Report
Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Global Energy shares breaking out; Technology remains attractive

The MSCI ACWI and S&P 500 have both achieved a higher high relative to mid-April prices, which we see as a potential early indication of a bullish trend change. Combine this with improving market internals and we are becoming incrementally more bullish. For the MSCI ACWI, one of the more concerning breadth indicators has been the percentage of stocks above their 200-day moving average. This indicator recently hit a higher high (see below, left), a positive development that confirms the market's recent advance.

• Major themes: Opportunities within Energy and Technology - overweight. Continued strength in oil prices has been more than kind to global Energy stocks, and our international Energy Sector currently holds the best relative strength ranking (RSR)... see pages 2 and 7-14 for actionable stocks. Tech's long-term leadership status remains intact... see pages 3 and 15-20 for actionable stocks.

• Developed international. Leadership countries Japan (TOPIX), Norway (Oslo OBX), Austria (ATX), and Italy (FTSE MIB) all remain attractive - we reiterate our overweight recommendations. Canada (S&P TSX), the United Kingdom (FTSE 100), and France (CAC 40) are putting in relative strength bottoms - be selective... see pages 4-5.

• Emerging markets. A recent strong U.S. Dollar has led to a deterioration in EM relative strength. With that said, price and relative strength support levels continue to hold and uptrends remain intact. Until this changes, we view recent weakness as a buying opportunity... see page 6.
Underlyings
Alexandria Mineral Oils

Alexandria Mineral Oils Co SAE (AMOC) is an Egypt-based company that operates in the petroleum industry. The Company specializes in the production of essential mineral oils, paraffin wax and its derivatives, naphtha and butane, as well as distributes and markets them in Egypt and abroad. Its manufacturing facilities are spread over 500,000 square meters in the Salina area in Alexandria, and consist of two complexes: the Lube and Special Oils complex, which manufactures neutral oils, paraffin waxes, soft/slack waxes and aromatics, and the Maximization of Gas Oil complex, which manufactures gas oil, naphtha and liquid petroleum gas (LPG) for local consumption, waxy distillates, heavy residue and black oil for blending with exported fuel oil, and biological sulfur. The Company also operates four laboratories, and performs chemical analysis.

Alten SA

Alten is a holding company. Through its subsidiaries, Co. operates in three areas: Engineering and Technology Consulting (ETC), Telecoms Networks and Multimedia, and Information Systems (NTIS). Through the Engineering and Technology Consulting (ETC) segment, Co. studies and designs technology products for technical divisions in industry and telecoms. The Telecoms Networks and Multimedia segment focuses on Product design, Architecture, deployment, and operation of networks. Lastly, the IT systems segment comprises Applications and software development, and Infrastructure and Telecoms (Applications, systems and networks Corporate telecommunications).

Amadeus IT Group SA Class A

Amadeus is a transaction processor for the global travel and tourism industry. Co. provides transaction processing power and technology solutions to both travel providers (including full service carriers and low-cost airlines, hotels, rail operators, cruise and ferry operators, car rental companies and tour operators) and travel agencies (both online and offline). Co. acts both as a worldwide network connecting travel providers and travel agencies through a processing platform for the distribution of travel products and services (through the Distribution business), and as a provider of a portfolio of IT solutions which automate certain business processes (through the IT solutions business).

ASML Holding NV

ASML Holding provides lithography systems for the semiconductor industry, manufacturing machines that are used in the production of integrated circuits or chips. Co. develops, produces, markets, sells and services advanced semiconductor equipment systems exclusively consisting of lithography systems. Co. sells its products to micro-processor manufacturers and Foundries, NAND-Flash memory and DRAM memory chipmakers. Co.'s products line includes the following: PAS 5000 lithography systems, which Co. no longer manufactures but continues to refurbish; PAS 5500 products; TWINSCAN DUV systems and TWINSCAN EUV systems based on a new platform utilizing the concepts of the TWINSCAN platform.

