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)

<ul><li>The WTR Sustainable Index was down 0.7% W/W versus the S&amp;P 500 Index (down 0.04%), the Russell 2000 Index (down 1.3%) and the Nasdaq Index (up 0.4%).</li><li>Energy Technology (13.7% of the index) was down 2.8%, while Industrial Climate and Ag Technology (46.3% of the index) was up 0.9%, ClimateTech Mining was down 0.8%, and Advanced Transportation Solutions (20.2% of index) was down 3.3%.</li><li>Top 10 Performers: VIHD, DCFC, IPWR, COMM, BIOF, WAVE, TGEN, <span style="font-size: var(--content-font-size);">LIQT, ASPN, FL</span></li></ul>

The WTR Sustainable Index was down 0.7% W/W versus the S&amp;P 500 Index (down 0.04%), the Russell 2000 Index (down 1.3%) and the Nasdaq Index (up 0.4%).Energy Technology (13.7% of the index) was down 2.8%, while Industrial Climate and Ag Technology (46.3% of the index) was up 0.9%, ClimateTech Mining was down 0.8%, and Advanced Transportation Solutions (20.2% of index) was down 3.3%.Top 10 Performers: VIHD, DCFC, IPWR, COMM, BIOF, WAVE, TGEN, LIQT, ASPN, FL

Sustainable Investing Surveyor - Focus on Eos Energy Enterprises, Inc. (EOSE)

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/berkshire-hathaway-inc-cl-b" target="_blank" data-smartkarma-citation="entities:8635:1" rel="noopener">Berkshire Hathaway Inc Cl B (BRK/B US)</a> held over 5% of <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a>. Nearly half of that was sold in the June quarter to take the holding to 2.63%. </li>
<li>Berkshire's selling should result in an increase in <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a>'s free float in the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> and other related indices.</li>
<li>There will also be large buying in <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a> from the <a href="https://www.smartkarma.com/entities/technology-select-sector-spdr" target="_blank" data-smartkarma-citation="entities:27543:1" rel="noopener">Technology Select Sector SPDR (XLK US)</a> ETF if the proposals in the market consultation are implemented.</li>
</ul>



Berkshire Hathaway Inc Cl B (BRK/B US) held over 5% of Apple (AAPL US). Nearly half of that was sold in the June quarter to take the holding to 2.63%. 
Berkshire's selling should result in an increase in Apple (AAPL US)'s free float in the S&amp;P 500 INDEX (SPX INDEX) and other related indices.
There will also be large buying in Apple (AAPL US) from the Technology Select Sector SPDR (XLK US) ETF if the proposals in the market consultation are implemented.


Apple Inc (AAPL US): $43bn Passive Buying Driven by Berkshire Selling & Market Consultation

Metals, Ores, and Mining Firms, Mint Finance

Pranay Yadav

Metals, Ores, and Mining Firms

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Macroeconomics

<ul>
<li>CPI dropped to 2.9% YoY in July, the lowest since March 2021, while Core CPI cooled to 3.2% YoY, reflecting a broad-based softening in inflation.</li>
<li>Retail sales surged 1% MoM, driven by a volatile 3.6% rise in motor vehicle sales, signaling resilient consumer spending despite mixed economic conditions.</li>
<li>Manufacturing and industrial production contracted, pushing the GDPNow forecast down to 2.4%, highlighting persistent weakness in these sectors.</li>
</ul>


CPI dropped to 2.9% YoY in July, the lowest since March 2021, while Core CPI cooled to 3.2% YoY, reflecting a broad-based softening in inflation.
Retail sales surged 1% MoM, driven by a volatile 3.6% rise in motor vehicle sales, signaling resilient consumer spending despite mixed economic conditions.
Manufacturing and industrial production contracted, pushing the GDPNow forecast down to 2.4%, highlighting persistent weakness in these sectors.


