Report
Dave Nicoski ...
  • Ross LaDuke
EUR 203.26 For Business Accounts Only

Vermilion Int'l Compass: Global Equity Strategy

As support levels continue to hold for the MSCI ACWI and S&P 500, our neutral but constructive outlook remains. Additionally, we reiterate our expectation for more consolidation and volatility. In today's report we highlight actionable stocks within countries that are displaying bullish price and relative strength trends.

• Asia/Pacific. In Japan, the TOPIX continues to exhibit leadership characteristics. Stay overweight. Broadly speaking, global Consumer Staples stocks are lagging, but Japan is the exception. Hong Kong's Hang Seng Index also remains on bullish footing... see pages 2 and 5-11 for actionable stocks.

• Europe. Within Europe, Financials are particularly attractive and exhibit improving relative strength. Attractive country-specific setups include: Italy (the FTSE MIB is on the cusp of a breakout, and relative strength already has broken out), Norway (price and relative strength trends remain bullish for the Oslo OBX), and Austria (the ATX's relative strength is breaking out to new highs)... see pages 3-4 and 12-16 for actionable stocks.

• Emerging markets. Price and relative strength uptrends remain intact for the MSCI EM Index. As long as this holds true, our overweight recommendation stands firm. Brazil (Bovespa) remains a top recommendation. Egypt (EGX 30) is breaking out to new price and relative strength highs - a rare combination in the prevailing environment. We recommend adding exposure... see page 17.
Underlyings
ACOM Co. Ltd.

ACOM is mainly engaged in the loan business with total assets of Y1,228,930 million as of Mar 31 2017. Along with its affiliates, Co. operates in four business segments. Loan and Credit Card segment is engaged in the unsecured loans business and credit card business. Guarantee segment is engaged in the guarantee business. Overseas Financial segment is engaged in the unsecured loan and installment loan businesses in Thailand and the banking business in Indonesia. Loan Servicing segment is engaged in the servicing business and loan servicing business. In addition, Co., through its associated company, is engaged in the contracting at the contact center and temporary personnel services.

ANTA Sports Products Ltd.

ANTA Sports Products is principally engaged in the manufacturing, trading and distribution of sporting goods, including footwear, apparel and accessories, in the People's Republic of China. As of Dec 31 2014, there were 7,662 ANTA Stores, 1,228 Kids sportswear series stores and 519 FILA stores in China, Hong Kong and Macao.

Atea ASA

Atea is a Nordic and Baltic supplier of Information Technology (IT) infrastructure. Co. delivers IT products from vendors. Co.'s business can be divided into three separate product and service areas: hardware, software and services. Co.'s hardware, software and services offerings are divided into four areas: Communication, which consists of communication and networks; Collaboration, which consists of video and web conferencing, IP telephony, AV solutions, Unified Communication solutions, mobility and chat; Clients, which consists of PCs, tablets, smartphones; as well as Data centres, which consists of servers, data storage, virtualization and management.

Autobacs Seven Co. Ltd.

AUTOBACS SEVEN is engaged in the wholesale of car parts and distribution of automobile goods through direct-run and franchise stores. As of Mar 31 2017, Co. maintains 601 stores in Japan and 38 stores in overseas. Co. sells used cars, tires, wheels, car electronics, batteries, oil, interior and exterior goods, audio equipment, navigation systems and other automobile related products. Co. is also engaged in the provision of tire, oil and battery change services, audio equipment and other automobile related products installation services, automobile maintenance and inspection services, automobile body repairing and painting services, as well as other automobile related services.

CA Immobilien Anlagen AG

CA Immobilien Anlagenis a real estate investment company. Co. invests in commercial real estate, comprising hotel, residential, office, industrial, storage space, and logistics. Co. is also active in project development business. Co.'s activities are focused in Austria, Germany and Eastern Europe. Co. has 263 subsidiaries (including 24 joint ventures) in the following countries: Germany, Austria, Hungary, Luxembourg, Bulgaria, Netherlands, Slovakia, Cyprus, Russia, Czech Republic, Poland, Croatia, Ukraine, Romania and Serbia. Co., through its subsidiaries, is engaged in creation of entire urban districts, acquisition of real estate, project development, as well as property renovation.