Baytex Energy Corp.

Baytex Energy is a conventional oil and gas company engaged in the acquisition, development and production of petroleum and natural gas in the Western Canadian Sedimentary Basin and the United States. As of Dec 31 2010, total proved reserves for light and medium oil consisting of 18,416 thousand barrels gross (15,335 thousand barrels net), heavy oil consisting of 104,978 thousand barrels gross (87,384 thousand barrels net), natural gas liquids consisting of 2,825 thousand barrels gross (2,015 thousand barrels net) and natural gas consisting of 83,800 million cubic feet gross (70,300 million cubic feet net).

Bechtle AG

Bechtle is engaged in the business as an information technology (IT) dealer. Co. provides IT services combining with online marketing of IT products. Co. provides vendor-independent, IT portfolio to its customers from the fields of industry and trade, the public sector and the financial industry. Co. operates within two segments: IT system house & managed services segment, which provides its customers with IT strategy consulting services, hardware and software, project planning and implementation, system integration, IT services, training and IT operation; and the IT e-commerce segment, which comprisesCo.'s Internet, catalogue and telesales trading activities.

BP p.l.c.

BP is an integrated oil and gas group based in the United Kingdom. Co. is engaged in the exploration and production of crude oil and natural gas; refining, marketing, supply and transportation; and the manufacture and marketing of petrochemicals. Co. operates globally, with business activities in Europe, the U.S., Canada, Russia, South America, Australasia, Asia and parts of Africa. Co. operates in two business segments: Exploration and Production - including oil and natural gas exploration and development and production; and Refining and Marketing- activities include the refining, manufacturing, supply and trading, marketing and transportation of crude oil, petroleum and petrochemicals.

Canadian Natural Resources Limited

Canadian Natural Resources is an independent crude oil and natural gas exploration, development and production company. Co.'s exploration and production operations are focused in North America, largely in Western Canada; the U.K. portion of the North Sea; and CA'te d'Ivoire, Gabon, and South Africa in Offshore Africa. Co. had total proved reserves of 5.71 billion barrels of oil equivalent. Co.'s gross proved crude oil, bitumen (thermal oil), synthetic crude oil and natural gas liquids reserves totaled 4.70 billion barrels and its gross proved natural gas reserves totaled 6,106.00 billion cubic feet.

Celestica Inc.

Celestica is engaged in delivering innovative supply chain solutions globally to customers in the Communications, Consumer, Diversified (comprised of aerospace and defense, industrial, healthcare, smart energy, and semiconductor equipment), Servers, and Storage end markets. Co.'s product lifecycle offerings include a range of services to Co.'s customers including design and development, engineering services, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics and after-market repair and return services.

CGI
CGI

CGI Group is engaged in managing information technology services, including outsourcing, systems integration and consulting, software licenses and maintenance, as well as business process services to help clients realize their strategies and create added value.

China Suntien Green Energy

China Suntien Green Energy and its subsidiaries are principally engaged in the transmission and sale of piped, liquefied and compressed natural gas; the investment, development, management and operation of wind power generation; the sale of electricity to grid companies; and the provision of maintenance and consulting services in relation to wind farm and other new energies.

CNOOC Limited

Cnooc is an investment holding company. Through its subsidiaries, Co. is principally engaged in the exploration, development, production and sale of crude oil, natural gas and other petroleum products in offsore of the People's Republic of China. Co.'s core operation areas are Bohai, Western South China Sea, Eastern South China Sea and East China Sea in offshore China. Co. has oil and gas assets in Asia, Africa, North America, South America, Oceania and Europe. As of Dec 31 2016, net proved reserves for oil, gas, and synthetic oil were 2,015.4 million barrels, 7,486.1 billion cubic feet, and 7,486.1 million barrels, respectively.

Constellation Software Inc.

