Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<ul>
<li>Shares of <a href="https://www.smartkarma.com/entities/tilray-inc" target="_blank" data-smartkarma-citation="entities:27402:1" rel="noopener">Tilray Inc (TLRY US)</a> hit 52-week low amid delay to pass a federal marijuana legalization bill in the U.S., falling cannabis prices and intense competition among cannabis producers.</li>
<li>Tilray’s valuation looks attractive keeping in mind upcoming (Jan-Mar 2022) marijuana legalization at the federal level in the United States and acquisition of Breckenridge Distillery and MedMen.</li>
<li>We expect <a href="https://www.smartkarma.com/entities/tilray-inc" target="_blank" data-smartkarma-citation="entities:27402:1" rel="noopener">Tilray Inc (TLRY US)</a> will report strong earnings for Q2’FY22 on January 10th next year and see interest from Big Tobacco to enter high-growth marijuana business.</li>
</ul>


Shares of Tilray Inc (TLRY US) hit 52-week low amid delay to pass a federal marijuana legalization bill in the U.S., falling cannabis prices and intense competition among cannabis producers.
Tilray’s valuation looks attractive keeping in mind upcoming (Jan-Mar 2022) marijuana legalization at the federal level in the United States and acquisition of Breckenridge Distillery and MedMen.
We expect Tilray Inc (TLRY US) will report strong earnings for Q2’FY22 on January 10th next year and see interest from Big Tobacco to enter high-growth marijuana business.


Opportunity To Secure a Strategic Investment From a Big Tobacco Company?

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

In last week's Compass we highlighted what we view as compelling signals that risk appetites are improving, which is bullish for the broad market. The trend of improving risk appetites has only continued over the past week and we are moving toward an outright bullish outlook.

In last week's Compass we highlighted what we view as compelling signals that risk appetites are improving, which is bullish for the broad market. The trend of improving risk appetites has only continued over the past week and we are moving toward an outright bullish outlook.

U.S. Equity Strategy: Small-Caps Re-Emerging As Leadership

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/27438" target="_blank" data-smartkarma-citation="entities:27438:1">LAIX Inc (LAIX US)</a> (FKA. Lingochamp) is raising up to US$78m in its IPO. Proceeds from the IPO will be mainly used for research and development and sales and marketing efforts along with general working capital purposes.
We still like Lingochamp's business and app but we think that sustainability is still an ongoing concern. While the company seems to have a better reputation that Sunlands and also has a stellar shareholders profile, the IPO does not offer upside since it is already priced at a 70 -140% premium to Sunlands on an FY2019E EV/Revenue basis.
In this insight, we will summarize our views from previous insight, compare the company with other US-listed Chinese education peers, and last but not least, we will run the deal through our ECM framework.

LAIX Inc (LAIX US) (FKA. Lingochamp) is raising up to US$78m in its IPO. Proceeds from the IPO will be mainly used for research and development and sales and marketing efforts along with general working capital purposes.
We still like Lingochamp's business and app but we think that sustainability is still an ongoing concern. While the company seems to have a better reputation that Sunlands and also has a stellar shareholders profile, the IPO does not offer upside since it is already priced at a 70 -140% premium to Sunlands on an FY2019E EV/Revenue basis.
In this insight, we will summarize our views from previous insight, compare the company with other US-listed Chinese education peers, and last but not least, we will run the deal through our ECM framework.

Lingochamp (流利说) IPO Review - Fairly Valued but Small Float and Stellar Shareholder Will Help

Transport Sector, China and Asia-focused Research

Charles De Trenck

We are at the start of a new page for an old industry, with marijuana becoming legal in many markets faster than we could have imagined a decade ago. The move this week by<a href="https://www.smartkarma.com/entities/8065" target="_blank" data-smartkarma-citation="entities:8065:1">Constellation Brands Inc A (STZ US)</a> to increase its stake in <a href="https://www.smartkarma.com/entities/25083" target="_blank" data-smartkarma-citation="entities:25083:1">Canopy Growth (WEED CN)</a> is a game changer.Some US states have made the move into medical and recreational marijuana, with California becoming the big catch in Jan 2018. We all know this, and this has been reflected in share prices of many counters in 2017-18 rallies.…

We are at the start of a new page for an old industry, with marijuana becoming legal in many markets faster than we could have imagined a decade ago. The move this week byConstellation Brands Inc A (STZ US) to increase its stake in Canopy Growth (WEED CN) is a game changer.Some US states have made the move into medical and recreational marijuana, with California becoming the big catch in Jan 2018. We all know this, and this has been reflected in share prices of many counters in 2017-18 rallies.…

Cannabis: Game Change Buy In from Alcoholic Beverages Player (Constellation Brands + Canopy Growth)

Canada

Tilray, Inc. operates as a pharmaceutical company. The Company develops cannabis based medicines, drugs, drops, and oil products. Tilray serves clients worldwide.

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Tilray Inc (TLRY US)

Opportunity To Secure a Strategic Investment From a Big Tobacco Company?

We believe Tilray is a promising investment in global cannabis industry keeping in mind strong interest from Big Tobacco and upcoming marijuana...

Andrei Zakharov

U.S. Equity Strategy: Small-Caps Re-Emerging As Leadership

We continue to see compelling signals that suggest risk appetites are improving, which is bullish for the broad market. As a result, we are moving...

Vermilion Research

Lingochamp (流利说) IPO Review - Fairly Valued but Small Float and Stellar Shareholder Will Help

LAIX Inc (LAIX US) (FKA. Lingochamp) is raising up to US$78m in its IPO. Proceeds from the IPO will be mainly used for research and development and...

Zhen Zhou, Toh

Cannabis: Game Change Buy In from Alcoholic Beverages Player (Constellation Brands + Canopy Growth)

We are at the start of a new page for an old industry, with marijuana becoming legal in many markets faster than we could have imagined a decade...

Charles De Trenck

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