Mint Macro Roundup: U.S. Inflation Dips Below 3% Amid Stronger Retail Sales

<ul><li>The WTR Sustainable Index was up 0.4% W/W versus the S&amp;P 500 Index (down 0.8%), the Russell 2000 Index (up 3.5%) and the Nasdaq Index (down 2.6%).</li><li>Energy Technology (14.4% of the index) was up 0.4%, while Industrial Climate and Ag Technology (59.5% of the index) was up 0.3%, ClimateTech Mining was down 7.5%, and Advanced Transportation Solutions (20.9% of index) was up 0.8%.</li><li>Top 10 Performers: ZEV, FSR, SUNW, HYSR, AVL, GPHOF, SPWR, <span style="font-size: var(--content-font-size);">CPWHF, IRBT, FTCI</span></li></ul>

The WTR Sustainable Index was up 0.4% W/W versus the S&amp;P 500 Index (down 0.8%), the Russell 2000 Index (up 3.5%) and the Nasdaq Index (down 2.6%).Energy Technology (14.4% of the index) was up 0.4%, while Industrial Climate and Ag Technology (59.5% of the index) was up 0.3%, ClimateTech Mining was down 7.5%, and Advanced Transportation Solutions (20.9% of index) was up 0.8%.Top 10 Performers: ZEV, FSR, SUNW, HYSR, AVL, GPHOF, SPWR, CPWHF, IRBT, FTCI

Sustainable Investing Surveyor Focus on Crown LNG Holdings Limited (CGBS)

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>We downgraded our long-term outlook to neutral last week (8/6/24 Compass) after being bullish since early-November 2023. We still believe the SPX is going through a 1-to 4-month consolidation phase.</li>
<li>It is possible the low for this consolidation has been established within our expected pullback zone of 5100-5191 that we discussed two weeks ago (7/30/24 Compass)</li>
<li>In terms of upside, the SPX could test its YTD highs or make a marginal new high, or could also see it roll over at the 5400 or 5585 resistances.</li>
</ul>


We downgraded our long-term outlook to neutral last week (8/6/24 Compass) after being bullish since early-November 2023. We still believe the SPX is going through a 1-to 4-month consolidation phase.
It is possible the low for this consolidation has been established within our expected pullback zone of 5100-5191 that we discussed two weeks ago (7/30/24 Compass)
In terms of upside, the SPX could test its YTD highs or make a marginal new high, or could also see it roll over at the 5400 or 5585 resistances.


Downgrading Discretionary to UW; 2000, 2007, 2022 SPX Top Similarities Suggest Test of YTD Highs

United States

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

S&P 500 INDEX (SPX INDEX)

Sustainable Investing Surveyor - Focus on Eos Energy Enterprises, Inc. (EOSE)

The WTR Sustainable Index was down 0.7% W/W versus the S&P 500 Index (down 0.04%), the Russell 2000 Index (down 1.3%) and the Nasdaq Index (up 0.4%).

Water Tower Research

Apple Inc (AAPL US): $43bn Passive Buying Driven by Berkshire Selling & Market Consultation

Berkshire selling increases Apple's float. Market consultation for the Select Sector indices increases Apple's weight in the XLK ETF. Together,...

Brian Freitas

Mint Macro Roundup: U.S. Inflation Dips Below 3% Amid Stronger Retail Sales

U.S. inflation fell below 3% for the first time in over three years. Despite mixed signals from the manufacturing sector, retail sales showed...

Mint Finance

Sustainable Investing Surveyor Focus on Crown LNG Holdings Limited (CGBS)

The WTR Sustainable Index was up 0.4% W/W versus the S&P 500 Index (down 0.8%), the Russell 2000 Index (up 3.5%) and the Nasdaq Index (down 2.6%).

Water Tower Research

Downgrading Discretionary to UW; 2000, 2007, 2022 SPX Top Similarities Suggest Test of YTD Highs

Downgrading Discretionary $XLY to Underweight; 2000, 2007, 2022 SPX Top Similarities Suggests Possible Test of YTD Highs; Expect Semiconductors...

Vermilion Research