Constellation Software is engaged in the provision of enterprise software solutions serving a variety of vertical markets. Co. is organized in two reportable segments: (i) the public sector segment, which primarily includes businesses focused on government and government-related customers; and (ii) the private sector segment, which primarily includes businesses focused on commercial customers.

DTS Corp.

DTS is mainly engaged in the provision of information services. Along with its subsidiaries, Co. provides consulting in relation to the development of information system to the finance and public sector and corporate customers including telecommunications, manufacturing, retail, distribution, air transportation and others as well as design, development, operation and maintenance of systems, in-house developed solutions and ERP solutions. It is also engaged in design of total information systems including cloud-service and virtualization systems, operation and monitoring of the system operation either through personnel or remote access.

Empresas Copec S.A.

Empresas COPEC SA is a Chile-based holding company engaged, through its subsidiaries, in the energy and natural resources sectors. The Company's operations are structured into four business sectors: the Forestry Business. Fuels Business, Fishing Business and Other Investments. The Company operates in the forestry business through its affiliate Arauco, which produces wood pulp, panel and sawn lumber. The Company's fuel business is focused on the liquefied fuels, lubricants, and liquefied petroleum gas and natural gas markets. The Company operates in the fishing business through its affiliate Pesquera Iquique - Guanaye, which produces fishmeal, fish oil, canned and frozen seafood for human consumption. The Company has productive platforms in Argentina, Brazil, Canada, Colombia, the United States and Uruguay. On April 11, 2014, the Company with Inversiones Ultraterra Ltd sold their total stake in Empresa Electrica Guacolda to AES Gener.

Enerplus Corporation

Enerplus is engaged in acquiring, exploiting and operating crude oil and natural gas assets for the benefit of Co. As of Dec 31 2010, Co.'s net proved reserves of light and medium oil, heavy oil, natural gas liquids, natural gas and shale gas amounted to 68,508,000 barrels, 23,963,000 barrels, 6,019,000 barrels, 473,896,000,000 cubic feet and 41,815,000,000 cubic feet, respectively.

Eni S.p.A.

Eni is engaged in the oil and gas exploration and production, gas marketing operations, management of gas infrastructures, power generation, petrochemicals, oil field services and engineering industries. Co.'s operations are divided into three segments; Exploration and Production (oil and natural gas exploration and field development and production, as well as LNG operations), Gas and Power (supply, trading and marketing of gas and electricity, managing gas infrastructures for transport, distribution, storage, re-gasification, and LNG supply and marketing), and Refining and Marketing (supply of crude oil, refining and marketing of refined products). Co. maintains operations in 73 countries.

Equinor ASA

ERG S.p.A.

ERG is engaged in the generation of energy from renewable sources and from thermoelectric plants, in the marketing of electricity, steam and gas, in the refining, marketing and distribution of petroleum products both in Italy and abroad. Co., also through its own subsidiaries and joint ventures with primary international operators, operates in the following segments: renewable energy sources, under which Co. operates through its ERG Renew S.p.A. subsidiary in the wind power generation business; power and gas, which includes the production and marketing of electric energy, steam and gas; and refining and marketing, which includes the results of Coastal Refining and Integrated Downstream.

Faroe Petroleum PLC

Faroe Petroleum plc is an oil and gas company. The Company is focused on exploration, appraisal and production opportunities in Norway and the United Kingdom. Its portfolio consists of approximately 60 exploration, appraisal, development and production licenses in the West of Shetland, the North Sea, Norwegian Sea, Barents Sea and the Celtic Sea. Its Aerosmith - PL644/PL644 B is located approximately 20 kilometers from the Morvin and Smorbukk Fields in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea. The Bister Prospect is located in the Norwegian Sea in License PL348 C, which also contains the producing Hyme Field and the Snilehorn discovery, which are adjacent to the producing Njord Field. The Brage Field is located east of Oseberg in the northern part of the North Sea. The Butch Main discovery is situated in approximately 65 meters water depth in the Southern North Sea. The Gullaxy Prospect is situated to the north of the Butch discovery in the Central Graben.

