Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Yesterday we attended the AGM of <a href="https://www.smartkarma.com/entities/equation-summit-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:15058:1">DiSa (DISA SP)</a>. Shares have dropped 50% YTD and the market cap is now only 22M SGD, barely above its net cash position of 12M SGD. In February 2017 its market cap was 385M SGD!DiSa continues to sell more security codes to a wide selection of clients ranging from Samsung, Leapfrog, to Italian infant accessories provider Chicco. In fact, since 2017 sales of codes have almost doubled ever year and are expected to double again in FY2020. However, with 10M codes projected to be sold in FY2020 the company is far away from breakeven which is now forecasted to be at 60M codes sold. The company currently claims to receive between 0.10-0.11 USD/code. Its sole user remains <a href="https://www.smartkarma.com/entities/walmart-inc" target="_blank" rel="noopener" data-smartkarma-citation="entities:11134:1">Walmart (WMT US)</a>. As I have written in the past DiSa remains a great story stock. If the company delivers on its promise it has the potential to be a 10x bagger in the coming 24-36 months and if it fails it is likely a zero. You normally find this sort of binary potential with biotech stocks on Nasdaq but not with any stocks on SGX.<div>While the stock was widely overvalued in February 2017, with a market cap of 385M SGD, it now seems that risk/reward is favorable with the market valuation at 22M SGD. Given the cash burn of 6M SGD/year the company will need likely need to raise money at some point in FY20/FY21. When this capital raise happens the board should decide to do a large share consolidation as with 11 billion shares outstanding at 0.001 SGD or 0.002 SGD price discovery is just absurd.</div><div>Disclosure: This is a VERY HIGH-RISK investment idea with binary potential.</div>

Yesterday we attended the AGM of DiSa (DISA SP). Shares have dropped 50% YTD and the market cap is now only 22M SGD, barely above its net cash position of 12M SGD. In February 2017 its market cap was 385M SGD!DiSa continues to sell more security codes to a wide selection of clients ranging from Samsung, Leapfrog, to Italian infant accessories provider Chicco. In fact, since 2017 sales of codes have almost doubled ever year and are expected to double again in FY2020. However, with 10M codes projected to be sold in FY2020 the company is far away from breakeven which is now forecasted to be at 60M codes sold. The company currently claims to receive between 0.10-0.11 USD/code. Its sole user remains Walmart (WMT US). As I have written in the past DiSa remains a great story stock. If the company delivers on its promise it has the potential to be a 10x bagger in the coming 24-36 months and if it fails it is likely a zero. You normally find this sort of binary potential with biotech stocks on Nasdaq but not with any stocks on SGX.While the stock was widely overvalued in February 2017, with a market cap of 385M SGD, it now seems that risk/reward is favorable with the market valuation at 22M SGD. Given the cash burn of 6M SGD/year the company will need likely need to raise money at some point in FY20/FY21. When this capital raise happens the board should decide to do a large share consolidation as with 11 billion shares outstanding at 0.001 SGD or 0.002 SGD price discovery is just absurd.Disclosure: This is a VERY HIGH-RISK investment idea with binary potential.

AGM DiSa (DISA SP): Still Waiting for Explosive Growth Phase; Remains Story Stock to Watch

Diversified Industries

Avi Dalfen

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

Thematic (Sector/Industry)

Investors using the Smartkarma (SMARTKARMA SP) platform may find useful the following information, along with our observations, on developments in North America and in South America.
Highlights of significant happenings this past week include:
<div>
<ol>
<li>
Feeding the Dragon -  <a href="https://www.smartkarma.com/entities/132" target="_blank" data-smartkarma-citation="entities:132:1">Ck Hutchison Holdings (1 HK)</a>-controlled company is hunting assets in the oil sands, and Mexico's new president is looking to Asia for Pacific port preferment partners.</li>
<li>
Local News on Global Companies –  <a href="https://www.smartkarma.com/entities/20962" target="_blank" data-smartkarma-citation="entities:20962:1">BYD Co Ltd (H) (1211 HK)</a> has success in selling battery operated tour buses, <a href="https://www.smartkarma.com/entities/1291" target="_blank" data-smartkarma-citation="entities:1291:1">Ebay Inc (EBAY US)</a> is suing <a href="https://www.smartkarma.com/entities/409" target="_blank" data-smartkarma-citation="entities:409:1">Amazon.com Inc (AMZN US)</a> for dirty tricks, <a href="https://www.smartkarma.com/entities/4904" target="_blank" data-smartkarma-citation="entities:4904:1">Ryder System (R US)</a> is upping its North American e-fulfillment capabilities, and retailers <a href="https://www.smartkarma.com/entities/11134" target="_blank" data-smartkarma-citation="entities:11134:1">Wal Mart Stores (WMT US)</a> and <a href="https://www.smartkarma.com/entities/20359" target="_blank" data-smartkarma-citation="entities:20359:1">Target Corp (TGT US)</a> are each buying more companies to offer new products and services as sector competition intensifies. </li>
<li>
Trade Deals &amp; No Deals – Argentina, Chile and Canada all taking advantage of new opportunities to ramp-up sales to China, while the U.S. State of Illinois is being harmed.  </li>
<li>
Outliers - Legalizing pot for recreational use means new highs for greenhouse prices in Canada, and U.S. highway congestion continuing to get worse, increasing costs for the trucking industry.</li>
</ol>
</div>

Investors using the Smartkarma (SMARTKARMA SP) platform may find useful the following information, along with our observations, on developments in North America and in South America.
Highlights of significant happenings this past week include:



Feeding the Dragon -  Ck Hutchison Holdings (1 HK)-controlled company is hunting assets in the oil sands, and Mexico's new president is looking to Asia for Pacific port preferment partners.

