Report
Dave Nicoski ...
  • Ross LaDuke
EUR 47.02 For Business Accounts Only

Vital Signs: Actionable charts

Key Points:

• No one knows just how the COVID-19 plays out, but yes, at some point this too will pass. We would expect volatility to continue and headlines to trump (pun not intended) trends. The divergence between Technology and the Energy, Materials, and Industrials Sectors has been disturbing to us for some time. Small-Caps and emerging markets have been lagging the Tech heavy S&P 500 significantly as well.

• We believe that widening spreads between high-yield corporates and 10-yr Treasuries could be the canary in the coal mine. A decisive break above the trend line may usher in a much more significant decline in equities. (see cover, and page 3)

• We put together a Corona Virus (COVID-19) index that include airlines, hotels, cruise lines, travel sites, casinos, HMOs, and entertainment destinations in order to better monitor money flows into the most damaged areas of the market associated with the corona-related decline.
Underlyings
AAON Inc.

AAON is engaged in the manufacture and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps and coils. These products are marketed and sold to retail, manufacturing, educational, lodging, supermarket, medical and other commercial industries. The company's of rooftop units include the RQ Series, the RN Series, the RL Series and the RZ Series. The company's condensing units include the CB Series, the CF Series, the CN Series, and the CL Series.

AMN Healthcare Services Inc.

AMN Healthcare Services provides talent solutions for the healthcare sector. The company's talent solutions provides management, staffing, recruitment, technology, analytics, and related services to manage healthcare workforce needs. The company provides its healthcare personnel, from nurses, doctors, and allied health personnel to healthcare leaders and executives. The company's workforce solutions and staffing services include: travel nurse staffing; rapid response nurse staffing and labor disruption services; local, or per diem, staffing; locum tenens staffing; allied staffing; physician permanent placement services; interim leadership staffing and executive search services; and recruitment process outsourcing.

Booking Holdings Inc.

Booking Holdings provides travel and restaurant online reservation and related services. The company's brands include: Booking.com and Rentalcars.com, in which Booking.com provides booking online accommodation reservations, based on room nights booked, and Rentalcars.com provides online rental car reservation services; KAYAK, which provides an online price comparison service; Priceline, which provides consumers hotel, rental car and airline ticket reservation services, and vacation packages and cruises; Agoda, which is an online accommodation reservation service; and OpenTable, which provides online restaurant reservation services to consumers and reservation management services to restaurants.

Cboe Global Markets Inc

Cboe Global Markets is an exchange holding company. Through its subsidiaries, the company provides trading and investment solutions to investors. The company provides trading across a range of products in various asset classes and geographies, such as options, futures, United States and European equities, exchange-traded products, global foreign exchange and multi-asset volatility products based on the Cboe Volatility Index exchange-traded options and futures products. In addition to its exchanges providing a marketplace and listing venue for the trading of securities and derivatives the company calculates proprietary indices that are used as the basis for proprietary products or licensed for use by third parties.

Clearwater Paper Corporation

Clearwater Paper manufactures consumer tissue, away-from-home tissue (AFH), parent roll tissue, bleached paperboard and pulp. The company is a supplier of private label tissue to retailers and wholesale distributors. In addition, the company produces bleached paperboard and provides services that include custom sheeting, slitting and cutting. The company's segments are: Consumer Products, which manufactures and sells a complete line of at-home tissue products as well as AFH products; and Pulp and Paperboard, which consists primarily of folding carton, liquid packaging, cup and plate products, blister and carded packaging, top sheet, commercial printing grades and hardwood and softwood pulp.

Clorox Company

Clorox is a manufacturer and marketer of consumer products. The company sells its products through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, third-party and owned e-commerce channels, and distributors. The company has four reportable segments: Cleaning, which consists of laundry, home care and other products; Household, which consists of charcoal, bags, wraps and containers, cat litter, and digestive health products; Lifestyle, which consists of food products, water-filtration systems and filters, natural personal care products, and dietary supplements; and International, which consists of products sold outside the United States.

