Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Thematic (Sector/Industry)

<h2>The Background</h2>The establishment of the <a href="http://www.jpx.co.jp/english/equities/listing/cg/tvdivq0000008jdy-att/20150513.pdf" target="_blank">Japan Corporate Governance Code</a> in 2015 was a beginning step to better governance at stodgy Japanese corporations where boards have often been composed largely of insiders and their friends, financial acuity or expertise of board members was sorely lacking, and treatment of minority shareholders has often been dodgy at best. The Japan Corporate Governance Code ("JCGC") which sets rules regarding whistle-blowing, disclosure, stakeholders’ rights and more, is…

The BackgroundThe establishment of the Japan Corporate Governance Code in 2015 was a beginning step to better governance at stodgy Japanese corporations where boards have often been composed largely of insiders and their friends, financial acuity or expertise of board members was sorely lacking, and treatment of minority shareholders has often been dodgy at best. The Japan Corporate Governance Code ("JCGC") which sets rules regarding whistle-blowing, disclosure, stakeholders’ rights and more, is…

Japan Crossholdings: Japan Exchange's Sale of SGX Shares Sets A Precedent - Watch Closely

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

Equity Bottom-Up

* Indian Exchange Announcement Really Hurts:  On February 9, 2018, the Indian stock exchanges collectively terminated Singapore Exchange's (SGX.SP) [SGX] market data licensing agreement.  Indian contracts appear to represent 5.5% of overall derivative revenue – or 10% or more of SGX bottom-line. * De-Listing Challenges:  SGX has robust initial public offering (IPO) pipeline in 2018, but it is not nearly enough to offset the trading volume and market-cap loss associated with the deluge of…

* Indian Exchange Announcement Really Hurts:  On February 9, 2018, the Indian stock exchanges collectively terminated Singapore Exchange's (SGX.SP) [SGX] market data licensing agreement.  Indian contracts appear to represent 5.5% of overall derivative revenue – or 10% or more of SGX bottom-line. * De-Listing Challenges:  SGX has robust initial public offering (IPO) pipeline in 2018, but it is not nearly enough to offset the trading volume and market-cap loss associated with the deluge of…

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

Overwhelmingly, and to take a line from our U.S. Compass report, recent declines have corrected the excess. Where many charts appeared stretched and even parabolic in some cases, recent downward pressure on global equities has allowed many stocks to return to solid entry points near various areas of support. In today’s report we review every global sector, highlighting actionable stocks within each.

Overwhelmingly, and to take a line from our U.S. Compass report, recent declines have corrected the excess. Where many charts appeared stretched and even parabolic in some cases, recent downward pressure on global equities has allowed many stocks to return to solid entry points near various areas of support. In today’s report we review every global sector, highlighting actionable stocks within each.

* Traditional fundamentals within the legacy Hong Kong Exchanges &amp; Clearing (HKEx) [388.HK] equities business continues on a positive upswing, with turnover steadily increasing;  * Launching a new iron ore futures contract, however, appears to be yet another foolish foray into the commodities space as HKEx continues to dig itself deeper into a hole with the London Metals Exchange (LME) business; and* HKEx has yet to earn a positive return on invested capital (ROIC) with the LME, by our calculation, and only nominal overall net returns since deal consummation. Given how HKEx is currently pressing to generate any form of revenue within this commodities unit, we fear that accountants and regulators will now push for a significant goodwill charge up to 2.2 years in pre-tax earnings, by our calculation.

* Traditional fundamentals within the legacy Hong Kong Exchanges &amp; Clearing (HKEx) [388.HK] equities business continues on a positive upswing, with turnover steadily increasing;  * Launching a new iron ore futures contract, however, appears to be yet another foolish foray into the commodities space as HKEx continues to dig itself deeper into a hole with the London Metals Exchange (LME) business; and* HKEx has yet to earn a positive return on invested capital (ROIC) with the LME, by our calculation, and only nominal overall net returns since deal consummation. Given how HKEx is currently pressing to generate any form of revenue within this commodities unit, we fear that accountants and regulators will now push for a significant goodwill charge up to 2.2 years in pre-tax earnings, by our calculation.    

Doing bespoke work since 2002....., Custom Products Group

Patrick Hansen

Doing bespoke work since 2002.....

Custom Products Group

Custom Products was started 14 years ago at Lehman Brothers by current co-founder Patrick Hansen, CFA. After 3 years at Lehman, Patrick moved the team to Macquarie Securities where Simon Rigney (co-founder) joined. 3 years ago we took Custom Products independent. 

Our core strength can be summed up three words. 1- Customization - we have very little off the shelf products and most work is done on a one on one bespoke basis. 2- Speed - We pride ourselves in our ability to get requests back to the client very quickly. 3- Confidentiality - We do not redistribute. There is no grace period where we wait a week and then mass blast. Any request stops with that client.

With only 2 weeks left in August, we wanted to highlight names that you should be looking at heading into the next couple of months to the end of the year. We screened for names that 1- have a success rate since 2000 greater than 70%. 2- median return relative to TOPIX is greater than 5.5%.<h2>Screen Results</h2><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/031/654/original/2.png?1502826967" class="editor-image img-responsive" data-smartkarma-image-id="31654"></figure><div class="content-caption">Source: Custom Products</div>Both <a href="https://www.smartkarma.com/entities/12795" target="_blank" data-smartkarma-citation="entities:12795:1">Yokogawa Electric Corp (6841 JP)</a> and <a href="https://www.smartkarma.com/entities/14085" target="_blank" data-smartkarma-citation="entities:14085:1">Sapporo Holdings Ltd (2501 JP)</a> have been up 88% of the time. That means in the 17 years they have only been down twice relative to…

With only 2 weeks left in August, we wanted to highlight names that you should be looking at heading into the next couple of months to the end of the year. We screened for names that 1- have a success rate since 2000 greater than 70%. 2- median return relative to TOPIX is greater than 5.5%.Screen ResultsSource: Custom ProductsBoth Yokogawa Electric Corp (6841 JP) and Sapporo Holdings Ltd (2501 JP) have been up 88% of the time. That means in the 17 years they have only been down twice relative to…

Which Names Do the Best from September to the End of the Year....

Japan

Japan Exchange Group Inc is the holding company created through the merger of Tokyo Stock Exchange Group, Inc and Osaka Securities Exchange Co., Ltd. The group provides and operates a marketplace for the trading of equities, futures, and options. The Group manages the trading, as well as administers listed stocks and registered members.

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Japan Exchange Group (8697 JP)

Japan Crossholdings: Japan Exchange's Sale of SGX Shares Sets A Precedent - Watch Closely

The BackgroundThe establishment of the Japan Corporate Governance Code in 2015 was a beginning step to better governance at stodgy Japanese...

Travis Lundy

Singapore Exchange – Not So NIFTY

* Indian Exchange Announcement Really Hurts: On February 9, 2018, the Indian stock exchanges collectively terminated Singapore Exchange's (SGX.SP)...

Thomas J. Monaco

Global Equity Strategy

Overwhelmingly, and to take a line from our U.S. Compass report, recent declines have corrected the excess. Where many charts appeared stretched...

Vermilion Research

HKEx – Not Leaving Well Enough Alone

* Traditional fundamentals within the legacy Hong Kong Exchanges & Clearing (HKEx) [388.HK] equities business continues on a positive upswing,...

Thomas J. Monaco

Which Names Do the Best from September to the End of the Year....

With only 2 weeks left in August, we wanted to highlight names that you should be looking at heading into the next couple of months to the end of...

Custom Products Group

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