Formosa Petrochemical Corp

Formosa Petrochemical Corporation is a Taiwan-based company principally engaged in the refining and distribution of oil products. The Company's principal products include oil products, such as naphtha, gasoline, diesel, jet fuel, kerosene, fuel oil and liquefied petroleum gas (LPG); petrochemical basic materials, such as ethylene, propylene and butadiene; utility products, such as power generation equipment and steam, as well as basic oil products. In addition, the Company is also involved in the storage of oil products and petrochemical materials, as well as the loading and unloading of port cargos.

GALP Energia SGPS SA Class B

Galp Energia is a holding company. Through its subsidiaries, Co. operates in the following segments: exploration and production, with activities relating to exploration, development and production of hydrocarbons, particularly in Angola, Brazil and Mozambique; refining and marketing, which owns refineries in Portugal and also includes activities relating to the retail and wholesale commercialization of oil products; and gas and power, which covers the purchasing, commercialization, distribution and storage of natural gas and electric and thermal power production. As of Dec 31 2014, Co. had proved and probable reserves of 638.0 million barrels of oil equivalent.

Hamamatsu Photonics K.K.

Hamamatsu Photonics is engaged in the manufacture and sale of photomultiplier tubes, imaging devices, light sources, opto-semiconductors, imaging and analyzing systems. Co.'s principal business segments are: Electron Tube; Opto-Semiconductor (Solid State); Imaging and Measurement Instruments (Systems); and Other. Co.'s principal products include photomultiplier tubes, electron multipliers, micro channel plates, image intensifiers, and x-ray products; silicon photodiodes, photo IC components, position sensitive detectors, infrared detectors; and cameras for scientific and industrial applications, as well as specialized instruments for use in fields such as pharmaceutical development.

Hunting PLC

Hunting is a holding company. Co.'s segments are: Hunting Titan, which provides perforating products; U.S, which supplies connections, oil country tubular goods (OCTG), drilling tools, subsea equipment, and intervention tools, among others, for the U.S. and overseas markets; Canada, which manufactures connections and accessories for operators in Canada; Europe, which supplies OCTG and well intervention equipment to operators in the North Sea; Asia Pacific, which manufactures connections and OCTG supply; Middle East, Africa and Other, which sells intervention tools in the Middle East and Africa; and Exploration and Production, which comprises its exploration and production activities.

Kelt Exploration

Kelt Exploration is an oil and gas company based in Calgary, Alberta. Co. focuses on the exploration, development and production of crude oil and natural gas resources, primarily in west central Alberta and northeastern British Columbia.

Micro-Star International Co. Ltd.

MicroStar International is engaged in the manufacture, sale and purchase of main board, graphics card and the design of all types of computer hardware and related products and component. Through its subsidiaries, Co. is also engaged in the repair and maintenance of computer, main board and electronic component; the general investment; the logistic business; the testing, inspection, repair and maintenance of computer, electronic devices and related products; and the research, development, sale, purchase, repair and maintenance of automobile electronic products.

Modec Inc.

MODEC is mainly engaged in the floating offshore oil and gas production facility business. Along with its affiliates, Co. is engaged in the design, construction, installation and sale of floating offshore oil and gas production facilities, including floating production, storage and off loading systems ("FPSOs") to oil developers; the leasing of its products, the provision of operation services, as well as the provision of charter services encompassing leasing and operation services; and the provision of post-sale services, including the provision of parts for Co.'s facilities and engineering support services, management support as well as operation support.

Nextdc Limited

NEXTDC is engaged in the development and operation of independent data centres in Australia. Co. has identified five reportable segments, being each state where Co. operates data centre facilities: Queensland, Victoria, New South Wales, Western Australia, and Australian Capital Territory.

