Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Keurig Dr Pepper share price has been under pressure over the recent months due to higher than expected drop in profitability.</li>
<li>Beverage segments, however, continue to perform well and would most likely offset weaknesses in coffee.</li>
<li>Investors should not expect a quick rebound in the company's free cash flow.</li>
</ul>


Keurig Dr Pepper share price has been under pressure over the recent months due to higher than expected drop in profitability.
Beverage segments, however, continue to perform well and would most likely offset weaknesses in coffee.
Investors should not expect a quick rebound in the company's free cash flow.


Keurig Dr Pepper: The Recent Share Price Drop Might Not Last For Long

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

<ul>
<li>Last week we discussed potential for a 2-5% rally to the 1.5-month downtrend on SPX, or even the 4165-4200 range, which would set up an opportunity to get more defensive.</li>
<li>As long as the S&amp;P 500 is below Wednesdays high of 4040 we continue to believe the bears are in control -- stay defensive.</li>
<li>Even if there is a reversal, we still expect 4165-4200 on SPX to cap upside for 2023. We highlight many buy opportunities within Consumer Staples</li>
</ul>


Last week we discussed potential for a 2-5% rally to the 1.5-month downtrend on SPX, or even the 4165-4200 range, which would set up an opportunity to get more defensive.
As long as the S&amp;P 500 is below Wednesdays high of 4040 we continue to believe the bears are in control -- stay defensive.
Even if there is a reversal, we still expect 4165-4200 on SPX to cap upside for 2023. We highlight many buy opportunities within Consumer Staples


S&P 500, Nasdaq 100, DJIA All Testing Resistance; Downgrading Financials to Underweight; Buy Staples

High Quality Stock Setups, Weekly Stock Bull Finder

Weekly Stock Bull Finder

High Quality Stock Setups

Finding high potential stock setups on quality companies

Thematic (Sector/Industry)

<ul><li>Stickier For Longer? Inflation continues to be top of mind for the Federal Reserve and investors as recent economic data continues to throw a wrench in the market’s previously perceived Fed plans for them to pause and then cut interest rates in the back half of 2023.</li><li>The Fed has hiked interest rates from almost zero to nearly 5% within the past year in response to inflation running at historic highs, and it expects to lift them even higher in the coming months.</li><li>Meanwhile, Fed speakers continue to move the terminal rate goalposts by signaling 5.5% or thereabouts terminal rates will cause the “immaculate disinflation” as if this magical fed funds interest rate level and only at this level will inflation continue to moderate downward.</li></ul>

Stickier For Longer? Inflation continues to be top of mind for the Federal Reserve and investors as recent economic data continues to throw a wrench in the market’s previously perceived Fed plans for them to pause and then cut interest rates in the back half of 2023.The Fed has hiked interest rates from almost zero to nearly 5% within the past year in response to inflation running at historic highs, and it expects to lift them even higher in the coming months.Meanwhile, Fed speakers continue to move the terminal rate goalposts by signaling 5.5% or thereabouts terminal rates will cause the “immaculate disinflation” as if this magical fed funds interest rate level and only at this level will inflation continue to moderate downward.

Consumer Staples Select Sector SPDR Fund / Technical Analysis

<ul>
<li>Since late November we have been discussing our expectations for a pullback, while recommending shifting exposure to defensives (Staples, Utilities, Health Care) and/or taking profits.</li>
<li>The pullback is finally happening following breaks below 3910 support on the S&amp;P 500, $177.50 support on the Russell 2000 (IWM), and $279 support on the Nasdaq 100 (QQQ). </li>
<li>These levels are now resistance, while major resistance remains at 200-dayMAs/YTD downtrends. Stick with defensives/cash as we believe a test of the YTD lows on the aforementioned indexes is likely.</li>
</ul>


Since late November we have been discussing our expectations for a pullback, while recommending shifting exposure to defensives (Staples, Utilities, Health Care) and/or taking profits.
The pullback is finally happening following breaks below 3910 support on the S&amp;P 500, $177.50 support on the Russell 2000 (IWM), and $279 support on the Nasdaq 100 (QQQ). 
These levels are now resistance, while major resistance remains at 200-dayMAs/YTD downtrends. Stick with defensives/cash as we believe a test of the YTD lows on the aforementioned indexes is likely.


Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Weilong Delicious Global Holdi / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weilong-delicious-global-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33378:1" rel="noopener">Weilong Delicious Global (9985 HK)</a> has priced its IPO at HK$10.56 per share, slightly above the bottom of the IPO price range of HK$10.4-11.4 per share.</li>
<li>The company's HK offering was oversubscribed by 10.53x while the international offering was oversubscribed by 2.6x.</li>
<li>Even at the above price, Weilong’s IPO is still at a significant premium to domestic as well as international peers.</li>
</ul>



Weilong Delicious Global (9985 HK) has priced its IPO at HK$10.56 per share, slightly above the bottom of the IPO price range of HK$10.4-11.4 per share.
The company's HK offering was oversubscribed by 10.53x while the international offering was oversubscribed by 2.6x.
Even at the above price, Weilong’s IPO is still at a significant premium to domestic as well as international peers.


Weilong Delicious IPO: Thoughts on First Day Trading

United States

PepsiCo, Inc. operates worldwide beverage, snack and food businesses. The Company manufactures or uses contract manufacturers, markets and sells a variety of grain-based snacks, carbonated and non-carbonated beverages and foods in countries throughout the world.

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Pepsico Inc (PEP US)

S&P 500, Nasdaq 100, DJIA All Testing Resistance; Downgrading Financials to Underweight; Buy Staples

Last week (3/21) we discussed the potential for a 2-5% rally to the 1.5-month downtrend on the $SPX, or even the 4165-4200 range, which we noted...

Vermilion Research

Weekly Stock Bullfinder - Week of 2/20

The Fed has hiked interest rates from almost zero to nearly 5% within the past year in response to inflation running at historic highs

Weekly Stock Bull Finder

Upgrading Staples and Health Care to Overweight; Stay Defensive, Expecting Test of YTD Lows on SPX

Since late November we have discussed our expectations for a pullback, recommending shifting exposure to defensives $XLP $XLV $XLU and/or taking...

Vermilion Research

Weilong Delicious IPO: Thoughts on First Day Trading

Weilong has set its final IPO price at HK$10.56 per share , which is close to the bottom end of the IPO price range. Still the company's IPO is...

Shifara Samsudeen, ACMA, CGMA

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