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

The market’s bounce off of the December, 2018 low was a swift “V” reversal. While we often see a retest of such events, our outlook since that time has repeatedly suggested that a retest may not occur. We continue to believe the market remains healthy with overall and leadership remaining centered in the cyclical Sectors, mainly Technology.  In this publication we provide an overview of our U.S. equity strategy, and examine attractive opportunities in each of our 12 Sectors, beginning with Technology - our favorite.

The market’s bounce off of the December, 2018 low was a swift “V” reversal. While we often see a retest of such events, our outlook since that time has repeatedly suggested that a retest may not occur. We continue to believe the market remains healthy with overall and leadership remaining centered in the cyclical Sectors, mainly Technology.  In this publication we provide an overview of our U.S. equity strategy, and examine attractive opportunities in each of our 12 Sectors, beginning with Technology - our favorite.

U.S. Equity Strategy: Positive Outlook Intact; Cyclicals Leading; Opportunities in Tech Sector

Technology is our favorite Sector within the U.S. equity landscape, and remains leadership – 73% of our Tech Groups are in the top 33% in terms of our Relative Strength Rankings (RSRs). Internally, semis and semi-suppliers continue to outperform and many names have pulled back to offer attractive entry points. In this report we highlight our favorite setups within the U.S. Technology Sector.

Technology is our favorite Sector within the U.S. equity landscape, and remains leadership – 73% of our Tech Groups are in the top 33% in terms of our Relative Strength Rankings (RSRs). Internally, semis and semi-suppliers continue to outperform and many names have pulled back to offer attractive entry points. In this report we highlight our favorite setups within the U.S. Technology Sector. 

The last several months have been that of digestion and consolidation. While Sector and group leadership have taken a back seat to stock selection, rotations still seem to be the norm.  We have suggested that the current sector rotations are reminiscent of 1994. If conditions in the current market are indeed mimicking those of 1994, we would expect that sectors that are oversold are likely to bounce, and sectors that are overbought are likely to suffer pullbacks, which makes technical tools such as relative strength less viable.In our July Strategy we outline this thesis and highlight opportunities within the Technology, Health Care, Financial and Energy Sectors.

The last several months have been that of digestion and consolidation. While Sector and group leadership have taken a back seat to stock selection, rotations still seem to be the norm.  We have suggested that the current sector rotations are reminiscent of 1994. If conditions in the current market are indeed mimicking those of 1994, we would expect that sectors that are oversold are likely to bounce, and sectors that are overbought are likely to suffer pullbacks, which makes technical tools such as relative strength less viable.In our July Strategy we outline this thesis and highlight opportunities within the Technology, Health Care, Financial and Energy Sectors.

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

<ul>
<li>ATEN gained traction with large enterprise customers while North American service providers spent more money in the third quarter. </li>
<li>The variability of orders from certain service providers has resulted in ATEN reporting minimal revenue growth as the Company tried to broaden its customer base.  </li>
<li>Our approach to valuing ATEN remains unchanged as the Company has a growing cash balance and positive free cash flow. Our price target is now $24 from $17.  </li>
</ul>


ATEN gained traction with large enterprise customers while North American service providers spent more money in the third quarter. 
The variability of orders from certain service providers has resulted in ATEN reporting minimal revenue growth as the Company tried to broaden its customer base.  
Our approach to valuing ATEN remains unchanged as the Company has a growing cash balance and positive free cash flow. Our price target is now $24 from $17.  


<ul>
<li>ATEN reported Q2 results with greater success in winning enterprise orders while North American service providers limited their spending. </li>
<li>Over the past year, ATEN has shifted more of its sales and marketing effort to winning enterprise customers, which should have more of a meaningful benefit to recurring revenue. </li>
<li>ATEN reported revenue of $60.1 million compared to our forecast of $62.7 million. The second quarter results were lower than first quarter numbers, which is rare to see for ATEN.</li>
</ul>


ATEN reported Q2 results with greater success in winning enterprise orders while North American service providers limited their spending. 
Over the past year, ATEN has shifted more of its sales and marketing effort to winning enterprise customers, which should have more of a meaningful benefit to recurring revenue. 
ATEN reported revenue of $60.1 million compared to our forecast of $62.7 million. The second quarter results were lower than first quarter numbers, which is rare to see for ATEN.


United States

A10 Networks Inc. provides computer networking products and security solutions. The Company offers application networking platforms and security products to streamline technology operations, including cloud and service providers and application delivery solutions. A10 serves customers in various industries worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

A10 Networks (ATEN US)

U.S. Equity Strategy: Positive Outlook Intact; Cyclicals Leading; Opportunities in Tech Sector

The market’s bounce off of the December, 2018 low was a swift “V” reversal. While we often see a retest of such events, our outlook since that time...

Vermilion Research

Opportunities in U.S. Technology Sector

Technology is our favorite Sector within the U.S. equity landscape, and remains leadership – 73% of our Tech Groups are in the top 33% in terms of...

Vermilion Research

U.S. Equity Strategy:

The last several months have been that of digestion and consolidation. While Sector and group leadership have taken a back seat to stock selection,...

Vermilion Research

ATEN: Better Visibility, PT to $24

ATEN continues to show progress in winning business with large enterprise customers while North American service providers are beginning to spend...

BWS Financial Inc

ATEN: Volatility of the Spending Pattern

ATEN continues to struggle with North American service provider spending patterns. The success in winning new enterprise customers should benefit...

BWS Financial Inc

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)