Nihon Unisys Ltd.

Nihon Unisys is mainly engaged in the provision of information technology solution services. Co.'s principal business segments are system services, support services, outsourcing, software, and hardware. Co. offers software development, system engineering services, and consulting services. Co.'s principal services include software and hardware maintenance and support services, installation services as well as contracted information system administration services. Co. also provides software through software license agreement, and hardware through sales or lease contracts.

Nokia Oyj

Nokia is an Internet and communications technology company based in Finland. Co.'s operations are focused on three businesses: network infrastructure software, hardware and services, which Co. offers through Networks; location intelligence, which Co. provides through HERE; and advanced technology development and licensing, which Co. pursues through Technologies. Co. maintains a global presence with operations and Researh & Development facilities located in Europe, North America and Asia, and sales in approximately 130 countries. Co. has an installed base of around 600 customers worldwide and these operators serve over 4 billion subscribers.

Nordic Semiconductor ASA

Nordic Semiconductor is a fabless semiconductor company which designs, sells and delivers integrated circuits and related intellectual property for use in short-range wireless applications. Co. is engaged in ultra-low power wireless solutions, based on its proprietary 2.4 Gigahertz Radio Frequency and Bluetooth Smart technology. Co.'s components are manufactured by subcontractors and sold through electronics distributors to manufacturers of branded electronics across a range of product categories. These categories include personal computer and tablet accessories, sports/health monitors, mobile phone accessories, media remote controls, home and industrial automation, and other applications.

Obic Business Consultants Co. Ltd.

OBIC Business Consultants is an information technology ("IT") company. Along with its affiliates, Co. is mainly engaged in the development and sale of business solution technology and IT solution technology. In addition, Co. is involved in the provision of maintenance services and consultation services to corporate clients, the development and sale of software, and the sale of office automation ("OA") equipment and supplies.

OBIC Co. Ltd.

OBIC is mainly engaged in the provision of system integration, system support, office automation and other computer related services. Along with its affiliates, Co. operates in three business segments. System Integration Services segment develops software for customers based on an analysis of customer requirements for the system. System Support Services segment provides system operation support and maintenance, and hardware maintenance for customers that use Co.'s products. Office Automation Services segment is engaged in the sale of PC-peripherals, telecommunication equipment and related supplies, as well as office furniture. Co. also provides packaged software of financial accounting.

Oil company LUKOIL PJSC

PJSC Lukoil is a vertically-integrated oil company engaged in the exploration and production of crude oil and natural gas. Co. is engaged in all main sectors of the modern oil business including supplies, refining, marketing, transportation, petrochemicals and oil-related activities. Co.'s operations are divided into five business segments: Exploration and Production; Refining, Marketing and Distribution; Chemicals; Power Generation and Other Business Segments. Co. owns and operates refineries in Bulgaria (LUKOIL Neftochim Bourgas AD) and Romania (Petrotel-LUKOIL).

Oil Search Limited

Oil Search is engaged in the exploration, development and production of oil and gas deposits in Papua New Guinea. This is carried out as both the operator of producing and exploration joint ventures and as a non-operator participant in exploration and production joint ventures. Co.'s properties include the Kutubu oil project, Central Moran oil project, Gobe oil project, Hides GTE project, SE Mananda field, and Nabrajah. Co. also has interests in seven concession areas in Yemen, three concession areas in Egypt, and one concession area in Libya. Co. maintains operations in Papua New Guinea, Yemen, Egypt, Libya, Iraq, Tunisia, and Australia.

Reliance Industries Limited

Reliance Industries is primarily engaged in the production and market of petrochemical products, and refinery and retail of petroleum and LPG. Co.'s petrochemical products include polymer - polypropylene (PP), polyethylene (PE), poly vinyl chloride (PVC); polyester - polyester filament yarn (PFY), polyester staple fiber (PSF), polyethylene terephthalate (PET); polyester intermediates - paraxylene (PX), purified terephthalic acid (PTA), mono-ethylene glycol (MEG); and cracker products - ethylene, propylene and aromatics. Co. is also engaged in the manufacture of RELAB and textiles. Co.'s textile products are sold under the brand names: Only Vimal, Harmony, Reance, RueRel and V2.

