Report
Dave Nicoski ...
  • Ross LaDuke
EUR 46.20 For Business Accounts Only

Vermilion Int'l Compass: Global Equity Strategy

Stick With Global Technology

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view remains unchanged; overhead longer-term resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our intermediate-term outlook remains bullish and we suggest buying any dips.

· Index Overviews. Global (MSCI EM, EAFE, and ACWI ex-US indexes) and major country indexes (S&P 500, EURO STOXX 50, TOPIX) are in a consolidation phase within bullish multi-month uptrends. As long as support levels on these indexes hold it is hard to be anything but bullish. What's more, the MSCI EM index is attempting to break above resistance on the back of strength out of India, China, Brazil, Russia, and Poland -- continue to overweight EM relative to EAFE... see pages 2-3.

· Actionable Theme: Technology. The Technology Sector remains our only global overweight call as it continues to outperform across all the major markets (e.g., US, Europe, Japan, China, etc.). While both our overweight recommendation and global Tech outperformance has been in place since January 2019, there is nothing that says it has to end any time soon; add exposure/remain overweight... see page 4 and pages 6-9.

· Actionable Themes: Opportunities Within Defensive, Cyclical, and “In-Between” Sectors. In this section we highlight attractive charts within defensives (Consumer Staples & Utilities), cyclicals (Consumer Discretionary, Energy, Financial, & Materials), and in-between Sectors (Communications, Services, & Health Care). Incidentally, the vast majority of stocks recommended here happen to be growth-oriented, with the notable exceptions being some of the Materials names and also the banking recommendations within Financials
Underlyings
Anritsu Corporation

Anritsu is engaged in the manufacture and sale of measuring instruments and testing equipment. Test and Measurement segment offers testing and measuring instruments and systems for digital communications and IP networks, optical communications, mobile communications, RF and microwave communications and millimeter wave communications. PQA (Products Quality Assurance) segment offers checkweighers, automatic combination weighers, package inspection equipment, contamination detectors and production management systems for food, pharmaceutical and cosmetics manufacturers. Co. is also engaged in the manufacture of network appliances and optical devices, as well as the real estate leasing.

Avino Silver & Gold Mines

Avino Silver & Gold Mines is engaged in the acquisition, exploration, production and development of silver, gold, copper and other mineral properties in Mexico and Canada.

Britannia Industries Ltd

Britannia Industries is a food-products corporation based in India. Co.'s principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products. Co. manufactures and distributes products such as biscuits, high protein foods for children as well as digestive-aided ingredients for older adults, convenience foods such as powdered dairy creamers, breads, cookies, snack-cakes and rusk, crackers, cheese, marine products and other related food products. Co.'s brand of products include Tiger, Mariegold, Treat, 50-50, Good Day, Milk Bikis, Little Hearts, Pure Magic, NutriChoice Bread and Milkman.

Capcom Co. Ltd.

Capcom is engaged in the development, manufacture and sales of video games, online games, mobile games and arcade games, as well as the operation of amusement arcades. Co.'s business segments are digital contents, amusement facility and amusement equipment. Co. is engaged in the planning, development, manufacture and sales of home video games, online games and mobile games including "Rockman," "Monster Hunter World" and "Dragons Dogma"; the operation of "Plaza Capcom" amusement facilities in Japan; and the development, production and distribution of arcade games for amusement facilities. Co. is also engaged in the licensing business of game characters and the real estate leasing business.

Grupo Bimbo SAB de CV Class A

Grupo Bimbo is a holding company. Through its subsidiaries, Co. is engaged in the production, distribution, sale, and export of bread, cookies, cakes, snacks, tortillas, potato chips, chocolates, and confectionery products. Through its subsidiaries, Co. organizes its businesses in two divisions as follows: the bakery division and the appetizers, salads, confectionery and pastry divison operated by Bimbo S.A. de C.V., and Barcel S.A. de C.V., respectively.