Cogent Communications Holdings Inc

Cogent Communications Holdings is a facilities-based provider of Internet access, private network services, and data center colocation space. The company's network is designed and optimized to transmit packet switched data. The company provides on-net Internet access services through its own facilities, which run from its network to its customers' premises. The company's on-net service consists of Internet access and private network services offered at speeds ranging from 100 Megabits per second to 100 Gigabits per second. In addition to providing its on-net services, the company provides Internet access and private network services to customers that are not located in buildings directly connected to its network.

Etsy Inc.

Etsy provides sellers a marketplace with buyers along with a range of seller tools and services that are specifically designed to help its creative entrepreneurs generate more sales and scale their businesses. The company's platform includes the Etsy and Reverb Holdings, Inc. (Reverb) online marketplaces, its seller tools and services, its engaged sellers and buyers, and its technology. The company's primary marketplace, Etsy.com, is where buyers come to discover a selection of goods that are hard to find elsewhere. Reverb, the company's subsidiary, operates as a standalone marketplace. This two-sided marketplace connects buyers and sellers of new, used, and vintage musical gear from all over the world.

ExlService Holdings Inc.

ExlService Holdings is a holding company. Through its subsidiaries, the company is an operations management and analytics company. The company's operations management services involve the transfer to the company's business operations of a client such as claims processing, clinical operations, or financial transaction processing, after which the company administers and manages those operations for its client on an ongoing basis, or in case of consulting, consulting services related to transformation services, including digital transformation services. The company's Analytics services focus on driving business outcomes for its customers by generating data-driven insights across various parts of its customers' business.

Flowers Foods Inc.

Flowers Foods produces a range of breads, buns, rolls, snack cakes, and tortillas and is a producer and marketer of packaged bakery foods in the United States. The company also sells returned and surplus product through a system of thrift stores. The company supplies national and regional restaurants, institutions and foodservice distributors, and retail in-store bakeries with breads and rolls; sells packaged bakery products to wholesale distributors for sale to a variety of food outlets; and sells packaged snack cakes primarily to customers who distribute them nationwide through various channels of distribution, including merchandisers, supermarkets, vending outlets and convenience stores.

Glu Mobile Inc.

Glu Mobile develops, publishes and markets a portfolio of mobile games designed to appeal to users who download and make purchases within the company's games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play store, and others. The company has a portfolio of games based on its own intellectual property as well as games based on third party licensed brands. The company sells virtual currency to consumers. In addition to in-app purchases of virtual currency, the company also monetizes its games through offers and in-game advertising. Offers enable users to acquire virtual currency without paying cash but by instead taking specified actions such as downloading another application.

Healthcare Services Group Inc.

Healthcare Services Group provides management, administrative and operating capability and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals. The company's reportable segments are: housekeeping, laundry, linen and other services, which focuses on cleaning, disinfecting and sanitizing of resident rooms, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items; and dietary department services, which focuses on food purchasing, meal preparation and dietitian services.

INTL FCStone

INTL FCStone is a global brokerage and financial services firm. The company's services include risk management advisory services for clients; clearing and execution of debt and equity securities, listed futures and options on futures contracts on securities and commodity exchanges; structured over-the-counter products in a range of commodities; physical trading and hedging of precious and base metals; trading of foreign currencies; market-making in international equities; fixed income; debt origination and asset management. The company organizes its business activities into five reportable segments: Commercial Hedging, Physical Commodities, Clearing and Execution Services, Securities, and Global Payments.

Laboratory Corporation of America Holdings

Laboratory Corporation of America Holdings is a life sciences company that is focused on guiding patient care. The company reports its business in the following segments: LabCorp Diagnostics (LCD) and Covance Drug Development (CDD). LCD is an independent clinical laboratory business. LCD provides a menu of requested and specialty testing through a network of primary and specialty laboratories across the United States. CDD provides drug development, medical device and diagnostic development solutions from early-stage research to clinical development and commercial market access. CDD engages in early development and clinical trials in each therapeutic category.

Las Vegas Sands Corp.

Las Vegas Sands is a developer of destination properties (Integrated Resorts) that feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, restaurants and other amenities. The company owns and operates Integrated Resorts in Asia and the United States. Through its ownership of Sands China Ltd., the company owns and operates properties including The Venetian Macao Resort Hotel, Sands Cotai Central, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao. In Singapore, the company owns and operates the Marina Bay Sands. The company's Las Vegas Operating Properties includes The Venetian Resort Las Vegas and the Sands Expo Center.

