Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

<ul>
<li>We normally write these “Workbench” reports in between our larger initiation pieces.  They are intended to offer a window into our short investment process and to highlight potentially interesting names.</li>
<li>This Workbench focuses exclusively on earnings quality shorts.  We continue to work on these names. Today we highlight:</li>
<li>Moderna (MRNA),  Knowles (KN)    Juniper Networks (JNPR)  Upstart Holdings (UPST)  Beauty Health Co (SKIN), Sonos (SONO). Kraft Heinz (KHC), AZEK Co. (AZEK), Energizer Holdings (ENR),  Fox Factory Holding  (FOXF)</li>
</ul>


We normally write these “Workbench” reports in between our larger initiation pieces.  They are intended to offer a window into our short investment process and to highlight potentially interesting names.
This Workbench focuses exclusively on earnings quality shorts.  We continue to work on these names. Today we highlight:
Moderna (MRNA),  Knowles (KN)    Juniper Networks (JNPR)  Upstart Holdings (UPST)  Beauty Health Co (SKIN), Sonos (SONO). Kraft Heinz (KHC), AZEK Co. (AZEK), Energizer Holdings (ENR),  Fox Factory Holding  (FOXF)


Short Ideas on Our Workbench:  Earnings Quality

ZoomInfo Technologies  / Equity Bottom-Up

<ul>
<li>This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  </li>
<li>They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.</li>
<li>These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.</li>
</ul>


This model seeks short-sale candidates among companies that use aggressive accounting and/or exhibit deteriorating quality of earnings.  
They are typically highly idiosyncratic shorts and require thoughtful analyses of upcoming catalysts.  When the company’s issues become well-known, there is often multiple compression as well as a rerating.
These shorts can have high or low betas, valuations based on artificial earnings and exhibit good short responses to subsequently disappointing earnings.


Earnings Quality Short Candidates: ZoomInfo, Gogo, Elanco Animal Hlth, Sonos, Energizer

Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

We are a global market research company focused on industries, countries, economies and consumers worldwide. Our cross-country comparable research helps your organisation identify opportunities and develop growth strategies in countries and regions across the globe. With offices around the world, 1,200 analysts in 100 countries and market research on every key trend and driver, we give you powerful access to the real story behind consumer change.

Thematic (Sector/Industry)

<ul><li>Sun care grew by 5% in current value terms to reach SGD27 million in 2017.</li><li>Health concerns and the desire for fair skin drives growth.</li><li>The average unit price of sun care rose in 2017.</li><li>Energizer (S) Pte Ltd retained lead in sun care in 2017 with a value share of 36%.</li><li>Sun care is projected to increase at a value CAGR of 4% at constant 2017 prices over the forecast period to reach SGD32 million in 2022.</li></ul>

Sun care grew by 5% in current value terms to reach SGD27 million in 2017.Health concerns and the desire for fair skin drives growth.The average unit price of sun care rose in 2017.Energizer (S) Pte Ltd retained lead in sun care in 2017 with a value share of 36%.Sun care is projected to increase at a value CAGR of 4% at constant 2017 prices over the forecast period to reach SGD32 million in 2022.

M&A Reporting, CTFN

Jonathan Spitzer

M&A Reporting

CTFN

Bringing the marketplace leading coverage of mergers, events, and major corporate actions, CTFN has a team of seasoned reporters from Los Angeles to London, publishing news that advances stories that matter to event-driven investors and deal professionals.

Event-Driven

On March 29, Energizer Holdings and Spectrum Brands announced that the Federal Trade Commission allowed expiration of the waiting period under the Hart-Scott-Rodino Antitrust Act regarding Energizer’s acquisition of Spectrum Brands’ battery unit. The swift clearance was a surprise to investors and to the antitrust community, as well as to the attorneys working on the deal, sources shared with CTFN.

On March 29, Energizer Holdings and Spectrum Brands announced that the Federal Trade Commission allowed expiration of the waiting period under the Hart-Scott-Rodino Antitrust Act regarding Energizer’s acquisition of Spectrum Brands’ battery unit. The swift clearance was a surprise to investors and to the antitrust community, as well as to the attorneys working on the deal, sources shared with CTFN.

How a 3-2 Merger Got Done in The Present US Antitrust Environment

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

In this review, we highlight 5 Thai stocks that could potentially do well in the Donald December 2016, the last Christmas Obama will get to celebrate from the White House. In terms of updates, we collected news and snippets from NY Times and other publications about who the potential Trump cabinet could include in 2017. Honestly, the actual composition of the Cabinet is unlikely to have much impact on Thai equities, but MCorp Review has followed the US elections for so long it makes sense to go…

In this review, we highlight 5 Thai stocks that could potentially do well in the Donald December 2016, the last Christmas Obama will get to celebrate from the White House. In terms of updates, we collected news and snippets from NY Times and other publications about who the potential Trump cabinet could include in 2017. Honestly, the actual composition of the Cabinet is unlikely to have much impact on Thai equities, but MCorp Review has followed the US elections for so long it makes sense to go…

United States

Energizer Holdings, Inc. manufactures dry cell batteries and flashlights. The Company offers a full line of products, including alkaline, carbon zinc, miniature, and rechargeable batteries, as well as lighting products. Energizer also manufactures and markets a range of razor and shave related products on a global basis.

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Energizer Holdings (ENR US)

Short Ideas on Our Workbench: Earnings Quality

Our "Workbench" focuses exclusively on potential earnings quality shorts. We continue to work on these names. Today we highlight ten names of...

Eric Fernandez, CFA

Earnings Quality Short Candidates: ZoomInfo, Gogo, Elanco Animal Hlth, Sonos, Energizer

Earnings Quality shorts lead to idiosyncratic alpha. Today, we show our model rankings and highlight ZoomInfo, Gogo, Elanco Animal Hlth, Sonos,...

Eric Fernandez, CFA

Sector Capsule: Sun Care in Singapore

Sun care grew by 5% in current value terms to reach SGD27 million in 2017. Health concerns and the desire for fair skin drives growth. The average...

Euromonitor International Ltd.

How a 3-2 Merger Got Done in The Present US Antitrust Environment

On March 29, Energizer Holdings and Spectrum Brands announced that the Federal Trade Commission allowed expiration of the waiting period under the...

CTFN

5 Stock Picks for Santa Trump

In this review, we highlight 5 Thai stocks that could potentially do well in the Donald December 2016, the last Christmas Obama will get to...

Athaporn Arayasantiparb, CFA

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