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>Downtrends remain intact for Japan’s TOPIX/Nikkei 225, Hong Kong’s Hang Seng, Europe’s EURO STOXX50, Germany's DAX, China (MCHI-US), and all the MSCI global indexes (ACWI, ACWI ex-US, EM, and EAFE).</li>
<li>The majority of these indexes are in well-defined downtrends; that means when the downtrends eventually reverse, it will be clear and we will be ready to buy/turn bullish.</li>
<li>Relative strength on Japan's TOPIX is reversing topside a 4.5-year downtrend, signaling Japan is emerging as leadership. We highlight buy opportunities in Japan and also in defensive Sectors</li>
</ul>


Downtrends remain intact for Japan’s TOPIX/Nikkei 225, Hong Kong’s Hang Seng, Europe’s EURO STOXX50, Germany's DAX, China (MCHI-US), and all the MSCI global indexes (ACWI, ACWI ex-US, EM, and EAFE).
The majority of these indexes are in well-defined downtrends; that means when the downtrends eventually reverse, it will be clear and we will be ready to buy/turn bullish.
Relative strength on Japan's TOPIX is reversing topside a 4.5-year downtrend, signaling Japan is emerging as leadership. We highlight buy opportunities in Japan and also in defensive Sectors


Japan Emerging as Leadership; Actionable Themes: Japan and Defensives

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>This article will discuss the issues in the Nikkei article on "Support for Activist Countermeasures.”</li>
<li>While % foreign shareholders increased, cross-shareholdings decreased. This coincided with the company's desire to have agenda by the company at AGM and its interest in the real shareholder search service.</li>
<li>Institutional investors have expressed desire for communication with independent directors, but a few companies can respond to such needs. However,  companies will listen to shareholder suggestions, albeit slowly but surely.</li>
</ul>


This article will discuss the issues in the Nikkei article on "Support for Activist Countermeasures.”
While % foreign shareholders increased, cross-shareholdings decreased. This coincided with the company's desire to have agenda by the company at AGM and its interest in the real shareholder search service.
Institutional investors have expressed desire for communication with independent directors, but a few companies can respond to such needs. However,  companies will listen to shareholder suggestions, albeit slowly but surely.


Japan's Governance: About an Article on Support for Activist Countermeasures

<ul>
<li>The Nikkei article reported that, "Disclosure of sustainability-related information in securities reports is expected to become mandatory from fiscal 2023."</li>
<li>The requirement to disclose information on sustainability in annual reports, which are legal documents, is extremely significant.</li>
<li>The use of international standards for sustainability disclosure will make comparative analysis with other companies easier, and is expected to help raise the bar for companies that lag behind.</li>
</ul>


The Nikkei article reported that, "Disclosure of sustainability-related information in securities reports is expected to become mandatory from fiscal 2023."
The requirement to disclose information on sustainability in annual reports, which are legal documents, is extremely significant.
The use of international standards for sustainability disclosure will make comparative analysis with other companies easier, and is expected to help raise the bar for companies that lag behind.


Japan's Governance: About an Article on Natural and Human Capital Disclosures

<ul>
<li>The Nikkei Newspaper on April 15 published an article about wage gap between men and women. I would like to discuss this issue, referring to surveys conducted by the government</li>
<li>The direct cause of this issue is that there is disparity between men and women even among regular employees, and that large percentage of women are employed in non-regular labor.</li>
<li>Indirect factors can be attributed to the working environment and legal system that tolerates the above. This problem is also connected to issues of human rights and diversity.</li>
</ul>


The Nikkei Newspaper on April 15 published an article about wage gap between men and women. I would like to discuss this issue, referring to surveys conducted by the government
The direct cause of this issue is that there is disparity between men and women even among regular employees, and that large percentage of women are employed in non-regular labor.
Indirect factors can be attributed to the working environment and legal system that tolerates the above. This problem is also connected to issues of human rights and diversity.


Japan's Government: About an Article on Wage Disparity Between Men and Women

<ul>
<li>On November 30, 2021, Nikkei Shimbun published article titled "Human Rights Risks in Supply Chains, 52% of Listed Companies Understand." I would like to consider the issues in the article.</li>
<li>The METI survey shows that only a small number of companies have developed human rights policies and conducted human rights due diligence.</li>
<li>It’s clear that progress will not be made unless management itself takes the initiative and takes action to root a corporate culture of respect for human rights within the company.</li>
</ul>


On November 30, 2021, Nikkei Shimbun published article titled "Human Rights Risks in Supply Chains, 52% of Listed Companies Understand." I would like to consider the issues in the article.
The METI survey shows that only a small number of companies have developed human rights policies and conducted human rights due diligence.
It’s clear that progress will not be made unless management itself takes the initiative and takes action to root a corporate culture of respect for human rights within the company.


Japan's Governance: About an Article on Human Rights Due Diligence

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

Japan Emerging as Leadership; Actionable Themes: Japan and Defensives

Despite the intact downtrend on Japan's TOPIX, relative strength is reversing topside a 4.5-year downtrend; this tells us Japan is emerging as...

Vermilion Research

Japan's Governance: About an Article on Support for Activist Countermeasures

This article will discuss the issue that real shareholder search service is popular among large listed companies. This is likely due to a change in...

Metrical Inc

Japan's Governance: About an Article on Natural and Human Capital Disclosures

This article will discuss on the issues on "Disclosure of sustainability-related information in securities reports is expected to become mandatory...

Metrical Inc

Japan's Government: About an Article on Wage Disparity Between Men and Women

The Nikkei Newspaper on April 15 published an article about wage gap between men and women. I would like to discuss this issue, referring to...

Metrical Inc

Japan's Governance: About an Article on Human Rights Due Diligence

This article will discuss the issues of human rights due diligence, referring to the Nikkei article on November 30, 2021 and The Ministry of...

Metrical Inc