Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cross-Asset Strategist & Quantitative Analyst

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Cross Asset Strategy

<ul>
<li>We are not overly concerned about the capitulation of a prominent Wall Street bear on an intermediate-term basis.</li>
<li>Stock prices are advancing on stable interest rates and continued economic and earnings growth.</li>
<li>However, the stock market is showing some signs of bullishness exhaustion and it’s vulnerable to a short-term pullback.</li>
</ul>


We are not overly concerned about the capitulation of a prominent Wall Street bear on an intermediate-term basis.
Stock prices are advancing on stable interest rates and continued economic and earnings growth.
However, the stock market is showing some signs of bullishness exhaustion and it’s vulnerable to a short-term pullback.


Quantitative Analysis

<ul>
<li>We built an LBO model to identify possible leveraged buyout (LBO) candidates among the S&amp;P 1500. We found that stocks which qualify under an LBO criteria are relatively rare.</li>
<li>Many of the stocks identified by the LBO screen are blemished, each in a different way. The LBO model should only be used to identify stocks for further analysis.</li>
<li>There is a heightened risk of value traps in many of the stocks. This is not a quantitative factor that can be blindly bought because of high stock-specific risk.</li>
</ul>


We built an LBO model to identify possible leveraged buyout (LBO) candidates among the S&amp;P 1500. We found that stocks which qualify under an LBO criteria are relatively rare.
Many of the stocks identified by the LBO screen are blemished, each in a different way. The LBO model should only be used to identify stocks for further analysis.
There is a heightened risk of value traps in many of the stocks. This is not a quantitative factor that can be blindly bought because of high stock-specific risk.


How to Buy A Company If You Have No Money

<ul>
<li>Stock prices have achieved fresh all-time highs and there is nothing more bullish than new highs.</li>
<li>Stocks are rising because of strong technical positions,  progress on disinflation, and continuing signs of growth.</li>
<li>These three factors are combining to be supportive of high stock prices ahead.</li>
</ul>


Stock prices have achieved fresh all-time highs and there is nothing more bullish than new highs.
Stocks are rising because of strong technical positions,  progress on disinflation, and continuing signs of growth.
These three factors are combining to be supportive of high stock prices ahead.


<ul>
<li>A review of technical and sentiment conditions shows that stock prices are setting up for a sustained advance.</li>
<li>The combination of strong momentum, good breadth and skeptical sentiment points to higher stock prices.</li>
<li>Key risks are evidence of a disturbing relative strength by defensive sectors and an upcoming CPI report that could upend the bullish narrative.</li>
</ul>


A review of technical and sentiment conditions shows that stock prices are setting up for a sustained advance.
The combination of strong momentum, good breadth and skeptical sentiment points to higher stock prices.
Key risks are evidence of a disturbing relative strength by defensive sectors and an upcoming CPI report that could upend the bullish narrative.


<ul>
<li>We believe AI is overhyped in the short run and underhyped in the long run.</li>
<li>Recent instances of earnings report reactions of stocks in the AI ecosystem indicate excessive frothiness and even AI bellwethers like NVDIA have begun to consolidate sideways.</li>
<li>A St. Louis Fed study of the pace of technology adoption suggests that AI adoption will undergo a long cycle like the PC, so investors need to be patient.</li>
</ul>


We believe AI is overhyped in the short run and underhyped in the long run.
Recent instances of earnings report reactions of stocks in the AI ecosystem indicate excessive frothiness and even AI bellwethers like NVDIA have begun to consolidate sideways.
A St. Louis Fed study of the pace of technology adoption suggests that AI adoption will undergo a long cycle like the PC, so investors need to be patient.
