Report
Dave Nicoski
EUR 212.70 For Business Accounts Only

Int'l Insights: Bullish Stocks

Latin America and EM small caps are breaking out

Highlighted themes and actionable charts:

• Latin America is breaking out to all-time highs. Both Brazil and Chile have punched through secular resistance levels this year to all-time highs. Peru is not far behind. Take advantage of pullbacks in this region... see page 2

• Tech--extended but still leadership. Most of tech, despite its leadership status, is too extended to buy. A few exceptions are visible, with several names just beginning to break out from long-term bases including United Microelectronics (2303-TW), Sino-American Silicon Products (5483-TW), and NCsoft (036570-KR)... see page 4

• Uptick in attractive consumer stocks. This week's screen contains a variety of attractive consumer names, especially in the apparel/footwear industry: Cia Hering (HGTX3-BR), Bata India (500043-IN), and Alpargatas (ALPA4-BR), all which are breaking out from multi-year base patterns ... see page 5-6

• Commodity sectors are strengthening. This is a global trend, with energy and materials producing widespread breakouts and bullish inflections. Within energy, this week's screen produced several Thailand-based refiners emerging from base patterns, including Thai Oil (TOP-TH) and Bangchack Corp (BCP-TH). Both are buys. Within materials, we like metals & mining and chemicals, where LG Chem 051910-KR) is breaking out from a six-year base. Buy.


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Underlying
Banco Santander-Chile

Banco Santander Chile is engaged in the provision of a range of commercial and retail banking services to its customers, including Chilean peso and foreign currency denominated loans to finance a variety of commercial transactions, trade, foreign currency forward contracts and credit lines and a variety of retail banking services, including mortgage financing. Co. has 423 total branches, 274 of which are operated under the Santander brand name, with the remaining branches under certain specialty brand names, including 39 under the Santander Banefe brand name, 53 under the Select brand name, 8 specialized branches for the Middle Market, and 49 as auxiliary and payment centers.

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

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