Ligand Pharmaceuticals Incorporated

Ligand Pharmaceuticals is a biopharmaceutical company focused on developing and acquiring technologies that help pharmaceutical companies discover and develop medicines. The company employs research technologies such as antibody discovery technologies, structure-based drug design, formulation science and liver targeted pro-drug technologies to assist companies in their work toward securing prescription drug and biologic approvals. The company's collaboration partners and licensees have programs in clinical development targeting cancer, seizure, diabetes, cardiovascular disease, muscle wasting, liver disease, and kidney disease, among others.

Lindsay Corporation

Lindsay is engaged in providing a variety of proprietary water management and road infrastructure products and services. The company has operations which are categorized into two key reporting segments, Irrigation and Infrastructure. The company's irrigation segment includes the manufacture and marketing of center pivot, lateral move, hose reel irrigation systems, and repair and replacement parts for its irrigation systems and controls. The company's infrastructure segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, road marking and road safety equipment, large diameter steel tubing, and railroad signals and structures.

Luminex Corp

Luminex develops, manufactures and sells biological testing technologies and products with applications in the life sciences industries, including diagnostics, pharmaceutical and research. The company delivers its products to various market segments, including multiplexing, reduction of labor and ability to test for proteins and nucleic acids. The company's products include: instruments, which include Luminex? 100/200?, FLEXMAP? 3D, MAGPIX?, ARIES?, and ARIES? M1; consumables, which include MicroPlex? Microspheres, MagPlex? Microspheres, and xTAG? Microspheres; software, which includes xPONENT?, TDAS?, SYNCT?, and IDEAS?; and clinical diagnostic assay product families, which include ARIES? Cassettes.

Marriott International Inc. Class A

Marriott International is a worldwide operator, franchisor, and licensor of hotel, residential and timeshare properties under various brand names at different price and service points. The company has operations in the following reportable business segments: North American Full-Service, which includes the company's Luxury and Premium properties located in United States and Canada; North American Limited-Service, which includes the company's Select properties located in United States and Canada; and Asia Pacific, which includes all properties in the company's Asia Pacific region.

Masimo Corporation

Masimo is a medical technology company that develops, manufactures, and markets a variety of noninvasive monitoring technologies. The company provides its products to hospitals, emergency medical service providers, long-term care facilities, physician offices, veterinarians and consumers. The company's main business is Measure-through Motion and Low Perfusion? pulse oximetry monitoring, known as Masimo Signal Extraction Technology? pulse oximetry. The company's products offerings also includes noninvasive monitoring of blood constituents with an optical signature, optical organ oximetry monitoring, electrical brain function monitoring, acoustic respiration monitoring and exhaled gas monitoring.

ModivCare Inc.

Providence Service manages non-emergency medical transportation (NET) programs for state governments and managed care organizations (MCOs) in the U.S. through its subsidiaries, LogistiCare Solutions LLC and Circulation, Inc. The company's NET Services segment provides non-emergency transportation solutions to clients, including health systems, in various states and the District of Columbia. NET Services primarily contracts with state Medicaid programs and MCOs, including Medicare Advantage plans, for the coordination of their members' non-emergency transportation needs. Through its nvestment in CCHN Group Holdings, Inc. and its subsidiaries, the company provides assessment and care management services.

New York Times Company Class A

New York Times is a global media organization focused on creating, collecting and distributing news and information. The company's principal business consists of distributing content generated by its newsroom through its digital and print platforms. In addition to subscriptions to its digital news product, the company provides standalone subscriptions to other digital products, namely the company's Crossword and Cooking products. Certain digital news subscription packages include access to the company's Crossword and Cooking products. The company's products also include news and opinion podcasts, which are distributed both on its digital platforms and on third-party platforms.

Patterson Companies Inc.

