Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Today's report puts a spotlight on the Health Care Sector, which is assuming a global leadership role vs. other Sectors. We also focus on the Communications Sector as we are seeing steady relative strength ranking (RSR) improvements over the last couple of months. At the Group level, we highlight select smid-cap Casinos &amp; Gaming stocks. Finally, India’s S&amp;P BSE SENSEX is breaking out to new all-time highs as RS bullishly inflects, we highlight actionable stocks.

Today's report puts a spotlight on the Health Care Sector, which is assuming a global leadership role vs. other Sectors. We also focus on the Communications Sector as we are seeing steady relative strength ranking (RSR) improvements over the last couple of months. At the Group level, we highlight select smid-cap Casinos &amp; Gaming stocks. Finally, India’s S&amp;P BSE SENSEX is breaking out to new all-time highs as RS bullishly inflects, we highlight actionable stocks.

Global Strategy: Health Care Outperforming - Overweight; India Breaking Out -Add Exposure

The U.S. has continued to separate itself from broad emerging market and developed international indexes. One positive is that MSCI EM and MSCI EAFE have been able to stabilize from a price perspective in recent weeks despite relative strength weakness vs. MSCI ACWI.  In today’s report we scour the globe for attractive investments, ex-U.S., in an environment where selectivity is key.

The U.S. has continued to separate itself from broad emerging market and developed international indexes. One positive is that MSCI EM and MSCI EAFE have been able to stabilize from a price perspective in recent weeks despite relative strength weakness vs. MSCI ACWI.  In today’s report we scour the globe for attractive investments, ex-U.S., in an environment where selectivity is key.  

Global Equity Strategy: Where to Hide Outside the U.S.

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

A shift in our valuation of <a href="https://www.smartkarma.com/entities/132" target="_blank" data-smartkarma-citation="entities:132:1">CK Hutchison Holdings Ltd (1 HK)</a>--from a DCF-only methodology to one that incorporates a sum-of-the-parts total value--lifts our fair value estimate to HKD 120 from HKD 110. We believe a total value approach better reflects CKHH’s potential value, given its varied parts that are not fully reflected in its cash flow. We also incorporate more optimistic ports growth as we factor in a stronger recovery in global trade. While we expect China’s GDP growth to slow, healthy…

A shift in our valuation of CK Hutchison Holdings Ltd (1 HK)--from a DCF-only methodology to one that incorporates a sum-of-the-parts total value--lifts our fair value estimate to HKD 120 from HKD 110. We believe a total value approach better reflects CKHH’s potential value, given its varied parts that are not fully reflected in its cash flow. We also incorporate more optimistic ports growth as we factor in a stronger recovery in global trade. While we expect China’s GDP growth to slow, healthy…

Realizing Its Potential Breakup Value Lifts Our CK Hutchison FVE to HKD 120

Founder and Strategist, Entext Economics & Strategy

Sean Maher

Founder and Strategist

Entext Economics & Strategy

Entext provides institutional investors with distinctive, actionable asset allocation and thematic research, which typically challenges the market consensus. Our clients range from credit, equity and multi-asset hedge and pension funds to family offices and sovereign funds. 
 
We focus on identifying key inflection points in macro data and relative asset performance amid the 'groupthink'  and confirmation bias that characterizes most investment bank analysis.

Macro Driven Investment Insight

Thematic (Sector/Industry)

<ul>
<li>The global pharma and biotech sector has underperformed by about four points this year, and five over three years – the divergence with other R&amp;D intensive, knowledge based sectors is stark.</li>
<li>I went short US biotech in mid-2015, when the global sector saw a burst of euphoric optimism – ex Japan pharma, most sub-indices haven’t regained those levels since.</li>
<li>Despite the assumed demographic tailwind, a declining R&amp;D productivity trend has been an issue since the late 1990s - a major new drug launch…</li>
</ul>


The global pharma and biotech sector has underperformed by about four points this year, and five over three years – the divergence with other R&amp;D intensive, knowledge based sectors is stark.
I went short US biotech in mid-2015, when the global sector saw a burst of euphoric optimism – ex Japan pharma, most sub-indices haven’t regained those levels since.
Despite the assumed demographic tailwind, a declining R&amp;D productivity trend has been an issue since the late 1990s - a major new drug launch…


Drugs Evolving Into 'Biological Software' to Boost Moribund Pharma Sector?

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

Last week, <a href="https://www.smartkarma.com/entities/3014" target="_blank" data-smartkarma-citation="entities:3014:1">Daiichi Sankyo (4568 JP)</a> announced that its highly promising anti-cancer drug, DS-8201, has a second pivotal trial, this time moving to Phase II for gastric cancer (GC). Earlier in the year, DS-8201 moved to Phase II for its key indication for metastatic breast cancer (mBC). Since publication of the disappointing clinical trial data for mirogabalin, DS-8201 has taken on massive importance for DSK. This is not just because it is now the drug with the most upside potential in DSK’s…

Last week, Daiichi Sankyo (4568 JP) announced that its highly promising anti-cancer drug, DS-8201, has a second pivotal trial, this time moving to Phase II for gastric cancer (GC). Earlier in the year, DS-8201 moved to Phase II for its key indication for metastatic breast cancer (mBC). Since publication of the disappointing clinical trial data for mirogabalin, DS-8201 has taken on massive importance for DSK. This is not just because it is now the drug with the most upside potential in DSK’s…

Daiichi Sankyo (4568) - DS-8201 Moves to Phase 2 for Gastric Cancer

United Kingdom

AstraZeneca PLC operates as a holding company. The Company, through its subsidiaries, researches, manufactures, and sells pharmaceutical and medical products. AstraZeneca focuses its operations on eight therapeutic areas, including gastrointestinal, oncology, cardiovascular, respiratory, central nervous system, pain control, anaesthesia, and infection.

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AstraZeneca PLC (AZN LN)

Global Strategy: Health Care Outperforming - Overweight; India Breaking Out -Add Exposure

Today's report puts a spotlight on the Health Care Sector, which is assuming a global leadership role vs. other Sectors. We also focus on...

Vermilion Research

Global Equity Strategy: Where to Hide Outside the U.S.

The U.S. has continued to separate itself from broad emerging market and developed international indexes. One positive is that MSCI EM and MSCI...

Vermilion Research

Realizing Its Potential Breakup Value Lifts Our CK Hutchison FVE to HKD 120

A shift in our valuation of CK Hutchison Holdings Ltd (1 HK)--from a DCF-only methodology to one that incorporates a sum-of-the-parts total...

Morningstar, Inc.

Drugs Evolving Into 'Biological Software' to Boost Moribund Pharma Sector?

The global pharma and biotech sector has underperformed by about four points this year, and five over three years – the divergence with other...

Sean Maher

Daiichi Sankyo (4568) - DS-8201 Moves to Phase 2 for Gastric Cancer

Last week, Daiichi Sankyo (4568 JP) announced that its highly promising anti-cancer drug, DS-8201, has a second pivotal trial, this time moving to...

Pelham Smithers Associates

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