Hebei Hengshui Laobaigan Liquor (A)

Hebei Yufeng Industry is engaged in the manufacture and sale of wine and animal feed; raising and selling of animals and livestocks for consumption and reproduction. Co.'s major liquor products named "Laobaigan" under the brand "Hengshui". Through its subsidiaries, Co. is also engaged in providing of loans from financial institution to small- medium enterprise in Hengshui city; bill discount; providing of financing guarantee; and processing, selling, refrigerating and distributing of cooked and raw meat. In addition, Co. distributes its pigs for consumption and its products primarily in Northern China.

Jonjee Hi-Tech Industrial and Commercial Holding Co. Ltd. Class A

Jonjee Hi-Tech Industrial & Commercial Holding is engaged in urban infrastructure investment; property management; secondary water supply; hi-technology industry investment and development; industrial investment; equipment leasing; provision of technology and communication consultation services; and sale of industrial materials, general merchandises, hardware, electrical appliances; chemical products, needles, textile products and construction materials. Through its subsidiaries, Co. is also engaged in production of sauce, flavoring, non-alcoholic beverage, and automobile and motorcycle accessories.

Justsystems Corporation

Justsystems is a global software provider in office productivity, information management, and consumer and enterprise software. Co.'s principal products and services are xfy, XMetal (consisting of six applications: XMetaL Author, XMetaL Author DITA Edition, XMAX - XMetaL for ActiveX, and XMetaL Reviewer), ConceptBase, ATOK, and Ichitaro. xfy's flexible XML-based application platform fully supports standardization, integration and security of business information to help users make sense of the glut of complex, disjointed information found in typical organizations.

Kingsoft Cloud Holdings Ltd.

Kingsoft Corp. Ltd.

Kingsoft Corporation is an investment holding company. Through its subsidiaries, Co. is engaged in the research and development of games, and provision of online games, mobile games and casual game services; the research, development and operation of information security software and web browser, provision of information security service across devices, and provision of online advertising services; as well as the research, development and distribution of office application software, provision of cloud storage, cloud computation and dictionary services across devices, and provision of online advertising services.

Koei Tecmo Holdings Co. Ltd.

Koei Tecmo Holdings is a holding company. Co., through its subsidiaries, operates in five business segments: entertainment, service provider, amusement facility operation, real estate, and others. Co. is engaged in the development and sale of game software for personal computers and home video game systems and software for online games and mobile phones; books, compact discs, digital versatile discs and goods; as well as liquid crystal display for pinball games and slot games. Co. is also involved in the collection of related royalty, the operation of amusement facilities, the real estate business and the venture capital business.

Kweichow Moutai Co. Ltd. Class A

Kweichow Moutai is engaged in the manufacture and sale of "Guizhou Moutai" series distilled spirits; manufacture and sale of beverages, food and packaging materials; development of anti-counterfeiting technologies; and research and development of relevant IT products. Through its subsidiaries, Co. is also engaged in the wholesale of agricultural vice-local products, building materials, decoration materials, metal materials, machineries, electronic products, telecommunication products, hardware, rubber products, general merchandises and furniture. Co.'s products include millesimes liquor, gift liquor, common liquor and other liquor series.

L'Oreal SA

L'Oreal acts as a holding company. Through its subsidiaries, Co. plays a strategic coordination role and scientific, industrial and marketing coordination role on a global basis. Co. develops, manufactures and commercializes products for Skin care, Hair care, Make-up, Perfumes, Toiletries and deodorants, and Oral cosmetics. Co. has three branches: Cosmetics, Body shop and Dermatology. Co.'s principal activities comprise four divisions: Professional Products, Consumer Products, L'Oreal Luxe and Active Cosmetics. The Body Shop branch offers various cosmetics and toiletry products. The Dermatology branch offers topical dermatology prescription, and corrective and aesthetic dermatology.

Lyxor MSCI AC Asia Ex Japan UCITS ETF

Magnit PJSC

Magnit is a holding company. Through its subsidiaries, Co. operates in the retail and distribution of consumer goods under the Magnit name. Co.'s retail operations are operated through convenience stores, cosmetic stores, hypermarkets and other. Most of its stores are located in the Southern, Central and Volga regions. Co. also operates stores in the North-Western, North-Caucasian, Urals and Siberian regions. As of Dec. 31 2014, Co.'s stores chain consisted of 9,711 stores: 8,344 convenience stores, 190 hypermarkets, 97 Magnit Family stores and 1,080 drogerie stores in 2,108 cities and towns throughout the Russian Federation.

