Russell 2000 Testing 1.5+ Year Resistance The market remains in "lockout rally" mode, where prices continue to move higher with little-to-no pullbacks, while ignoring overbought readings. This is something we have discussed on a weekly basis since our 11/21/23 Compass. There is no reason to fight this bullish trend, and we continue to expect more upside into year-end and the early part of 2024. Russell 2000, Several High-Octane ETFs (ARKK, IPO, XBI) Testing Major 1.5+ Year Resistances. The Rus...
Continue to Ride the Trend Higher After discussing that risk/reward favored buyers in late-October as our key supports were being tested (10/24/23 and 10/31/23 Compass reports), we outlined in our 11/7/23 Compass our belief that a significant year-end rally was likely underway. Market-generated information has continued to be of the risk-on variety, which has only reinforced our bullish outlook on the broad equity market. Therefore, we continue to expect a rally into year-end and beyond. S&P 5...
Russell 2000 (IWM) Testing $180 Resistance Since January 2023 we have discussed how we anticipate 4165-4200 to cap upside on the S&P 500 for 2023, but that a rally to 4300-4325 is also possible; this remains our view. So far there has not been much traction above 4200. An obvious problem continues to be weak breadth, but as we have discussed since our May 9th U.S. Macro Vision, this does not have to end badly. There is a possibility that large-caps (AAPL, META, MSFT, GOOGL, NVDA, etc.) could pa...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Short Shots is a collection of technically vulnerable charts culled from the Negative Inflecting and Toppy columns within our Weekly Compass report or from various technical screening processes. The charts contained in this report have developed concerning technical patterns that suggest further price deterioration is likely. For these reasons Short Shots can also be a great source of ideas for investors interested in short-selling candidates.
Banco de Chile had a tough first quarter as lower net interest income, higher personnel expense, and a spike in loss provisions contributed to a year-over-year earnings decline of nearly 40%. Annualized top-line growth was negligible, with operating revenue of CHP 445 billion identical to first-quarter 2018. Lower interest income in the quarter was entirely offset by a 3.5% increase in fee and commission revenue. Similar to its main competitor Banco Santander Chile, Banco de Chile has over 40% o...
Banco de Chile had a tough first quarter as lower net interest income, higher personnel expense, and a spike in loss provisions contributed to a year-over-year earnings decline of nearly 40%. Annualized top-line growth was negligible, with operating revenue of CHP 445 billion identical to first-quarter 2018. Lower interest income in the quarter was entirely offset by a 3.5% increase in fee and commission revenue. Similar to its main competitor Banco Santander Chile, Banco de Chile has over 40% o...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Banco de Chile. Global Credit Research- 12 Apr 2019. New York, April 12, 2019-- Moody's Investors Service has completed a periodic review of the ratings of Banco de Chile and other ratings that are associated with the same analytical unit.
Banco de Chile sits atop the food chain of Chile’s banking industry, allowing the firm a cheaper source of deposits. This funding advantage has helped the company to generate impressive returns on equity over 18% in each of the past five years. While we anticipate continued profitability, we do expect returns to decline. While Banco de Chile has shrugged off recent slowdowns in the country’s economy, we believe a slowing Chilean economy, along with pressure on loan spreads, will result in lo...
Narrow-moat Banco de Chile reported a 3.3% increase in year-over-year net income, slightly below our expectations. Excluding the impact of accounting changes in the third quarter, credit provisions as a percentage of total loans increased slightly to 0.90%, from 0.85%. On a yearly basis, credit provisions remained stable at 0.93%. The Chilean economy experienced strong GDP growth of 4% in 2018 as the economy continued its rebound from the sub-2.0% growth in the two years prior. For now, we'll be...
Narrow-moat Banco de Chile reported a 3.3% increase in year-over-year net income, slightly below our expectations. Excluding the impact of accounting changes in the third quarter, credit provisions as a percentage of total loans increased slightly to 0.90%, from 0.85%. On a yearly basis, credit provisions remained stable at 0.93%. The Chilean economy experienced strong GDP growth of 4% in 2018 as the economy continued its rebound from the sub-2.0% growth in the two years prior. For now, we'll be...
Narrow-moat Banco de Chile reported a 3.3% increase in year-over-year net income, slightly below our expectations. Excluding the impact of accounting changes in the third quarter, credit provisions as a percentage of total loans increased slightly to 0.90%, from 0.85%. On a yearly basis, credit provisions remained stable at 0.93%. The Chilean economy experienced strong GDP growth of 4% in 2018 as the economy continued its rebound from the sub-2.0% growth in the two years prior. For now, we'll be...
Banco de Chile sits atop the food chain of Chile’s banking industry, allowing the firm a cheaper source of deposits. This funding advantage has helped the company to generate impressive returns on equity nearing 20% in each of the past five years. While we anticipate continued profitability, we do expect returns to decline. While Banco de Chile has shrugged off recent slowdowns in the country’s economy, we believe a slowing Chilean economy, along with pressure on loan spreads, will result in...
Though narrow-moat Banco de Chile saw a 4.3 year-over-year decrease in net income, the bank continues to outperform our expectations. Credit provisions jumped nearly 90% from last year’s third quarter and were pretty much the only reason the bank saw lower net income during the quarter. Yes, a 90% increase in credit provisions seems incredibly high, but this is almost entirely attributable to a more conservative accounting standard. In addition, this change in credit loss models is a one-time ...
Moody's Investors Service (Moody's) today assigned an A1 rating to Banco de Chile's CHF115 million fixed-rate senior unsecured notes maturing on 21 November 2023. The rating has a stable outlook. The notes will be governed by Swiss law and used for general corporate purposes. The ...
Though narrow-moat Banco de Chile saw a 4.3 year-over-year decrease in net income, the bank continues to outperform our expectations. Credit provisions jumped nearly 90% from last year’s third quarter and were pretty much the only reason the bank saw lower net income during the quarter. Yes, a 90% increase in credit provisions seems incredibly high, but this is almost entirely attributable to a more conservative accounting standard. In addition, this change in credit loss models is a one-time ...
Though narrow-moat Banco de Chile saw a 4.3 year-over-year decrease in net income, the bank continues to outperform our expectations. Credit provisions jumped nearly 90% from last year’s third quarter and were pretty much the only reason the bank saw lower net income during the quarter. Yes, a 90% increase in credit provisions seems incredibly high, but this is almost entirely attributable to a more conservative accounting standard. In addition, this change in credit loss models is a one-time ...
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