Thematic Investing in Tech and Media, CM Research

Cyrus Mewawalla

Thematic Investing in Tech and Media

Thematic TMT investing

CM Research

CM Research is an independent research house based in London, England. We provide global thematic research in the Technology, Media and Telecoms (TMT) sectors. 

Our focus is on disruptive technologies: how will they unfold; which industries will be impacted; and who will be the ultimate winners and losers. 

Our aim is to help investors predict share prices and corporate executives stay one step ahead of the technology trends that are shaping their industry. 

We research technology investment themes in detail and then feed the results into a scorecard system to quantify the impact of several conflicting themes on individual stocks. 

Recent themes covered include internet TV, the Internet of Things, Big Data, Mobile payments, crowdfunding, artificial intelligence, the cloud, software defined networking and Generation Hashtag.

We cover the top 500 global TMT stocks by market capitalisation and several technology start-ups and pre-IPO companies too. 

In 2015, CM Research analysts outperformed the Bloomberg Benchmark Analyst Index - which measures how good analysts are at predicting stock prices - by 7.1%.

Thematic (Sector/Industry)

During this decade, the digital data universe is expected to grow 75-fold from 1.2 zettabytes to 90 zettabytes. (1 zettabyte = 1 trillion gigabytes).Ask any CEO how he expects to sell more products and cut more costs and he will tell you that Big Data features prominently in his strategy. Big Data refers to the technology processes by which companies can profit from the large amounts of data to which they have access.But investors who want to ride the Big Data wave are finding that it is not that easy to identify where to invest.In this report, we delve deep down into the Big Data supply chain and look at where the investment opportunities really lie.&nbsp;

During this decade, the digital data universe is expected to grow 75-fold from 1.2 zettabytes to 90 zettabytes. (1 zettabyte = 1 trillion gigabytes).Ask any CEO how he expects to sell more products and cut more costs and he will tell you that Big Data features prominently in his strategy. Big Data refers to the technology processes by which companies can profit from the large amounts of data to which they have access.But investors who want to ride the Big Data wave are finding that it is not that easy to identify where to invest.In this report, we delve deep down into the Big Data supply chain and look at where the investment opportunities really lie.&nbsp;

Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Equity Bottom-Up

Malaysia wireless trends deteriorated in 4Q15 while fixed line player <a href="https://www.smartkarma.com/entities/943" target="_blank" data-smartkarma-citation="entities:943">Telekom Malaysia Bhd</a> (TM) also reported weak revenue growth and disappointing profits. In the latter's case the focus should be in its planned 4G entry, not near term results.  Our view remains that the market is underestimating the potential Telekom has to gain market share. We point to the example of <a href="https://www.smartkarma.com/entities/21486" target="_blank" data-smartkarma-citation="entities:21486">Iliad SA</a> (Iliad) in France for a sense of what could happen. Competition remains intense and we believe guidance is starting to look optimistic (even ignoring TM entry). The stocks trade at substantial premiums, in part due to domestic factors but also on their yield. If the market is no longer growing and a new competitor is poised to take market share, then the outlook for earnings is grim. That is not reflected in share prices despite recent weakness.

Malaysia wireless trends deteriorated in 4Q15 while fixed line player Telekom Malaysia Bhd (TM) also reported weak revenue growth and disappointing profits. In the latter's case the focus should be in its planned 4G entry, not near term results.  Our view remains that the market is underestimating the potential Telekom has to gain market share. We point to the example of Iliad SA (Iliad) in France for a sense of what could happen. Competition remains intense and we believe guidance is starting to look optimistic (even ignoring TM entry). The stocks trade at substantial premiums, in part due to domestic factors but also on their yield. If the market is no longer growing and a new competitor is poised to take market share, then the outlook for earnings is grim. That is not reflected in share prices despite recent weakness. 

Malaysian Telcos Are Ex-Growth, Before Telekom Malaysia's 4G Entry.

<a href="https://www.smartkarma.com/entities/945" target="_blank" data-smartkarma-citation="entities:945">Digi.Com Bhd</a> (DIGI) reported disappointing 4Q15 results showing a decline in service revenue, driven by weak voice revenue. Margins contracted by 390bps YoY and are now at historic lows hurt by rising network operating costs from 4G roll-out and competition from <a href="https://www.smartkarma.com/entities/946" target="_blank" data-smartkarma-citation="entities:946">Maxis Bhd</a> (Maxis) seeking to reverse earlier market share losses. This is all before <a href="https://www.smartkarma.com/entities/943" target="_blank" data-smartkarma-citation="entities:943">Telekom Malaysia Bhd</a> (TM) moves to launch its 4G competitor and the government starts to extract payments for spectrum.The detail: Service revenue…

Digi.Com Bhd (DIGI) reported disappointing 4Q15 results showing a decline in service revenue, driven by weak voice revenue. Margins contracted by 390bps YoY and are now at historic lows hurt by rising network operating costs from 4G roll-out and competition from Maxis Bhd (Maxis) seeking to reverse earlier market share losses. This is all before Telekom Malaysia Bhd (TM) moves to launch its 4G competitor and the government starts to extract payments for spectrum.The detail: Service revenue…

DIGI Service Revenue Decline Suggests Worse to Come for the Industry?

France

Iliad S.A. provides a wide range of telecommunications services which include national telecommunication and dial-up, and high speed DSL and TV Internet access.

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Iliad SA (ILD FP)

Big Data as an Investment Theme

During this decade, the digital data universe is expected to grow 75-fold from 1.2 zettabytes to 90 zettabytes. (1 zettabyte = 1 trillion...

CM Research

Malaysian Telcos Are Ex-Growth, Before Telekom Malaysia's 4G Entry.

Malaysia wireless trends deteriorated in 4Q15 while fixed line player Telekom Malaysia Bhd (TM) also reported weak revenue growth and disappointing...

New Street Research

DIGI Service Revenue Decline Suggests Worse to Come for the Industry?

Digi.Com Bhd (DIGI) reported disappointing 4Q15 results showing a decline in service revenue, driven by weak voice revenue. Margins contracted by...

New Street Research

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