Local News on Global Companies –  BYD Co Ltd (H) (1211 HK) has success in selling battery operated tour buses, Ebay Inc (EBAY US) is suing Amazon.com Inc (AMZN US) for dirty tricks, Ryder System (R US) is upping its North American e-fulfillment capabilities, and retailers Wal Mart Stores (WMT US) and Target Corp (TGT US) are each buying more companies to offer new products and services as sector competition intensifies. 

Trade Deals &amp; No Deals – Argentina, Chile and Canada all taking advantage of new opportunities to ramp-up sales to China, while the U.S. State of Illinois is being harmed.  

Outliers - Legalizing pot for recreational use means new highs for greenhouse prices in Canada, and U.S. highway congestion continuing to get worse, increasing costs for the trucking industry.



Business Happenings in the Americas that May Be “Below the Radar” - Week Ending October 21, 2018

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

Key Points:<ul>
<li>Consumer Discretionary retailers and restaurants continue to demonstrate leadership characteristics. Many are breaking to new price and RS highs.</li>
<li>A number of small-cap E&amp;P’s have developed bullish bases and continue to have constructive RS trends.</li>
<li>A few semi supplier stocks are breaking price and RS downtrends.</li>
</ul>

Key Points:
Consumer Discretionary retailers and restaurants continue to demonstrate leadership characteristics. Many are breaking to new price and RS highs.
A number of small-cap E&amp;P’s have developed bullish bases and continue to have constructive RS trends.
A few semi supplier stocks are breaking price and RS downtrends.


As I have written in the past the SGX is home to a great story stock: <a href="https://www.smartkarma.com/entities/15058" target="_blank" data-smartkarma-citation="entities:15058:1">DiSa (DISA SP)</a>. If the company delivers on its promise it has the potential to be a 10x bagger in the coming 24-36 months and if it fails it is likely a zero. You normally find this sort of binary potential with biotech stocks on Nasdaq but not with any stocks on SGX.
For background on DiSa please see the insight stream.
Over the last few months, there has been lots of newsflow on DiSa which deserves some attention. The…

As I have written in the past the SGX is home to a great story stock: DiSa (DISA SP). If the company delivers on its promise it has the potential to be a 10x bagger in the coming 24-36 months and if it fails it is likely a zero. You normally find this sort of binary potential with biotech stocks on Nasdaq but not with any stocks on SGX.
For background on DiSa please see the insight stream.
Over the last few months, there has been lots of newsflow on DiSa which deserves some attention. The…

DiSa (DISA SP): This Story Stock Is Growing as Samsung Starts Using Its Anti-Theft Technology

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/049/842/original/APRN-banner.png?1524009273" class="editor-image img-responsive" data-smartkarma-image-id="49842"></figure>I admit I am often quite critical of some of the companies I write about here on Smartkarma.com. Not surprisingly, a few readers occasionally ask, what would it take for me to turn more positive on some of the companies I criticize here on the platform?This series is designed to answer those questions. Each of these 'What's Wrong With...?' notes will look at one of the companies I've picked on. I will offer my 'diagnosis' of the company's problems (Ma always wanted a doctor in the family...), a multi-step prescription to restore financial health, and then offer a prognosis for the 'patient'.In this inaugural note, I examine <a href="https://www.smartkarma.com/entities/24175" target="_blank" data-smartkarma-citation="entities:24175:1">Blue Apron Holdings, Inc. (APRN US)</a>, a US-based meal kit specialist that has seemingly been stumbling from one crisis to another since it began marketing its IPO in June 2017.

I admit I am often quite critical of some of the companies I write about here on Smartkarma.com. Not surprisingly, a few readers occasionally ask, what would it take for me to turn more positive on some of the companies I criticize here on the platform?This series is designed to answer those questions. Each of these 'What's Wrong With...?' notes will look at one of the companies I've picked on. I will offer my 'diagnosis' of the company's problems (Ma always wanted a doctor in the family...), a multi-step prescription to restore financial health, and then offer a prognosis for the 'patient'.In this inaugural note, I examine Blue Apron Holdings, Inc. (APRN US), a US-based meal kit specialist that has seemingly been stumbling from one crisis to another since it began marketing its IPO in June 2017. 

What's Wrong With Blue Apron? A Diagnosis & Prescription for a Return to Financial Health

United States

The Kroger Co. operates supermarkets and convenience stores in the United States.  The Company also manufactures and processes some of the foods that its supermarkets sell.

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