China Maple Leaf Educational Systems (P Chip)

China Maple Leaf Educational Systems is engaged in international school education. Co. operates a network of bilingual grade 12 education in the People's Republic of China under the brand of Maple Leaf. Co. provides a dual-curriculum and dual-diploma high school education that enables high school graduates to receive a diploma accredited by Canada and a Chinese diploma. Through its subsidiaries, Co. also operates in retail, investment holding business, and the provision of technical support and education related services.

Cocokara fine Inc.

Cocokara Fine is mainly engaged in the sale and wholesale of pharmaceuticals, cosmetics and products for daily use, as well as the operation of drug store chains through its subsidiaries. Co. sells pharmaceuticals including nutritional supplements, nutritious supplement drinks, cold medicines, digestive medicines and eye drops; cosmetics including basic skin care products, makeup products, and haircare products; and other products including sanitary products, oral care products, baby care products, detergents, and daily use products. Co. is also engaged in the operation of nursing homes as well as the home nursing business. As of Mar 31 2017 Co. operates 1,304 drug stores throughout Japan.

Daiwa Office Investment Corporation

Daiwa Office Investment is a real estate investment trust that invests in office buildings and is managed by Daiwa Real Estate Asset Management Co., Ltd. The office properties Co. invests are buildings with floor area over 2,000 sq. m. They are within walking distance of train stations in the city center. As of Nov 30 2017, Co.'s portfolio consisted of 580 tenants and total leasable 338,377.31 sq. m. of area. Approximately over 60% of total portfolio is located in the central five wards of Tokyo. The remaining is in the Tokyo metropolitan area, as well as Osaka and Nagoya areas.

Equinor ASA

Equinor is engaged in oil and gas exploration and production activities. Co. is primarily focused on exploration, development and production of oil and gas on the Norwegian continental shelf (NCS). Co.'s operations are organized into four segments. The Development and Production Norway and Development and Production International segments explore, develop, produce and extract crude oil, natural gas and natural gas liquids. The Marketing, Processing and Renewable Energy segment markets, trades, transports and processes oil and natural gas and renewable energy. The Other segment consists of global well and project delivery, research and develpoment, and business development.

Erste Group Bank AG

Erste Group is a financial services provider based in Austria. As of Dec 31 2015, Co.'s total assets amounted to Euro199,743 million and the number of customers was approximately 16.5 million. Co.'s key business is the retail business, covering the entire spectrum from lending, deposit and investment products to current accounts and credit cards. In addition to providing financial services to private individuals, Co.'s core activities also include advisory services and support for corporate clients in financing, investment and access to international capital markets, public sector funding and interbank market operations.

EVN AG

EVN is an energy and environmental services provider. Co.'s segments include: generation, which is engaged in electricity generation; energy trade and supply, which is engaged in the procurement of electricity; network infrastructure Austria, which is engaged in the operation of regional electricity and natural gas networks; energy supply South East Europe, which is engaged in operation of electricity networks and electricity, and energy trading; environmental services segment, which is engaged in among others, drinking water supply, as well as international project business; and strategic investments and other business segment, which is engaged in strategic and other investments.

FinecoBank SpA

FinecoBank Banca Fineco SpA is an Italy-based bank. The Company is the unit of the UniCredit Group. FinecoBank Banca Fineco SpA provides commercial banking services in the domestic market. The Company offers traditional and professional banking services, such as private banking, home banking, trading online, telephone banking and short message service (SMS) banking, among others. FinecoBank Banca Fineco SpA provides various banking and financial products, including trading of financial instruments, currency trading, portfolio management, investment consultancy services, transaction services, brokerage services and credits, among others. The Company's portfolio comprises products and services for individuals and business clients.

Fuji Oil Holdings Inc.

