IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Alibaba Group Holding  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a> aims to complete a spin-off of the Cloud Intelligence Group via a stock dividend distribution, with it becoming publicly listed in the next 12 months.  </li>
<li>The Cloud business is pursuing a land-grab strategy to reignite growth. While it is the only profitable Chinese cloud platform, the profitability gap to Amazon AWS highlights the opportunity. </li>
<li>The aim to bring in external strategic investors before the spin-off will provide a valuation benchmark. Our analysis points to a Cloud business valuation range of US$45-58 billion. </li>
</ul>



Alibaba (ADR) (BABA US) aims to complete a spin-off of the Cloud Intelligence Group via a stock dividend distribution, with it becoming publicly listed in the next 12 months.  
The Cloud business is pursuing a land-grab strategy to reignite growth. While it is the only profitable Chinese cloud platform, the profitability gap to Amazon AWS highlights the opportunity. 
The aim to bring in external strategic investors before the spin-off will provide a valuation benchmark. Our analysis points to a Cloud business valuation range of US$45-58 billion. 


Alibaba’s Cloud Intelligence Group Spin-Off: The First Look

Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

Thematic (Sector/Industry)

<ul>
<li>One reason the Global Fund Manager Survey is interesting is that it often contains contradictions concerning investor positioning.</li>
<li>Global Fund Managers are joining the AI boom, are heavily overweight tech stocks, but only 54% of them expect AI to boost company profits.</li>
<li>We believe global fund managers are long tech stocks because of strong momentum and the market extrapolation of artificial intelligence impacting earnings and sales growth, not because of superior fundamentals. </li>
</ul>


One reason the Global Fund Manager Survey is interesting is that it often contains contradictions concerning investor positioning.
Global Fund Managers are joining the AI boom, are heavily overweight tech stocks, but only 54% of them expect AI to boost company profits.
We believe global fund managers are long tech stocks because of strong momentum and the market extrapolation of artificial intelligence impacting earnings and sales growth, not because of superior fundamentals. 


High Quality Stock Setups, Weekly Stock Bull Finder

Weekly Stock Bull Finder

High Quality Stock Setups

Finding high potential stock setups on quality companies

<ul>
<li>The ITB US Home Construction ETF is now up 33% YTD and represents one of the biggest market surprises for me so far in 2023.</li>
<li>This group has flashed relative strength vs. the S&amp;P 500 since December 2022 and continues to one of the top performing groups.</li>
<li>After undergoing correction in 2022, the homebuilders sector has tons of weekly charts breaking out of long and healthy weekly bases in strong uptrends</li>
</ul>


The ITB US Home Construction ETF is now up 33% YTD and represents one of the biggest market surprises for me so far in 2023.
This group has flashed relative strength vs. the S&amp;P 500 since December 2022 and continues to one of the top performing groups.
After undergoing correction in 2022, the homebuilders sector has tons of weekly charts breaking out of long and healthy weekly bases in strong uptrends


<ul><li>“Big Infrastructure”- Under the Surface Megatrend Continues While AI/semiconductors and related Big Tech names such as Microsoft, Nvidia, Meta, Alphabet, etc. capture significant attention within the business media today, secular growth pockets in the infrastructure space don’t seem to be gathering as much attention as it probably should deserve in the infrastructure space.</li><li>As shown in recent legislation, one of the few areas of agreement within a divided US Congress is infrastructure investment and spending.</li><li>Passed in November 2021, the the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act unleashed $550 billion in new spending for things like roads and bridges ($110B), power grid modernization ($65B), railroads ($66B), water infrastructure ($55B), airports ($25B), etc.</li></ul>

“Big Infrastructure”- Under the Surface Megatrend Continues While AI/semiconductors and related Big Tech names such as Microsoft, Nvidia, Meta, Alphabet, etc. capture significant attention within the business media today, secular growth pockets in the infrastructure space don’t seem to be gathering as much attention as it probably should deserve in the infrastructure space.As shown in recent legislation, one of the few areas of agreement within a divided US Congress is infrastructure investment and spending.Passed in November 2021, the the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act unleashed $550 billion in new spending for things like roads and bridges ($110B), power grid modernization ($65B), railroads ($66B), water infrastructure ($55B), airports ($25B), etc.

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

<ul>
<li>HP and Dell's industry outlook after their results last week indicate a PC market stabilizing and set for growth in 2024E. Qualcomm provided AI comments at a recent conference.</li>
<li>Both HP and Dell managed to beat earnings expectations despite experiencing 20%+ YoY revenue declines. Neither stock's price has made a significant move since results.</li>
<li>AI incorporated into Windows 11 and PC's themselves could be a major reason for companies and consumers to buy new PC's. PC's are being designed to run AI capabilities locally.</li>
</ul>


HP and Dell's industry outlook after their results last week indicate a PC market stabilizing and set for growth in 2024E. Qualcomm provided AI comments at a recent conference.
Both HP and Dell managed to beat earnings expectations despite experiencing 20%+ YoY revenue declines. Neither stock's price has made a significant move since results.
AI incorporated into Windows 11 and PC's themselves could be a major reason for companies and consumers to buy new PC's. PC's are being designed to run AI capabilities locally.


Dell, HP, Qualcomm Signal AI-Driven PC Refresh Cycle, 2024E PC Growth, Accelerated Windows Upgrades

United States

Microsoft Corporation operates as a software company. The Company offers applications, extra cloud storage, and advanced security solutions. Microsoft serves customers worldwide.

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Microsoft Corp (MSFT US)

Alibaba’s Cloud Intelligence Group Spin-Off: The First Look

The aim to bring in external strategic investors before the spin-off will provide a valuation benchmark. Our analysis points to a Cloud business...

Arun George

Artificial Inconsistencies

Artificial Intelligence brings the Beatles back together, and Global Fund Managers are joining the AI boom. But NOT because of superior fundamentals.

Jeroen Blokland

Weekly Stock Bullfinder - Week of 6/19

The ITB US Home Construction ETF is now up 33% YTD and represents one of the biggest market surprises for me so far in 2023.

Weekly Stock Bull Finder

Weekly Stock Bullfinder - Week of 6/12

As shown in recent legislation, one of the few areas of agreement within a divided US Congress is infrastructure investment and spending.

Weekly Stock Bull Finder

Dell, HP, Qualcomm Signal AI-Driven PC Refresh Cycle, 2024E PC Growth, Accelerated Windows Upgrades

AI incorporated into Windows 11 and PC's themselves could be a major reason for companies and consumers to buy new PC's. PC's are being designed to...

Vincent Fernando, CFA

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