the foundry business and become a leading supplier of U.S. and Europe-based capacity. Underpinning these three initiatives is a commitment to invest $20 billion in the construction of two new fabs in Phoenix, Arizona. Is Gelsinger's IDM 2.0 initiative a bold move or a desperate gamble? Here's what we think.

Intel's newly appointed CEO Pat Gelsinger this week unveiled his plans to address the issues that have plagued the company for the better part of a decade. Dubbed "IDM 2.0", the plan comprises three key elements. Firstly, a reaffirmation of Intel's commitment to their existing, internal manufacturing operations. Secondly, an increased reliance on leading edge, external foundry capacity. Thirdly, the decision to re-enter the foundry business and become a leading supplier of U.S. and Europe-based capacity. Underpinning these three initiatives is a commitment to invest $20 billion in the construction of two new fabs in Phoenix, Arizona. Is Gelsinger's IDM 2.0 initiative a bold move or a desperate gamble? Here's what we think. 

Intel IDM 2.0: Bold Move Or Desperate Gamble?

Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

Headline Developments Facebook’s (FB) Reality Labs have provided a glimpse of a wrist-worn AR interface concept that would allow users to more fluidly interact with augmented environments, as in the video below.  More specifically, the device uses electromyography (EMG) sensors to interpret nerve signals and interact with the environment.

Headline Developments Facebook’s (FB) Reality Labs have provided a glimpse of a wrist-worn AR interface concept that would allow users to more fluidly interact with augmented environments, as in the video below.  More specifically, the device uses electromyography (EMG) sensors to interpret nerve signals and interact with the environment.

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Meta Platforms (Facebook) / Equity Bottom-Up

Large cap growth stocks have done nothing for 9 months. We think they represent great entry points into 1Q21 earnings. We prefer Facebook and Amazon.<div class="content-highlight">Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.  </div>

Large cap growth stocks have done nothing for 9 months. We think they represent great entry points into 1Q21 earnings. We prefer Facebook and Amazon.Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.  

Whatever Happened to FANG? Why Its Time to Reload on Large Cap Growth

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

*CBA’s Foray Into BNPL Adds Pressure: Tencent Holding’s (700.HK) [Tencent] Afterpay Touch (APT.AU) [Afterpay] FY 1H21 Buy Now Pay Later (BNPL) operating results have turned the corner and are close to break-even, by our calculation. The competition is noticing Afterpay’s performance.  Commonwealth Bank of Australia (CBA.AU) [CBA] has announced its own BNPL product beginning June 2021 which will pressure Afterpay in its home market; and*Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment of nearly 390% over the past nine months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology Buy Now Pay Later (BNPL) company is paying dividends to Tencent in numerous other ways.

*CBA’s Foray Into BNPL Adds Pressure: Tencent Holding’s (700.HK) [Tencent] Afterpay Touch (APT.AU) [Afterpay] FY 1H21 Buy Now Pay Later (BNPL) operating results have turned the corner and are close to break-even, by our calculation. The competition is noticing Afterpay’s performance.  Commonwealth Bank of Australia (CBA.AU) [CBA] has announced its own BNPL product beginning June 2021 which will pressure Afterpay in its home market; and*Tencent’s Midas Touch: Tencent continues to hit it out of the park with its Afterpay stake. In addition to its superb return on investment of nearly 390% over the past nine months since the stake announcement - -even after giving back some of its gains, this alliance with Australia’s premier financial technology Buy Now Pay Later (BNPL) company is paying dividends to Tencent in numerous other ways. 

Tencent Holdings – Replication Is Flattery

United States

Alphabet, Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.

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Alphabet (GOOG US)

Baidu: Attractive Short Term Entry Point Following SEC Statement and Block Sales

In this insight, I analyse the impact of recent share price movements on Baidu’s valuation and what that implies for the Core Search and Non...

Wium Malan, CFA

Intel IDM 2.0: Bold Move Or Desperate Gamble?

Intel's new CEO Pat Gelsinger this week laid out his plans for the future of the company. Dubbed IDM 2.0, is the plan a bold move or a desperate...

William Keating

Weekly Innovation Review (WIRE) #23

Headline Developments Facebook’s (FB) Reality Labs have provided a glimpse of a wrist-worn AR interface concept that would allow users to more...

Granite Bay Capital

Whatever Happened to FANG? Why Its Time to Reload on Large Cap Growth

Macro tends to control the market in between earnings seasons, when fundamental performance matters less. As we approach 1Q21 earnings in a few...

Aaron Gabin

Tencent Holdings – Replication Is Flattery

TENCENT HOLDINGS: Tencent’s Afterpay BNPL performance is turning heads. Commonwealth Bank of Australia has announced its own BNPL product which...

Thomas J. Monaco

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