FUJI OIL HOLDINGS INC. is mainly engaged in the oil and fat business, among others. The Company operates in three segments. The Oil and Fat segment provides purified oil based on coconut oil, palm oil and palm kernel oil, as well as oil and fat for chocolate. The Confectionery and Baking segment provides chocolates, cream, shortening, and processed dairy products. The Soy Protein segment provides soy protein products, processed soy protein food products and soymilk.

GMO Payment Gateway Inc.

GMO Payment Gateway is an agent which connects credit card companies and credit card member stores. Co. primarily provides data processing service of credit-card transaction. Co.'s services include online and offline credit card settlement services, revenue billing services, online settlement data management services and other related services. Co. is also involved in the provision of payment processing services for convenience store receipt, electronic money transaction, and net bank/bank ATM transaction called "Pay-easy" and "PayPal™" transaction services; as well as the provision and operation of applications and online advertising service.

Kerry Properties Limited

Kerry Properties is an investment holding company. Through its subsidiaries and associated companies, Co. is engaged in property development, investment and management in Hong Kong, the People's Republic of China (the PRC) and the Asia Pacific region; hotel ownership in Hong Kong, and hotel ownership and operations in the PRC; and integrated logistics and international freight forwarding. The two principal activities of Co. and its subsidiaries are property business and logistics business. The property business is further segregated into the PRC property, Hong Kong property and Overseas property.

Leroy Seafood Group ASA

Leroy Seafood Group is a supplier of seafood. Co.'s primary products are Atlantic salmon and trout. Co. reports within two main segments: Production and Sales and Distribution. The Production segment includes Co.'s activities within production and processing, mainly Atlantic salmon and trout. The subsidiaries in this segment are a main employer along the Norwegian coastline and other areas. The Sales and Distribution segment has a global reach, comprising sales, marketing, product development and distribution of both Co.'s own produced products as well as for external suppliers. Co. is also engaged in nationwide distribution of fresh fish on the Norwegian market.

Luxottica Group S.p.A.

Luxottica Group S.p.A. is a holding company. The Company is engaged in the design, manufacture and distribution of fashion, luxury, sport and performance eyewear. The Company operates through two segments: manufacturing and wholesale distribution, and retail distribution. Through its manufacturing and wholesale distribution operations, the Company is engaged in design, manufacturing, wholesale distribution and marketing of brands and designer lines of prescription frames and sunglasses, as well as of performance optics products. The Company operates its retail segment principally through its retail brands, which include LensCrafters, Sunglass Hut, Pearle Vision, ILORI, The Optical Shop of Aspen, GMO, OPSM, Laubman & Pank, Oakley O Stores and Vaults, David Clulow, and its retail licensed brands, Sears Optical and Target Optical. The Company's wholesale distribution network covers over 150 countries across five continents and has approximately 50 commercial subsidiaries.

Mandom Corporation

Mandom is mainly engaged in the manufacture and sale of cosmetics. Co.'s principal products include hair styling products, hair coloring products, hair care products, skin care products, body care products, and fragrances for men and women under the brand names "mandom," "GATSBY," "LUCIDO," "GB," "Bifesta," "Barrier Repair," "LUCIDO-L," "Baby Veil," "TANCHO," "MANDOM," "Simplity," "DearFlora," and "Esthedeo." Co. operates in Japan and overseas including Indonesia, Korea, China, Hong Kong, Thailand, Malaysia, Singapore, Taiwan, Philippines and Vietnam.

Maruha Nichiro Corp.

Maruha Nichiro and its affiliates are mainly engaged in the marine product business. Co. is engaged in the catching, farming, purchase, processing and sale of fish; the procure, process and sale of marine products from all over the world; the wholesale of fresh and live fish; the import of frozen fish and processing of marine products; the operation of fishing companies in Australia and New Zealand; the manufacture and sale of frozen foods, canned foods, fish products, dessert, seasonings and freeze-dried foods; the provision of frozen storage and distribution services for fish; the marine transportation and real estate businesses; and the manufacture and sale of fur and pet foods.