Repsol SA

Repsol is an oil and gas company. Co. is engaged in all the activities relating to the oil and gas industry, including exploration, development and production of crude oil and natural gas, transportation of oil products, liquefied petroleum gas (LPG) and natural gas, refining, the production of a wide range of oil products and the retailing of oil products, oil derivatives, petrochemicals, LPG and natural gas, as well as the generation, transportation, distribution and supply of electricity. Co. operates in more than 40 countries. Co.'s operations are divided into four segments: Upstream, Downstream, LNG and Gas Natural Fenosa.

Rightmove PLC

Rightmove operates as an online property portal. Co. provides consumers with a place to search and research U.K. property and by providing its customers a place to reach home hunters. Co.'s segments are: The Agency, which provides resale and lettings property advertising services on Co.'s platforms; and The New Homes, which provides property advertising services to new home developers and housing associations on Co.'s platforms. Co.'s customers are primarily estate agents, lettings agents and new homes developers advertising properties for sale and to rent. Co. also provides software, delivering data, market insight and tools that provides insight, analysis and risk assessment tools.

Royal Dutch Shell Plc Class B

Samsung Electro-Mechanics Co. Ltd

Samsung Electro-Mechanics manufactures, markets and distributes devices, parts and components. These are parts and components for mobile communications, computer components and peripherals, materials, general and industrial use, optical/thin film and audio and video. Co.'s products consists of flyback transformers, radio frequency modulators, low noise block-down converters, VCR drums, VCR heads, VCR drum motors, electronic tuners, multi-layer ceramic capacitors, deflection yokes, RF-units, high voltage capacitors, speakers, decks, keyboards, switching mode power supplies, floppy disc drives, CD-decks, and broadcasting satellite receivers.

Santos Limited

Santos is a natural gas company engaged in the exploration for, and development, production, transportation and marketing of, hydrocarbons. Co.'s operating segments consist of five key assets/operating areas of: Cooper Basin; Gladstone LNG; Papua New Guinea; Northern Australia; and Western Australia gas; based on the nature and geographical location of the assets, plus Other non-core assets. Co.'s proved petroleum reserves were 485.0 million barrels of oil equivalent at Dec 31 2016.

Soitec SA

Soitec is a manufacturer of silicon and integrated circuits. Co. offers products based on Silicon-on-Insulator (SOI), which serves to support the manufacturing of more energy-efficient integrated circuits. Co.'s operations can be divided into three divisions: Electronics, Solar Energy and Lighting. The Electronics division manufactures and sells substrates and components intended for the microelectronics industry; the Solar Energy division manufactures and sells photovoltaic modules, designs and constructs turnkey projects, and operates photovoltaic power plants; and the Lighting division isolates resources to develop materials designed for the production of light emitting diodes.

TATNEFT PJSC

Tatneft PJSC and its subsidiaries are engaged in crude oil exploration, development and production principally in the Republic of Tatarstan, Russia. Co. is a holding structure, which incorporates oil and gas production boards, crude oil and gas refining companies, as well as enterprises and servicing works selling the crude oil and also the products of crude oil and gas refining and petrochemical products. In addition to this, Co. is also participating in the banking and insurance activities. Co.'s operations are divided into the following main segments: Exploration and Production; Refining and Marketing; and Petrochemicals.

TDK Corporation

TDK is a manufacturer of recording media, ferrite products and recording device products, and a producer of inductor, ceramic capacitor, magnet, HDD head and other components. Co.'s principal business segments are passive components, sensor application products, magnetic application products, film application products and others. Co.'s principal products include ceramic capacitors, aluminum electrolytic capacitors, film capacitors, inductive devices, high-frequency components, piezoelectric materials and circuit protection components, sensors, HDD head suspension, recording devices, power supplies and magnets, and mechatronics.