Patterson Companies is a distributor serving the U.S. and Canadian dental supply and the U.S., Canadian and U.K. animal health supply markets. The company operates through two business units, Patterson Dental and Patterson Animal Health. Patterson Dental provides consumable products, including infection control, restorative materials, hand instruments and sterilization products; technology dental equipment; technology solutions, including practice management software and e-commerce solutions; patient education systems; and office forms and stationery to dentists, dental laboratories, institutions, and other healthcare personnel. Patterson Animal Health is a distributor of animal health products.

Penumbra Inc.

Penumbra is a healthcare company. The company designs, develops, manufactures and markets medical devices. The company's Neuro products include Penumbra System brand of products that provides a form of mechanical thrombectomy used by specialist physicians to revascularize blood vessels that are blocked by clots in the intracranial vasculature. The company's Vascular products include the Ruby Coil System that consists of detachable coils and is used in clinical applications auch as active extravasations, or the escape of blood into surrounding tissue, selective embolization in patients with visceral aneurysms, embolization in patients with gastrointestinal bleeding, and high flow arterial venous malformations.

Post Holdings Inc.

Post Holdings is a consumer packaged goods holding company. The company's segments are: Post Consumer Brands, which manufactures, markets and sells branded and private label ready-to-eat (RTE) cereal and hot cereal products; Weetabix, which markets and distributes branded and private label RTE cereal products; Foodservice, which produces and distributes egg and potato products; Refrigerated Retail, which produces and distributes side dishes, eggs and egg, cheese, sausage and other refrigerated products; and BellRing Brands, which markets and distributes ready-to-drink protein shakes, other RTD beverages, powders, nutrition bars and supplements in the nutrition category.

PulteGroup Inc.

PulteGroup through its subsidiaries is engaged in the homebuilding business. The company also has mortgage banking operations, conducted principally through its susidiary, Pulte Mortgage LLC, and title and insurance brokerage operations. The company's homebuilding business includes the acquisition and development of land primarily for residential purposes within the United States. The company provides a variety of home designs, including single-family detached, townhouses, condominiums, and duplexes at different prices and with varying levels of options and amenities to its customer groups: first-time, move-up, and active adult.

Quest Diagnostics Incorporated

Quest Diagnostics provides diagnostic information services. The company's diagnostic information segment provides information based on the menu of routine, non-routine and clinical testing and anatomic pathology testing, and other diagnostic information services. The company's testing capabilities, includes services for the predisposition, diagnosis, treatment and monitoring of cancers and other diseases, and provides tests in several fields, including endocrinology, immunology, neurology and oncology. The company's diagnostic solutions provides risk assessment services for the life insurance industry, as well as provides healthcare organizations and clinicians health information technology solutions.

Stericycle Inc.

Stericycle is engaged in the medical and hazardous waste management and secure information services. The company's segments are: North America, and International Regulated Waste and Compliance Services, which provides medical waste management services, pharmaceutical waste services, compliance programs, retail and healthcare, industrial and manufacturing hazardous waste management and secure information destruction; and Domestic Communication and Related Services, which provides appointment reminders, secure messaging, event registration, and other communications mainly for hospitals and integrated delivery network's as well as regulated recall and returns management communication, and logistics.

STERIS Plc

Tootsie Roll Industries Inc.

Tootsie Roll Industries and its subsidiaries are engaged in the manufacture and sale of confectionery products. The company's products are marketed in a variety of packages designed for display and sale in different types of retail outlets. They are sold through candy and grocery brokers and by the company itself to customers throughout the United States. These customers include wholesale distributors of candy and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, mass merchandisers, warehouse and membership club stores, vending machine operators, the United States military and fund-raising charitable organizations.

Wynn Resorts Limited

Wynn Resorts is a holding company. Through its subsidiaries, the company is a designer, developer, and operator of resorts featuring hotel rooms, retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming. Through its subsidiary, Wynn Macau, Limited, the company operates two integrated resorts in the Macau Special Administrative Region of the People's Republic of China, Wynn Palace and Wynn Macau. In Las Vegas, NV, the company also operates and, with the exception of certain retail space, own Wynn Las Vegas and Encore Boston Harbor, an integrated resort in Everett, MA, adjacent to Boston.

Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Dave Nicoski

Ross LaDuke

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