MCUBS MidCity Investment Corporation

Mid Reit is a real estate investment trust that invests mainly in office and retail properties and is managed by Mid Reit Management Co., Ltd. Co.'s properties include Twin 21, Matsushita IMP Building, Panasonic Osaka Kyobashi Building, Midosuji MID Building and others. As of Dec. 31 2013 Co.'s portfolio consisted of 11 properties with 236 tenants and total rentable 277,516.99 sq. m. of area and properties Co. invests include 9 office buildings and 3 commercial facilities such as sports club and shopping mall facilities. Most of its portfolio is in Osaka area. The remaining is in other major cities such as Tokyo and Chiba.

Mediobanca SpA

Melco International Development Limited

Melco International Development is an investment holding company. Through its subsidiaries, Co. is principally engaged in four segments: leisure, gaming and entertainment; technology; investment banking and financial services; and property and other investments.

Melco Resorts & Entertainment Limited Sponsored ADR

Mowi ASA

Marine Harvest is a seafood company engaged in the production of farmed salmon. Co. offers fresh and processed salmon and other processed seafood to customers in 70 countries worldwide. Co. focuses on three principal types of production activities: salmon feed production in Norway, fish farming and primary processing of fish in Norway, Scotland, Canada, Chile, Ireland, and the Faroe Islands, and secondary processing of seafood in Norway, Chile, Ireland, the United States, the United Kingdom, France, Belgium, the Netherlands, Poland, the Czech Republic, Japan, Vietnam, Taiwan, and South Korea.

Osterreichische Post AG

Austrian Post is a logistics and postal services provider in Austria. Its main business activities include the transport and delivery of letters, direct mail items, print media and parcels. Co.'s branch network offers postal, banking and telecommunications products and services to its customers throughout Austria. Co. is also represented by subsidiaries in 12 European markets, particularly in the parcel and logistics segment as well as in unaddressed direct mail items.

Park24 Co. Ltd.

Park 24 is mainly engaged in the parking lot operation and management. As of Oct 31 2017, Co. operates 20,461 parking lots. Co. operates in three business segments. Parking Lot - Domestic and Parking Lot - Foreign segments are engaged in the subleasing of land from landowners, the management and operation of 24-hour and unmanned hourly and monthly parking facilities throughout in Japan as well as in Taiwan, South Korea, Australia, New Zealand, the United Kingdom, Singapore and Malaysia. Mobility segment is engaged in the provision of car rental services under the name of "Times Car Rental" and car sharing services under the name of "Time Car Plus."

PCCW Limited

PCCW is engaged in the provision of local, mobile and international telecommunications services, Internet access services, interactive multimedia and pay-TV services, the sale and rental of telecommunications equipment, and the provision of computer, engineering and other technical services primarily in the Hong Kong Special Administrative Region (Hong Kong), and also in mainland China and other parts of the world; investments in, and development of, systems integration, network engineering, and technology-related businesses; and investments in, and development of, infrastructure and properties in Hong Kong, mainland China and elsewhere in Asia.

Pigeon Corporation

Pigeon is a childcare products manufacturing group based in Japan. Along with its affiliates, Co. is engaged in the manufacture, purchase, and sale of baby and child care products such as breastfeeding and weaning products, and skin care products as well as women's care products such as supplements, maternity products and others both in domestic and overseas; the child care, babysitting and early childhood education businesses; the manufacture and sale of nursing care products and the provision of home care support services; and the sale of general consumable goods, health food products, and others.

S IMMO AG

S Immo AG is an Austria-based company engaged in the real estate sector. The Company specializes in the acquisition, letting and sale of properties. Furthermore, It offers real estate project developments, which includes Einsteinova office, Quartier Belvedere Central, and The Mark office project, among others, renovation of existing properties, asset and portfolio management and a range of services, such as facility management and brokerage. The Company's real estate portfolio comprises residential, office, retail and hotel properties. It operates four geographical segments: Austria, Germany, Central Europe (CEE) and Southeastern Europe (SEE). In addition, the Company is a parent of CEE Immobilien GmbH, Hansa Immobilien EOOD, Rega Property Invest sro, Ikaruspark GmbH, SC Societate Dezvoltare Comercial Sudului (SDCS) SRL, Maior Domus Hausverwaltung GmbH, and Eurocenter doo, among others.