Net One Systems Co. Ltd.

Net One Systems and its affiliates are mainly engaged in the construction of network system as well as the provision of value added services. Co.'s principal business segments are ENT (enterprise), SP (telecom carrier), PUB (public), Partner. Co. sells network infrastructure products, facility products, platform products, security products, unified communications products and network application products. Its principal products include router, switch, optical communications, wireless, server/storage product, firewall product, authentication/quarantine product, IP phone, video conferencing system and load balancing device. Co. also provides operation support and installation services.

NICE Systems Ltd (ADR)

Nikkei225 Bull 2x ETF

Nippon Parking Development

NIPPON PARKING DEVELOPMENT is mainly engaged in the parking lot business. Along with its subsidiaries, Co. operates in four business segments. Domestic and Overseas Parking Lot segment is engaged in the direct management, leasing, management and value added ("VA") service businesses, and the provision of consulting services related to parking lot renovation and safety, as well as the car sharing business. Ski Resort segment is engaged in the acquisition and operation of ski resorts. Theme Park segment is engaged in the operation of amusement park and resort villa. Others segment is engaged in the provision of students and tourists support services.

NXP Semiconductors NV

NXP Semiconductors is a holding company. Through its subsidiaries, Co. is engaged as a global semiconductor company and a long-standing supplier in the industry. Co. provides High-Performance Mixed-Signal and Standard Product solutions. Co.'s product solutions are used in automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. Co. engages with original equipment manufacturers (OEM) and sell products in all major geographic regions.

Razer Inc

Razer is a global internet gaming and esports company based in Singapore. Co. offers its customers a gamer-focused ecosystem of hardware, software and services. Co.'s hardware ranges from high-performance gaming peripherals (for the PC and console platforms) to the Razer Blade gaming laptops. Co.'ss software platform, with over 35M users, includes Razer Synapse (an Internet of Things platform), Razer Chroma (a proprietary RGB lighting technology system), and Razer Cortex (a game optimizer and launcher). Co.'s services include Razer zGold, a virtual credit services for gamers, which allows gamers to purchase virtual goods and items from over 2,500 different games.

Software AG

Software is a holdinc company. Co. is engaged as a provider of process and integration software. Co.'s operates through three reporting lines: business process management or Business Process Excellence (BPE), data management or Enterprise Transaction Systems (ETS) and Consulting. The BPE segment consists of software products for integrated solutions in the field of Business Process Management for organizations of all industries and sizes. The ETS segment is engaged in providing database solutions for mainframes and the development of mainframe-based IT systems. The Consulting segment includes all consulting and services pertaining to the BPE, ETS and IDS Scheer Consulting business lines.

Wuliangye Yibin Co. Ltd. Class A

Wuliangye Yibin is engaged in manufacture and sale of "Wuliangye" liquors and other series of alcoholic drinks. Through its subsidiaries, Co. is also engaged in the supply of raw materials; packaging and publication printing; investment activities; provision of parking service; and manufacture and sale of industrial-used steams, fine chemicals, fruit wines, white wines, white carbon, and black and lactic acids.

Yonyou Network Technology Co. Ltd. Class A

Ufida Software is engaged in the technology development, consultation, transfer, services and sale of computer software, hardware and peripheral equipment; and, the provision of enterprise management consultation, database and information services. Through its subsidiaries, Co. is also engaged in investments holding; the wholesale and retail of computer and fittings, office use machinery and electronic components; import and export trade; communication and network construction installation, and comprehensive wiring. Co. provides three categories of software products, including enterprise resource planning, management software and financial software.

Z Holdings Corporation

Yahoo Japan is engaged in the provision of Internet advertising and e-commerce services. Media Business segment provides marketing and advertising services including paid search, display, in-feed video advertising and other advertising-related services for corporations; and Yahoo! News and media-related services. Commerce Business segment provides e-commerce related services including YAHUOKU! (net auction site), Yahoo! Shopping, ASKUL, LOHACO and other shopping websites; membership services including Yahoo! Premium, Yahoo! BB and other services; and financial and payment-related services including credit card, e-money, foreign exchange margin trading and other related services.

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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