Telefonaktiebolaget LM Ericsson Class B

Ericsson provides communications technology and services. Co.'s services, software and infrastructure – especially in mobility, broadband and the cloud – enable the telecom industry and other sectors to do business, increase efficiency, improve the user experience and capture new opportunities. Co. has more than 110,000 professionals and customers in more than 180 countries. Co. provides support for networks with more than 2.5 billion subscribers. Co.'s core business areas are called Radio, Core and Transmission and Telecom Services. Co. divides its operations into three business segments: Networks, Global Services and Support Solutions.

Temenos AG

Temenos is engaged in the development, marketing and sale of banking software systems. Co. is also involved in supporting the implementation of the systems at various client locations around the world as well as in offering help desk support services to existing users of TEMENOS software systems. Co.'s client base consists of banking and other financial services institutions. Co.'s segments include: Product, which is engaged in marketing, licensing and maintaining Co.'s software solutions, including software development fees for requested functionality, as well as providing hosting arrangements; and Services, which represents various implementation services such as consulting and training.

Total SE

Total is an international integrated oil and gas company also active in solar and biomass energy sources. Co. engages all aspects of the petroleum industry, including Upstream operations (oil and gas exploration, development and production, and LNG (Liquefied Natural Gas)) and Downstream operations (refining, petrochemicals, specialty chemicals, marketing and marketing and trading and shipping of crude oil and petroleum products). In addition, Co. is engaged in the coal mining and power generation sectors. Co.'s worldwide operations are conducted through three business segments: Upstream, Refining & Chemicals, and Marketing & Services.

Tullow Oil plc

Tullow Oil is an independent oil and gas exploration and production company. Co.'s focus is on finding oil in Africa and South America. Co.'s primary activities include targeted exploration and appraisal, selective development projects and growing its production. As of Dec 31 2017, Co.'s portfolio included 90 licences in 16 countries. Co.'s operations are organized into three business delivery teams: West Africa; East Africa; and New Ventures. As of Dec 31 2017, on a working interest basis, Co. had commercial reserves of 245.7 million barrels of oil, 268.90 billion cubic feet of gas, and 290.5 million barrels of oil equivalent (petroleum).

Wafer Works Corp.

Wafer Works is principally engaged in the research and development, design, manufacturing, import and distribution of semiconductor products and optoelectronic products. Co.'s semiconductor products include silicon wafers, silicon rods, single-side polish wafers, double-side polish wafers and epitaxial wafers. Co.'s optoelectronic products include sapphire ingot, sapphire substrates and pattern sapphire substrates. Co. distributes its products mainly within domestic market and overseas market, including the People's Republic of China, United States and other countries.

Whitehaven Coal Limited

Whitehaven Coal is principally engaged in the development and operation of coal mines in New South Wales. Co. has two reportable segments: Open Cut Operations and Underground Operations. Mining operations include Maules Creek open cut mine (75% Co. ownership and operator); Narrabri underground mine (70% Co. ownership and operator); and three smaller open cuts mines, Tarrawonga (70% Co. ownership and operator), Rocglen (100% Co. ownership) and Werris Creek (100% Co. ownership).

Worley Limited

WorleyParsons is a services provider to the resources, energy and industrial sectors. Co. has four business lines of Services, Major Projects, Improve and Advisian and three customer sectors, each of which is focused on customers involved in the following activities: Hydrocarbons, which includes the extraction and processing of oil and gas; Minerals, Metals and Chemicals, which includes the extraction and processing of mineral resources and the manufacture of chemicals; Infrastructure, which includes projects related to water, the environment, transport, ports and site remediation and decommissioning, and all forms of power generation, transmission and distribution.

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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