Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Thematic (Sector/Industry)

While the rest of the world starts to embrace and prepare for the COVID-19 by avoiding and canceling crowded events and corporate events, China appears to be coming out of the crisis mode, slowly but surely.  Macau has not had a new COVID-19 case for one month (since Feb 4th).  Once the Individual Visit Scheme visa resumes, we believe Macau will be a top destination for mainland Chinese with pent-up leisure travel demand.

While the rest of the world starts to embrace and prepare for the COVID-19 by avoiding and canceling crowded events and corporate events, China appears to be coming out of the crisis mode, slowly but surely.  Macau has not had a new COVID-19 case for one month (since Feb 4th).  Once the Individual Visit Scheme visa resumes, we believe Macau will be a top destination for mainland Chinese with pent-up leisure travel demand. 

Macau VIP Patrons Eager to Return; Visible Recovery After 15-Days Shutdown

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

Despite recent weakness across global markets, our weight of the evidence approach continues to lead us to the same conclusions as we posited in our 1/24/20 and 1/30/20 Int’l Compass reports: we continue to believe this is a bull market until proven otherwise, and a “buy the dip” strategy remains warranted. In our February International Strategy, we highlight various themes which lead to our bullish outlook, and offer several attractive opportunities we are seeing in the global health care and technology sectors..

Despite recent weakness across global markets, our weight of the evidence approach continues to lead us to the same conclusions as we posited in our 1/24/20 and 1/30/20 Int’l Compass reports: we continue to believe this is a bull market until proven otherwise, and a “buy the dip” strategy remains warranted. In our February International Strategy, we highlight various themes which lead to our bullish outlook, and offer several attractive opportunities we are seeing in the global health care and technology sectors..

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

<ul>
<li>US casino operators have sold off considerable realty to REITs as an alternative to dividends and stock buybacks.</li>
<li>Macau casinos could pose similar opportunities as sunk investments increase and for some, massive Japan investment pile on debt.</li>
<li>REITs pose a solid path for Macau casinos to consider to move their shares as headwinds slowly diminish over the next several years.</li>
</ul>


US casino operators have sold off considerable realty to REITs as an alternative to dividends and stock buybacks.
Macau casinos could pose similar opportunities as sunk investments increase and for some, massive Japan investment pile on debt.
REITs pose a solid path for Macau casinos to consider to move their shares as headwinds slowly diminish over the next several years.


Prospects for Macau Casinos REIT Spinoffs Could Unlock Shareholder Value Fast

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>On 1 June, <a href="https://www.smartkarma.com/entities/mgm-resorts-international" target="_blank" data-smartkarma-citation="entities:16227:1" rel="noopener">MGM Resorts International (MGM US)</a> confirmed that it had received an offer from <a href="https://www.smartkarma.com/entities/iac-inc-people-incorporated" target="_blank" data-smartkarma-citation="entities:754:1" rel="noopener">People Incorporated (IAC) (IAC US)</a> to acquire it for US$48.30 per share. </li>
<li>
<a href="https://www.smartkarma.com/entities/mgm-china-holdings-limited" target="_blank" data-smartkarma-citation="entities:472:1" rel="noopener">MGM China (2282 HK)</a> rose 7% due to the near-term possibility that the acquisition could trigger a mandatory general offer (downstream offer) and the long-term possibility of a privatisation offer.   </li>
<li>The triggering of an MGO based on the chain principle is not guaranteed, and the potential offer would be well below the last close. Nevertheless, MGM China’s valuation remains undemanding.</li>
</ul>


On 1 June, MGM Resorts International (MGM US) confirmed that it had received an offer from People Incorporated (IAC) (IAC US) to acquire it for US$48.30 per share. 

MGM China (2282 HK) rose 7% due to the near-term possibility that the acquisition could trigger a mandatory general offer (downstream offer) and the long-term possibility of a privatisation offer.   
The triggering of an MGO based on the chain principle is not guaranteed, and the potential offer would be well below the last close. Nevertheless, MGM China’s valuation remains undemanding.


MGM China (2282 HK): An MGO Based on the Chain Principle Is Not a Sure Thing

We believe the S&amp;P 500, STOXX Europe 600, MSCI ACWI ex-U.S., EAFE, and MSCI China are pulling back to support at their prior breakout levels -- levels we believe will hold. Tech remains our favorite Sector globally. Additional attractive cyclical areas in which to add exposure at current levels include Financials in Europe, autos and auto parts stocks, and casinos and gaming in Macau... see report for a technical appraisal of all major markets and a collection of actionable stocks.

We believe the S&amp;P 500, STOXX Europe 600, MSCI ACWI ex-U.S., EAFE, and MSCI China are pulling back to support at their prior breakout levels -- levels we believe will hold. Tech remains our favorite Sector globally. Additional attractive cyclical areas in which to add exposure at current levels include Financials in Europe, autos and auto parts stocks, and casinos and gaming in Macau... see report for a technical appraisal of all major markets and a collection of actionable stocks.

Global Equity Strategy: Major Indexes at Logical Support

Hong Kong

Galaxy Entertainment Group is a leading hospitality and gaming company that develops and operates integrated resorts, hotels, and casinos in Macau. Its key properties include Galaxy Macau, Broadway Macau, and StarWorld Macau, offering casino games, entertainment, and related hospitality services. The company is headquartered in Hong Kong and was established in 2002.

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Galaxy Entertainment Group (27 HK)

Macau VIP Patrons Eager to Return; Visible Recovery After 15-Days Shutdown

While the rest of the world starts to embrace and prepare for the COVID-19 by avoiding and canceling crowded events and corporate events, China...

JL Warren Capital

Global Equity Strategy: Buy the Dips

Despite recent weakness across global markets, our weight of the evidence approach continues to lead us to the same conclusions as we posited in...

Vermilion Research

Prospects for Macau Casinos REIT Spinoffs Could Unlock Shareholder Value Fast

US casino operators have sold off considerable realty to REITs as an alternative to dividends and stock buybacks. Macau casinos could pose similar...

Howard J Klein

MGM China (2282 HK): An MGO Based on the Chain Principle Is Not a Sure Thing

The triggering of an MGO based on the chain principle is not guaranteed, and the potential offer would be well below the last close. Nevertheless,...

Arun George

Global Equity Strategy: Major Indexes at Logical Support

We believe the S&P 500, STOXX Europe 600, MSCI ACWI ex-U.S., EAFE, and MSCI China are pulling back to support at their prior breakout levels --...

Vermilion Research

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