Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<div><div><div><div><ul style="list-style-type: disc;"><li><p>Global equities sold off this week after more hawkish language from the Federal Reserve. The MSCI World Index fell 2.77%, while the S&amp;P 500 dropped 2.92%.</p></li><li><p>The Fed kept rates at 5.25-5.50% but warned additional rate hikes are possible.</p></li><li><p>The NASDAQ declined 3.62%, while the small-cap Russell 2000 finished the five days down 3.78%.</p></li></ul></div></div></div></div>

Global equities sold off this week after more hawkish language from the Federal Reserve. The MSCI World Index fell 2.77%, while the S&amp;P 500 dropped 2.92%.The Fed kept rates at 5.25-5.50% but warned additional rate hikes are possible.The NASDAQ declined 3.62%, while the small-cap Russell 2000 finished the five days down 3.78%.

The Highlights - Cannabis News for the Week Ending September 22, 2023

<ul><li>The WTR Sustainable Index outperformed the broader market, rising 0.8% W/W versus the S&amp;P 500 Index (down 0.2%), the Russell 2000 Index (down 0.2%), and the Nasdaq Index (down 0.5%).</li><li>Energy Technology (15.0% of the index) contributed to the index’s outperformance, rising 1.2%, while Industrial Climate and Ag Technology (45.3% of the index) was down 2%, ClimateTech Mining was up 2.6%, and Advanced Transportation Solutions was up 3.7%.</li><li>Top 10 Performers: MULN, CMC, FFIE, NKLA, CRGE, WUC, NNOMF, XOS, AZRE, CPTN</li></ul>

The WTR Sustainable Index outperformed the broader market, rising 0.8% W/W versus the S&amp;P 500 Index (down 0.2%), the Russell 2000 Index (down 0.2%), and the Nasdaq Index (down 0.5%).Energy Technology (15.0% of the index) contributed to the index’s outperformance, rising 1.2%, while Industrial Climate and Ag Technology (45.3% of the index) was down 2%, ClimateTech Mining was up 2.6%, and Advanced Transportation Solutions was up 3.7%.Top 10 Performers: MULN, CMC, FFIE, NKLA, CRGE, WUC, NNOMF, XOS, AZRE, CPTN

Weekly Sustainable Investing Surveyor Week Ended September 15, 2023

<ul style="list-style-type: disc;"><li><p>Global equities were fairly flat this week, with the MSCI World Index +0.40% and the S&amp;P -0.48%.</p></li><li><p>The NASDAQ was down 0.39%, while the small-cap Russell 2000 dropped 0.17%.</p></li><li><p>Rising oil prices boosted value stocks, while Apple’s uninspiring new product introductions weighed on the tech sector.</p></li></ul>

Global equities were fairly flat this week, with the MSCI World Index +0.40% and the S&amp;P -0.48%.The NASDAQ was down 0.39%, while the small-cap Russell 2000 dropped 0.17%.Rising oil prices boosted value stocks, while Apple’s uninspiring new product introductions weighed on the tech sector.

The Highlights - Cannabis News for the Week Ending September 15, 2023

Head of Research and Global Chief Strategist, Steno Research

Andreas Steno

Head of Research and Global Chief Strategist

Macro and Geopolitical Research House

Steno Research

Steno Research is a new macro and geopolitical research house. We are based out of Copenhagen, Denmark, but have an international team and a strong network of sources and partners around the world. The team is lead by Andreas Steno, previous global head of strategy at Nordea Bank, and Mikkel Rosenvold, former chief consultant in the Danish Ministry of Finance.

Macroeconomics

<ul>
<li>Over the past week we received the monthly Fund Manager survey suggesting that UK and Europe are now (clearly) underweight relative to benchmark allocations, while also China is essentially un-investable according to the survey.</li>
<li>Interestingly, the survey also reveals that managers are still not net/net long Energy relative to benchmarks, which is an interesting observation given the performance in that sector in recent months.</li>
<li>With energy outperforming indices, higher rates typically follow as well.</li>
</ul>


Over the past week we received the monthly Fund Manager survey suggesting that UK and Europe are now (clearly) underweight relative to benchmark allocations, while also China is essentially un-investable according to the survey.
Interestingly, the survey also reveals that managers are still not net/net long Energy relative to benchmarks, which is an interesting observation given the performance in that sector in recent months.
With energy outperforming indices, higher rates typically follow as well.


Positioning Watch: Energy is not (yet) a consensus

<div><div><div><div><ul style="list-style-type: disc;"><li><p>WTR-CMI last week. Last week saw the market retrench, with the S&amp;P 500 losing 1.3%, while our WTR-CMI index of 30 chemicals and materials technology stocks managed to modestly outperform the broader Russell 2000 index (-3.6%) by declining 3.4%.</p></li><li><p>Only one stock in our index, SXT, managed a positive gain for the week, appreciating 3%. FMC was the worst performer in our index, losing 12.3% of its value on a short seller’s report that the company felt obliged to address.</p></li><li><p>Ag-tech portfolio shuffles continue. Privately held DLF, a global seed company, completed the acquisition of CTVA’s alfalfa seed breeding program, which was announced last month.</p></li></ul></div></div></div></div>

WTR-CMI last week. Last week saw the market retrench, with the S&amp;P 500 losing 1.3%, while our WTR-CMI index of 30 chemicals and materials technology stocks managed to modestly outperform the broader Russell 2000 index (-3.6%) by declining 3.4%.Only one stock in our index, SXT, managed a positive gain for the week, appreciating 3%. FMC was the worst performer in our index, losing 12.3% of its value on a short seller’s report that the company felt obliged to address.Ag-tech portfolio shuffles continue. Privately held DLF, a global seed company, completed the acquisition of CTVA’s alfalfa seed breeding program, which was announced last month.

Mat-Chem Notes For the Week Ended September 8, 2023

United States

The Russell 2000 Index is comprised of the smallest 2000 companies in the Russell 3000 Index, representing approximately 8% of the Russell 3000 total market capitalization. The index was developed with a base value of 135.00 as of December 31, 1986.

Russell 2000 Index (RTY INDEX)

The Highlights - Cannabis News for the Week Ending September 22, 2023

Global equities sold off this week after more hawkish language from the Federal Reserve. The MSCI World Index fell 2.77%, while the S&P 500 dropped...

Water Tower Research

Weekly Sustainable Investing Surveyor Week Ended September 15, 2023

The WTR Sustainable Index outperformed the broader market, rising 0.8% W/W versus the S&P 500 Index (down 0.2%), the Russell 2000 Index (down...

Water Tower Research

The Highlights - Cannabis News for the Week Ending September 15, 2023

Global equities were fairly flat this week, with the MSCI World Index +0.40% and the S&P -0.48%. The NASDAQ was down 0.39%, while the small-cap...

Water Tower Research

Positioning Watch: Energy is not (yet) a consensus

Over the past week we received the monthly Fund Manager survey suggesting that UK and Europe are now (clearly) underweight relative to benchmark...

Steno Research

Mat-Chem Notes For the Week Ended September 8, 2023

Ag-tech portfolio shuffles continue. Privately held DLF, a global seed company, completed the acquisition of CTVA’s alfalfa seed breeding program,...

Water Tower Research