Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Sea Limited offers information technology services. The Company provides online personal computer and mobile digital content, e-commerce, and payment platforms. Sea serves customers worldwide.

<ul>
<li>Since mid-April we discussed how downside was limited on MSCI ACWI and EURO STOXX 50, and May 2nd discussed it was "quite possible" the lows were in.</li>
<li>Now, the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes have all broken out to new multi-year highs. Our bullish outlook (since early-November 2023) remains intact; expect higher prices ahead.</li>
<li>China (MSCI China) continues to lead the EM turnaround, and we remain bullish on the space. We highlight many large-cap EM buys within Communications, Technology, Discretionary; we remain bullish miners.</li>
</ul>


Since mid-April we discussed how downside was limited on MSCI ACWI and EURO STOXX 50, and May 2nd discussed it was "quite possible" the lows were in.
Now, the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes have all broken out to new multi-year highs. Our bullish outlook (since early-November 2023) remains intact; expect higher prices ahead.
China (MSCI China) continues to lead the EM turnaround, and we remain bullish on the space. We highlight many large-cap EM buys within Communications, Technology, Discretionary; we remain bullish miners.


Bullish Outlook Intact; EM and China Continue to Bottom; Buys in Comms, Tech, Discretionary, Miners

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Bharti Airtel Limited, a part of Bharti Enterprises, provides telecommunications services throughout India. The Company provides GSM Mobile Services, broadband, fixed line telephone services, long distance services (international & national) and enterprise services.

<ul><li>The company's digital portfolio is gaining momentum along with market share gains</li><li>The company maintained a strong share of 4G/5G net ads in the market, with the 4G customer base expanding by 7.8 Mn QoQ and 28.6 Mn YoY.</li><li>This now constitutes 72% of the overall customer base. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The company's digital portfolio is gaining momentum along with market share gainsThe company maintained a strong share of 4G/5G net ads in the market, with the 4G customer base expanding by 7.8 Mn QoQ and 28.6 Mn YoY.This now constitutes 72% of the overall customer base. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bharti Airtel Ltd - Strong Business Matrix; ARPU Gains Continue

External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

PT XL Axiata Tbk provides a wide range of mobile telecommunications services in Indonesia.

<ul><li>We believe the planned MergeCo to generate better consumer experience and thus, expect value accretion potentials from the deal.</li><li>We see upside to our current valuation (DCF-based TP of Rp3,3300) from the combined spectrum allocations and tower sites optimization</li><li>Maintain Buy rating. We believe risks on the deals are manageable, as both parties appear committed and with IOH’s merger as a precedent.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe the planned MergeCo to generate better consumer experience and thus, expect value accretion potentials from the deal.We see upside to our current valuation (DCF-based TP of Rp3,3300) from the combined spectrum allocations and tower sites optimizationMaintain Buy rating. We believe risks on the deals are manageable, as both parties appear committed and with IOH’s merger as a precedent.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

XL Axiata - Merger Plan to Offer Upside; Reiterate Buy Rating as We See Deal Risks to Be Manageable

IR & Research Intelligence, Sessa Investment Research

Sessa Investment Research

IR & Research Intelligence

Sponsored research focusing on Japanese small cap.

Tokyo Tsushin, Inc. develops casual mobile game applications. The Company also engages in advertising, investment, web services, and other businesses. TokyoTsushin serves clients throughout Japan.

<ul><li>Tokyo Communications Group’s core businesses currently include its Media business, where it plans and develops free game apps for smartphones and uses a portion of the app’s screen space to generate advertising revenue, and its Platform business, where it operates a consultation service based on a pay-as-you-go model.</li><li>The company also functions as an investment company with the aim of achieving company-wide growth while diversifying risks by allocating the cash flow generated by these core businesses into various promising digital businesses.</li><li>The company's main business at the time of its founding consisted of developing and operating free game apps for smartphones.</li></ul>

Tokyo Communications Group’s core businesses currently include its Media business, where it plans and develops free game apps for smartphones and uses a portion of the app’s screen space to generate advertising revenue, and its Platform business, where it operates a consultation service based on a pay-as-you-go model.The company also functions as an investment company with the aim of achieving company-wide growth while diversifying risks by allocating the cash flow generated by these core businesses into various promising digital businesses.The company's main business at the time of its founding consisted of developing and operating free game apps for smartphones.

Tokyo Communications Group (7359 JP) - Actively Pushing to Become a Digital Business Conglomerate

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Cellnex Telecom S.A.U. is an independent operator of wireless telecommunications infrastructure and broadcast infrastructure. The Company's sites are located in Spain and Italy.

<ul><li>RLFCF multiple applied to 2025 guidance could result in 54% upside for stock</li><li>Cellnex's strong presence in key European countries and potential for free cash flow growth make it an attractive investment opportunity with projected IRR of 24%</li><li>Despite past disappointments in meeting free cash flow targets, company's future outlook looks promising for potential upside for investors</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

RLFCF multiple applied to 2025 guidance could result in 54% upside for stockCellnex's strong presence in key European countries and potential for free cash flow growth make it an attractive investment opportunity with projected IRR of 24%Despite past disappointments in meeting free cash flow targets, company's future outlook looks promising for potential upside for investorsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Cellnex Telecom Sa (CLNX) - Wednesday, Feb 14, 2024

Insights in the Communication Services Space

Communication Services
Insights in the Communication Services Space

Bullish Outlook Intact; EM and China Continue to Bottom; Buys in Comms, Tech, Discretionary, Miners

Bullish Outlook Intact $ACWI; EM and China Continue to Lead; U.S. Dollar (DXY), WTI Crude Oil, and Gasoline Prices Rolling Over; Buys in: Comms,...

Vermilion Research

Bharti Airtel Ltd - Strong Business Matrix; ARPU Gains Continue

The company maintained a strong share of 4G/5G net ads in the market, with the 4G customer base expanding by 7.8 Mn QoQ and 28.6 Mn YoY.

Axis Direct

XL Axiata - Merger Plan to Offer Upside; Reiterate Buy Rating as We See Deal Risks to Be Manageable

We believe the planned MergeCo to generate better consumer experience and thus, expect value accretion potentials from the deal.

BRI Danareksa Research

Tokyo Communications Group (7359 JP) - Actively Pushing to Become a Digital Business Conglomerate

Tokyo Communications Group’s core businesses currently include its Media business, where it plans and develops free game apps for smartphones and...

Sessa Investment Research

Cellnex Telecom Sa (CLNX) - Wednesday, Feb 14, 2024

Cellnex's strong presence in key European countries and potential for free cash flow growth make it an attractive investment opportunity with...

Value Investors Club