In today’s briefing:
- Overview of My Winners and Losers in 2023…and 5 High Conviction Ideas Going Into 2024
- Ohayo Japan | Micron Fuels Rally; Paris Miki in Luxottica’s Vision
- Show Me The (Dividend) Money – Play on the U.S. High Dividend Yielding Stocks
- China Property Developers In Distress – Weekly News & Announcements Tracker | Dec 15-21, 2023
- Sox Index Broke New High; Nov US SEMI Equipment and Oct SIA Sales Showed Y/Y Improvement
- Dear Santa, Here Are Airline CEOs Christmas Wishes
- Asian Autos: Increasing Exposure Reflects Rising Market Confidence
Overview of My Winners and Losers in 2023…and 5 High Conviction Ideas Going Into 2024
- The 2023 vintage of “5 High Conviction Ideas” was commodity heavy with 4 of our 5 picks coming from this sector. Three out of five declined between 15-25%.
- Our best performer was unloved Mongolian Mining (975 HK) which returned 234% even beating NVIDIA Corp (NVDA US) YTD performance. Miracles happen: Coal mining beats AI.
- Our 2024 vintage of top ideas for the year will hopefully have a higher hit ratio. See below for more details which are our five high conviction ideas for 2024.
Ohayo Japan | Micron Fuels Rally; Paris Miki in Luxottica’s Vision
- Overseas: SPX +1%, Micron +8% after the chipmaker revealed a bte Q2 revenue forecast and higher prices in 2024
- Today: Japan’s domestic M&A spending has surged to an 18-year high in 2023
- Japan: Luxottica continues to build a stake in Paris Miki. It could be interesting if the family want out.
Show Me The (Dividend) Money – Play on the U.S. High Dividend Yielding Stocks
- There are many high dividend-yielding U.S. stocks. However, taxes on dividends are complex, qualified dividends max at 20%, non-qualified max at 37%, and foreigners max at 30%
- These high-yielding stocks appear unloved and didn’t move much in tandem with the U.S. indexes, suggesting a potential laggard investment opportunity
- If you have made your bounty from the market surge and looking for safe shelter among the laggards and dividend payers, the U.S. might just be the place for you
China Property Developers In Distress – Weekly News & Announcements Tracker | Dec 15-21, 2023
- A weekly curated selection of Chinese news articles and company announcements focused on developers in distress
- We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
- We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources
Sox Index Broke New High; Nov US SEMI Equipment and Oct SIA Sales Showed Y/Y Improvement
- As expected, SOX index broke a new high, in line with Nov US semi equipment billings and Oct SIA/WSTS global sales y/y improvement.
- SEMI reports Nov front/back end equipment billings decline of 9% and 11% y/y, respectively, which was improved from 14% and 17% y/y decline in Oct, implying recovery intact.
- WSTS/SIA earlier reported Oct sales of US$46.6bn, up 3.8% m/m and down only 1% y/y (vs. 16% decline in June), suggesting semi sales y/y improvement and clearly pass the trough.
Dear Santa, Here Are Airline CEOs Christmas Wishes
- 2023 was great for the airlines, strong passenger demand provided high load factors and yields, coupled with lower fuel price trend in 2H23 is a virtuous combination for strong profits
- However, there were plenty of challenges, some remain unsolved such as aircraft shortage, aircraft reliability issues, and airspace closure due to geopolitics
- The outlook for 1H24 remains solid, demand is strong and so are yields. Operationally, things are slowly getting more efficient. For 2H24, it is too early to say
Asian Autos: Increasing Exposure Reflects Rising Market Confidence
- Improved sentiment in Asia Ex-Japan Autos sector as sustained increases in positioning continue through 2023.
- BYD Company most widely held but stabilizing; Li Auto sees increased buying. Sector 7th most owned, underweight by -0.85%.
- Rising Allocations, Low Historical Positioning and Net Underweight Suggest Potential Continued Demand for Auto Stocks
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
