Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Cross Asset Strategy

Our screen looks for high valuation multiples presented by companies with significant earnings growth forecasts, as well as financial indicators that suggest balance sheet stress. 34 stocks appear in our Q2 2021 screen, versus 25 in Q1 2021 and 15 in Q4 2020. Our Q2 2021 screen shows a reduction in average stock rank to 65.18 from 70.8 points compared to the Q1 2020 screen, placing the stocks lower into the second quartile of the market and showing a deterioration in fundamental and technical aspects. Whilst this is a 7.6% decline, we see this data as tainted by trailing fundamentals. As we highlighted in previous commentaries, we expect the market to see a defined separation of Quality, Value and Relative Momentum over the next few quarters. The erosion is not unexpected as we see a wave of updated forecasts.

Our screen looks for high valuation multiples presented by companies with significant earnings growth forecasts, as well as financial indicators that suggest balance sheet stress. 34 stocks appear in our Q2 2021 screen, versus 25 in Q1 2021 and 15 in Q4 2020. Our Q2 2021 screen shows a reduction in average stock rank to 65.18 from 70.8 points compared to the Q1 2020 screen, placing the stocks lower into the second quartile of the market and showing a deterioration in fundamental and technical aspects. Whilst this is a 7.6% decline, we see this data as tainted by trailing fundamentals. As we highlighted in previous commentaries, we expect the market to see a defined separation of Quality, Value and Relative Momentum over the next few quarters. The erosion is not unexpected as we see a wave of updated forecasts.

Screening the Silk Road: Q2 2021 High Risk Names to Avoid

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - May 2021 - Lucror Analytics

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a>  shares have now fallen 12% since it announced Q4 20 results and finished its massive share repurchase program. That move has largely been driven by an expansion in the holding company discount which sits at 38% now versus the low 20s earlier in the month.  The stock has largely given up YTD gains (now +0.4%) and fell a further 2% today even as news that another Vision Fund investment, PayTM, could go public at a premium to its last private round and take Softbank one step closer to reaching its 20+ liquidity event target for Vision Fund. We have updated our holding company discount and related tables below.

Softbank Group (9984 JP)  shares have now fallen 12% since it announced Q4 20 results and finished its massive share repurchase program. That move has largely been driven by an expansion in the holding company discount which sits at 38% now versus the low 20s earlier in the month.  The stock has largely given up YTD gains (now +0.4%) and fell a further 2% today even as news that another Vision Fund investment, PayTM, could go public at a premium to its last private round and take Softbank one step closer to reaching its 20+ liquidity event target for Vision Fund. We have updated our holding company discount and related tables below.

Softbank Group - As Another Investment Moves to IPO, YTD Gains Evaporate

The Europe HY Trade Book for May 2021 includes high-conviction trade ideas drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry.

  The Europe HY Trade Book for May 2021 includes high-conviction trade ideas drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry. 

Europe HY Trade Book - May 2021 - Lucror Analytics

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> denotes some very well defined chart and trades levels for a tactical rise to resistance at the underside of broken trendline and secondary set back that provides another long entry point with more sustainable prospects.Break below trendline a negative and must be mended in due course. We see a tactical long zone at 8,000 for a recovery trade or bounce but one that will run out of steam.External risk stems from global cycle weakness into early June that may visit secondary support in Softbank.The underside of broken trendline, price and topside resistance meet at 9,700/500, representing the forward pivot barrier, rally target and bull breakout zone.

Softbank Group (9984 JP) denotes some very well defined chart and trades levels for a tactical rise to resistance at the underside of broken trendline and secondary set back that provides another long entry point with more sustainable prospects.Break below trendline a negative and must be mended in due course. We see a tactical long zone at 8,000 for a recovery trade or bounce but one that will run out of steam.External risk stems from global cycle weakness into early June that may visit secondary support in Softbank.The underside of broken trendline, price and topside resistance meet at 9,700/500, representing the forward pivot barrier, rally target and bull breakout zone.

Softbank Tactical Bounce, Short, Then Secondary Buy Level

Japan

SoftBank Group Corp. provides telecommunication services. The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

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Softbank Group (9984 JP)

Screening the Silk Road: Q2 2021 High Risk Names to Avoid

34 stocks in our Q2'21 HIGH-RISK screen, vs Q1 2021 's 25. Q2'21 shows a reduction in avg stock rank to 65.2 from 70.8 pts in Q1 2020....

David Lepper

Asia HY Trade Book - May 2021 - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Softbank Group - As Another Investment Moves to IPO, YTD Gains Evaporate

Softbank Group shares have given up all their YTD gains on an expansion in the discount to fair value to 38% a level last reached in December...

Kirk Boodry

Europe HY Trade Book - May 2021 - Lucror Analytics

The Europe HY Trade Book for May 2021 includes high-conviction trade ideas drawn from our European HY coverage universe, along with...

Lucror Analytics

Softbank Tactical Bounce, Short, Then Secondary Buy Level

Softbank Group (9984 JP) denotes clear trades levels for a tactical rise to resistance at the underside of broken trendline. Secondary support is...

Thomas Schroeder

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