Selvaag Bolig AS

Selvaag Bolig ASA. Selvaag Bolig ASA, formerly Selvaag Bolig AS, is a Norway-based company engaged in the development of residential properties. The Company manages the entire process, from the purchase of land to the sale of finished homes. The Company operates through such subsidiaries, as Selvaag Bolig Modulbygg, which develops flats and terrace houses with the aid of modules; Meglerhuset Selvaag, which is an estate agency responsible for the sale of the Company's new homes, and Selvaag Pluss Service, which is engaged in the operation of the Company's Pluss Homes that offer security and services, such as cleaning and booking of tickets, among others. The Company's projects are located in Oslo, Stavanger and Bergen, Norway, as well as in Stockholm, Sweden, and include Lorenskog Stasjonby, Nyhavn Brygge, Lervig Brygge Pluss, Bjornasen Start and Utsikten-Mortensrudhoyden, among others. In the second quarter of 2013, the Company sold 200 homes.

SITC International Holdings

SITC International Holdings Company is principally engaged in the provision of marine transportation services, freight forwarding services for marine transportation, depot and warehouse services and related business. Co. operates within two business segments: sea freight logistics; and land-based logistics. As of Dec 31 2012, Co. operated a total of 60 vessels.

Sotetsu Holdings Inc.

Sotetsu Holdings is a holding company. Along with its subsidiaries, Co.'s principal business segments are transportation, distribution, real estate, hotel and others. Co. is engaged in the provision of public transportation services, including railway, bus and taxi services; the operation of supermarkets, and the sale of ballast; the real estate subdivision and leasing businesses; the operation of hotels and golf courses; and the provision of building maintenance service, staffing service, heat supply service, and buildings and houses construction, as well as the operation of kindergartens.

Tokai Tokyo Financial Holdings Inc.

Tokai Tokyo Financial Holdings is a holding company mainly engaged in securities business. Co. is engaged in the purchase and sale of securities, the brokerage of securities, the underwriting, subscription, and distribution of securities, public and private offering, as well as the provision of other financial product transactions and related services including online trading, separately managed account services, and life insurance sale. Co. also provides financing, fund management, venture capital, and asset management services for clients in Japan, Asia, Europe, and the U.S.

Transcosmos Inc.

Transcosmos is an IT outsourcing company. Along with its subsidiaries and affiliates, Co. provides outsourcing operations that relates to digital marketing, sales trend analysis, IT system & software development, online video distribution, production of online contents, operation of contact centers, operation of E-commerce websites & E-coupon platform, IT consulting, system integration service, social media operation support, search engine marketing for small-medium size companies, online advertisement, offshore development, EC logistics and others.

UNIQA Insurance Group AG

UNIQA Versicherungen is a provider of insurance products and related services. Co.operates in three business segments: property and casualty insurance, life insurance and health insurance. Co. provides property and casualty insurance; personal insurance, including health, accident and life insurance. Co. is also a direct marketer of accident, life and health insurance products, including online sales. Co.develops solutions for unit-linked products for the whole group.Co. provides its products and services through sales channels, including brokers and general agencies, banks and direct sales.

Wynn Macau Ltd.

Wynn Macau is a holding company. Co. is a developer, owner and operator of destination casino gaming and entertainment resort facilities in Macau. Through its subsidiary, Wynn Resorts (Macau) S.A., Co. owns and operates the destination hotel and casino resort Wynn Macau in Macau. In addition, Co. is engaged in the development, design and preconstruction activities.

Yamazaki Baking Co., Ltd.

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

Other Reports on these Companies
Other Reports from Vermilion Research

ResearchPool Subscriptions

Get the most out of your insights

Get in touch